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Employee Retention of Hawaiian Airlines -
April 12th, 2011
Hawaiian Airlines, Inc. is a major airline of the United States. It is the largest airline based in the State of Hawai'i, and is the 11th largest commercial airline in the country. Based in Honolulu CDP, City and County of Honolulu, the airline operates its main hub at Honolulu International Airport and also operates a secondary hub out of Kahului Airport on the island of Maui. Hawaiian Airlines is owned by Hawaiian Holdings, Inc. (NASDAQ: HA). Mark Dunkerley is the President and Chief Executive Officer of Hawaiian Holdings.
Hawaiian has never had a fatal accident in its entire history and is the oldest US carrier with such a distinction. Hawaiian Airlines was the number one on-time carrier in the United States from November 2003 until November 2006, when rival Aloha Airlines took the number one spot, pushing Hawaiian to a close second. The airline has also frequently been number one in fewest cancellations, baggage handling, and fewest oversales. Hawaiian Airlines has been rated the best carrier serving Hawaii by Travel + Leisure, Zagat, and Condé Nast Traveler.
Many employers have yet to recognize the potential harm to their companies that may result from employees who blog. Taking steps to protect against harmful blogging, however, is an increasingly essential part of running a business. A blog, which is short for weblog, is a personalized online digest where a user can share his or her thoughts and opinions, Internet links, news stories, a message board, and diary entries with a potential audience of millions of people who surf the Internet.1
With the expansion of the Internet, blogging has increased exponentially. Over 41 million blogs currently exist on the Internet and the "blogosphere" is doubling in size every 5 ½ months, meaning it is now over 60 times larger than it was just 3 years ago. On average, approximately 75 million blogs are created daily, about 1 new blog every second of every day, and there are about 1.2 million new blogs created each day, or about 50,000 per hour.2
Although some employers sponsor their own blogs, this article addresses private, individual blogs and some of the common legal issues they raise for employers.
Dangers Raised by Employee Blogs
Defamation Claims. Defamation claims represent a growing threat to employers as a result of the increased popularity of employee maintained blogs. To the same extent that an employer may be liable for defamatory publications of its employees, an employer may also be liable for an employee's defamatory private blog on topics that fall within the scope of the employee's employment or within the employee's actual or apparent authority. Even if an employee's statements are outside the scope of employment, an employer may find itself named as a defendant in a defamation suit if the blogging employee is the supervisor of the defamed individual or the employee's blog references the employer. The chance that an innocent employer may be a defendant in the latter situation is increased because bloggers often blog anonymously, leaving the employer as the only readily identifiable potential source of the defamatory blog.
Harassment Claims. An employer may also be subject to liability for sexual harassment and hostile work environment claims based on an employee's private blogging activities, if a supervisor authors inappropriate comments about an employee or if the employer had knowledge that an employee authored harassing blogs about a co-employee. For example, in Blakey v. Continental Airlines, a pilot filed a hostile work environment claim against Continental Airlines arising out of derogatory comments posted about her on a pilots' electronic bulletin board operated by a third-party service provider.3 The court held that Continental Airlines has a duty to take effective measures to stop co-employee harassment when it knows or has reason to know that such harassment is part of a pattern of harassment taking place in settings related to the workplace. The Blakey decision confirms that employer liability may extend beyond mere employer-provided blogs.
Economic Damages to Employers. An employer's business itself may be harmed by defamatory comments on employee blogs. Employees may use blogs as a means to anonymously defame employers, supervisors, or other employees which may harm employee morale, result in a loss of good will with patrons, or damage the employer's public image. In the late 1990s, for example, Southern Pacific Funding Corporation filed for bankruptcy after its stock prices fell from a high of $17 to $1 - a spiral triggered by blog postings claiming that company executives were covering up multi-million dollar embezzlement, exaggerating economic forecasts and putting the company up for sale.4
Disclosure of Confidential Information. Blogging activities may also result in the unauthorized release of company information and data into the public domain. Whether published by a disgruntled employee or a loyal yet naïve worker, a blog that discusses an employer's confidential, business or financial information may have far-reaching and harmful consequences for the employer, such as the dissemination of trade secrets. Similarly, the unwanted release of business or financial information may result in securities law violations, such as unlawful release of inappropriate information in advance of an initial public offering.
