Legislature(1999 - 2000)

03/27/2000 01:55 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
CS FOR SENATE BILL NO. 269(RLS) am                                                                                              
                                                                                                                                
"An Act relating to legislative powers and                                                                                      
responsibility with respect to collective bargaining                                                                            
agreements between the state and a labor or employee                                                                            
organization representing state employees; and                                                                                  
providing for an effective date."                                                                                               
                                                                                                                                
SENATOR DRUE PEARCE, SPONSOR testified in support of HB 269.                                                                    
She observed that Senate Bill 269 began as a fairly short                                                                       
and easy bill that would require that the monetary terms of                                                                     
any collective bargaining agreements negotiated with state                                                                      
employee unions be submitted to the legislature by the 45th                                                                     
day of session. She observed that it is currently the 78th                                                                      
day of the legislative session. The Administration has                                                                          
negotiated at least 12 contracts with state employee unions                                                                     
and the university has negotiated one or two contracts.                                                                         
According to Senator Parnell, the final terms of each of the                                                                    
contracts has not been provided to the legislature. She                                                                         
stressed the difficulty of making an informed decision                                                                          
without access to the contract terms.                                                                                           
                                                                                                                                
Senator Pearce observed that a section was added to conform                                                                     
with the Alaska Supreme Court's decision in University of                                                                       
Supreme Court No. 5-8366 (Sept. 24,1999). The Supreme Court                                                                     
decision stated that the legislature has to specifically                                                                        
appropriate the monetary terms of a collective bargaining                                                                       
agreement or the monetary terms of the agreement would not                                                                      
take effect. An amendment was made on the Senate floor,                                                                         
which provides that if the legislature does not fund the                                                                        
monetary terms of a collective bargaining agreement then                                                                        
none of the agreement's provisions would take effect.                                                                           
                                                                                                                                
The Court's ruling highlights a significant problem for the                                                                     
Legislature. Contract negotiations between the state and                                                                        
state employee unions are confidential. Often the                                                                               
Legislature does not receive the monetary terms of these                                                                        
negotiated collective bargaining agreements until the final                                                                     
days of session. As a result, the Legislature faces the                                                                         
challenge of making reasoned decisions involving complex                                                                        
contractual terms in a short period of time. Senate Bill 269                                                                    
would alleviate this problem by requiring all monetary terms                                                                    
of collective bargaining agreements to be submitted by the                                                                      
45th day of the Legislative session. The state could begin                                                                      
the negotiation process at an earlier date and still provide                                                                    
a significant amount of time within the calendar year for                                                                       
legislative review.                                                                                                             
                                                                                                                                
Senate Bill 269 also gives the legislature the discretion to                                                                    
review changes to a timely filed but previously rejected                                                                        
collective bargaining agreement for consideration in the                                                                        
calendar year under which that agreement was negotiated.                                                                        
                                                                                                                                
Senator Pearce observed that if a situation occurred similar                                                                    
to the PSEA contract of a few years ago: if by the 45th day                                                                     
the legislature had received the terms of the contract and                                                                      
the legislature chose not to appropriate the funds for the                                                                      
contract, then the union could go back to the table for                                                                         
renegotiations.                                                                                                                 
                                                                                                                                
Co-Chair Therriault questioned if the Administration came to                                                                    
terms after the 45th day if they could request that the                                                                         
legislature approve the contract. Senator Pearce anticipated                                                                    
that an authorization by the legislature could be a                                                                             
resolution passed by both bodies, approving the terms. She                                                                      
did not think that introduction of legislation would be                                                                         
sufficient without action.                                                                                                      
                                                                                                                                
Senator Pearce pointed out that there has always been                                                                           
language in the statute directing the legislature to approve                                                                    
or disapprove the contracts by concurrent resolution. Last                                                                      
year the legislature passed a resolution disapproving the                                                                       
contracts, but specific language was not added to the budget                                                                    
concerning the contracts. The Court ruled that there has to                                                                     
be a specific appropriation or the contracts do not take                                                                        
affect. The primary thrust of the bill would comply with the                                                                    
court decision and take the concurrent resolution out of the                                                                    
picture. It becomes a straight appropriation issue.                                                                             
                                                                                                                                
Representative J. Davies hypothesized that funding by the                                                                       
legislature would constitute authorization by the                                                                               
legislature. Co-Chair Therriault pointed out that his                                                                           
questioned is what it would take if the legislature did not                                                                     
authorize the appropriation.  Senator Pearce noted that the                                                                     
question is what would happen if the contracts were turned                                                                      
down and renegotiations happens quickly and are brought back                                                                    
before the end of that session or in a special session. The                                                                     
legislation was amended on the Senate floor to allow                                                                            
renegotiated contracts to be brought back to the                                                                                
legislature.                                                                                                                    
                                                                                                                                
Senator Pearce recalled that some legislators were not aware                                                                    
that the contract that they approved contained a 37.5-hour                                                                      
workweek provision. She emphasized the need to have all of                                                                      
the terms of a contract for deliberation, not just the                                                                          
monetary terms. The point is to have all the information on                                                                     
the table so that an informed decision can be made.                                                                             
                                                                                                                                
