Legislature(2021 - 2022)BELTZ 105 (TSBldg)

03/17/2022 01:30 PM Senate TRANSPORTATION

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01:34:36 PM Start
01:35:11 PM SB170
03:07:24 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 170 MARINE HIGHWAY CORPORATION TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
               SB 170-MARINE HIGHWAY CORPORATION                                                                            
                                                                                                                                
1:35:11 PM                                                                                                                    
CHAIR MYERS  announced the consideration  of SENATE BILL  NO. 170                                                               
"An   Act  relating   to  the   Alaska  marine   highway  system;                                                               
establishing   the  Alaska   Marine   Highway  Corporation;   and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
1:36:10 PM                                                                                                                    
THERESA  WOLSTAD,  Staff,  Senator  Robert  Myers,  Alaska  State                                                               
Legislature, Juneau,  Alaska, on behalf of  the committee, stated                                                               
that today's  hearing would  focus on  the Alaska  Marine Highway                                                               
System  labor  and unions.  She  summarized  the proposed  AMHC's                                                               
authority regarding labor negotiations and employment.                                                                          
                                                                                                                                
1:36:32 PM                                                                                                                    
SENATOR MICCICHE joined the meeting.                                                                                            
                                                                                                                                
1:36:40 PM                                                                                                                    
MS. WOLSTAD paraphrased written comments.                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
AMHC Employees                                                                                                                  
          Employees of the proposed corporation in SB 170                                                                       
     will be  employees of  the corporation  and not  of the                                                                    
     state. Employees  shall be  treated as  state employees                                                                    
     for purposes  of "Chapter 40. Labor  Organizations" (AS                                                                    
     23.40)  and "Title  39.Public  Officers and  Employees"                                                                    
     (AS 39).  Unless otherwise provided in  a mutual agreed                                                                    
     collective   bargaining   agreement,   employees   will                                                                    
     continue  to be  covered by  the Alaska  Wage and  Hour                                                                    
     Act.  The corporation  has the  authority  to hire  and                                                                    
     discharge   employees  and   determine  the   hours  of                                                                    
     employment, compensation  and fringe benefits,  and the                                                                    
     personnel policies affecting  the working conditions of                                                                    
     employees, except  for general policies  describing the                                                                    
     function and purposes of an employer.                                                                                      
                                                                                                                                
1:37:31 PM                                                                                                                    
Brief overview of AMH Corporation Collective Bargaining                                                                         
Agreement.                                                                                                                      
          Under the proposed legislation, the corporation                                                                       
     or an authorized representative  of the corporation may                                                                    
     negotiate   and   enter  into   collective   bargaining                                                                    
     agreements  with  the   employees  of  the  corporation                                                                    
     engaged  in  operating  the marine  highway  system  as                                                                    
     masters or  members of  the crews  of vessels  or other                                                                    
     employees  of  the   corporation  or  their  bargaining                                                                    
     agent.  The  Corporation  may make  provisions  in  the                                                                    
     collective bargaining  agreement for the  settlement of                                                                    
     labor disputes by arbitration.                                                                                             
                                                                                                                                
          The Alaska Labor Relations Agency will serve at                                                                       
     the  request  of  the  AMH  corporation  as  the  labor                                                                    
     relations agency  (Section 5). Board has  the authority                                                                    
     to  appoint  executive  officers   and  agents  of  the                                                                    
     corporation. The  board can delegate powers  and duties                                                                    
     necessary   for  management   of   daily  affairs   and                                                                    
     operation  of   the  corporation  to   chief  executive                                                                    
     officer.  This   allows  the   corporation  flexibility                                                                    
     regarding   negotiation    of   collective   bargaining                                                                    
     agreements.  A collective  bargaining agreement  is not                                                                    
     final  without   the  concurrence   of  the   board  of                                                                    
     directors  of the  corporation.  In addition,  specific                                                                    
     board  approval   is  required  to  enter   into  labor                                                                    
     agreements  or service  contracts exceeding  $250,000 a                                                                    
     year (Article 2. Page 12-13).                                                                                              
                                                                                                                                
 Comparison of Railroad and AMH                                                                                                 
          Employees of the Alaska Railroad are employees of                                                                     
     the  corporation   and  not  of  the   state.  However,                                                                    
     employees of the railroad  corporation shall be treated                                                                    
     as  employees of  the  state for  the  purposes of  the                                                                    
     Alaska   Executive  Branch   Ethics  Act.   The  Public                                                                    
     Employment Relations  Act does not apply  to the Alaska                                                                    
     Railroad   corporation   or   to  its   employees   (AS                                                                    
     42.40.720).  However, employees  who are  not executive                                                                    
     officers may organize and form,  join, or assist and an                                                                    
     organization to engage in collective bargaining.                                                                           
                                                                                                                                
          Employees of the Alaska Railroad are covered in                                                                       
     the  Alaska  Wage and  Hour  Act.  If  the terms  of  a                                                                    
     collective  bargaining  agreement   that  was  mutually                                                                    
     agreed upon  by an  organization representing  train or                                                                    
     engine  service   employees  and  the   corporation  so                                                                    
     provide.                                                                                                                   
                                                                                                                                
1:39:08 PM                                                                                                                    
CHAIR MYERS turned to a PowerPoint by the AMHS Maritime Unions.                                                                 
                                                                                                                                
1:40:00 PM                                                                                                                    
BEN GOLDRICH, representative, Marine Engineers Beneficial                                                                       
Association (MEBA), Juneau, Alaska, introduced himself.                                                                         
                                                                                                                                
