DRUG TESTING KEY ISSUE FOR HOTELS, UNIONS

Hotels and their employee unions, both struggling with the worsening
epidemic of drug abuse, expect drug testing to become a key issue
during contract negotiations.

Some hotels and resorts have already negotiated drug-testing language
into their contracts, as well as provisions that describe the process
for handling workers who test positive. Most contracts at the largest
hotels in Waikiki expire in 2006, with preliminary talks expected to
begin next year.

"I've seen good employees turn into bad employees because we didn't
have a system or a process in place before they go down the road of no
return; there's too much of that happening," said Doreen DeSilva,
human resources manager at The Fairmont Orchid on the Big Island,
which negotiated drug testing language with the International
Longshore and Warehouse Union.

Hotel employers, who are trying to come to terms with what they
describe as rampant abuse and dealing on property, see testing as the
best way to deter users.

Union leaders say drug testing violates workers' rights and they favor
a system that stresses treatment over punishment.

"We need to use our resources to help people with treatments, not drug
testing," said Eric Gill, financial secretary and treasurer of the
Hotel Employees and Restaurant Employees, Local 5.

The Hawaii hospitality industry is unsure of the precise magnitude of
the drug problem, most of which is attributed to the easy availability
of crystal methamphetamine, or "ice." Hotel and resort managers say
they are dealing with more incidents of tardiness, erratic behavior,
shoddy work and the scarcity of workers who can pass pre-employment
drug tests.

Further, many hotels have found their large campuses are stalking
grounds for dealers.

Nationally, the highest rates of illicit drug use and heavy drinking
are among food preparation workers, waiters, waitresses and bartenders
at 19 percent and service occupations at 13 percent, according to the
U.S. Department of Labor. National statistics show that substance
abuse costs the employer an average of $19,000 per person in lost
production, workers' compensation and medical coverage.

"It's clearly an issue in the hotel workplace and we have to
collectively come to grips with it," said Murray Towill, executive
director of the Hawaii Hospitality and Lodging Association.

Treatment Or Termination

Employers say they need drug testing in order to ensure a safe and
productive workplace. An added incentive is that drug-testing policies
make employers eligible for a 5 percent discount on their workers'
compensation premiums, said Bob Dove, president of the Hawaii
Employers' Mutual Insurance Co., the state's largest provider.

"Employers who do drug testing should have few accidents in the
workplace," he said.

Union leaders, on the other hand, say drug testing is not the only
solution.

"We are willing to negotiate drug testing as a preventive measure, not
using it as a punishment," said Richard Baker, director of the
International Longshore and Warehouse Union, Local 142's Hawaii
division. "We want drug policies to help workers, so we insist on
working on a program that includes rehabilitation."

So far, Baker and his team of six business agents on the Big Island
have negotiated drug-testing rules with rehabilitation as a component
with a handful of properties, mostly among the upscale resorts on the
Kohala Coast.

It started with The Fairmont Orchid, where room rates start at more
than $250 a night. The resort negotiated the new drug policy six
months ago with the ILWU, which represents 500 of its workers.

The company estimates that one in every 10 of its 750 employees may be
an addict. The spread of crystal methamphetamine at the resort is
attributed to the presence of one or two dealers among the work force
who got coworkers hooked on the drug.

"They plant themselves in a big employer like us ... it's a huge
problem," said DeSilva, The Fairmont Orchid's human resources manager.
"But it's something everybody thinks needs to be kept a secret."

A Breakthrough For Resorts

DeSilva talks about how she was the only hotel representative at a
summit on 'ice' summoned by Big Island Mayor Harry Kim. The hotel's
proactive stance led it to initiate discussions with the ILWU and make
a deal after seven months of negotiations.

"We had to make sure that our member is treated for an illness and not
thrown out," ILWU's Baker said.

Since the agreement was reached, several employees have tested
positive for drugs. One went through drug treatment and returned to
work; the others are still in treatment.

"We tell them that we are going to give you one break, help you as
much as we can ... and welcome you back with open arms and help you
get back into the workplace," DeSilva said. "But it all depends on the
individual. We aren't enabling an employee to continue on drugs."

The Hilton Waikoloa, Hapuna Prince, Mauna Kea Beach and Mauna Lani Bay
have negotiated similar contracts with the ILWU.

On Maui, the Kaanapali Beach Hotel also has a contract with a
drug-testing clause.

"Drug use remains under the radar and as a manager you are not aware
of how much of a problem you've got," said Michael White, the
property's general manager.

He found that about 12 people tested positive in the first year of
drug testing, a number that has declined to an average of two.

Like the Big Island resorts, the Kaanapali Beach gives workers one
chance to get clean and come back to work.

"If you're found to test positive again, there's no hope for you,"
said Hanalei Peters, the hotel's union chairman. "It's a really harsh
program."