Hawaiian Airlines was incorporated on January 30, 1929 under the name Inter-Island Airways Ltd. That year, thousands gathered in Honolulu to witness the departure of Hawaii's first scheduled inter-island flights to Maui and the Big Island of Hawaii. The fleet was comprised of two eight-passenger Sikorsky S-38 amphibian planes; six years later, larger 16-passenger Sikorsky S-43s were added to accommodate increased traffic and newly authorized inter-island airmail service.
In 1941, Inter-Island changed its name to Hawaiian Airlines and introduced the 24-passenger DC-3 into Hawaiian skies. This flying workhorse was the mainstay of our fleet and became vital during wartime operations when all inter-island traffic was placed under military control.
The advent of commercial jet service in the 1960s resulted in dramatically increased air traffic to and from Hawaii. In 1966, we added our first pure jet inter-island aircraft, the McDonnell Douglas DC-9. Travel time between the islands was reduced to a mere 20-30 minutes, allowing residents and visitors unprecedented access to neighboring islands. The following two decades would see the addition of world charter service, daily flights to the west coast, and scheduled service throughout the South Pacific.
Our flawless safety and premium service started catching the attention of international travel publications, causing Conde Nast Traveler to rate us one of the word’s safest airlines in 1990. The awards have been coming in steadily ever since—check out Awards and Recognition to see what we mean.
Fast forward to 2001. We began a comprehensive fleet modernization program with the delivery of 13 new Boeing 717-200 aircraft that would completely replace our DC-9 fleet. In 2002 and 2003, we completely replaced our widebody DC-10 fleet with 14 Boeing 767-300ER aircraft. Even more recently, we added our first long-range Airbus A330-200 aircraft in April 2010 (with plans to add 27 more by the end of the decade). As a result, Hawaiian Airlines' fleet is now among the youngest in the industry.
Today, Hawaiian Airlines carries an average 8 million customers a year and serves 20 domestic and international destinations in the Pacific region. In North America, it provides daily service to Hawaii from more cities than any other airline. While plenty has changed throughout the years, one thing hasn’t: our commitment to service, safety, and the spirit of aloha.
Hawaiian Airlines Employee Benefits
401(k) Savings Plan
Medical Plan Benefits
Employee Assistance Program
Employee Flexible Spending Program
Immediate day one - Travel Benefits
HEALTH, INSURANCE AND RETIREMENT BENEFITS
In addition to the benefits listed below, all employees covered by this Agreement shall be entitled to purchase Universal Life, Cancer Policy, Critical Illness, Nursing Care or any other Insurance Policy presented by the IA M. Participation in such programs shall be strictly voluntary and paid through payroll deduction. Plans shall be offered through Agencies and Underwriters selected by the union. The Company shall allow the IAM reasonable opportunity for onsite enrollment at least once each year.
23.1 In the event the amount paid by an employee, either on his behalf or on behalf of one or more of his dependents, exceeds $1,500 with respect to a calendar year covered by the medical insurance, such medical program under which the employee is covered shall pay one hundred percent (100%) of the excess of that year's payments. This coverage shall he limited to each calendar year. Such insurance shall apply only to eligible expenses which are covered and included as part of the medical plan.
The Company will offer the following medical plan options as set forth below.
HMSA Preferred Provider Plan (PPP)
Kaiser Health Plan 13 (HMO) or Kaiser Certificate
The lifetime maximum limitation under the HMSA PP Plan will be $5 million per person with an annual renewal of $10,000 implemented on a prospective basis.
