WAILUKU, Maui (AP) — A judge rejected a union’s claim that a state law allowing the privatization of three Maui County hospitals violates the U.S. constitution. ADVERTISING WAILUKU, Maui (AP) — A judge rejected a union’s claim that a state
WAILUKU, Maui (AP) — A judge rejected a union’s claim that a state law allowing the privatization of three Maui County hospitals violates the U.S. constitution.
United Public Workers, which represents 1,500 Hawaii Health Systems Corp. employees, argued the law allowing Kaiser to take control of Maui Memorial Center, Kula Hospital and Lanai Community Hospital violated the contracts clause of the Constitution.
The union also claimed the law interferes with two collective bargaining agreements between the state and certain HHSC employees.
In her ruling Friday, U.S. District Judge Helen Gillmor said the union’s claim the law goes against a contractual right to be employed was unfounded. The judge said there was no such guarantee, nor any requirement that the company operate any specific facility under its agreement with the union.
Gov. David Ige signed off on the law in June 2015, clearing the way for a takeover of Maui County hospitals by a private partner.
Kaiser was selected to take control of the financially troubled hospitals in September.
“I am pleased that the court confirmed that the Legislature acted within its rights in passing this law and that Gov. Ige acted properly in working to implement it,” said state Attorney General Douglas Chin.
“The state is working diligently to make sure this transition gets done the right way.”
