Legislature(2007 - 2008)BELTZ 211

02/28/2008 09:00 AM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SJR 12 CRUISE SHIP PORT TIMES: JONES ACT TELECONFERENCED
Moved CSSJR 12(STA) Out of Committee
*+ SB 276 STATE CONSTRUCT'N PROJECT LABOR AGREEMENT TELECONFERENCED
Heard & Held
*+ SB 208 SEX OFFENSES: 'WITHOUT CONSENT' DEFINED TELECONFERENCED
<Bill Hearing Postponed>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ SB 218 CHILD SAFETY SEATS & SEAT BELTS TELECONFERENCED
<Bill Waived from Committee>
        SB 276-STATE CONSTRUCT'N PROJECT LABOR AGREEMENT                                                                    
                                                                                                                                
9:21:03 AM                                                                                                                    
CHAIR MCGUIRE announced the consideration of SB 276.                                                                            
                                                                                                                                
9:21:42 AM                                                                                                                    
SENATOR BUNDE  moved to adopt  a committee substitute (CS)  to SB
276, labeled,  25-LS1247\M. Hearing  no objection, Version  M was                                                               
before the  committee. The bill  represents a fairness  issue, he                                                               
said.  His  mother-in-law  was  a  single  mother  working  as  a                                                               
waitress. She belonged  to a union, paying her small  dues out of                                                               
her tips.  She visited him  in Alaska  for about six  months. Her                                                               
union contract  had a proviso about  a break in service,  so when                                                               
she retired she  never received any benefits.  There is something                                                               
similar  in  Alaska.  There  are people  working  under  a  labor                                                               
agreement who  are not  union members, but  they are  required to                                                               
pay into the union retirement and benefit plan.                                                                                 
                                                                                                                                
9:23:46 AM                                                                                                                    
SENATOR BUNDE said  these non-union workers never  have access to                                                               
that money.  It benefits  the union  retirement plan,  because it                                                               
provides funds  that will never be  drawn on, but it  is not fair                                                               
to the laborer. This is  substantial money, like $40,000 worth of                                                               
benefits accumulated  by someone working on  the Alaska pipeline.                                                               
He  spoke of  a  worker who  passed away  and  his wife  couldn't                                                               
collect because he hadn't been a  union member. The gas line will                                                               
have $17 per hour that the  employer pays into a benefit package,                                                               
and  a non-union  worker will  never get  that benefit.  It isn't                                                               
fair. SB  276 gives  employees the  option of  the union  plan or                                                               
their  current employer's  plan.  Non-union  employees will  have                                                               
benefits available if  they never join the union  and are covered                                                               
by the non-union  employer plan. If that person  joins the union,                                                               
the benefit contributions can be placed in that program.                                                                        
                                                                                                                                
9:27:16 AM                                                                                                                    
VINCE  BELTRAMI, President,  Alaska AFL-CIO,  Anchorage, said  he                                                               
applauds Senator Bunde for looking  out for all employees who may                                                               
work under the terms of a  project labor agreement (PLA). He said                                                               
he  is not  opposed  to  the bill  but  has recommendations.  The                                                               
notion  that PLAs  discriminate  against non-union  workers is  a                                                               
fallacy. Most  non-union workers have realized  superior benefits                                                               
that are  offered by  a joint labor  management trust  fund. Once                                                               
they realize  how good the  benefits are,  they stay on  with the                                                               
unions after the project is  completed. Representative Mike Kelly                                                               
has  a companion  bill  in the  House, and  he  provided a  press                                                               
release  that identified  three primary  fringe benefits  that he                                                               
said  would  discriminate  against  non-union  employees  working                                                               
under a  PLA: health,  training, and  pension plans.  Contrary to                                                               
claims   bandied   about   by    non-union   employers   and   by                                                               
Representative Kelly's  press release,  the fringe  benefit plans                                                               
that  are offered  under PLAs  do not  discriminate against  non-                                                               
union  employees. The  medical  plans are  often  superior. In  a                                                               
typical plan  an employee  becomes a participant  as soon  as the                                                               
minimum  qualifying  requirements have  been  met,  which is  300                                                               
qualifying hours  and usually not  more than  a month and  a half                                                               
when on  a seven/ten  schedule. It  is no  different from  what a                                                               
long-time  union member  would  need to  qualify. Unlike  typical                                                               
non-union  plans, participants  build up  an hour  bank that  can                                                               
cover them  with the  good medical  plans for as  much as  a year                                                               
after the project  is completed, because that hour  bank has been                                                               
built up. Typically  coverage under non-union plans  end with the                                                               
termination of the employee.                                                                                                    
                                                                                                                                
