Legislature(1993 - 1994)
03/04/1993 03:00 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 158: APPROP: CONTRACT SETTLEMENT COSTS Number 484 COMMISSIONER NANCY USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION, presented the monetary terms of the labor contract recently negotiated and gave the following description of the types of employees covered under this appropriation: classified, nonsupervisory, and blue and gray collar employees of the executive branch. Classifications include cooks, custodians, equipment operators and skilled crafts. The employees work primarily for the Departments of Transportation & Public Facilities, Administration, Corrections, and Health and Social Services. There are approximately 1,634 employees represented by the Public Employees Local 71. COMMISSIONER USERA went into some detail regarding management's goals in coming to this agreement and the contract agreement itself. (These are on file in the committee room.) Number 585 COMMISSIONER USERA noted that the agreement includes a provision to refund the costs to employees who were required to obtain a commercial driver's license as a condition of employment. She noted renewals will be at the expense of the employee. Number 599 CHAIRMAN HUDSON inquired if that new requirement was the result of the federal law change. Number 604 DON VELESCO, MANAGER, PUBLIC EMPLOYEES LOCAL 71, stated that the federal government does require persons driving certain vehicles to have a commercial license. Mr. Velesco further stated that the federal government controls the purse strings on some of the projects, so the state then enacted a law to require this. Number 611 REP. PORTER asked if the license was portable. COMMISSIONER USERA responded that it was. COMMISSIONER USERA testified that the other large item in the agreement was the health insurance escalator which raises the state's contribution to $500.00 a month. Number 638 REP. GREEN asked why the funding was coming from several different sources. TAPE 93-18, SIDE B Number 001 CHERYL FRASCA, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, responded that the funding composition for the salary increase was the same as the funding composition to pay the salaries normally. Number 060 REP. MULDER expressed concern over there being no savings in this contract. Number 069 COMMISSIONER USERA noted that there were no wage escalator associated with this contract; reduction of a holiday saves money; and a real monetary value to change the cola date from January 1 to July 1 also adds up to a savings for the state. Number 109 COMMISSIONER USERA stated that it is her belief that health care in this nation is going to change so dramatically that in the long-run the state will realize a cost savings. Number 160 REP. GREEN asked what happens if health care costs skyrocket instead of come down. COMMISSIONER USERA responded that in two years the contract will be up. Number 180 REP. GREEN expressed concern that this sets precedent. Number 189 COMMISSIONER USERA said she believes that the precedent set is a positive and realistic one. Discussion ensued concerning strategy and details regarding the contract settlement. Number 279 REP. HUDSON asked how the amount of health insurance the state has agreed to provide compares to other public employers or other unions the state has bargained with. COMMISSIONER USERA stated that the only one she knew of that was higher was the Anchorage employees. She further stated that the committee should remember that the Local 71 "bought" this health coverage by giving up other priorities. Number 317 REP. MULDER asked where Commissioner Usera felt the state stood in comparison to other employers as far as benefits. COMMISSIONER USERA said she felt at this time the state was providing a great benefit package, but for the record she wanted to note that this package has been put together in increments over the years. Furthermore, the commissioner wanted to note that the state was in a position in the late 1970's where it was scrambling to find and retain a skilled workforce given the high wages paid on the slope. Number 349 REP. MULDER asked if the state had looked into going out to bid for an insurance carrier. Number 353 COMMISSIONER USERA answered that the state was currently looking at a variety of options. Number 357 REP. SITTON congratulated the unions and the administration on the process and end result of the negotiated settlement they came to. Number 371 CHAIRMAN HUDSON asked what kinds of considerations could be looked at for noncovered employees; i.e., legislative staff. Number 372 COMMISSIONER USERA responded that she agreed wholeheartedly that this was an area of importance to both the noncovered employee and management. CHAIRMAN HUDSON noted that the administration had proposed two amendments to the bill, and a third one would be presented by the university. Number 439 MR. VELESCO testified that he disagreed with the commissioner on characterizing the amount of health insurance payments as being one of the finest. Mr. Velesco noted that the union he represents has different needs based on the kind of work done. Number 502 REP. PORTER asked if Local 71 ratified this agreement. MR. VELESCO replied yes. Number 507 MS. FRASCA offered two amendments affecting Sections 3 and 4 of the bill. Basically, these amendments were revised estimates of the number of employees affected by this agreement. Number 524 BRIAN ROGERS, VICE PRESIDENT FOR FINANCE, UNIVERSITY OF ALASKA, testified that the amendments before the committee represented the obligation the university had to the members of the Alaska Community College Federation of Teachers. Number 567 REP. PORTER asked if the university system had binding arbitration. Number 568 MR. ROGERS answered that they do have binding arbitration to deal with any disputes under the collective agreement, but they would not proceed to binding arbitration except by mutual consent if they were to fail to reach agreement. Number 623 REP. SITTON moved amendments 1, 2, 3 and 4, with fiscal notes and asked unanimous consent. There were no objections; it was so ordered. Number 638 REP. PORTER moved for passage of CSHB 158(L&C)am with individual recommendations and zero fiscal notes. There were no objections; it was so ordered. CHAIRMAN HUDSON adjourned the meeting at 4:40 p.m.
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