Representative J. Davies questioned if the entire agreement                                                                     
would be void if the legislature did not fund the monetary                                                                      
terms of the agreement. Senator Pearce agreed that if the                                                                       
legislature did not fund the monetary agreements that none                                                                      
of the terms would take effect. She reviewed terms proposed                                                                     
under contracts in negotiation. She referred to the GGU                                                                         
contract that is being negotiated. One of the provisions                                                                        
that the Administration considers to be a non-monetary                                                                          
provision is to allow the 7,000 employees in the GGU to                                                                         
convert their sick leave to personal leave and then cash in                                                                     
up to half of the leave converted. If all of the employees                                                                      
availed themselves of this option it could cost the state of                                                                    
Alaska $24 million dollars, which could happen in a short                                                                       
term. When other unions have had the same option, the number                                                                    
of employees that have availed themselves of the opportunity                                                                    
was been high: over half of those eligible availed                                                                              
themselves of the opportunity. The reserve fund has a $10                                                                       
million dollar balance. The reserve fund could be depleted                                                                      
and extra money required "in one fell swoop". Even though                                                                       
this is considered a non-monetary term by the union and                                                                         
Administration the legislature would consider it to be one                                                                      
of the provisions that would not go into effect if monetary                                                                     
terms were not approved.                                                                                                        
                                                                                                                                
Senator Pearce pointed out that there would be times when it                                                                    
would be to the employee's advantage not to allow non-                                                                          
monetary terms to take effect without approval of monetary                                                                      
terms. For example: If employees agreed to return to a 40-                                                                      
hour workweek in return for salary increases.                                                                                   
                                                                                                                                
Senator Pearce noted that in a multi-year agreement, that if                                                                    
the monetary terms were approved in the first year then the                                                                     
non-monetary terms would remain in effect, even if the money                                                                    
was not appropriated in the second year.                                                                                        
                                                                                                                                
Representative J. Davies expressed concern that it is                                                                           
possible that there would be provisions that are non-                                                                           
monetary that both the Administration and union would agree                                                                     
to, absent the monetary provisions. He questioned why the                                                                       
sponsor would want to sweep all of the provisions under the                                                                     
termination. Senator Pearce responded that it would be                                                                          
difficult to approve only specific portions of the contract.                                                                    
                                                                                                                                
Representative J. Davies observed that contracts could have                                                                     
provisions contingent on monetary terms and others that were                                                                    
not. Senator Pearce maintained that non-monetary terms                                                                          
should not apply if the monetary terms are not approved.                                                                        
                                                                                                                                
Representative J. Davies felt that any provision with a                                                                         
fiscal impact should be a monetary term. He reiterated that                                                                     
he would like to have non-monetary terms available for                                                                          
agreement.                                                                                                                      
                                                                                                                                
Co-Chair Therriault emphasized the difficulty of crafting                                                                       
language to address Representative J. Davies' concerns.                                                                         
Senator Pearce stated that there may be a way to do a                                                                           
consent agreement, but emphasized that the legislature would                                                                    
still want to know what the (non-monetary) terms are.                                                                           
                                                                                                                                
Representative Grussendorf observed that there are 12                                                                           
contracts and questioned if they could be approved                                                                              
individually. Senator Pearce clarified that they could be                                                                       
approved separately. Each one would have to be approved.                                                                        
Representative Grussendorf pointed out that the 37.5-hour                                                                       
workweek was negotiated in lieu of a salary increase.                                                                           
                                                                                                                                
Representative Grussendorf questioned why a 45-day cut off                                                                      
was selected. Senator Pearce observed that the original                                                                         
legislation contained a 60-day cutoff. She reiterated that                                                                      
the legislature is currently on the 78th day and that the                                                                       
information has not been provided. Representative                                                                               
Grussendorf stated that he would be more comfortable with of                                                                    
a 60-day period. Senator Pearce noted that April 1 was the                                                                      
original date.                                                                                                                  
                                                                                                                                
In response to a question by Representative Grussendorf,                                                                        
Senator Pearce explained that if they chose not to go back                                                                      
to negotiation some unions have the right to strike, some                                                                       
have negotiated away their right to strike. In the new DGU                                                                      
contract the employees of DGU are given the right to strike                                                                     
if the legislature fails to fund the contract in any year.                                                                      
This is a major contract change. Troopers do not have the                                                                       
right to strike.                                                                                                                
                                                                                                                                
DON ETHERIDGE, AFL-CIO testified in opposition to the                                                                           
legislation. He observed that the legislation was amended in                                                                    
the Senate Rules Committee. He maintained that under the                                                                        
amendment that that union members would not have the right                                                                      
to strike or any way to change a contract, if monetary terms                                                                    
are turned down on the second or third year of a multi year                                                                     
agreement. He maintained that the state of Alaska would have                                                                    
an unfair advantage under the legislation. He maintained                                                                        
that employees should have the right to go back to the table                                                                    
or strike if the monetary terms are not approved. He                                                                            
referred to previous negotiations and observed that local 71                                                                    
attempted to go back to a 40-hour workweek, but that it was                                                                     
rejected by the legislature. He acknowledged that the                                                                           
legislature has the option to turn contracts down. He stated                                                                    
that it would not be fair to retain non-monetary terms if                                                                       
the monetary terms were rejected.                                                                                               
                                                                                                                                
