Category Archives: Labor

Four Seasons banquet servers entitled to back pay, federal court rules

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The Four Seasons Resorts on Maui and Hualalai, on the Big Island of Hawaii, must repay food and beverage service employees the portion of service fees that was diverted to other corporate uses without being discussed to customers, Federal District Judge Helen Gillmor ruled recently.

According to WaiterPay.com:

In the lawsuit, Four Seasons did not dispute that the resort customers are billed an 18 to 22 percent service charge, and that it retained a portion of the service charge that was not distributed to employees. Judge Gillmor ruled that “Four Seasons failed to clearly disclose to at least some customers that service charges would not be remitted in full” to the servers, and therefore they were liable to the servers for unpaid wages, under Hawaii law.

A trial will determine the amount of back wages the company must pay.

A Google search turns up a lot of recent news about Hawaii’s Four Seasons resorts, but I didn’t see any mention of this case.

Gillmor’s decision ripped into a series of defenses thrown out by Four Seasons, including claims that it did not actually employ the banquet servers because “day-to-day” operations of the two resorts were handled by 3900 WA Associates, LLC (Maui) and Hualalai Investors, LLC.

Four Seasons states that these entities each separately controls its own payroll, has its own revenues, issues its own financial statements, makes its own human resources decisions, and has its own human resources department.

But the court rejected the argument, citing evidence that Four Seasons was contractually responsible for operating the resorts, and employment agreements drafted by Four Seasons and stating, “in capitalized letters, ‘I AM A FOUR SEASONS EMPLOYEE.'”

The class action lawsuit was originally filed in November 2008. A legal issue in the case was referred to the Hawaii Supreme Court, which issued a ruling in March 2010 which allowed the case to go forward.

The case is just one of several legal claims brought to enforce a state law on tips passed by the legislature in 2000.

Newspaper Guild gets tentative contract at Star-Advertiser

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The Pacific Media Workers Guild, the Newspaper Guild local that now includes the union’s units in Hawaii, has announced a tentative contract agreement covering employees of the Honolulu Star-Advertiser.

The deal calls for a 10% pay raise over the 5 year term of the contract, with a 1.5% boost in each of the first three years, followed by 2.5% and 3% in the final two years.

In several other areas, benefits will be reduced or employees will have to pay more. Employees’ share of health insurance premiums will rise in two steps from the current 10% to 20% in 2013. In addition, spouses who are eligible for another health care plan, such as from their employer, will no longer be eligible for the S-A coverage.

Employees will lose one annual holiday, maximum sick leave will drop by half (from four weeks to two weeks), and long-time employees will no longer earn a fifth week of vacation after 24 years with the company.

The Guild had 80 members at the Star-Advertiser as of 9/30/2010.

Members of the Guild’s bargaining committee were Heather Ahue, Derrick DePledge, Rob Shikina, Gene Park, Sjarif Goldstein, Gary Chun, Cynthia Oi, and Jenny Delos Santos.

Gary Rodrigues to serve one more year

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Gary Rodrigues, former state director of the United Public Workers and once considered one of the state’s most powerful figures, has to serve another year before being released from a federal prison in Taft, California. His projected release date, according to the Federal Bureau of Prisons, is August 27, 2012.

Rodrigues was sentenced to 64 months in 2002 after his conviction on 101 counts, including mail fraud, money laundering, and embezzlement for arranging kickbacks from union insurance contracts, including nearly $400,000 in consulting fees channeled to two companies owned by his daughter.

My series of investigative stories on Rodrigues brought public attention to the union leader’s misuse of power within his union, and were credited by prosecutors at the time with paving the way towards his indictment and conviction. My last story as a reporter for the Star-Bulletin was a front-page piece on the indictment. The following week the newspaper was sold to David Black and I was out of work.

UH faculty union blasts HSTA for “undermining public union rights”

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The University of Hawaii Professional Assembly, the union which represents UH faculty across the state, yesterday accused HSTA leaders of taking “ignoring the consequences of their actions” by taking legal actions that “jeopardize the rights of all public sector unions, including the right to strike.”

The unusually sharp and public rebuke was made in an email sent to UHPA members Thursday evening.

