The Lingle administration yesterday delivered written layoff notices to about 1,100 state workers who will lose their jobs in November because of the state's budget deficit.

Workers on the layoff list had been told last month that their jobs could be eliminated, but written notices are a formal step, and included information on seniority that may allow senior workers to bump their junior coworkers and avoid layoff.

Gov. Linda Lingle said she also met with her Cabinet about a second round of layoffs, since the administration will not know how much money will be saved by the initial layoffs because of seniority protections.

In a separate move, Lingle announced she is ordering 900 nonunion workers to take three furlough days a month starting in September. The mix of management and rank-and-file workers are in exempt positions and are not covered by a Circuit Court ruling last month that found that furloughs for union workers should be subject to collective bargaining.

Lingle said she took the actions yesterday because of the state's deteriorating economy and what she described as the slow pace of contract talks with public-sector labor unions. The two sides have not met for two weeks.

"I've been surprised by the slow pace of the negotiations," Lingle told Advertiser editorial board members and reporters in a telephone interview. "I've waited as long as I feel I can responsibly and still get through this fiscal year with a balanced budget as I'm required by the constitution to oversee."

The Hawai'i Government Employees Association and the United Public Workers, which represent the workers identified for layoffs, could not be reached for comment on Lingle's actions.

The HGEA and the UPW's public-safety units have the right to go to binding arbitration if contract talks stall. Yesterday was the deadline for the parties to present final written positions to the arbitration panel, and the state submitted its final offer. The HGEA has asked for an extension until Monday. The UPW's status was not available.

Arbitration hearings are scheduled for Sept. 4 for HGEA and Sept. 11 for UPW.

SENIORITY FACTOR

Union leaders had complained that the Lingle administration's layoff list last month did not include the seniority information, known as retention points, necessary for consultation between the union and the state. Now that the seniority information has been provided and Lingle has set a Nov. 13 layoff date, the bumping process may start.

The Lingle administration said that while it is required to give 90-day notice for layoffs, workers who are bumped or displaced may receive much shorter notification.

Senior workers can bump junior workers in the same or related job class, and in some cases can keep their higher salaries in lower-level jobs. Workers are given one retention point for every month on the job and those with two years of seniority are eligible for both a department- and a jurisdiction-wide job search before facing layoff.

The civil service protections are one reason governors, including Lingle, have tried to avoid layoffs as a budget-cutting tool.

State House Speaker Calvin Say, D-20th (St. Louis Heights, Palolo Valley, Wilhelmina Rise), urged the governor and union leaders to find a solution that avoids layoffs.

"Although I recognize that the budget crisis requires expenditure reductions, I request the unions and the governor, with other public employers, to work towards solutions that do not include layoffs," he said in a statement. "The Legislature does not have a role in the ongoing negotiations. If, however, the parties would like the Legislature's assistance, they may consult with us."

Lingle said she does not plan to call lawmakers back for a special session on the budget and will instead "manage through" the situation until lawmakers return for the next session in January. House and Senate leaders have said previously that they have no plans for a special session unless called back by the governor.

FORECAST AWAITED

The governor warned that the state's economic forecast could worsen when the state Council on Revenues meets again later this month. The state is facing an estimated $786 million budget deficit through June 2011. Lingle has sought to save $688 million through labor cuts.

Lingle said a second round of layoffs could be of a similar size and that she would likely be more involved in the details because they could be more programmatic in nature.

"Getting to these numbers, it's really going to affect entire programs rather than just a few people here and a few people there," she said.

While it is unknown how much money layoffs will save, Lingle said her new furlough plans for 900 nonunion workers could save $7 million to $10 million a year. Last month, the governor said she and her Cabinet would take two furlough days a month starting this month in addition to a 5 percent salary reduction. The governor said she and her Cabinet would likely work on the furlough days even though they would not be paid.

The Lingle administration has also indicated it will likely appeal the Circuit Court ruling that furloughs are subject to collective bargaining.