Representative Grussendorf pointed out that there is an                                                                         
understanding that the university is not in the position to                                                                     
fund contracts if they are not approved by the legislature.                                                                     
                                                                                                                                
In response to a question by Representative Williams, Mr.                                                                       
Etheridge stated that the union could live with the 45-day                                                                      
deadline, but that they support a longer period. He                                                                             
anticipated that contracts would be negotiated annually.                                                                        
                                                                                                                                
Co-Chair Therriault observed that language was written into                                                                     
the contract preserving the employee's right to strike every                                                                    
year and concluded that the provision would create a virtual                                                                    
one-year contract. Mr. Etheridge responded that "that is the                                                                    
only portion of the contract that is open and it doesn't                                                                        
take a long period of time to go in and work on that point."                                                                    
Most contracts have a no strike/no lockout clause. He                                                                           
estimated that there would be court battles.                                                                                    
                                                                                                                                
Representative Grussendorf referred language added on page                                                                      
2, by the Senate Rules Committee: Unless otherwise                                                                              
authorized by the legislature, the final agreement shall be                                                                     
submitted to the legislature no later than the 45th day of                                                                      
the legislative session to receive legislative consideration                                                                    
during that calendar year." He questioned if the                                                                                
Administration or the unions could petition the legislature                                                                     
to extend the time. Mr. Etheridge responded that if a                                                                           
contract was negotiated after the 45 day period that they                                                                       
could request that it be looked at, or that if a contract                                                                       
was going to be late that an extension could be requested.                                                                      
He added that if the legislature or the membership rejected                                                                     
a contract that there would be time to fix it before the                                                                        
legislature adjourned. Representative Grussendorf questioned                                                                    
if rejection would be through a concurrent resolution.                                                                          
                                                                                                                                
Representative G. Davis questioned the definition of                                                                            
"monetary terms". Mr. Etheridge responded that the                                                                              
definition as provided to them by the Administration would                                                                      
be "something that requires appropriation". He stressed that                                                                    
a legal definition is needed.                                                                                                   
                                                                                                                                
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY                                                                    
OF ALASKA expressed concern with section 1, which provides                                                                      
that none of the provisions of an agreement take effect if                                                                      
the monetary terms are not approved. She observed that the                                                                      
University has taken the position that if the legislature                                                                       
does not fund the monetary terms that they do not go into                                                                       
effect. She pointed out that the university proceeded with                                                                      
the balance of negotiated contracts that were not funded by                                                                     
the legislature. There are some elements of any contract                                                                        
that may be triggered off of monetary provisions. She                                                                           
stressed that there are a lot of things in collective                                                                           
bargaining process that are important to university                                                                             
employees such as: grievances, teaching loads, and committee                                                                    
work on tenure review. She emphasized that the contracts are                                                                    
presented to the legislature and that many legislators                                                                          
review them. She suggested that section 1 be deleted. She                                                                       
questioned if workload would be a monetary term and what                                                                        
would happen if the monetary terms are denied and all other                                                                     
terms were rejected. She questioned if they would be at                                                                         
impasse and if members would have a right to strike. She                                                                        
stressed that further direction is needed.                                                                                      
                                                                                                                                
Co-Chair Therriault asked if some of the non-monetary terms                                                                     
were linked directly to monetary terms.                                                                                         
                                                                                                                                
MIKE HOTINA, DIRECTOR, LABOR RELATIONS, UNIVERSITY OF ALASKA                                                                    
testified via teleconference. He stated that they did not                                                                       
have any non-monetary terms linked directly to monetary                                                                         
terms. He stressed that the legislation creates a                                                                               
disincentive. He stressed that they can address the problem                                                                     
of getting the contracts to the legislature. If the                                                                             
legislature does not appropriate the monetary terms under                                                                       
the current law they do not go into effect. Once a contract                                                                     
is disapproved it would go back to the table. The right of                                                                      
management to set standards and demand accountability                                                                           
becomes the only bone of contention and could lead to                                                                           
erosion of productivity and accountability. He maintained                                                                       
that both sides are aware that the legislature has the right                                                                    
to not approve the monetary terms.                                                                                              
                                                                                                                                
In response to a question by Representative Grussendorf, Mr.                                                                    
Hotina reiterated that there was no specific provision that                                                                     
indicated that if the monetary terms were not approved that                                                                     
a non-monetary term would not go into effect. Representative                                                                    
Grussendorf pointed out that there are many non-monetary                                                                        
terms of importance. He felt that the terms would be linked.                                                                    
Mr. Hotina stated that there is no legal barrier that would                                                                     
preclude a link between monetary and non-monetary terms.                                                                        
                                                                                                                                
SB 269 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
(TAPE CHANGE, HFC 00 - 83, SIDE 2)                                                                                              

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