03/26/1993 08:30 AM House FIN

  HB 158    An   Act   making   appropriations  for   contract                 
            settlement  costs  and  cost-of-living adjustments                 
            for  public employees  who are members  of certain                 
            collective bargaining units; and  providing for an                 
            effective date.                                                    
                                                                               
            CS HB 158 (L&C) was reported out of Committee with                 
            a "do pass" recommendation.                                        
  HOUSE BILL 158                                                               
                                                                               
       "An Act  making appropriations for  contract settlement                 
       costs   and   cost-of-living  adjustments   for  public                 
       employees  who   are  members  of   certain  collective                 
       bargaining units; and providing for an effective date."                 
                                                                               
  NANCY    BEAR    USERA,    COMMISSIONER,    DEPARTMENT    OF                 
  ADMINISTRATION, stated  that the  Labor,  Trades and  Crafts                 
  Agreement Management goals are to:                                           
                                                                               
       *    Increase   management   flexibility   to   respond                 
            effectively to the changing economic conditions of                 
                                                                               
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            the  State   while  maximizing   the  quality   of                 
            government services to the public.                                 
                                                                               
            1.   Where possible, defer to the Personnel Rules.                 
                                                                               
            2.   Increase   management   choice   when  making                 
                 promotions.                                                   
                                                                               
            3.   Clarify  management's  right to  contract out                 
                 work and layoff employees.                                    
                                                                               
            4.   Terminate all prior letters of agreement.                     
                                                                               
       *    Improve productivity, accountability, consistency,                 
            and efficiency of State government operations.                     
                                                                               
            1.   Reduce   overtime   and  other   premium  pay                 
                 liabilities to FLSA standards.                                
                                                                               
            2.   Convert travel  and per  diem entitlement  to                 
                 those  provided  in the  State Administrative                 
                 Manual.                                                       
                                                                               
            3.   Reduce the number of holidays.                                
                                                                               
       *    Realign the cost of personal services,  moderating                 
            the State's  relative position  as  a provider  of                 
            wages and benefits  so as  to reflect the  current                 
            and foreseeable economic environment.                              
                                                                               
            1.   Modify  health  benefits,  reduce unnecessary                 
                 utilization     and     increase     employee                 
                 participation   in   selecting   the  benefit                 
                 package.                                                      
                                                                               
            2.   Share   future   cost  increases   of  health                 
                 insurance  between  the  employees   and  the                 
                 State.                                                        
                                                                               
            3.   Limit across the board salary increases.                      
                                                                               
            4.   Defer  the  effective   date  of  the  salary                 
                 increase by six months.                                       
                                                                               
  She noted  that negotiations  began in  December, 1991,  and                 
  were  limited  to  six  contract  articles selected  by  the                 
  parties.   With  the assistance  of a  federal mediator,  an                 
  agreement  was reached with  a three year  arrangement.  The                 
  issues  covered  were   contracting-out,  licenses,   wages,                 
  classification, call  back, travel, holidays,  family leave,                 
  promotion, health insurance  and signing bonus.   She added,                 
  these  are  the bargaining  terms covering  the life  of the                 
                                                                               
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  contract for a two year period.                                              
                                                                               
  Co-Chair  MacLean  questioned  the fiscal  changes  from  $5                 
  million to $9  million dollars  occurring from the  original                 
  bill.  Ms.  Usera stated that  there was a monetary  roll-in                 
  from the University agreement.  The bargaining agreement now                 
  includes 1993/1994 members.                                                  
                                                                               
  CHERYL  FRASCA, DIRECTOR, DIVISION  OF BUDGET REVIEW, OFFICE                 
  OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, reiterated                 
  that an  amendment had been  included for the  University in                 
  Sections 5 and 6.   She added that additional  sections were                 
  updated  which  omitted  the employer  costs  of  paying the                 
  bonuses.                                                                     
                                                                               
  MARSHA  HUBBARD, DIRECTOR OF  BUDGET, UNIVERSITY  OF ALASKA,                 
  advised that  an agreement with  the LTC  Contract had  been                 
  signed last May, 1992, and provided the same salary increase                 
  as given the non-union employees during  FY 93.  The receipt                 
  of the three percent increase is dependant upon negotiations                 
  and the Legislative appropriation.                                           
                                                                               
  Co-Chair MacLean  MOVED to  report CS  HB 158  (L&C) out  of                 
  Committee with  individual recommendations.  There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  CS HB 158  (L&C) was  reported out of  Committee with a  "do                 
  pass" recommendation.