1:40:06 PM                                                                                                                    
EARLING WALLI, Regional Director, Inland Boatmen's Union (IBU)                                                                  
of the Pacific, Juneau, Alaska, introduced himself.                                                                             
                                                                                                                                
1:40:19 PM                                                                                                                    
SHANNON  ADAMSON,  Regional  Representative, Masters,  Mates  and                                                               
Pilots Union  (MMP) began  a PowerPoint  on the  Inland Boatman's                                                               
Union  (IBU), Marine  Engineers'  Beneficial Association  (MEBA),                                                               
Masters, Mates  and Pilots  (MMP). She reviewed  slide 2,  Who We                                                               
Are and What We Do.                                                                                                             
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
   • Inland Boatman's Union (IBU)        Represents all                                                                         
     unlicensed crew                                                                                                            
       • Stewards, Pursers, and all unlicensed Deck and                                                                         
        Engine                                                                                                                  
          Crew                                                                                                                  
   • Marine Engineer's Beneficial Association (MEBA)                                                                            
     Represents all Licensed Engine Crew                                                                                        
   • Masters, Mates and Pilots (MMP) - Represents all                                                                           
     Licensed                                                                                                                   
     Deck Crew                                                                                                                  
                                                                                                                                
MS.  ADAMSON  identified  the three  unions  that  represent  all                                                               
unlicensed and  licensed crew that  work on the AMHS,  IBU, MEBA,                                                               
and MMP. She explained that  stewards provide customer service by                                                               
maintaining  passenger amenities,  provisions and  supplies, food                                                               
and  beverage   service,  and  stateroom  service.   In  general,                                                               
stewards  take care  of passenger  and crew,  including emergency                                                               
duties as  required. Pursers provide customer  service related to                                                               
ticketing,   financial   transactions,    crew,   and   passenger                                                               
information  services.  The  purser  is  the  designated  medical                                                               
person on  board and assists  during emergencies.  The unlicensed                                                               
deck and engine crew maintains  all equipment on board, including                                                               
the  engines, keeps  the vessel  running  and performs  emergency                                                               
duties as  required. The deck  crew loads, unloads, ties  up, and                                                               
unties  the  vessels. The  crew  conducts  some watch  standings,                                                               
provides deck side maintenance,  and performs emergency duties as                                                               
assigned.                                                                                                                       
                                                                                                                                
1:41:45 PM                                                                                                                    
MS.  ADAMSON reviewed  the second  bullet point  on slide  2. She                                                               
explained  that MEBA  provides  the licensed  crew  on board  the                                                               
vessels. These licensed crew start  up and shut down the vessel's                                                               
engines,  perform  oil transfers,  and  maintain  and repair  all                                                               
machinery including  generators, sewage tanks, main  engines, and                                                               
bow  thrusters. She  characterized their  duties as  encompassing                                                               
anything from bow to stern that has machinery or plugs in.                                                                      
                                                                                                                                
MS.  ADAMSON reviewed  the final  bullet  point on  slide 2.  She                                                               
explained that  MMP represents all  of the licensed deck  crew on                                                               
board.  MMP provide  navigation during  loading and  unloading of                                                               
the vessels to ensure stability,  monitor and maintain lifesaving                                                               
and  navigational  equipment,  maintain vessel  security,  handle                                                               
deck   side,   car   deck,  and   passenger   issues,   emergency                                                               
coordination, and  other emergency  duties as required.  MMP also                                                               
represents the  captains in charge  of and overseeing  the entire                                                               
vessel.                                                                                                                         
                                                                                                                                
1:42:45 PM                                                                                                                    
MS.  ADAMSON  explained  the   difference  between  licensed  and                                                               
unlicensed crew in that unlicensed  crew have less US Coast Guard                                                               
(USCG)  testing requirements.  Licensed  crew have  substantially                                                               
more  US   Coast  Guard  testing   and  therefore   have  greater                                                               
responsibilities and liability.                                                                                                 
                                                                                                                                
1:43:13 PM                                                                                                                    
MS. ADAMSON  reviewed slide 3,  which listed the Full  Time Entry                                                               
Level  Minimum  qualifications,  noting   that  a  steward  earns                                                               
approximately $18-$22  per hour and is  typically the entry-level                                                               
position for unlicensed workers.                                                                                                
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
          Full Time Entry Level Minimum Qualifications                                                                          
              Steward  Approx. $18 - $22 Per Hour                                                                               
                                                                                                                                
       • Merchant Mariner Credential with endorsements                                                                          
        including                                                                                                               
     • Steward /Food Handler                                                                                                    
     • Basic Safety Training                                                                                                    
     • USCG Medical Certificate                                                                                                 
     • Transportation Worker Identification Card                                                                                
     • Alcohol Server Card or TAPS                                                                                              
     • Vessel Specific Training and Certifications                                                                              
     • Passenger RO/RO Certification                                                                                            
    • Equal Employment Opportunity (EEO)/Preventing Sexual                                                                      
    • Harassment Certificate or Respectful Workplace State                                                                      
        of Alaska Food Worker Card                                                                                              
     • Basic HCT Curriculum                                                                                                     
    • Maritime Security Awareness on-line course Security                                                                       
        101 course may be substituted                                                                                           
     • Marine Evacuation System Certification                                                                                   
     • Pre-employment Drug Test                                                                                                 
     • 1008 hours (approximately 6 months) experience in                                                                        
        the Stewards Department with AMHS                                                                                       
    • Two AMHS performance evaluations, one of which must                                                                       
        be within the past 6 months, by two different Chief                                                                     
        Stewards which indicate high acceptable performance                                                                     
        level or higher to be considered permanent                                                                              
     • For LeConte and Aurora, Stewards must have minimum                                                                       
        of intermediate skill level using computerized Point                                                                    
        of Sale Systems                                                                                                         
                                                                                                                                
