June 20, 2003
STATEMENT OF OBJECTIONS TO HOUSE BILL NO. 531
State of Hawaii
Pursuant to Section 16 of Article III of the Constitution of the State of Hawaii, I am returning herewith, without my approval, House Bill No. 531, entitled "A Bill for an Act Relating to Public Employees."
This bill amends provisions relating to compensation and benefit adjustments for excluded managerial civil service employees. The bill provides that, in formulating recommendations to the appropriate authority, the respective director shall ensure that proposed adjustments are consistent with civil service laws and equivalent or not less than adjustments provided for counterpart included civil service employees within the employer's jurisdiction.
This bill is objectionable and poor public policy, because the compensation and benefits packages for high-level excluded managerial employees will be linked to benefits obtained by the Unions through negotiation. This creates a conflict of interest for excluded managers, it reduces management's flexibility in employing excluded personnel, and it is contrary to the underlying rationale for creating excluded positions that are not subject to collective bargaining. In addition, the establishment of a compensation "floor" that is no less than the compensation negotiated for counterpart included civil service employees undermines the effort to establish pay for performance. Poor excluded performers receive the same as included counterparts, leaving less resources available to reward outstanding performers.
For the foregoing reasons, I am returning House Bill No. 531 without my approval.
Governor of Hawaii