You are absolutely correct and there is no excuse for their first year pay vs. cost of living in HI.
On a separate, and only slightly related note, the cost of healthcare has the ability to significantly affect how much money you have left at the end of the month/year, etc. Spend an extra $400/month and it's like a $4800.00/yr pay cut. Have something serious happen and you may face bankruptcy if your coverage needs improvement.
I am hoping that we see improvements at all companies across the industry this round of negotiations. My post is not meant to put any particular company down.