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Tuesday, November 29, 2011
IBEW to Vote on New Offer from Hawaiian Tel
By News Release @ 9:55 PM :: 6518 Views :: Energy, Environment

Hawaiian Telcom Updates Collective Bargaining Agreement Offer for Expedited Vote by IBEW Local Union 1357

News Release from HawaiianTel

HONOLULU (Tuesday, November 29, 2011) -- Hawaiian Telcom Holdco, Inc. (NASDAQ: HCOM) announced today that, through the efforts of a federal mediator working with bargaining representatives of both the Company and the Union, the Company made an updated collective bargaining agreement (CBA) offer to the Union. The updated offer represents a good faith effort by both parties to address each other's needs and concerns toward achieving a mutually agreeable CBA, while standing by the financial framework of the Company's Last, Best and Final Offer made in October.

The Company will defer the previously announced December 1 implementation of its Last, Best and Final Offer to allow the Union to conduct an immediate vote on the updated offer. The Union's negotiation team and leadership understand the importance of working with the Company to ensure Hawaiian Telcom's future success - to which the contractual changes are vital - and have accordingly taken a neutral position on the Company's updated offer. This allows Union members to make personal decisions and vote based on their individual situations.

The Union is proceeding with an expedited voting process, with plans to send out ballots and additional information today and to count the ballots on December 13. The Company and the Union have agreed that during the voting period, there will be no work stoppages or slowdowns and no lockouts.

The Company's updated offer adjusts the Last, Best and Final Offer by graduating Union employees' healthcare premium contributions at 5% for 2012 and at 10% effective January 1, 2013;
providing up to 10 weeks of fully paid benefits annually for sick leave (instead of up to 26 weeks currently and 8 weeks in the prior offer); decreasing the target annual incentive payment; and withdrawing proposed changes to overtime computations and to certain work procedures. The Company's updated offer also proposes a three-and-a-half year CBA duration instead of the historical three years, with a proposed expiration date of June 30, 2015. In all other respects, the updated offer includes the remaining terms and conditions of the Company's Last, Best and Final Offer.

Forward-Looking Statements
In addition to historical information, this release includes certain statements and predictions that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, any statement, projection or estimate that includes or references the words "believes", "anticipates", "intends", "expects", or any similar expression falls within the safe harbor of forward-looking statements contained in the Reform Act. Actual results or outcomes may differ materially from those indicated or suggested by any such forward-looking statement for a variety of reasons. More information on potential risks and uncertainties is available in recent filings with the Securities and Exchange Commission, including Hawaiian Telcom's 2010 Annual Report on Form 10-K and Form 10-Q filed on November 14, 2011. The information contained in this release is as of November 29, 2011. It is anticipated that subsequent events and developments may cause estimates to change.

About Hawaiian Telcom
Hawaiian Telcom Holdco, Inc., headquartered in Honolulu, is Hawaii's leading provider of integrated communications solutions for business and residential customers. With roots in Hawaii beginning in 1883, the Company offers a full range of services including voice, video, Internet, data, wireless, and advanced communication and network services supported by the reach and reliability of its network and Hawaii's only 24/7 state-of-the-art network operations center. With employees statewide sharing a commitment to innovation and a passion for delivering superior service, Hawaiian Telcom provides an Always OnSM customer experience. For more information, visit

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Message from IBEW 1357

Dear Friends,

We have been relentless in our pursuit of getting the Company back to the bargaining table. And with the help of the Federal Mediator, the Company has made some adjustments to its Last Best and Final offer. Listed below are highlights of the changes (details will be mailed out):

Sickness Disability Plan

Moving from 8 weeks of fully paid sick leave benefits beginning January 1, 2012, the Company now proposes to provide 10 weeks of fully paid benefits from January 1, 2012 through June 30, 2015.

Medical & Dental Plans

Members’ contribution toward the plans was changed from 10% for medical and dental coverage effective January 1, 2012 to 5% effective January 1, 2012 and then 10% effective January 1, 2013. To decrease overall out-of-pocket medical costs to employees, the Company adopted changes to the HMO Hawaii and Kaiser prevalent plans to reduce employee contributions to monthly premiums (versus keeping the plans status quo), while adjusting some co-payment amounts.

Overtime and Premium Payments

The Company is withdrawing its unproductive time (holidays, vacation, sick and personal holidays, etc.) proposal for overtime calculations.

Callout Time

The Company is withdrawing its mandatory callout procedure.

The Company also withdraws its proposal to implement standby. This proposal was linked to the Company’s proposal to make callout mandatory.

Promotions, Transfers and Preferential Transfers

The Company will remove its proposal for the 18-month time-in-job requirement when employees obtain special certifications and licenses.

Team Performance Award (TPA)

The Company is decreasing the TPA targeted award from 4% to 3%, which also results in a maximum 120% payout being reduced from 4.8% to 3.6%.


The Company proposes that the new CBA extend for three-and-a-half years instead of the traditional three years.

In our effort to be transparent with our membership, we have made the Company’s offer available for you to review, and you will have the right to exercise your vote to accept or reject such offer.

Due to the timing of the changes in the Company’s proposals, the Union is expediting our balloting process. Ballots will be mailed out today and need to be in the repository by Monday, December 12, 2011. We apologize for the short timeline and thank you for your patience.



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