Approximately 67 percent of the members of the Hawaii State Teachers Association voted against a new contract proposal with the state of Hawaii. According to union members who were interviewed by the media, the biggest challenge with the proposal, was a line in the contract stating that future teacher's pay raises would be based upon an evaluation system. Per the proposal, teachers that were rated "effective" or "highly effective" would be eligible for annual pay raises, while those who were rated below that would not be. The exact evaluation system has not been established.
The biggest concern for state officials and the Department of Education is the fact that the labor dispute may put approximately $75 million of federal funding at risk. Under the Race to the Top Grant, a state would have to prove to the federal government that they are turning around low-performing schools, boosting student achievement and increasing teacher effectiveness. If the union decides that their best option would be to go on strike, the federal goals and guidelines may not be met.