BUSINESS MANAGER'S REPORT

April 3, 2009

 

1.  The TPA and Company bonuses have recently made headlines. With opposition from Governor Lingle, the U.S. Trustee and the unsecured lenders, Judge King will be hearing the motions on April 16th. Many members have expressed their willingness to forgo their TPA pay in order to keep the Company healthy. But, here are my thoughts:

• The former CEO and his executive team got a huge severance pay for driving this Company into bankruptcy.

• Over 800 hourly employees have had to work through the most difficult of times: poor systems, frustrated customers, an extended management team, a new Senior Management Team, lack of resources, lack of training, deteriorating facilities and equipment, heavy-handed disciplines, etc.

Through it all, our members have remained focused on the customers and have worked around the many issues to provide that "World Class Customer Service".

 

Also, as a member of the Unsecured Creditors Committee, I am privy to some of the financials related to the Company. As we stated earlier, Chapter 11 has not been a bad thing for the Company. They have reduced their interest payments in half and their Cash Flow has increased since filing for Chapter 11.

 

It is with that background that we support the Company and the Secured Lendor's position of paying the Union employees their target bonuses. The Courts ultimately will have a say in our benefits and wage structure. Again the hearing is scheduled for April 16th.

 

We thank our members for being responsible and being the best workforce in the nation, bar none.

 

2.  I have spoken with IT&E owner Ricky Delgado and have scheduled a meeting with him for Sunday, April 5th, in Honolulu, to go over the Company's business strategy. Ricky is in town with Operations Manager Rob Harrell to help grow the business for Guam and the CNMI. We will be asking Ricky to help us better improve the health and welfare conditions for our Brothers and Sisters at IT&E. A special Si Yu'us Ma'ase to Brothers Ray Tenorio and Hector Venus for all the work they do for our Union.

 

3.  Finally, there have been some concerns about our members in the Call Centers. At both Hawaiian Telcom and IT&E, improvements need to be made in order to improve the working conditions for our members.

 

For the past 3 months, 20% of Hawaiian Telcom's CSSC Reps have called off in the Center. At IT&E, new hires with poor attendance have been allowed to continue their employment through their probationary period.

 

The Union has engaged the Management teams, and improvements have been made. Better training for supervisors, administering of Sickness Disability Benefits, engaging members and Union Stewards as to how to improve the environment, upgrading the facilities and system improvements all have been done. It will take some time for the Centers to heal and adjust, but our commitment is to hold everyone accountable and get the Centers back to a healthy state. I appreciate everyone's hard work and dedication throughout this time, and I urge us all to continue to help and encourage one another.

 

4.  The National Association of Letter Carriers (NALC) is conducting its annual nationwide Food Drive on Saturday, May 9, 2009. The Hawaii State AFL-CIO and Labor's Community Services Program of Hawaii will again assist in this event and are looking for volunteers to help sort and pack donations. For more information, please contact the following United Way coordinators:

• Oahu - Ron Tanaka - Phone 543-2249

• Hawaii - Steven Querobin - Phone 969-3236

• Maui - Lena Staton - Phone 244-8787.