When Malcolm Lutu took over the Hawaiʻi police union in January, all union employees received a pay raise, himself included. 

Lutu got a 20% boost, from about $87,000 to $104,000. His business agents received a 45% increase, from $60,000 to more than $87,000. And most other employees got 4 to 8% more. 

What no one did, according to the union, was ask the union’s board for permission. 

The unauthorized pay increases triggered a dramatic backlash that resulted in Lutu’s resignation after about two months on the job and claims by some current and former union members that the raises amounted to theft of union money. Two county chapter board members reported the incident to the Attorney General’s Office. Toni Schwartz, spokeswoman for the AG’s Office, said the office doesn’t comment on the existence of investigations.

The raises were quickly reversed in an early test of leadership for Don Faumuina, who was elected president of the State of Hawaii Organization of Police Officers in December. Early in his tenure, he installed Lutu as executive director and let go of three business agents. Termination letters to the agents say they were let go due to a reorganization at SHOPO.

“The number one thing is this is just blatant misuse of membership funds,” said Walter Gouveia, one of the business agents who was let go in January before the raises were implemented. “It needs to be done the right way so the membership knows, okay checks and balances were followed.”

Union spokesperson Dustin DeRollo said in a statement that the board immediately reversed the raises upon finding out they’d been implemented. In total, he said, less than $10,000 in unauthorized payments were paid out to employees over two pay periods.

“To avoid disrupting the lives of those employees and their families, caused by no fault of their own, we chose to absorb the cost,” DeRollo said. “Additionally, it was highly likely that pay increases would be provided to all of these employees in the near term as we were actively assessing a staff-wide pay increase.” 

The board investigated the unauthorized raises and sought guidance from attorneys, DeRollo said, and determined the action wasn’t criminal.

“While the unauthorized actions were major violations of SHOPO’s policies, based on what we know, they do not constitute criminal behavior,” DeRollo said. “There were no falsified documents, deceit, concealed payments or conspiracy.” 

But Mike Kahikina, another one of the business agents who was let go, said the issue doesn’t inspire confidence in the union’s new leadership. 

“A lot of retirees, we have nothing but the purest respect for SHOPO,” he said. “But the way it’s being run right now, it’s a SHOPO we don’t recognize.” 

Union members pay $100 a month in dues. Officer dues were increased from $80 in 2022 when top union officers voted to quadruple their monthly stipends. Then-president Robert Cavaco saw his stipend go from $1,400 to $6,000, according to a Star Advertiser story from the time. 

As those working for the union have seen their pay increase, so have the officers they represent.

In September, SHOPO announced the largest salary increase for police officers in 17 years. Most officers will see their salary increase about 27% over four years. An officer with seven years on the job would see an increase from $89,736 last July to $108,036 by July 2028.   

SHOPO: Major Policy Violation Taken Seriously

The raises were announced in a Jan. 13 letter to union staff, a copy of which was obtained by Civil Beat. Lutu said in the letter that union employees’ salary increases would be effective for the Jan. 15 pay period. 

“The raise is a direct reflection of our appreciation of your hard work, dedication and the vital role you play every day for the service you provide our members,” the letter says. 

But the employees who got the highest raises had just started in their roles after the new leadership was sworn in on Jan. 9. 

In addition to installing Lutu as executive director, Faumuina fired three business agents, Kahikina, Gouveia and Erik Iinuma. He replaced them with his own picks — Maverick Kanoa, Phil Trani and John Haina. Iinuma was later asked to come back. He couldn’t be reached for comment.

As soon as the board found out about the raises, DeRollo said, it voted to restore employees’ pay to its original rate.

“The State Board took this issue very seriously,” DeRollo said. “The Board found out about the issue on a Friday; two days later, the State Board voted to restore pay to its previous rate, which was implemented the next day.” 

Lutu resigned in late February. Kanoa is now executive director. 

“If you only look out for yourself, fail to fulfill your duty to our members, or violate major policies, you should expect that we will part ways.”

New SHOPO President Don Fauimuina

Faumuina said in a statement that Gouveia and Kahikina were engaged in a “smear campaign” against SHOPO. 

“It’s no surprise that two former employees, who recently separated from SHOPO and who have axes larger than Paul Bunyan’s to grind, are taking cheap shots at an organization that insists on holding its employees who fail to do their job and who break policies accountable for their actions,” he said.

“Despite what those who are self-interested and ill-informed say, the facts are the SHOPO Board of Directors did its job, and met its duty to faithfully protect the membership.”

Faumuina said in the statement the board is taking steps to prevent a similar incident from happening again in the future. 

“If you only look out for yourself, fail to fulfill your duty to our members, or violate major policies, you should expect that we will part ways,” Faumuina said. “This SHOPO Board did its job; we acted in the best interest of our members, and that’s more than can be said about former employees carrying out ugly personal vendettas on social media and in the press.”

Faumuina, who has been an officer for 25 years and served eight years on the SHOPO state board, said during his campaign for president he would focus on five priorities: negotiating higher salaries for officers, improving the retirement system, expediting the grievance process, upgrading uniforms and equipment and boosting morale.

“We are ready to fight for your contract, your family and your future,” he said in a campaign video posted on social media. “So let’s restore our pride, our pay and our professionalism.”

But Kahikina said the actions of SHOPO leaders show they don’t have the best interest of union members in mind. By firing the existing business agents, who represent officers in disciplinary matters, they disrupted dozens of cases the agents were working on, he said. The raises were given to brand new agents who hadn’t earned them, he said. Both Kahikina and Gouveia had been with SHOPO since 2022. 

“They didn’t even work one day,” he said, “and they got a raise.” 

He also says he was fired without cause.

“We were closing a lot of cases, and we were winning,” he said.

Ted Hong, a Hilo-based employment attorney said that while firing the business agents could disrupt the continuity of their cases, they are at-will positions, and it’s completely legal for new leadership to fire them. 

He said in this case, the issuance of the unauthorized raises looks like a “rookie mistake” made by a new executive unfamiliar with the organization’s bylaws. 

But Lutu was no rookie. He served in  SHOPO leadership roles for more than two decades, including as union president from 2018 to 2022. 

Hong said in order for the issuance of the unauthorized raises to be considered criminal, investigators would have to prove the executive director knew he was acting without proper authority and intended to steal members’ dues. 

Lutu did not respond to a call seeking comment. 

Hong said the situation is a reminder that those who take on these positions need to be aware of the rules and held accountable. 

“People have to realize these are not little kingdoms that are granted to you,” he said. “You’re being elected to be a good steward, a shepherd of the union’s resources, and certainly the direction of the union as it relates to protecting the members’ interests.”