BUSINESS MANAGER'S REPORT

June 5, 2009

 

1.  Hawaiian Telcom continues to be mired in litigation. Ever since the filing for Chapter 11 back in December 2008, HT has spent several million dollars tied to the Bankruptcy. The image of the Company continues to deteriorate as consumer confidence declines. Here are some recent updates:

• The Company recently filed a Plan of Reorganization with the Bankruptcy Court. The Plan would involve a Change of Control from The Carlyle Group to the Secured Lendors. This process would need Court, PUC and FCC approvals.

• Given the complexity of Chapter 11, emergence from bankruptcy will probably not happen until the 2nd quarter of 2010. The longer we remain in Chapter 11, the more detrimental it is for the Unsecured Creditors, the Secured Creditors, the Consumers, and most importantly the employees of Hawaiian Telcom.

• The Secured Lendors have approached the Union to discuss amending the Collective Bargaining Agreement specific to the Pension. Several concessions were made when we ratified the 3-year Agreement back in September 2008. We will work with our International Office, our attorneys and our benefit consultants on how best to address the Secured's pressure.

• With the closing of the 3 retail stores (Kapolei, Windward Mall and Lihue), the majority of the affected members will be transitioning to other stores and other positions throughout the Company. There will also be a ripple affect to members beyond Retail Sales Consultants and Phone Mart Assistants. The Union continues to work at minimizing the impact on our members.

With all of the difficulties going on throughout Hawaiian Telcom, it has put a tremendous strain on Union resources. We will continue in our resolve to protect our membership. We thank our members for being responsible, and for all of the hard work and dedication they continue to provide for this Union.

 

2.  PTI/ITE and the Union have held our first discussion regarding the Performance Incentive Plan. We hope to finalize the Plan by the end of the month. This agreement will help members enjoy another benefit as a result of the fruits of their labor. Other issues Unit 10 Chair Ray Tenorio and Recorder Pro Tem Hector Venus are working on include:

• Organizing more members

• Community Service Projects

• Internal Training for members

• Educational opportunities for members, and

• Preparing for the next negotiations.

Again I'd like to thank our Unit 10 members for their dedication and hard work.

 

God bless our country, and God bless our Union.