9:30:23 AM                                                                                                                    
MR. BELTRAMI  said contributions that make  participants eligible                                                               
for training are available to  union and nonunion members if that                                                               
contribution is  being made on  their behalf. That  entitles them                                                               
to  OSHA  training,  HAZWOPER  [hazardous  waste  operations  and                                                               
emergency  response],  CPR,  first  aid,  and  any  other  skill-                                                               
specific  upgrade  training  that  many  of  the  union  training                                                               
programs  provide. He  doesn't know  of  any comparable  training                                                               
programs  in  the  non-union  sector.  The  question  that  often                                                               
arises, and  what probably  was the  impetus for  SB 276,  is the                                                               
pension   contributions.  Universally,   defined  benefit   plans                                                               
require five years  of vesting -- not ten years,  as it was under                                                               
TAPS.  At this  point,  the  gasline project  may  not last  long                                                               
enough for  a participant  to vest. "However  they would  vest if                                                               
the  project  was  longer  than  that and  they  worked  on  it."                                                               
Accordingly,   labor  expects   the   licensee   or  whoever   is                                                               
negotiating  the terms  of the  PLA to  bring up  alternatives to                                                               
defined benefits. Many  of the unions offer  both defined benefit                                                               
and defined  contribution plans. He  fully expects the  unions to                                                               
agree  to a  hybrid  that allows  fully-vested  union members  to                                                               
continue with  their existing plans  and an option  for something                                                               
like is  being suggested in this  bill. The slippery slope  is in                                                               
oversimplification  of this  element by  a simple  declaration of                                                               
benefits by  the employee. The  unions will fully agree  to allow                                                               
its plans to  be open and examined by all  parties. The same must                                                               
be true  of any non-union employers  who work on the  project and                                                               
who have  some type  of fringe  benefit plans  that they  want to                                                               
have be  considered for  the project.  Some non-union  plans have                                                               
comparable  benefits  but  many  do  not.  Fraudulent  plans  are                                                               
difficult to  navigate and leave  employees without  the benefits                                                               
that they thought they were getting.                                                                                            
                                                                                                                                
9:32:57 AM                                                                                                                    
MR. BELTRAMI said it is  imperative that the benefit options meet                                                               
the level of scrutiny that the  union sponsored plan gets. Not to                                                               
include  that type  of provision  would  be a  disservice to  the                                                               
employees and  contrary to what  it seems  the bill is  trying to                                                               
accomplish. Another  slippery slope  is the precedence  this bill                                                               
would set.  He hasn't  seen a  legislative body  legislate things                                                               
that  are always  mandatory  subjects  of collective  bargaining.                                                               
"Will  the legislature  go on  to negotiate  more terms  in other                                                               
collective  bargaining agreements?"  If this  body moves  in that                                                               
direction - although  it might not pass legal muster  -- it would                                                               
seem to be  a subrogation of the duties assigned  to others and a                                                               
proclamation that the legislature is  ready, willing, and able to                                                               
take on more than  it is typically faced with. But  he is glad to                                                               
see the legislators looking out  for the best interest of Alaskan                                                               
employees - "I  do it everyday, and  we don't just do  it for our                                                               
members.  Our concern  and involvement  over things  like minimum                                                               
wage, unemployment insurance, and  other issues demonstrates that                                                               
organized  labor works  hard on  issues that  do benefit  working                                                               
Alaskans other  than our union  members." He urged  the committee                                                               
to make  sure that SB  276 protects  employees who are  not union                                                               
members to  the same level  as the union  members who will  go to                                                               
work  under the  terms  of  a PLA.  He  asked  for amendments  to                                                               
Sections 36.30.405  (b) 1, 2, and  3 to assure that  employs will                                                               
get the same  level of benefits as those provided  to the typical                                                               
union members.                                                                                                                  
                                                                                                                                