1:43:20 PM                                                                                                                    
MS. ADAMSON emphasized that  possessing these qualifications does                                                               
not  guarantee year  round  work.  She stated  that  some of  the                                                               
qualifications require US Coast  Guard (USCG) training, including                                                               
classroom,  pool,  and  firefighting exercises.  Unlicensed  crew                                                               
must  also  be   subject  to  a  federal   background  check  and                                                               
demonstrate the  ability to  use a  marine evacuation  slide. She                                                               
explained  that applicants  must  acquire theses  qualifications.                                                               
She  stated  that  the  unions   have  suggested  the  department                                                               
establish  a  training fund  for  new  hires  to assist  them  in                                                               
obtaining the necessary qualifications.                                                                                         
                                                                                                                                
1:44:12 PM                                                                                                                    
SENATOR  SHOWER asked  for the  funding source  for the  proposed                                                               
training fund  and if the  unions or legislature  would establish                                                               
it.                                                                                                                             
                                                                                                                                
MS.  ADAMSON  answered that  the  unions  recommended that  DOTPF                                                               
establish a training  fund but require a time  commitment, so the                                                               
investment would  not be  lost if the  employee left.  She stated                                                               
MMP expressed an interest in  further discussing the fund but has                                                               
not yet received a response.                                                                                                    
                                                                                                                                
1:45:15 PM                                                                                                                    
MS.  ADAMSON reviewed  slide  4, Full  Time  Entry Level  Minimum                                                               
Qualifications.  She  explained that  she  did  a job  search  on                                                               
Workplace  Alaska and  found  that an  Office  Assistant 1  earns                                                               
approximately $17 per hour and  requires a high school diploma or                                                               
equivalent. She  concluded that the  many requirements  for entry                                                               
level AMHS  jobs compare  to entry level  state jobs  may explain                                                               
why AMHS has difficulty hiring unlicensed crew.                                                                                 
                                                                                                                                
1:45:52 PM                                                                                                                    
MS.  ADAMSON  reviewed  slide  5,   Full  Time  Deck  and  Engine                                                               
Department Additional Minimum Qualifications, which read:                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Watchman                                                                                                                 
     • Merchant Mariner Credential with endorsements                                                                            
     • Ordinary Seaman                                                                                                          
     • Lifeboatman (PSC)                                                                                                        
     • Proficiency in the Use of Survival Craft                                                                                 
     • Security Awareness                                                                                                       
     • Crowd Management                                                                                                         
     • Hazmat Basic                                                                                                             
     • Maritime Security Awareness on-line course                                                                               
     • Security 101 and VSO 201 courses may be substituted                                                                      
        • Two performance evaluations by two different                                                                          
        Supervisors   which    indicate   high    acceptable                                                                    
        performance level or higher                                                                                             
                                                                                                                                
     Wiper                                                                                                                    
     • Merchant Mariner Credential with endorsements                                                                            
     • Wiper                                                                                                                    
     • Lifeboatman (PSC)                                                                                                        
     • Proficiency in the Use of Survival Craft                                                                                 
     • Security Awareness                                                                                                       
     • Crowd Management                                                                                                         
     • Hazmat Basic                                                                                                             
     • Maritime Security Awareness on-line course                                                                               
     • Security 101 and VSO 201 courses may be substituted                                                                      
        • Two performance evaluations by two different                                                                          
        Supervisors   which    indicate   high    acceptable                                                                    
        performance level or higher                                                                                             
                                                                                                                                
MS.  ADAMSON said  slide  5  builds on  the  entry level  steward                                                               
positions  shown on  slide 3.  A person  must acquire  additional                                                               
qualifications  to get  hired in  deck or  engine departments  or                                                               
advance in the Steward or Purser departments.                                                                                   
                                                                                                                                
1:46:44 PM                                                                                                                    
MS. ADAMSON reviewed slide 6, Additional Requirements for                                                                       
Unlicensed Supervisors.                                                                                                         
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Additional Requirements for Unlicensed Supervisors                                                                         
                                                                                                                                
     Chief Steward                                                                                                              
     • Merchant Mariner Credential with endorsements                                                                            
        • Lifeboatman (PSC)                                                                                                     
        • Proficiency in the Use of Survival Craft                                                                              
        • Security Awareness                                                                                                    
        • Crowd Management                                                                                                      
                                                                                                                                
     • AMHS Requirements                                                                                                        
        • Current Alcohol Manager                                                                                               
        • Supervisors HCT                                                                                                       
        • Academy for Supervisors                                                                                               
        • Marine Evacuation Slide Certification                                                                                 
                                                                                                                                
     Boatswain                                                                                                                  
        • Merchant Mariner Credential with                                                                                      
          endorsements                                                                                                          
          • Able-Bodied Seaman Unlimited                                                                                        
          • Lifeboatman (PSC)                                                                                                   
        • Rating Forming Part of a Navigational Watch                                                                           
          • Proficiency in the Use of Survival Craft                                                                            
          • Fact Rescue Boat                                                                                                    
        • Vessel Personnel Having Designated Security                                                                           
             Duties                                                                                                             
          • Crowd Management                                                                                                    
          • Advanced Firefighting Certification                                                                                 
                                                                                                                                
        • AMHS Requirements                                                                                                     
          • Forklift Compliance                                                                                                 
          • Supervisors HCT                                                                                                     
          • Hazmat Basic                                                                                                        
          • Marine Evacuation Slide Certification                                                                               
                                                                                                                                