Effective July I, 2005, the monthly contribution for each employee (paid by payroll deduction) will be 20% of the premium, with such monthly contribution not to excess the lesser of:
1.5% (for single coverage) or 2% (for two-party or family coverage of his or her monthly compensation; or
"Dollar caps" to be applied as set forth in the chart below:
Effective Date Single Two-Party Family
01/01/2005 $50.00 $120.00 $150.00
01/01/2006 $55.00 $135.00 $165.00
01 / 01/2007 $60.00 $150.00 $180.00
Employee dependents arc defined as spouse and unmarried, dependent children under age nineteen (19), or under age 25 while enrolled as a full- time student.
It is understood and agreed that the long standing Company policy of not permitting employees who are married to each other, or who are in a domestic partner relationship, to have dual medical coverage is applicable.
Employees who are also employed at another employer where medical coverage is available, or employees who can provide evidence of medical coverage elsewhere are eligible to receive a monthly cash payment in consideration of their executing a waiver of their current medical coverage from the Company. Guidelines for the Medical Waiver Program will he established by the Company. Effective April I, 2003, reimbursement for single coverage will apply to eligible employees whose spouse is also an employee of Hawaiian Airlines. It is understood and agreed that the long standing Company policy of not permitting employees who are married to each other, or who arc in a domestic partner relationship, to have dual medical coverage is applicable.
Effective July 1, 2005, the Company provided health coverage will include acupuncture and chiropractic coverage if available.
Drug and Vision Care
One hundred percent (100%) of lenses for glasses.
Forty dollars ($40.00) for frames
Forty-five dollars ($45.00) for contact lenses.
The Company will provide for all full-time employees who have been employed for one (I) year, dental coverage through Hawaii Dental Service or Delta Dental Plan of California for the employee and his eligible depen*dents at no cost to the employee. Eligible dependents are defined as spouse and unmarried dependent children under age nineteen (19), or under age twenty-three (23) while enrolled as a full-time student.
Usual customary and reasonable fees.
100% Examination (once every 12 months)
Bitewing x-rays (2 x-rays every 6 months)
Prophylaxis (once every 6 months)
75% UCR for:
Stannous Fluoride (once every 12 months through age 17) Restorative Dentistry
50% UCR for:
Prosthodontics - bridges, partial and full dentures
Crowns and gold restorations
60% UCR for:
Orthodontia for dependent children with a lifetime maximum of $1500
Effective July 1, 2005, same sex domestic partners of employees will be eligible for dependent coverage under Medical, Dental and COBRA. The employee will be responsible for all applicable taxes. Guidelines for eligibility for Domestic Partner coverage will be established by the Company.
23.4 FLEXIBLE SPENDING PLAN
All eligible employees may participate in the pre-tax Premium Conversion Plan permitting employees to pay their portion of the cost of medical coverage on a before-tax basis through payroll deduction. All full-time employees will be able to participate in a Health Care Expense Account which allows employees to be reimbursed on a tax-free basis for eligible medical, prescription drug, vision and dental expenses not paid for by insurance up to a maximum of $5,000 per year.All eligible employees will be able to participate in a Dependent Care Assistance Account which allows employees to be reimbursed on a tax- free basis for expenses such as day care for their dependent children up to a maximum of $5,000 per year (subject to Internal Revenue Code limits).
23.5 GROUP LIFE INSURANCE & ADD
The Company will provide all members covered by this Agreement, who have been employed in a full-time capacity for a period of six (6) continuous months, life insurance at no cost to the employee in an amount equaling to one ( I ) times his annual base earnings (rounded up to the next highest multiple of $1,000 if it is not already a multiple of $1,000) not to exceed $50,000. The amount of insurance provided will be adjusted at the beginning of each calendar year to reflect any salary or wage increases which the employee may have received during the year just completed
Last edited by pratikkk; April 12th, 2011 at 12:43 PM..