UHPA said HSTA has “attacked the character of other union leaders,” and accused other unions, including UPHA, of conspiring with the state by reaching contract settlements.

UHPA’s request to intervene in the proceedings before the Hawaii Labor Relations Board “to preserve the right to strike” was approved over HSTA’s objections. HSTA also tried to bar HGEA’s legal counsel from taking part in the proceedings, according to UHPA.

HSTA’s actions have “alienated virtually everyone who has a relationship with HSTA,” UHPA charged. The UH union said HSTA has subpoenaed more than 88 invididuals, including representatives of UHPA, HGEA, and UPW, in order to question them about an alleged “conspiracy.”

“The notion of a conspiracy is an insult,” UHPA said.

HSTA’s relations with other public employee unions have been strained since 2005, when the teachers union bolted from the Employer-Union Health Benefit Trust Fund, which was set up as a centralized provider of health benefits to state and county workers. HSTA’s move to its own health trust removed its members, generally considered better health risks, out of the general pool of union employees, resulting in higher costs and higher health care premiums for other public workers.

The legislature declined to reauthorize the separate HSTA health benefits plan and it expired this year, with teachers being moved back into the larger EUTF.

The full UHPA email is reprinted below.

To: All UHPA members

Subject: HSTA Leadership Undermining Public Union Rights

HSTA’s hearings before the Hawaii Labor Relations Board (HLRB) have recently grabbed headlines in the news, but UH faculty should know there is a much more important story that is brewing beneath the surface out of the public eye. The subtext has grave implications for all public sector unions, including UHPA.

Collective bargaining is the most efficient and effective way for an employer and union to reach an agreement. We believe the legal process should be used to clarify and enhance collective bargaining; not be a substitute for it.

UHPA is deeply troubled by the actions the leadership of the Hawaii State Teachers Association (HSTA) is undertaking to promote its position before the HLRB. HSTA’s leadership has filed a series of legal actions, including attacks on the character of other union leaders, that are resulting in more harm to Hawaii’s teachers and that could jeopardize the rights of all public sector unions, including the right to strike.

Unfortunately, HSTA is not only undermining their own case by deploying these tactics, but they are also impacting the lives of all members represented by public unions. The rationale for these tactics is transparent: they are designed to divert attention away from the core issues of collective bargaining and the need to protect the rights of all public union employees.

HSTA leaders are making decisions that appear to ignore the consequences of their actions. As a result, HSTA has alienated virtually everyone who has a relationship with HSTA.

• HSTA’s leadership has alleged that the leaders of other public unions have made agreements with the Governor and that UHPA conspired against Hawaii’s teachers and prohibited their right to bargain. As a result, more than 88 individuals, some representing the leaders of UHPA, HGEA and UPW, have been subpoenaed to testify at the HLRB hearings. The notion of a conspiracy is an insult.

•HSTA’s leadership has sought to have HGEA’s legal counsel barred from participating in the HLRB proceeding.

•Recently, HSTA’s leadership filed motions charging the HLRB with unfair and unethical practices, alleging bias and deliberately delaying hearings on the prohibited practice claims and other issues. As a result of this challenge one HLRB member recused herself due to her spouse being an HSTA member. This is an unfortunate and unintended consequence of their efforts.

When HSTA filed its prohibited practice claim with the HLRB, UHPA filed a petition to intervene to preserve the right to strike. HLRB accepted UHPA as an intervener over the objections of HSTA. In addition, UHPA has been informed that HSTA will seek to have the HLRB order overturned in Circuit Court. If HSTA is successful this would prohibit UHPA from addressing issues that impact the rights of faculty.

UHPA filed the petition because of the implications for UHPA and other unions. Unlike some other labor unions, if there were an impasse in negotiations between UHPA and the State, faculty members would be allowed to strike and would not be subject to interest arbitration. HSTA’s hearing could affect that right and UHPA wants to ensure good-faith bargaining efforts can continue.

While UHPA is confident HSTA’s charges are baseless, it is troubling that Hawaii’s teachers are the ones who must endure the circuitous and destructive route HSTA leadership has chosen as the means to obtain a contract. These tactics create unnecessary drama; not a settled contract.