HONOLULU -- The House and Senate Labor Committees Monday grilled State Labor director Darwin Ching to find out why two companies were fined only $750 each for the collapse of a tower at Campbell Industrial Park May 16, 2009, that killed a worker.

The 169-foot metal tower collapsed at the old Hawaiian Cement facility as it was being prepared for demolition.

Witnesses said worker Juan Navarro and his supervisor ran to a safe spot just before the tower fell. But then, for a reason still unknown, Navarro went back into the tower and was killed as it smashed down on him.

AG Transport, the California sub-contractor hired to do the demolition, did not have a contractors license work in Hawaii.

The State Department of Commerce enforcement office confirmed Monday it is investigating AG Transport for failure to have a license for demolition work in Hawaii.

And the State Labor Department has fined AG Transport $750 for failure to have a written engineering survey and an evacuation plan for the demolition project.

The Labor Department also issued a$750 fine to San Construction, the main contractor for the project, for failure to oversee safety practices on the project.

House Labor Chairman Karl Rhoads said Monday the fines are too low.

"I just don't believe that $750 is really much of a deterrent," said Rhoads. "My feeling is fines need to be significantly higher to have an effect."

Ching said the fines are based on a formula that mirrors federal fines.

Under the formula, fines are lowered for smaller companies, and contractors pay less if their past safety records are good.

"This is a statutory formula we have been following since 1999. That is not to say it shouldn't be adjusted," said Ching.

Ching said even though the fine may not be large, the real deterrent to companies who violate safety regulations is they tend to lose out in bidding for future jobs.

Rep. Rhoades said he will introduce legislation next session to increase the fines.

Al Lardizabal of the Laborers' Union was at the hearing. He said more attention must be focused on worker safety especially now with many large construction projects expected to be launched in Hawaii next year.

"We can't undo the death of the tragically affected worker, but we can move forward with a real sense of commitment to prevent future industrial worker deaths," said Lardizabal.

Rhoads said he also concerned the Hawaii Occupational Safety and Health Division has only 11 inspectors responsible for monitoring construction projects in the state to make sure they meet health and safety standards.

A year ago, HIOSH had 14 inspectors.

Rhoads said he will urge that more money be spent to hire more inspectors to prevent something like the deadly tower crash from happening again.

Rhoads said the inspectors are stretched so thinly they have become reactive instead of pro-active.