Hawaiian Telcom lays out new union employment terms, but expects legal challenge

With negotiations with its union employees at an "impasse," Hawaiian Telcom (Nasdaq: HCOM) has told the IBEW Local Union 1357 leaders that beginning on Jan 1. 2012 they will implement modified employment terms that reflect previously proposed offers.

The service provider said that it has to put these changes into effect now so it can apply the modified benefits throughout 2012. However, the two sides have continued to engage in talks with an agreement to not strike through Jan 6.

IBEW, which had rejected Hawaiian Telcom's previously updated collective bargaining agreement (CBA), has told the telco that it will be filing a legal challenge of the bargaining process.

Although the majority of the telco's modified employment terms will go into effect on Jan. 1, the 1 percent wage increase was applied as of Dec. 18 and changes to union retirement benefits will occur on March 1, 2012. In addition, the Union employees will begin paying five percent of the premiums for their chosen healthcare coverage in 2012.

For more:
- see the release

Related articles:
Hawaiian Telcom puts final offer to union on the table
Hawaiian Telcom union workers strike over new contract concessions
Hawaiian Telcom revenues decline to $97M; broadband, business gain
Hawaiian Telcom completes amendment of $30M credit facility

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