9:35:16 AM                                                                                                                    
CHAIR MCGUIRE asked what amendments he wants.                                                                                   
                                                                                                                                
MR. BELTRAMI  said he  doesn't have a  specific proposal,  but he                                                               
asked  for the  plans to  meet the  same level  of benefits  that                                                               
exist under union plans.                                                                                                        
                                                                                                                                
CHAIR MCGUIRE asked if health,  training, and pension all need to                                                               
be equal.                                                                                                                       
                                                                                                                                
MR.  BELTRAMI  said certainly  --  whatever  the prevailing  wage                                                               
package  is. The  fringe benefits  need to  be equal.  Some plans                                                               
provide legal  benefits. If  a benefit plan  is approved  that is                                                               
contrary to  the union, it  has to be at  least as good,  so that                                                               
those who opt for it have the same coverage.                                                                                    
                                                                                                                                
9:36:19 AM                                                                                                                    
SENATOR GREEN asked  why he is concerned about that.  "If I as an                                                               
employee choose to put my  contribution somewhere else -- and why                                                               
you would care."                                                                                                                
                                                                                                                                
MR.  BELTRAMI  said,  "We  represent  employees  whether  they're                                                               
members of  our union  or not.  If you're going  to go  down this                                                               
slope and  try to negotiate  benefits…." Workers  are essentially                                                               
deciding  they want  non-union benefits,  not union  benefits, so                                                               
they need to be comparable. They  need to protect the employee in                                                               
the same  way. The pension  needs to be legitimate  and approved,                                                               
and the training benefits need to be comparable.                                                                                
                                                                                                                                
SENATOR GREEN said, regarding vesting,  Mr. Beltrami is comparing                                                               
something with a future with  something without. If employees are                                                               
not going to get long-term  benefits by contributing to the union                                                               
pension, wouldn't they want to put it in their existing plan?                                                                   
                                                                                                                                
9:37:41 AM                                                                                                                    
MR. BELTRAMI  said he doesn't  disagree, but  if it is  a defined                                                               
contribution plan,  which is a  mandatory subject  of bargaining,                                                               
"anybody will be  able to say -- from  the employers' perspective                                                               
- we  want this plan to  be considered. We have  agreed, in other                                                               
collective bargaining  agreements, to have plans  like that." But                                                               
the plan needs to be legitimate and recognized.                                                                                 
                                                                                                                                
SENATOR  BUNDE said  retirement plans  are covered  under federal                                                               
regulations, so requiring a legitimate plan is already covered.                                                                 
                                                                                                                                
MR. BELTRAMI  said he has seen  some that are not  legitimate and                                                               
that  skirt ERISA  [federal Employee  Retirement Income  Security                                                               
Act],  and they  have  been problematic  for non-union  employees                                                               
working  on Davis-Bacon  jobs  to  be able  to  actually get  the                                                               
benefit that they have been promised.                                                                                           
                                                                                                                                
SENATOR BUNDE said maybe the title  of the bill should be changed                                                               
to  make it  pro-choice. He  said he  can pick  and choose  state                                                               
health benefits. Not  everyone wants the same  coverage, "and I'm                                                               
suggesting that  this bill should  allow employees  that choice."                                                               
He asked if  there have been abuses of the  union pension plan in                                                               
Alaska, like there have been nationally.                                                                                        
                                                                                                                                