MS. ADAMSON explained that these positions require additional                                                                   
USCG certifications and sometimes additional testing compared to                                                                
other job classes.                                                                                                              
                                                                                                                                
1:47:16 PM                                                                                                                    
MS. ADAMSON reviewed slide 7, MEBA Minimum Qualifications.                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
          MEBA Minimum Qualifications                                                                                           
     • Coast Guard License for specific Job Class                                                                               
         • Officer in Charge of an Engineering Watch                                                                            
        Certification                                                                                                           
     • Rating For Performing Part of an Engineering Watch                                                                       
     • STCW - 95                                                                                                                
     • Lifeboatman Certification                                                                                                
     • Survival Craft and Rescue Boats                                                                                          
     • Medical First Aid Provider                                                                                               
     • Advanced Firefighting                                                                                                    
     • Basic Safety Training                                                                                                    
        • Firefighting, Personal    Survival   Techniques,                                                                      
          Personal Safety and Social Responsibility and                                                                         
          First Aid                                                                                                             
     • Engine Room Resource Management                                                                                          
     • Multiple Hazardous Communication Training Modules                                                                        
     • Management of Electrical and Electronic                                                                                  
     • Control Equipment                                                                                                        
     • Vessel Personnel with Designated Security Duties                                                                         
     • Vessel Security Officer( Security 101 and VSO201)                                                                        
     • Hazardous Materials Basic Training                                                                                       
     • Transportation Worker Identity Card (Federal                                                                             
     • USCG Medical Certificate                                                                                                 
     • Equal Opportunity Employment Certificate                                                                                 
     • Marine Evacuation Slide Certificate                                                                                      
     • Vessel Specific Familiarization                                                                                          
    • 2  positive   Letters   of    Recommendation,   and                                                                       
        Evaluations                                                                                                             
                                                                                                                                
1:47:18 PM                                                                                                                    
MS.  ADAMSON stated  that this  transitions  from the  unlicensed                                                               
department  to  the  licensed  department.  These  qualifications                                                               
represent   the  entry-level   qualifications  for   a  permanent                                                               
                      rd                                                                                                        
engineer, which is a 3   assistant engineer. She noted that every                                                               
crewmember must  have some qualifications. She  provided examples                                                               
of   the   additional   qualifications  to   meet   the   minimum                                                               
qualifications for licensed MEBA  engineers, including an officer                                                               
in charge  of an engineering  watch certification,  management of                                                               
electrical  and electronic  control  equipment,  and engine  room                                                               
resource  management. She  emphasized that  AMHS does  not assist                                                               
applicants in  obtaining the  necessary qualifications  for these                                                               
entry-level engineering jobs.                                                                                                   
                                                                                                                                
1:47:58 PM                                                                                                                    
MS. ADAMSON reviewed slide 8, MMP minimum qualifications.                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     • MMP Minimum Qualifications                                                                                               
     • Coast Guard Required License for Specific Job Class                                                                      
     • RADAR/ARPA Certifications                                                                                                
     • Basic Safety Training                                                                                                    
        • Firefighting, Personal    Survival   Techniques,                                                                      
          Personal Safety and Social Responsibility and                                                                         
          First Aid                                                                                                             
     • Bridge Resource Management                                                                                               
     • Flashing Light / Morse Code                                                                                              
     • Advanced Fire Fighting Techniques                                                                                        
    • Vessel Security Officer Training ( Security 101 and                                                                       
        VSO 201)                                                                                                                
     • Crowd and Crisis Management                                                                                              
     • Fast Rescue Boat Certification                                                                                           
    • Transportation  Worker   Identity   Card   (Federal                                                                       
        background check required)                                                                                              
     • Multiple Hazardous Communication Training Modules                                                                        
     • STCW  95                                                                                                                 
     • Equal Opportunity Employment Certificate                                                                                 
     • FCC Element 1  Marine Operators License                                                                                  
     • FCC Element 7  GMDSS License                                                                                             
     • Medical Person In Charge Certification                                                                                   
     • Lifeboatman Certification                                                                                                
         • Officer in Charge of a Navigational Watch                                                                            
        Certification                                                                                                           
     • Hazmat Basic Training                                                                                                    
     • Forklift Compliance HCT                                                                                                  
      • ECDIS (Electronic Chart Display and Information                                                                         
        System)                                                                                                                 
                                                                                                                                
     • Marine Evacuation Slide Certificate                                                                                      
     • Vessel Specific Familiarization                                                                                          
     • Forklift Compliance                                                                                                      
     • Federal First-Class Pilotage                                                                                             
        • Southeast Alaska                                                                                                      
      • Southwest Alaska (including the Aleutian Chain)                                                                         
        • Prince William Sound                                                                                                  
        • Washington State                                                                                                      
    • 2  positive   Letters   of    Recommendation,   and                                                                       
        Evaluations                                                                                                             
                                                                                                                                
1:48:05 PM                                                                                                                    
MS.  ADAMSON explained  slide 8  provides a  list of  entry-level                                                               
qualifications for a permanent full-time  Third Mate position for                                                               
Masters,  Mates, and  Pilots. Some  requirements are  similar and                                                               
others include  RADAR or  flashing light,  Morse code,  or Global                                                               
Maritime Distress Signaling System (GMDSS).                                                                                     
                                                                                                                                
1:48:26 PM                                                                                                                    
MS.  ADAMSON  stated  that  she   received  a  degree  in  marine                                                               
transportation from  the California Maritime Academy  and a Third                                                               
Mates  unlimited  license. She  said those  qualifications helped                                                               
her get hired  at AMHS, but it did not  guarantee her a permanent                                                               
full-time position or year-round  work. However, she had acquired                                                               
many  necessary  certifications  because  she  graduated  from  a                                                               
maritime academy.  Those applicants  who do  not graduate  from a                                                               
maritime  academy  must obtain  and  pay  for the  certifications                                                               
independently.                                                                                                                  
                                                                                                                                
