Legislature(2001 - 2002)

02/26/2001 09:05 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     SENATE BILL NO. 65                                                                                                         
     "An Act requiring a study to determine if gender is a                                                                      
     determinant in state employee compensation."                                                                               
                                                                                                                                
                                                                                                                                
Co-Chair Donley stated  that SB 65 would require the State of Alaska                                                            
to conduct  a study to determine if  gender is a determent  in State                                                            
employee compensation.   The State has never performed  a pay equity                                                            
study.  The bill  would provide a mechanism to bring  the State into                                                            
compliance  with federal law  and put an end  to any wage-based  sex                                                            
discrimination in State employment.                                                                                             
                                                                                                                                
Co-Chair Donley continued  that state employees should be paid based                                                            
on the value  of the work  they perform, not  based on whether  they                                                            
are men  or women.   He stated that  passage of  SB 65 is the  right                                                            
thing  to do.   Failure to  address  the situation  will expose  the                                                            
State to  expensive, time-consuming  and divisive  litigation.   The                                                            
approach established in  the bill would first identify if there were                                                            
instances  in which the State  is illegally  paying women less  than                                                            
men.   If  the  study finds  such  instances,  then the  State  will                                                            
develop phased strategies  to eliminate such sex discrimination.  SB
65 promotes  fairness in the workplace  and recognizes the  valuable                                                            
work  that  is  being  performed  by the  men  and  women  in  State                                                            
government.                                                                                                                     
                                                                                                                                
SENATOR  ROBIN TAYLOR  indicated  that a  major question  was  being                                                            
raised  and that  the pay  equity question  is one  that has  always                                                            
haunted  the State of  Alaska.   He acknowledged  that a study  does                                                            
need to be done.   In the last 15 to 20 years, the  State has seen a                                                            
lot  of change  and  tremendous transition.    He pointed  out  that                                                            
anyone could  go to most construction  jobs and see women  operating                                                            
heavy equipment.   Senator Taylor  noted that he supported  Co-Chair                                                            
Donley's effort.                                                                                                                
                                                                                                                                
DAVID STEWART, Personnel  Manager, Division of Personnel, Department                                                            
of Administration, understood  that the Department of Administration                                                            
would be required to create  a study to determine if gender plays an                                                            
inappropriate  role in determining State of Alaska  personnel wages.                                                            
He pointed out  that the current system follows the  laws adopted by                                                            
the Legislature, which  requires a regular integrated salary program                                                            
based  on the nature  of the  work being  done.   It requires  equal                                                            
treatment of employees  and applicants and requires  recruitment and                                                            
advancement of employees  based on their relative ability, knowledge                                                            
and skill.   Furthermore,  Alaska Statute  (AS) 18-80-220,  makes it                                                            
unlawful to discriminate  against sex when the reasonable demands of                                                            
the position  don't require that on  the basis of sex.  The  State's                                                            
current pay  systems have been tested  in Court and have  been found                                                            
to be fair.                                                                                                                     
                                                                                                                                
Mr. Stewart  added  that the  Department  would work  with the  bill                                                            
sponsors to help define  the problem and the issues inherent within.                                                            
The current system  contains supervisory and management  reviews and                                                            
Union appeal processes.   Decisions affecting pay are not unilateral                                                            
and  based on  universally  applied  criteria.   He  added that  the                                                            
external  review  processes  was  designed  to  produce appropriate                                                             
warning signals.   Mr. Steward  advised that  rarely does the  State                                                            
receive pay disputes.   The current system does not illegally assign                                                            
pay raises  based  on gender.   He noted  that  the Department  does                                                            
support checking the efforts and practices.                                                                                     
                                                                                                                                
Senator  Green asked if  there was  anyway to  allow "lag" time  for                                                            
corrective action to take place.                                                                                                
                                                                                                                                
Co-Chair Donley  believed that could  happen with a simple  majority                                                            
vote.  He recommended  consulting  with the legislative drafters  to                                                            
see if that was correct.                                                                                                        
                                                                                                                                
Co-Chair  Kelly  asked  if there  had  been discrimination   claimed                                                            
against men.  He recommended that  the criteria of the study  should                                                            
be broadened in order to look at sex discrimination both ways.                                                                  
                                                                                                                                
Co-Chair  Donley  responded that  the  legislation  would be  gender                                                            
based  and  not limited.    Language  referenced  in  the  sectional                                                            
analysis was used only  as an example and that there would be a full                                                            
analysis of both gender classes.                                                                                                
                                                                                                                                
Co-Chair Kelly pointed  out that the proposed legislation was not an                                                            
equal pay  for equal work-study,  but rather  pay equity.   He asked                                                            
Senator Donley to explain the difference.                                                                                       
                                                                                                                                