9:39:46 AM                                                                                                                    
MR. BELTRAMI said he saw a  letter that came from Brian Miller of                                                               
Arctic Lights Electric where he  makes that claim related to TAPS                                                               
- that  people were left out  of their benefits, and  there was a                                                               
class  action  suit  that  spurned   pension  reform  across  the                                                               
country. It changed  a lot of 10-year vesting  to 5-year vesting.                                                               
The  suggestion in  the letter  was that  this cash  went to  the                                                               
union, which  is inaccurate. The cash  never goes to the  union -                                                               
that  would  be a  violation  of  ERISA  --  it goes  into  union                                                               
management-operated  joint   trust  funds  that  have   all  been                                                               
reformed to ensure that employees  don't have that kind of abuse.                                                               
That was settled 30 years ago.  Once it was settled the money was                                                               
distributed  to  the participants.  People  came  to Alaska  from                                                               
other parts of the country and  never worked long enough to vest.                                                               
He said the  I.B.E.W. set several million dollars  aside in those                                                               
benefits  when the  suit came  along.  Once it  was settled,  the                                                               
money was distributed  to those participants as  was expected. He                                                               
is not aware  of anything that goes on today  under project labor                                                               
agreements  or any  other collective  bargaining agreement  where                                                               
employees are  not entitled  to the  benefits they've  earned. It                                                               
would be a violation of ERISA.                                                                                                  
                                                                                                                                
9:41:22 AM                                                                                                                    
CHAIR MCGUIRE said,  so, "the concept would be  that the benefits                                                               
program that  would be  offered that's  non-union would  meet the                                                               
same thresholds as the union."                                                                                                  
                                                                                                                                
MR.  BELTRAMI said  the  language  is too  vague  and subject  to                                                               
challenges,  because it  won't do  all  it should  do to  protect                                                               
employees  who might  choose those  options. The  part about  the                                                               
labor representative who negotiated  the PLA should be corrected.                                                               
It is  not the labor  representative; it is the  labor management                                                               
trust fund.                                                                                                                     
                                                                                                                                
SENATOR BUNDE said it is a trust fund managed by the union.                                                                     
                                                                                                                                
MR. BELTRAMI said,  "And the employers." He serves  on the Alaska                                                               
Electrical  Pension  Trust  Fund,   and  there  are  five  union-                                                               
appointed trustees and five  employer-appointed trustees. That is                                                               
the oversight of the trust; it is not the union.                                                                                
                                                                                                                                
MR.  BELTRAMI  said  it  is   apparent  that  there  are  several                                                               
technical  issues that  need to  be  addresses. The  bill in  its                                                               
present form won't do what it tries to do.                                                                                      
                                                                                                                                
9:43:56 AM                                                                                                                    
JEFF ROBINSON, Division Manager,  Service and Installation, Klebs                                                               
Mechanical,  Anchorage,  said  Klebs is  the  largest  mechanical                                                               
contractor in  Alaska. Project labor  agreements place  an unfair                                                               
financial disadvantage on workers who  have not been subject to a                                                               
collective bargaining agreement prior  to the project. They force                                                               
workers to  make contributions  to plans  knowing full  well they                                                               
will  not receive  the benefits.  It is  unethical. His  employer                                                               
makes contributions to  benefit plans on behalf  of its employees                                                               
that  range from  $27,000 to  $34,000 annually  per worker.  What                                                               
workers can  make those kinds of  contributions, especially those                                                               
that do  not benefit them?  His employer  would never sign  a PLA                                                               
because of that. There are  smaller Alaskan contractors who might                                                               
sign  an agreement  on a  large project,  and so  there are  many                                                               
Alaska  workers who  would suffer  that hardship.  Many temporary                                                               
rural  workers will  never get  vested and  never see  a dime  of                                                               
their pension  money. The most  common vehicle used  by open-shop                                                               
contractors is the 401K, which is  what Krebs has, and that money                                                               
always belongs  to the employees.  If a worker leaves,  the money                                                               
goes with him or her. The bill  is great for both union labor and                                                               
open-shop contractors because it gives  the worker the choice. It                                                               
has always  been the union's assertion  that it wants to  do what                                                               
is best  for the worker. SB  276 gives the worker  the choice and                                                               
is  a  good compromise  so  that  workers on  large  construction                                                               
projects receive the full benefit of their compensation package.                                                                
                                                                                                                                
9:47:17 AM                                                                                                                    
SENATOR  BUNDE  said  competition   is  good  for  business.  Mr.                                                               
Beltrami  suggested that  all  plans  be the  same.  He asked  if                                                               
having the  option of different  plans will  provide competition,                                                               
and perhaps will  put pressure on Krebs to change  its plan to be                                                               
more competitive.                                                                                                               
                                                                                                                                