1:48:59 PM                                                                                                                    
CHAIR MYERS stated that he  recognized some of the certifications                                                               
because  his  trucking   profession  requires  certification.  He                                                               
acknowledged that  AMHS does not assist  with the certifications.                                                               
He asked whether AMHS helps  employees obtain recertifications if                                                               
needed.                                                                                                                         
                                                                                                                                
MS.  ADAMSON  answered  yes. She  said  sometimes  AMHS  sponsors                                                               
classes and also contributes towards  an MMP training program run                                                               
by the union.                                                                                                                   
                                                                                                                                
1:49:42 PM                                                                                                                    
MR.WALLI agreed that AMHS provides training, such as basic                                                                      
training, firefighting, and fast rescue boat certification.                                                                     
                                                                                                                                
1:49:54 PM                                                                                                                    
MR. GOLDRICH added that MEBA  also has its own engineering school                                                               
in eastern Maryland.                                                                                                            
                                                                                                                                
1:50:05 PM                                                                                                                    
MS. ADAMSON turned to slide 9, MMP Pilotage.                                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     MMP Pilotage                                                                                                               
                                                                                                                                
   • Southeast Alaska Pilotage                                                                                                  
        • 20 primary pilotage areas                                                                                             
        • 7 secondary areas                                                                                                     
                                                                                                                                
   • Prince William Sound                                                                                                       
        • 3 primary areas                                                                                                       
        • 4 secondary areas                                                                                                     
                                                                                                                                
   • Southwest Alaska Pilotage                                                                                                  
     • 5 primary areas                                                                                                          
     • 7 secondary                                                                                                              
                                                                                                                                
   • Washington State Pilotage                                                                                                  
     • 3 pilotage areas                                                                                                         
     • Total Pilotage Areas = 49                                                                                                
                                                                                                                                
MS. ADAMSON  played a short  video that showed the  AMHS pilotage                                                               
areas. She explained  that the USCG requires  federal pilotage in                                                               
order to navigate a vessel over 1600 tons in restricted waters.                                                                 
                                                                                                                                
MS. ADAMSON noted all but three  AMHS vessels are over 1600 tons.                                                               
She  indicated that  to  obtain  pilotage, an  MMP  must do  8-12                                                               
observer   trips  through   each  area.   Some  areas   are  less                                                               
frequented,   such  as   Dutch   Harbor.   She  described   other                                                               
requirements,  including drawing  charts, written  exams covering                                                               
local knowledge  of channels, depths,  aids to  navigation, tides                                                               
and  currents, weather  conditions,  traffic considerations,  and                                                               
anchorages.  For  example, it  took  her  four years  to  acquire                                                               
enough pilotage and  meet the requirements for  a full-time, year                                                               
       rd                                                                                                                       
round 3  mate  position. She stated that Washington state ferries                                                               
require MMPs to draw 8-10 charts and  it takes one to two days to                                                               
meet the trip requirements.                                                                                                     
                                                                                                                                
1:52:05 PM                                                                                                                    
SENATOR KIEHL  asked what level  of discretion AMHS has  over the                                                               
minimum requirements.                                                                                                           
                                                                                                                                
MS. ADAMSON responded  that the United States  Coast Guard (USCG)                                                               
sets most  of the  requirements. AMHS  requires pilotage  for the                                                               
three vessels under 1600 tons.                                                                                                  
                                                                                                                                
1:52:43 PM                                                                                                                    
MS. ADAMSON reviewed slide 10,  Additional Requirements for Chief                                                               
Engineers and Masters.                                                                                                          
                                                                                                                                
          Chief Engineers                                                                                                     
        • Merchant Mariner Credential with endorsements                                                                         
          • Chief Engineers Motor Propelled vessel (any HP)                                                                     
             • Requires multiple Coast Guard tests to                                                                           
               advance   to   this    level   with   seatime                                                                    
               requirements with each advancement                                                                               
        • Leadership and Managerial Skills Assessment                                                                           
                                                                                                                                
          • AMHS Requirements                                                                                                   
           • Academy for Supervisors Certification                                                                              
             • Forklift Compliance                                                                                              
             • Supervisors HCT Curriculum                                                                                       
             • BioSystem Multi-Gas Meter Qualification                                                                          
                                                                                                                                
          Masters                                                                                                             
        • Merchant Mariner Credential with endorsements                                                                         
          • Master Unlimited Oceans or Inland AGT License                                                                       
               • Requires multiple Coast Guard tests to                                                                         
                  advance  to   this   level  with   seatime                                                                    
                  requirements   with    each    advancement                                                                    
                  Leadership    and     Managerial    Skills                                                                    
                  Assessment                                                                                                    
                                                                                                                                
        • AMHS Requirements                                                                                                     
          • Academy for Supervisors Certification                                                                               
          • Supervisors HCT Curriculum                                                                                          
        • Pilotage (a few examples)                                                                                             
          • Matanuska and Columbia:                                                                                             
             • SE Primary, SE Secondary & Washington = 30                                                                       
               areas                                                                                                            
          • Tustumena:                                                                                                          
             • SW Primary, SW Secondary, PWS Primary & PWS                                                                      
             Secondary = 19 areas                                                                                               
          • Kennicott:                                                                                                          
          • SE Primary, SE Secondary, SE Other, SE Western,                                                                     
             PWS Primary, PWS Secondary & SW Primary = 49                                                                       
             areas                                                                                                              
                                                                                                                                
