Big Trouble in Paradise

A high tide has lifted the U.S. economy — but Hawaii has missed the boat.

Hawaii is renowned for its perfect weather, exotic scenery and friendly people. Its reputation as a vacation paradise has drawn hundreds of thousands of visitors every year from the U.S. mainland and from Japan. But as Japan’s economy has taken a nosedive, fewer and fewer Japanese have had a yen for a Hawaiian vacation or investment. Hawaiians have been left with empty resorts and empty pockets.

The drop in Japanese tourism and investment is just one of several pieces of bad luck that have driven Hawaii’s economy into a seven-year tailspin. Hawaiian leaders point to such diverse factors as the collapse of the local farm industry and Hurricane Iniki as contributing to the state’s woes.

With an unemployment rate almost 2 percent higher than the national average, Hawaiian workers are scared — including tens of thousands of AFSCME members.

"They see private-sector workers being laid off around them and they feel skittish, uncomfortable," explains Russell Okata, the executive director of the Hawaii Government Employees Association (HGEA)/AFSCME Local 152. "Even though they have enjoyed good contracts over the years, they see what’s happening and they’re afraid." Okata is also an AFSCME International vice president.

With 30 percent of its workforce unionized, Hawaii has the highest concentration of union members in the United States. All public-sector workers in Hawaii are union members and the vast majority — 35,000 — belong to two AFSCME affiliates: HGEA/AFSCME and United Public Workers/AFSCME Local 646. In addition, AFSCME Local 928 represents workers at the privately run East-West Center. AFSCME also has 19,000 retiree members in Hawaii.

Although large-scale layoffs have been avoided in the public sector, incentives have been offered to government workers to retire early, and vacant positions have not been filled. At the same time, the economic slump has increased social problems — poverty, crime and domestic violence — leaving fewer government workers to take care of growing needs. The situation has become so severe that hundreds of Hawaiian convicts have been sent to three privately run prisons thousands of miles away in Texas to ease overcrowding — but Hawaiian prisons are still operating beyond capacity.

Hawaii has always been a place where the community takes care of its members, says Okata. State and local governments offer comprehensive public services and the most inclusive public health care system in the nation. Despite the state’s economic problems, AFSCME members have won pay increases in their contracts. But now, with a $280 million state budget deficit projected for the year 2000, business leaders are pushing for cuts in government services and jobs.

"That’s ridiculous," argues Okata. "These workers are needed now more than ever. And where will they go? The private sector can’t absorb them. And because we live on islands, they can’t simply commute to work out of state."

Okata is joining with UPW State Director Gary Rodrigues and Local 928 Pres. Ralph Carvalho in fighting attempts to slash government jobs. "We hope that the legislature will work with us to find a solution to this problem," says Okata. "They should be praising government workers, not trying to put us out of jobs."

Hawaiian AFSCME members hope the August AFSCME International Convention in Honolulu will strengthen the image of public employees in the state — and provide an infusion of tourist dollars for Hawaiian businesses. Government, Labor and business leaders agree that tourism will propel Hawaii out of its economic slump, and AFSCME will lead the way as the first large group to use the newly constructed convention center. "Once other groups see that Hawaii can handle AFSCME, they too will follow," says Okata. "The Convention couldn’t come at a better time."

For information on air travel, car rental and pre- and post-Convention travel packages, contact the AFSCME Convention travel hotline at 1-800-711-7723 or visit the AFSCME Web site for more details.