MR. ROBINSON  said it could. He  doesn't see how two  plans could                                                               
ever  be truly  compared. It  should  be the  workers' choice  to                                                               
evaluate both plans and pick. Trying  to make them the same would                                                               
be impossible to administer.                                                                                                    
                                                                                                                                
JEFF  ALLING,  President,  Alcan  Builders  General  Contracting,                                                               
Fairbanks, said he  has between $5 million and  $25 million worth                                                               
of   work  annually.   PLAs  discourage   bidding  by   non-union                                                               
contractors for  many reasons,  including the  negative financial                                                               
impact for  an employer regarding pension,  health and insurance.                                                               
Employers may  have to double pay.  There is a legal  risk to not                                                               
contribute to the regular pension  plan through the employees who                                                               
work on  a project while  contributions are made on  their behalf                                                               
to  union pension  plans.  The legal  risk  of suspending  health                                                               
coverage  while transitioning  to  another  plan is  substantial.                                                               
Benefit contributions for different  crafts that he employees can                                                               
range  anywhere from  $13.00 to  $18.00 per  hour. Making  double                                                               
payments makes a contractor uncompetitive  in the bidding process                                                               
if  it is  non-union. Employees  who sign  on to  a PLA  and make                                                               
contributions  to a  union pension  plan  subject themselves  for                                                               
withdrawal liability  - meaning a  contractor can be on  the hook                                                               
for any  future liabilities of  a union plan. AGIA  requires that                                                               
the  licenses  use  Alaskan contractors  to  the  maximum  extant                                                               
possible, and it requires a  PLA. These contradict each other. SB
276 is a good first step  in removing one of the burdensome terms                                                               
of a PLA that keep contractors from bidding.                                                                                    
                                                                                                                                
9:51:37 AM                                                                                                                    
SENATOR  BUNDE asked  if he  continues a  longstanding employee's                                                               
benefits if he or  she goes to work on a  PLA, while being forced                                                               
to make payments into the union plan.                                                                                           
                                                                                                                                
MR. ALLING  said that  is correct.  He has  to follow  the Davis-                                                               
Bacon prevailing  wage program.  A carpenter  is paid  $31.93 per                                                               
hour with  a benefit package  of $17.25  per hour. It  brings the                                                               
total to  $41.98. With workers compensation,  Social Security and                                                               
other things, it costs him $60.00  per hour to put a carpenter in                                                               
the  field. His  company has  been in  business so  long, it  has                                                               
long-term employees who  have chosen to stay  because his company                                                               
provides a good  package. "We are fair to them  and they are very                                                               
comfortable  working with  us." They  have chosen  not to  become                                                               
union members.  If Mr.  Alling is  forced into a  PLA he  will be                                                               
non-competitive. To  take care  of his  employees, his  costs per                                                               
hour will  be $77.25  as opposed  to the $60.00  per hour  that a                                                               
union  contractor can  use  in bidding  the  same project.  "That                                                               
would  be union  contractors  from anywhere  in  the country.  It                                                               
would give  them a  competitive advantage  over my  company." The                                                               
bill  is good  for the  worker because  it gives  the worker  the                                                               
option. He  just had  a PLA  at Fort Greely,  and he  saw license                                                               
plates from every state brought up by union contractors.                                                                        
                                                                                                                                
9:54:40 AM                                                                                                                    
REBECCA LOGAN, President, Associated  Builders and Contractors of                                                               
Alaska, said  standard PLAs  crafted in  Alaska already  give the                                                               
union the right  to audit the books of  the non-union contractors                                                               
that  participate.   Mr.  Beltrami  had  mentioned   adding  that                                                               
provision,  but  it  is  already  there.  Any  time  a  non-union                                                               
contractor signs onto a PLA they  give the union a right to audit                                                               
all  of their  books. She  is  not opposed  to comparable  plans,                                                               
because they would be for contractors who work on the pipeline.                                                                 
                                                                                                                                
CHAIR MCGUIRE asked if that language could be worked on.                                                                        
                                                                                                                                