1:52:48 PM                                                                                                                    
MS. ADAMSON stated  that these qualifications are  in addition to                                                               
the  ones  on the  prior  slide.  She  emphasized that  it  takes                                                               
numerous USCG  tests and years  of sea  time to advance  to these                                                               
levels.                                                                                                                         
                                                                                                                                
MS. ADAMSON emphasized  that these positions cannot  be filled by                                                               
someone  off the  street, so  it takes  financial investment  and                                                               
training to become  a steward, and years to  advance to engineers                                                               
and  masters.   She  stated  that  the   licensed  mariners  need                                                               
additional training in  classrooms and on ships or  a degree from                                                               
a  maritime  academy  to   achieve  these  qualifications.  Thus,                                                               
qualified  mariners are  an investment.  DOTPF  has testified  to                                                               
retention issues.  She said these  mariners are sought  after and                                                               
the state loses its investments.                                                                                                
                                                                                                                                
1:53:46 PM                                                                                                                    
MS. ADAMSON reviewed slide 11, Licensed Bids vs. Vacancies.                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     MMP Bids vs Vacancies                                                                                                      
                                                                                                                                
     • Total Member  78                                                                                                         
          • Number of positions 75                                                                                              
     • Captains  17                                                                                                             
          • Number of positions - 18                                                                                            
     • Chief Mates 18                                                                                                           
          • Vacancies - 1                                                                                                       
          • Number of positions 16                                                                                              
     • 2nd Mates  15                                                                                                            
          • Vacancies-2                                                                                                         
          • Number of positions 17                                                                                              
     • 3rd Mates  28                                                                                                            
     • Losing an additional 4-6 high level deck officers                                                                        
        this summer                                                                                                             
          • 13 in 4 years                                                                                                       
                                                                                                                                
     MEBA Bids vs Vacancies                                                                                                     
     • Total Members  58                                                                                                        
          • Number of positions  73                                                                                             
     • Chief Engineers  20                                                                                                      
          • Vacancies - 1                                                                                                       
          • Number of positions - 21                                                                                            
     • 1st Ast. Engineers  12                                                                                                   
          • Vacancies - 4                                                                                                       
          • Number of positions -16                                                                                             
     • 2nd Ast. Engineers  11                                                                                                   
         • Vacancies - 3                                                                                                        
         • Number of positions -16                                                                                              
     • 3rd Ast. Engineers  11                                                                                                   
          • Vacancies - 7                                                                                                       
          • Number of positions -18                                                                                             
                                                                                                                                
     • No crew currently assigned to Hubbard                                                                                    
                                                                                                                                
MS.  ADAMSON   explained  that  slide  11   shows  the  full-time                                                               
positions  compared  to  vacancies  for  licensed  mariners.  She                                                               
recalled DOTPF  indicated that it  would like to run  the Tazlina                                                               
and  Columbia this  summer but  it  would need  112 licensed  MMP                                                               
mariners and 80 MEBA mariners to  do so. This slide shows AMHS is                                                               
seriously understaffed  and would not  likely be able to  run the                                                               
vessels. Further, once the Hubbard  comes out of Vigor Shipyards,                                                               
it would need six MMP and six MEBA crew to run the vessel.                                                                      
                                                                                                                                
1:55:15 PM                                                                                                                    
MS. ADAMSON deferred to Mr. Walli to review IBU vacancies.                                                                      
                                                                                                                                
MR. WALLI  reviewed slide 12,  IBU vacancies, which  consisted of                                                               
pie  charts showing  the total  members and  vacancies. He  noted                                                               
that the  yellow portion of each  pie chart refers to  the vacant                                                               
positions for each  department. He stated that there  are 26 bids                                                               
in  the  Purser's  department  with   13  vacancies.  The  Engine                                                               
department  has  60  bids  and  41  vacancies,  and  the  Steward                                                               
department has 164  bids and 126 vacancies, or  57 percent versus                                                               
43  percent. There  are  164  bids and  126  vacancies. The  Deck                                                               
department has  96 bids versus  29 vacancies  for a total  of 311                                                               
bid-workers and 130  non-bid vacancies. He noted  that the yellow                                                               
portion  of each  pie chart  refers to  the vacant  positions for                                                               
each department.                                                                                                                
                                                                                                                                
1:56:13 PM                                                                                                                    
MS. ADAMSON  highlighted that the  data on the slide  referred to                                                               
positions without running the Columbia, Tazlina, or the Hubbard.                                                                
                                                                                                                                
1:56:20 PM                                                                                                                    
SENATOR SHOWER asked if the total  meant 311 plus 130 for a total                                                               
of total 440 positions.                                                                                                         
                                                                                                                                
MR. WALLI answered yes.                                                                                                         
                                                                                                                                
SENATOR SHOWER asked what the terms bid and not bid mean.                                                                       
                                                                                                                                
MR. WALLI  stated that 130  positions are vacant bids,  which are                                                               
jobs not being filled.                                                                                                          
                                                                                                                                
SENATOR  SHOWER  related  his   understanding  that  no  one  was                                                               
available for those 130 positions.                                                                                              
                                                                                                                                
MR. WALLI responded that people work  on the vessels and fill the                                                               
vacant  bids as  relief  or  seasonal workers,  so  they are  not                                                               
regularly-assigned employees.                                                                                                   
                                                                                                                                
SENATOR SHOWER asked how AMHS  categorizes its employees, such as                                                               
seasonal, non-union or union.                                                                                                   
                                                                                                                                
