SOURCE: Honolulu Star-Bulletin http://starbulletin.com/2005/05/11/business/index.html Island Air gives raises, plans to hire The Teamsters asked the carrier for better pay By Dave Segal dsegal@xxxxxxxxxxxxxxxx In a time of concessions at many airlines, Hawaii commuter carrier Island Air has boosted the wages of more than half of its union members by as much as 30 percent. Aloha Air The airline also plans to increase its work force by more than 20 percent by the end of the year. New Chief Executive Robert Mauracher said the higher wages and expansion are part of the company's effort to improve its identity and reliability. Island Air is laying the groundwork for future growth while trying to improve customer service and increase employee retention. The airline also plans to move its operations in Kahului, Maui, from the airport's commuter terminal to the main terminal beginning Sunday. The reason for the move is to create a more professional environment and to gain better proximity to various airport services, Mauracher said. Mel Kahele, president of Hawaii Teamsters Local 996, said the union sent a letter to Island Air asking to reopen contract negotiations after Mauracher came on board. "The hourly wages being paid to flight attendants, ground crew and mechanics weren't enough for them to survive, and they agreed," Kahele said. "They were actually losing good workers who were finding good jobs elsewhere. "They did not want to lose the people to the competitor (startup FlyHawaii), and we said that if they wanted to keep these workers, they'd need to pay them more. It was a quick negotiation." Mauracher said the company actively sought to raise wages to cut down on attrition. "We are growing the airline and we want the employees to become permanent to the company," Mauracher said. "I don't want to be a springboard or a stepping stone to another airline. I want the people to join us for life. If you look at our benefits package, which is excellent, combined with our new wage package, now it's not worth it for them to make a jump for strictly wages any longer, and they'll stay with us." Mauracher said the job openings, which will be advertised later this month, will increase the size of Island Air's work force to 431 from 358. Positions available statewide will include customer service agents, flight attendants, ramp agents and mechanics. Mauracher, a former Bombardier and Air Jamaica executive, assumed the top job at Island Air in mid-February. His appointment came nine months after Aloha Airlines' parent, Aloha Airgroup Inc., sold Island Air to Gavarnie Holding LLC, a San Francisco-based family-owned company. Island Air, the state's third-largest airline, serves all the neighbor islands with eight 37-seat de Havilland Dash-8 aircraft. Wage increases, which took effect last Wednesday, were given to the more than 200 employees in two groups represented by the Teamsters. The mechanics group includes mechanics, inspectors and cleaners. The customer service group includes customer service agents, ramp agents, flight attendants and fuelers. Entry-level pay for mechanics went to $14.50 an hour from $12 an hour, not including aircraft license premiums of an additional $1.10 an hour for certain certifications. The top scale for mechanics went up to a base pay of $24.09 an hour after working 10 years. The previous top scale was $16.70 after five years, with a 5 percent increase of base pay each year afterward. A mechanic in his sixth year is getting base pay of $18.51 under the new pay structure, compared with $17.53 before. Customer service employees saw their pay boosted to $8.10 an hour from $6.25 for entry-level positions. Top scale after the eighth year is $11.26. There was no top scale before, but rather increases ranging from 2 to 4 percent a year. Michael Wing, vice president of administration for Island Air, said the company opened negotiations early with the mechanics group even though the contract wasn't due to be amended until October. The two sides agreed to an 18-month contract that ends in November 2006. The customer service agents' contract wasn't up until July 2007 and is still amendable in that year.