MS.  LOGAN said  something can  be worked  out. Mr.  Robinson was                                                               
right  that  it  would  be   hard  to  have  an  apples-to-apples                                                               
comparison of  pension, health, welfare, and  training. There are                                                               
so many  ways that people train,  she noted. There could  be some                                                               
broad language.                                                                                                                 
                                                                                                                                
SENATOR  GREEN  said  her  training  program  could  probably  be                                                               
comparable if she got as much from the state.                                                                                   
                                                                                                                                
MS. LOGAN said, "We choose not to." The employers pay their own.                                                                
                                                                                                                                
9:56:58 AM                                                                                                                    
SENATOR GREEN asked  if she is saying that after  the review of a                                                               
private employers  plan, the  union can  refuse an  employee from                                                               
coming on. "It's just a review - they can't reject."                                                                            
                                                                                                                                
MS.  LOGAN  said  Mr.  Beltrami  was asking  that  the  plans  be                                                               
qualified under ERISA, and that's fair.                                                                                         
                                                                                                                                
SENATOR GREEN asked if she really wants that in statute.                                                                        
                                                                                                                                
MS. LOGAN said she is open to suggestions.                                                                                      
                                                                                                                                
SENATOR  FRENCH said  it sounds  like the  real money  is in  the                                                               
pension contributions; "that's where you  go from $50.00 per hour                                                               
to   $67.00."  Perhaps   there  won't   be  an   apples-to-apples                                                               
comparison, but  workers need  to make  an informed  choice, like                                                               
knowing  whether  they need  to  take  five  years to  vest,  for                                                               
example. A little more language is  needed to ensure a worker can                                                               
make an  informed decision. Mr. Beltrami  said he is in  favor of                                                               
the  bill in  general  because  it is  pro-worker,  "but it  just                                                               
sounded like  there just needs to  be a little more  disclosure …                                                               
at that  moment that you  make that  decision that can  have such                                                               
huge ramifications."  He said  he worked three  years for  an oil                                                               
company  that   had  a  five-year   vesting  plan.   Whatever  he                                                               
contributed to  that oil  company is gone  forever. He  was young                                                               
and  didn't know  any  better. "When  a  vested non-union  worker                                                               
steps into a PLA world,  he's got an extremely important decision                                                               
to make."                                                                                                                       
                                                                                                                                
9:59:43 AM                                                                                                                    
SENATOR BUNDE said  he doesn't think the bill  anticipates that a                                                               
union member  would opt out of  a union program. That  may not be                                                               
possible.  He  doesn't  want  the   bill  to  even  suggest  that                                                               
alternative. The options  are only for the  non-union people. But                                                               
he agrees with having more information available.                                                                               
                                                                                                                                
MS. LOGAN  said there is  a lot of  discussion about what  can be                                                               
done, but  that is not the  same as what  will be done. In  a PLA                                                               
often  the terms  are  struck,  and the  majority  of the  people                                                               
covered  by that  will be  left out  of the  negotiations. It  is                                                               
appropriate the  state is in  this role as a  market participant,                                                               
"that they can protect those  people who don't get to participate                                                               
in the negotiations."                                                                                                           
                                                                                                                                
SENATOR BUNDE said Mr. Beltrami  said the state shouldn't get too                                                               
involved in  collective bargaining,  and he  is right  except the                                                               
legislature  and  public  employee  unions  are  deeply  involved                                                               
"because we have to fund the results of the bargaining."                                                                        
                                                                                                                                
