STAND. COM. REP. NO.209-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 1968

H.D. 1




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Labor and Public Employment, to which was referred H.B. No. 1968 entitled:


begs leave to report as follows:

The purpose of this bill is to amend current labor laws.

Specifically, this bill:

(1) Provides competitive wages and benefits for service employees;

(2) Allows contracted employees to organize under labor organizations; and

(3) Repeals wage, hour, and working condition requirements of employees of contractors performing services for a governmental agency.

The Hawaii State AFL-CIO and the International Longshoremen and Warehousers Union (ILWU) testified in support of this bill. Blueprint For Change submitted testimony in support of the intent of this bill. The Maui Humane Society, Maui Non-Profit Directors, Maui Economic Opportunity, Inc., and Maui Adult Day Care Centers testified in opposition to this measure. The Department of Labor and Industrial Relations commented on this bill.

The State continues to move towards privatization as a means of reducing costs and improving efficiency in the provision of services for the public at large. However, as this movement continues, the possibility exists that negative impacts will be felt by working class and poor families. Contractors attempting to win bids to provide governmental services may reduce their employee's pay and benefits in an effort to be the lowest bidder and win the contract. In doing so, individuals may need to work two or three jobs to make ends meet.

Although labor law parity for service employees is an important issue, your Committee understands the concerns of nonprofit organizations and their ability to continue to provide valuable services to the community at affordable prices.

Accordingly, your Committee has amended this measure by exempting non-profit organizations who contract to perform services for governmental agencies.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1968, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1968, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,