MR. WALLI stated that a  seasonal crewmember has earned less than                                                               
30 points. He  explained that crewmembers earn a  point per month                                                               
or  one point  per 84  hours. Thus,  a crewmember  with over  2.5                                                               
years becomes a relief. The  seasonal and relief crewmembers fill                                                               
the  AMHS  vacancies.  These positions  are  biddable,  but  some                                                               
crewmembers like the flexibility of not  having to do the job but                                                               
filling the position as a relief crewmember.                                                                                    
                                                                                                                                
SENATOR  SHOWER  asked  whether  they  were  union  or  non-union                                                               
members.                                                                                                                        
                                                                                                                                
MR.  WALLI stated  that after  a 2019  US Supreme  Court decision                                                               
[Janus v. State, County, and  Municipal employees], public sector                                                               
employees do not have to join, but most are union members.                                                                      
                                                                                                                                
1:59:15 PM                                                                                                                    
SENATOR SHOWER acknowledged that it was complicated.                                                                            
                                                                                                                                
1:59:26 PM                                                                                                                    
SENATOR  KIEHL asked  if  AMHS can  fill  vacancies. Suppose  the                                                               
legislature appropriated  funds, how many vacant  positions could                                                               
be filled with qualified employees.                                                                                             
                                                                                                                                
MR. WALLI  responded that most  of the  jobs would be  filled for                                                               
year-round work.                                                                                                                
                                                                                                                                
SENATOR  KIEHL asked  how many  Alaskans AMHS  would hire  versus                                                               
out-of-state workers.                                                                                                           
                                                                                                                                
MS.  ADAMSON asked  whether  his question  was  how many  current                                                               
employees would be able to fill  the positions or how many people                                                               
AMHS would need to hire.                                                                                                        
                                                                                                                                
SENATOR  KIEHL  expressed  his   interest  in  knowing  how  many                                                               
Alaskans could be hired to fill the positions.                                                                                  
                                                                                                                                
MR.  WALLI said  he  was unsure.  He offered  his  view that  130                                                               
positions would be filled by  Alaskans who currently work for the                                                               
system  and want  year-round work.  He stated  that IBU  has been                                                               
actively recruiting mariners  from all over the US,  but Lower 48                                                               
workers face pay discrepancies and  must pay their transportation                                                               
to and from Alaska.                                                                                                             
                                                                                                                                
2:01:43 PM                                                                                                                    
CHAIR  MYERS asked  if AMHS  had  to steal  personnel from  other                                                               
employers, could it  achieve full staff or would  it be necessary                                                               
to bring people in from out-of-state.                                                                                           
                                                                                                                                
MR. WALLI responded that he was unsure.                                                                                         
                                                                                                                                
2:02:12 PM                                                                                                                    
SENATOR  SHOWER  related his  understanding  that  it would  take                                                               
money to fill the 130  vacant positions. He stated that personnel                                                               
costs for AMHS  represents 75 percent of the  total AMHS funding.                                                               
He  characterized it  as a  balance between  running empty  boats                                                               
running on a schedule and  reducing AMHSs  schedule. He expressed                                                               
concern that  AMHS runs partially  full vessels, but that  is not                                                               
how it  should work. He pointed  out that FedEx doesn't  fly 747s                                                               
to Hoonah  due to a  lack of business.  He wondered if  the focus                                                               
should  be on  running the  ferry  system that  is efficient.  He                                                               
argued against the state appropriating  funds instead of figuring                                                               
out the actual needs.                                                                                                           
                                                                                                                                
2:05:08 PM                                                                                                                    
MS.  ADAMSON reviewed  slide 13,  2015 to  2022 Retention  Trend,                                                               
which consisted  of line  graphs showing the  MMP, MEBA,  and IBU                                                               
retention. She emphasized that when  the trend began in 2015, the                                                               
union  representatives recognized  that it  could be  problematic                                                               
and advised the legislature                                                                                                     
                                                                                                                                
2:06:14 PM                                                                                                                    
SENATOR SHOWER asked why people  are leaving AMHS. He related his                                                               
experience  at  FedEx,  such that  retirement  rates  for  pilots                                                               
doubled because they no longer wanted to fly due to COVID-19.                                                                   
                                                                                                                                
MS. ADAMSON stated a later slide would discuss retirement.                                                                      
                                                                                                                                
2:07:07 PM                                                                                                                    
MS. ADAMSON reviewed slide 14, Why Do Mariners Work for AMHS?                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     • The Schedule - Southeast                                                                                                 
        • The 2 week on and 2 week off or 1 week on and 1 week                                                                  
          off schedule                                                                                                          
        • 12 hours/day, 14 days/month=168 hours/month                                                                           
          • Average 42 hours per week as compared to a regular 40                                                               
            hour work week                                                                                                      
     • The Schedule - Southwest                                                                                                 
        • Flexibility and the ability to take longer periods of                                                                 
          time off                                                                                                              
     • Predictable working schedule that is printed 3-4 times                                                                   
        per year for licensed crew and bi-monthly for unlicensed                                                                
        crew                                                                                                                    
        • Rare in the maritime industry, with the required                                                                      
          qualifications, to have this schedule                                                                                 
                                                                                                                                
2:08:07 PM                                                                                                                    
MR. GOLDRICH explained  that a number of vessels work  a month on                                                               
and  a month  off, or  28-day rotations,  which is  attractive to                                                               
many  because it  cuts down  on their  travel costs.  However, if                                                               
they  don't  get  relieved  on   time,  they  work  three  months                                                               
straight,  which is  tough  on families.  He  explained that  the                                                               
system  doesn't have  enough relief  staff,  which increases  the                                                               
personnel decline.  Since the  flexible schedules  attracted them                                                               
to  AMHS,  not  the  pay,   once  the  schedules  are  no  longer                                                               
attractive, they leave.                                                                                                         
                                                                                                                                
