Legislature(2001 - 2002)
04/19/2001 03:25 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 230-RAILROAD EMPLOYEE SALARIES AND WAGES CHAIR MURKOWSKI announced that the first order of business would be HOUSE BILL NO. 230, "An Act relating to wage and hour protections for employees of the Alaska Railroad Corporation; and providing for an effective date." Number 0134 WENDY LINDSKOOG, Director, External Affairs, Alaska Railroad Corporation (ARRC), came forth to present HB 230. She stated: House Bill 230 accomplishes two very important objectives for the Alaska Railroad and its employees. It amends the Alaska Railroad statute AS [42.40.710]. First, the bill clarifies that ARRC does in fact fall under the Alaska Wage and Hour Act. And second, the bill would allow the members of the United Transportation Union [UTU] - these are our conductors, our brakemen, and our engineers - ... the flexibility to negotiate an agreement that would allow UTU union employees to be paid on a salary-type basis, rather than an hourly-type basis. MS. LINDSKOOG gave some background to the bill. She stated: When we began negotiations several months ago with the UTU union members, we discovered that there was in fact question whether the Alaska Railroad fell under the Alaska Wage and Hour Act. Because the Alaska Railroad is a rail carrier, we are exempt from the federal Fair Labor Standards Act - ... that's the federal law governing minimum wage ... and overtime issues. Since the state purchased the railroad we have always operated and believed that we were regulated by the Alaska Wage and Hour Act, so to find out that we weren't was a bit of a surprise. ... With this cloud of uncertainty about our status under the Act, we do believe that it's important for our nearly 700 employees to clarify this issue. One thing that is important to point [out]: the UTU union members would still have protection from overtime and wage issues. Basically, they do fall under the Hours of Service Act, and this prevents excessive or unreasonable work hours by limiting the number of hours they can work to 12 hours before they need to rest. Both management and UTU members would benefit from the exemption. For example, being paid on a salary-type basis would enhance the UTU member retirement benefits, and management would gain some flexibility in terms of some efficiency methods ... in the future. We do have letters of support from UTU union members, ... Alaska Public Employees Association, [the] American Train Dispatchers Department, and the Alaska Railroad workers, and we do have verbal support from the AFL-CIO [American Federation of Labor and Congress of Industrial Organizations]. I understand a letter might be forthcoming on that. Number 0402 REPRESENTATIVE HALCRO asked Ms. Lindskoog whether this would give the railroad and the employees greater flexibility when determining work schedules. MS. LINDSKOOG responded that this would provide [ARRC] the flexibility to go into negotiations with the UTU union only, and it would have to be an agreement that was mutually agreed to by both the UTU and management. REPRESENTATIVE ROKEBERG asked Ms. Lindskoog whether it is an exemption under the [Alaska] Wage and Hour Act to allow "flex" time or whether [ARRC] will have to get approval from the commissioner. MS. LINDSKOOG answered that the Department of Labor [and Welfare Development] mentioned to [ARRC] that as long as it made this change through their statute, it wouldn't go into the AS [23.10.050]. REPRESENTATIVE ROKEBERG remarked that if Ms. Lindskoog is stipulating by this bill that [ARRC] is under AS 23, then [ARRC] is bound by the provisions of AS 23. He asked whether that means [ARRC] needs to have approval of the commissioner to adopt a flexible work schedule, or whether it is exempt under that because the bargaining unit is a member of organized labor. Number 0567 ANN COURTNEY, Senior Attorney, Labor and Employment, Alaska Railroad Corporation, testified via teleconference. She responded that she believes everyone at the Alaska Railroad Corporation who is not in a collective bargaining unit would have to get approval from the Department of Labor and Workforce Development in order to work flexible time. Employees represented by a collective bargaining agreement may do that without permission from the commissioner or from the department. If this legislation passes, and the railroad and the union are able to mutually agree in a collective [bargaining] agreement that they would be exempt, flex-time will no longer be an issue for the UTU. They would be exempt from all aspects of the [Alaska] Wage and Hour Act. The remaining employees of the railroad would remain subject to the Act, and nonrepresented employees would have to have approval for a flex-time program. REPRESENTATIVE ROKEBERG referred to AS 23.10.060, subsection (d)(14), which provides for the voluntary flexible work hour plan. He remarked that it is limited to 40 hours a week and not more than 10 hours a day, and he asked how that would work. MS. COURTNEY responded that if this legislation passes, the UTU would be exempt from that requirement. The UTU and the railroad could then mutually agree upon any method of payment and any scheduling of work, subject to the restrictions of the Hours and Service Act. REPRESENTATIVE ROKEBERG asked whether that was because of the provisions in Section 1 of the bill. MS. COURTNEY answered that it would be because they were exempt from the Act altogether. She clarified that in AS 23.10.060 there is a section that indicates who this Act does not apply to, and there is a long list of employees who are not subject to the Alaska Wage and Hour Act. If this legislation passes, the UTU would fall in the same category as those employees. REPRESENTATIVE ROKEBERG remarked that it wouldn't reflect in the statute because it would be within its own chapter. MS. COURTNEY said that's correct. REPRESENTATIVE ROKEBERG asked whether it was limited to train or engine service employees. Number 0818 MS. COURTNEY responded that he was correct. The term "train and engine service" is shorthand for saying, "those employees at the Alaska Railroad Corporation who actually run the trains: the conductors, the locomotive engineers, and the brakemen." CHAIR MURKOWSKI stated that in the fiscal note there is a notation that approximately 545 of the Alaska Railroad Corporation's employees are represented by five unions. She asked whether the exemption to [the Alaska Wage and Hour Act] would only apply to those UTU's members and not to any other collective bargaining groups. MS. COURTNEY responded that she was correct. CHAIR MURKOWSKI asked whether the UTU getting this exemption would cause a problem or concern amongst any of the other bargaining units or union members. Number 0963 KEVIN BERGSRUD, Locomotive Engineer, Alaska Railroad Corporation; Director, United Transportation Union, testified via teleconference. He stated that rail workers and train dispatchers have both provided letters of support. He said to the best of his knowledge there is no conflict. REPRESENTATIVE CRAWFORD asked Mr. Bergsrud whether this is something the UTU would like to do - to go under salary. MR. BERGSRUD responded that it is his understanding that this is for the benefit of UTU. REPRESENTATIVE MEYER remarked that he met with both Ms. Lindskoog and Mr. Bergsrud and thinks this is ideal. REPRESENTATIVE HALCRO commented that two of the exemptions under AS 23.10.060 were put in by the House Labor and Commerce Standing Committee over the past two years. CHAIR MURKOWSKI asked Ms. Lindskoog whether she would like to acknowledge that she has had conversations with the Department of Labor and Workforce on this. MS. LINDSKOOG replied that she feels uncomfortable speaking for [the department] but [ARRC] has talked to the department, which requested specifically that the bill be done through [ARRC's] statute and not AS 23. Number 1170 REPRESENTATIVE ROKEBERG commented that this is another example of the inherent bias in statutes to those employees who are represented by bargaining units to have a "leg up." REPRESENTATIVE ROKEBERG made a motion to move HB 230 from committee with individual recommendations and the attached zero fiscal note. There being no objection, HB 230 moved from the House Labor and Commerce Standing Committee.
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