Co-Chair Donley discussed  that given two truck drivers, a man and a                                                            
woman, if either  of them is paid  differently with the same  duties                                                            
and experience,  then  an equal  pay problem  exists.   However,  if                                                            
there is a class  called assistant truck drivers and  a class called                                                            
truck driver assistant,  and one is dominated by women and the other                                                            
is dominated  by men,  and one class  is paid  differently from  the                                                            
other, then there exists a pay equity situation.                                                                                
                                                                                                                                
Senator Leman  asked what the legislation  was attempting  to solve.                                                            
He did not think that the  legislation really addressed the concerns                                                            
voiced by Senator  Donley.  He suggested  that looking at  the class                                                            
could determine the difference in the pay scheme.                                                                               
                                                                                                                                
Co-Chair  Donley  pointed  out  that Alaska  has  the  advantage  of                                                            
looking  at  the  results  from  other  states   that  have  already                                                            
undertaken the study.   He stressed that there is legitimate concern                                                            
and perception  that  there is  discrimination  happening in  Alaska                                                            
against women.   It is a fact that women in the State  are paid less                                                            
than men  overall.  He  reiterated that there  could be a  potential                                                            
problem  and the  only  way to  alleviate the  concern  would be  to                                                            
undertake such a study.                                                                                                         
                                                                                                                                
                                                                                                                                
SFC 01 # 24, Side B 09:56 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair  Donley  interjected  that  there  is  no  conclusion  that                                                            
discrimination exists, however, there exists a possibility.                                                                     
                                                                                                                                
Senator Leman  suggested there  could be other  ways to address  the                                                            
concern.      He   proposed   "actively   recruiting"   into   those                                                            
classifications.   Additionally,  wages paid  should be marketplace                                                             
wages.  Implementing both  of those would accomplish more than going                                                            
through the recommendations proposed in the bill.                                                                               
                                                                                                                                
Co-Chair Kelly  perceived that the career path within  State workers                                                            
appears  to be clear  and that women  do not seem  to be impeded  on                                                            
that path.  He stated that  different job classifications have to do                                                            
with  the marketplace.    He encouraged  Mr.  Stewart  to work  with                                                            
Senator Donley  in order to guarantee that the study  was crafted to                                                            
answer all the questions and concerns.                                                                                          
                                                                                                                                
Co-Chair  Kelly stated  that  the bill  would be  HELD in  Committee                                                            
until Senator  Donley and  the Department  could determine  what was                                                            
needed done.                                                                                                                    
                                                                                                                                
Senator Austerman  asked if the study would be contracted  out or if                                                            
it would be an independent study.                                                                                               
                                                                                                                                
Mr. Stewart replied that the study would be contracted out.                                                                     
                                                                                                                                
Co-Chair  Donley  acknowledged  that was  the  intent  and in  other                                                            
states where it had been contracted out, it was successful.                                                                     
                                                                                                                                
Senator  Green  questioned  why  the  Department  of  Labor  or  the                                                            
Department of Community  & Economic Development were not being used.                                                            
                                                                                                                                
Co-Chair Donley explained  that he was trying to integrate the State                                                            
of  Alaska's employment  system  and  compare  it with  other  state                                                            
surveys.  He added that  job classifications in our State system are                                                            
different from the surveys performed in other states.                                                                           
                                                                                                                                
Senator  Ward reminded  members that  the University  of Alaska  had                                                            
undertaken  a study like  this.  He recommended  checking with  them                                                            
regarding the  company who was contracted with.  That  study exposed                                                            
that the engineers  were predominately males and that  other classes                                                            
were   predominately   female.     He   believed  that   there   was                                                            
justification for doing the survey.                                                                                             
                                                                                                                                
Co-Chair  Kelly  inquired   if  it  had  been  an  equal  pay  study                                                            
undertaken by the University.                                                                                                   
                                                                                                                                
Senator Ward  remembered that the  study addressed classifications.                                                             
The females  were being  paid less because  of their classification                                                             
and that the study had been done five years ago.                                                                                
                                                                                                                                
Co-Chair Kelly  claimed that women tend to be the  lower paid member                                                            
of most  family units because  they make  the lifestyle choices  for                                                            
the betterment of the family.   He did not know how that information                                                            
would be quantified in a study.                                                                                                 
                                                                                                                                
Co-Chair Donley cautioned  that the Committee must be careful not to                                                            
override a  truly objective study.   There needs to be an  objective                                                            
frame of reference and  analysis.  Until that occurs, the perception                                                            
will continue.                                                                                                                  
                                                                                                                                
SB 65 was HELD in Committee.                                                                                                    
                                                                                                                                

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