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.
- see the release
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