But Hawaiian Trust spokeswoman Piia Aarma this morning said the affected employees are expected to get jobs elsewhere in the 98-year-old company or with parent Bancorp Hawaii Inc.

The move is intended to boost Hawaiian Trust's competitive position by improving customer service and making the company more efficient, Aarma said.

Among other things, customer statements issued by Hawaiian Trust will become more detailed and timely by switching to an outside vendor to process the statements, she said.

The cutbacks will affect more than 15 percent of the roughly 340 workers at the company.

Aarma said most of the jobs being phased out by September 1997 are clerical. Employees were told last week of the planned changes.

As the industry becomes more competitive, it makes more sense to transfer certain "backroom" functions to a company that specializes in such services, Aarma said.

"It's not for cost savings. It really is to provide the best customer service," she said.

Aarma wouldn't say what vendor would be used or where the vendor is located, but stressed that control would remain in Hawaii with Hawaiian Trust.

Other large local companies in recent years have moved some "backroom" functions to the mainland, mostly to improve efficiency and customer service. But such action has drawn criticism from labor leaders and others who claim Hawaii is losing jobs in the process.

Hawaiian Trust wouldn't say how much it expects to save by making the changes.