Opinion ID: 2771932
Heading Depth: 4
Heading Rank: 2

Heading: Dayton Nakanelua, Union Representative

Text: 13. Time frames provided in the Memorandum of Agreement may be modified by mutual agreement of the parties. (Emphasis in original). As indicated in the MOA, HLRB would request a list of arbitrators from the AAA. From this list, the parties were to select a three-member arbitration panel that would consist of an arbitrator chosen by each of the parties and a “neutral arbitrator” selected by mutual agreement of the parties. If the parties could not select the neutral arbitrator by July 6, 2009, the HLRB would request the AAA to provide a list of five arbitrators, then the parties would alternate striking names from the list and designate the last remaining name as the neutral arbitrator. UPW and the State designated Clifford Uwaine and Stanley Shiraki, respectively, as arbitrators. On July 15, 2009, the AAA provided a list of five potential neutral arbitrators. The deadline to select the neutral arbitrator was initially scheduled for five days after the AAA provided the 10  FOR PUBLICATION IN WEST’S HAWAII REPORTS AND PACIFIC REPORTER  list, but the parties mutually agreed to extend the deadline to July 28, 2009. In a July 29, 2009 letter to the HLRB, Laderta, the State’s representative, alleged that she had attempted on numerous occasions from July 15, 2009 until July 28, 2009 to contact UPW’s representative, Nakanelua, regarding the selection of the neutral arbitrator, but Nakanelua never returned her calls. The day before Laderta’s letter, Herbert Takahashi, counsel for UPW, wrote to the State indicating that he represented UPW in the selection process and requested that the State stop its attempts to contact Nakanelua. In response, on July 31, 2009, James Halvorson, deputy attorney general, wrote to Takahashi to inform him that Halvorson would be representing the “Employer.” Halvorson also requested that Takahashi call him immediately to begin the process of selecting the neutral arbitrator. On August 3, 2009, Takahashi wrote to Halvorson asking him to identify which “employer” Halvorson represented, and also asking for verification of Halvorson’s “authority to represent anyone other than Governor Lingle.” On August 6, Halvorson replied by letter that he represented the “employer in the upcoming Unit 10 interest arbitration” and that Takahashi should contact him to begin the selection process. The next day, in a 11  FOR PUBLICATION IN WEST’S HAWAII REPORTS AND PACIFIC REPORTER  letter dated August 7, 2009, Takahashi stated that Halvorson’s August 6, 2009 letter was not responsive because it “does not indicate apparent or actual authority to act for the employer group.” On August 10, 2009, Halvorson requested the HLRB’s assistance because the “selection process has yet to proceed due to delays by UPW’s counsel.” Halvorson also indicated that the delay appeared to compromise the availability of the arbitrator eventually selected for the September 11, 2009 start date for the Unit 10 arbitration. 5 The HLRB held a hearing on August 13, 2009, pursuant to Halvorson’s request, at which Halvorson proposed to initiate the striking of names, but Takahashi refused. The next day, Takahashi sent Halvorson a letter agreeing to the State striking first, but “[w]ithout waiving the UPW’s right to contest [Halvorson’s] authority to represent the ‘employer[.]’” The State struck its first name from the AAA list on August 18, 2009. UPW followed on August 20, 2009 by striking another name off the list. 5 Included in Halvorson’s letter to the HLRB was an August 7, 2009 email from the AAA, stating that no appointment of an arbitrator had been made, and that none of the five arbitrators would likely be able to accommodate the September 11, 2009 commencement of the arbitration. 12  FOR PUBLICATION IN WEST’S HAWAII REPORTS AND PACIFIC REPORTER  On August 21, 2009, the AAA sent an email to the parties, stating that it was setting an August 25, 2009 deadline for the parties to select the neutral arbitrator. The email warned that if the parties did not select a neutral arbitrator by the deadline, “the [AAA] shall administratively appoint an Arbitrator at that time.” On August 24, 2009, Takahashi replied to the AAA, stating that UPW objected to the August 25, 2009 deadline because the MOA “does not authorize AAA to administratively appoint an arbitrator.” Takahashi added, “There is currently a dispute over who the ‘employer’ is, and whether the selection of arbitrators by the State . . . is improper.” On August 26, 2009, Halvorson sent another letter to Takahashi stating: As you know, the March 3, 2009 MOA concerning the alternate impasse procedure between the UPW and the Employer provides that the selection and appointment of neutral arbitrator shall be made within 5 working days after receipt of AAA list. Since July 15, 2009, the Chief Negotiator for the public employer made several attempts to contact the UPW State Director to no avail. On July 28, 2009, you wrote a letter informing the employer that you would be making the selection of the neutral arbitrator. However, to date you have stonewalled any attempts to select an arbitrator. Despite my letter to you on July 31, 2009 requesting the selection of an arbitrator, and another letter dated August 6, 2009, as well as request for assistance made to the Board and a subsequent meeting at the Board on August 13, 2009, and me making the first strike on August 18, 2009, you have delayed the selection by taking one week to make your strike. 13  FOR PUBLICATION IN WEST’S HAWAII REPORTS AND PACIFIC REPORTER  In addition, your August 24, 2009, letter to AAA shows you are not acting in good faith when you informed AAA about a dispute over who the “employer” is and whether my selection of the arbitrator is improper. Your conduct throughout this process shows bad faith. Accordingly, we take the position that UPW waived its right to participate in the interest arbitration, or at a minimum UPW has waived its right to strike names from the list of arbitrators and the Employer is authorized to unilaterally select from the list of neutral arbitrator [sic]. We are seeking this relief through a prohibited practice complaint I filed on Monday, August 24, 2009. The next day, Takahashi sent a response letter to the State. He warned that, “If you refuse to exercise the ‘second’ strike forthwith appropriate relief will be sought for willful violation of the memorandum of agreement.”