Hawaiian Telcom (Nasdaq: HCOM) is going to present what it says is its best and final offer to settle a contract dispute between the company and the IBEW Local 1357 union.
In mid-August, the service provider and union representatives began formal negotiations toward a new collective bargaining agreement. But after neither side could reach a mutual agreement, Hawaiian Telcom presented what it said was a "Last, Best and Final Offer" to union leaders in early October.
The union rejected the company's offer and began a two day strike on Nov. 10 and 11 while delivering a set of CBA proposals including new pension benefits, reimbursement to purchase a personal computer, expanded dental coverage including cosmetic procedures and orthodontics, less than 2 percent contribution to employee healthcare, and reducing sick leave for 2012, which would then be gradually increased to the current 26-week leave.
Effective Dec. 1, the ILEC's offer includes a number of elements counter to the union's proposal, including 1 percent annual compounded wage increase for 3 years, $500 bonus annually for 3 years, up to 8 weeks of sick leave, healthcare at 10 percent employee contribution, and an enhanced 401(k) match while freezing pension at current values.
Similar to Verizon (NYSE: VZ), which has still yet to finalize agreement with its union workers, Hawaiian Telcom argues that it needs to ask the union for these concessions so it can economically viable.
For more:
- see the release
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