10:01:22 AM                                                                                                                   
BARBARA  HUFF, Director,  Governmental  and Legislative  Affairs,                                                               
Teamsters local 959,  said she had intended not  to testify until                                                               
an electric  company referred to  the teamsters in a  letter sent                                                               
to  the Senate.  She  felt  it was  important  to  go on  record,                                                               
"because what  we're doing is living  30 years ago." There  was a                                                               
class action suit that cost  the teamsters "millions and millions                                                               
and millions of  dollars." It came out of the  pension plan - not                                                               
out of the  teamster's general fund. It was not  a cash cow. This                                                               
happened 30  years ago,  she emphasized.  Under ERISA  there were                                                               
some drastic changes in federal law  as a result of the lawsuits.                                                               
The teamsters had  the deepest pockets. Everybody else  fell in a                                                               
similar category. The teamsters negotiated  a PLA with the owners                                                               
anticipating  that if  there will  be  a gasline,  there will  be                                                               
those particular  managing companies  who will  ultimately decide                                                               
who the "subs" will  be. "It is not our job  to negotiate," or to                                                               
have  a  bill drafted  here.  "I'll  use the  convention  center;                                                               
introduce  a bill  down  here  that says  -  and  the unions  are                                                               
pushing this - so that we can  designate - or by law designate --                                                               
who those subcontractors  are going to be on  that project." That                                                               
goes  back  to that  successful  contractor  who goes  through  a                                                               
selection process. This bill is  attempting to piecemeal specific                                                               
areas of law that are mandatory subjects of bargaining.                                                                         
                                                                                                                                
MS.  HUFF  said, "We  go  through  the negotiating  process  with                                                               
whomever that particular designated employer  or employers … on a                                                               
project  labor agreement,  and we're  very much  aware of  that."                                                               
Thirty years  ago decisions  were made  and folks  were impacted.                                                               
"Nobody talks  about the health  benefits that  these individuals                                                               
all had;  they walked in,  they had free prescriptions,  they had                                                               
free hospital  care, they had  everything that was given  to them                                                               
under  our negotiated  health benefit  plan." Nobody  talks about                                                               
that or the  recreation centers and medi-vac planes  to take care                                                               
of workers  that the union  represented "during  those particular                                                               
times." There were some very good  things. "Yes, we were taken to                                                               
court. Yes,  we went through  that process, and we  paid millions                                                               
and millions  and millions  of dollars back."  They now  moved on                                                               
and  have negotiated  many collective  bargaining agreements  and                                                               
represent thousands  of workers  around Alaska.  Negotiating fair                                                               
and reasonable  agreements is  their job. "We  want to  make sure                                                               
the workers are  protected and that they are  knowingly offered a                                                               
benefit package that, indeed, they  can survive." Vesting is five                                                               
years. The  teamsters have collective bargaining  agreements with                                                               
employers who  have pension  plans under  the teamster  plan, and                                                               
there  are some  that actually  have  employer plans.  That is  a                                                               
decision that  is made when  the collective  bargaining agreement                                                               
is negotiated  and brought back  to the  employees with an  up or                                                               
down vote.                                                                                                                      
                                                                                                                                
10:06:01 AM                                                                                                                   
MS. HUFF  said, "We are open;  we are transparent." It  is not 30                                                               
years ago, and  she wants to move forward and  work together. The                                                               
teamsters don't want  to make the same mistakes.  They sold their                                                               
recreation  centers, hospitals,  and jet  airplanes and  now they                                                               
just represent the  employees, which is the job  the members want                                                               
them to do.                                                                                                                     
                                                                                                                                
10:07:08 AM                                                                                                                   
ANTHONY  SIVERTSEN,  Juneau,  said he  worked  under  Davis-Bacon                                                               
wages for a  paving company. He worked  with commercial off-shore                                                               
fishing  companies all  the way  to Hawaii  and asked  if he  was                                                               
"paying into this."                                                                                                             
                                                                                                                                
SENATOR BUNDE said he is not aware that they were under a PLA.                                                                  
                                                                                                                                
MR. SIVERTSEN asked,  "Who is paying for this  fund that's coming                                                               
in …  the money to give  the worker the choice?  Who's paying for                                                               
that, the union?"                                                                                                               
                                                                                                                                
CHAIR  MCGUIRE  said  the  discussion   is  about  project  labor                                                               
agreements  - a  very  specific  type of  contract.  The bill  is                                                               
proposing  that a  worker  would  be given  a  choice of  benefit                                                               
contributions going to  the union or to some other  plan. "If you                                                               
weren't under  a project labor  agreement, then the  bill doesn't                                                               
apply to you."                                                                                                                  
                                                                                                                                
10:09:40 AM                                                                                                                   
CHAIR MCGUIRE said SB 276 will be set aside.                                                                                    
                                                                                                                                

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