MR.  WALLI stated  that the  Southwest unlicensed  is a  one-crew                                                               
system. Southeast  Alaska has two  crews, an  "A" crew and  a "B"                                                               
crew. They  work from 6  to 10 weeks  on either the  Tustumena or                                                               
the Aurora before they  take 4 to 8 weeks off,  which is a little                                                               
different than MEBA.                                                                                                            
                                                                                                                                
2:10:01 PM                                                                                                                    
MS. ADAMSON  added that the schedules  provide predictability for                                                               
crews.                                                                                                                          
                                                                                                                                
2:10:10 PM                                                                                                                    
SENATOR SHOWER  said he was  struck by the parallels  between the                                                               
aviation and marine  industries. He asked if  AMHS's workers must                                                               
commute.                                                                                                                        
                                                                                                                                
MS. ADAMSON answered that the  vast majority live where they pick                                                               
up  the vessel,  otherwise they  pay  their own  way. AMHS  would                                                               
cover travel costs if they decide to relocate the crewmember.                                                                   
                                                                                                                                
SENATOR SHOWER asked  whether the 168 hours relates  to the hours                                                               
on the ship.                                                                                                                    
                                                                                                                                
MS. ADAMSON  answered yes; the  168 hours represents the  time on                                                               
watch or on duty.                                                                                                               
                                                                                                                                
SENATOR  SHOWER stated  that his  pay  at FedEx  typically is  80                                                               
hours a month, but he is away from home much longer.                                                                            
                                                                                                                                
MS. ADAMSON  confirmed that it  was 12-hour days and  starts when                                                               
the crewmember arrives on the vessel or when they go on watch.                                                                  
                                                                                                                                
2:13:08 PM                                                                                                                    
MS.  ADAMSON emphasized  that the  schedules are  not predictable                                                               
due to manning  shortages, increases in call back,  and hold over                                                               
that Mr. Goldrich mentioned.                                                                                                    
                                                                                                                                
2:13:27 PM                                                                                                                    
MS. ADAMSON reviewed slide 15, Why are They Leaving?                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     • Scheduling issues                                                                                                        
        • Increased Work Schedules in the form of Holdovers                                                                     
          and Call Backs                                                                                                        
          • Members end up working a 350 hours per month                                                                        
             and still have 144 hours to go before being                                                                        
             relieved                                                                                                           
     • Untimely vacation approvals                                                                                              
     • Lack of year round work                                                                                                  
        • Invest in employees                                                                                                   
        • Work constantly in the summer and are not                                                                             
          utilized in winter                                                                                                    
        • Crew members seek other employment in the winter                                                                      
          and do not return in the summers                                                                                      
     • Payroll Issues                                                                                                           
     • Sleep Schedule                                                                                                           
     • Wages aren't keeping up with inflation                                                                                   
     • Lack of communication and respect  Low Morale                                                                            
        • They feel their input and opinions are not valued                                                                     
          or listened to                                                                                                        
                                                                                                                                
MS.  ADAMSON explained  that  when  crew are  held  over for  two                                                               
weeks, they work  the two weeks that would have  been time off at                                                               
an overtime  rate, then  they must work  their next  regular two-                                                               
week period for  a total of six weeks. This  means staff have now                                                               
worked 504 hours without a day off  or 350 hours in one month and                                                               
face  working  another  144  hours  before  leaving  the  vessel.                                                               
Despite the  overtime, most members  dislike being held  over and                                                               
would rather spend the time with their families.                                                                                
                                                                                                                                
MS.  ADAMSON  referred to  untimely  vacation  approvals for  IBU                                                               
members.  She  explained  that IBU  members  were  having  issues                                                               
getting time off. She stated  that all three unions, specifically                                                               
IBU members,  work during  the summer and  have winters  off. She                                                               
offered her  view that if  members had year-round work,  it would                                                               
lead  to better  retention  rates. She  stated  that the  current                                                               
schedule for most watch-standing crewmembers  is six hours on and                                                               
six  hours  off  rotation,  prior to  accounting  for  any  daily                                                               
overtime. She said very few  shipping companies operate with this                                                               
schedule because it is proven to have negative health impacts.                                                                  
                                                                                                                                
2:15:40 PM                                                                                                                    
MS.  ADAMSON stated  that  MMP and  IBU had  a  six percent  wage                                                               
increase over  the last 10  years. She  stated that MEBA  had not                                                               
had  a  wage  increase  since 2017.  The  Department  of  Labor's                                                               
website  for  urban Alaska  inflation  shows  an increase  of  16                                                               
percent.                                                                                                                        
                                                                                                                                
MS. ADAMSON turned  to low morale. She stated that  one issue had                                                               
been a  lack of communication  between the fleet and  the office.                                                               
AMHS has begun holding bi-monthly meetings due to COVID-19.                                                                     
                                                                                                                                
2:16:30 PM                                                                                                                    
CHAIR  MYERS  stated   that  some  people  elect   to  only  work                                                               
seasonally, during  the 3  to 4 summer  months. He  asked whether                                                               
AMHS has any difficulties finding staff to work seasonally.                                                                     
                                                                                                                                
MS.  ADAMSON  stated  that  there are  no  guarantees  that  just                                                               
because  someone prefers  seasonal  work, they  will  be able  to                                                               
achieve    it.    Again,    the   current    situation    creates                                                               
unpredictability.                                                                                                               
                                                                                                                                
2:17:54 PM                                                                                                                    
MR.  WALLI agreed  that  the  lack of  year-round  work for  most                                                               
members  is  problematic.  Further, the  crew  has  unpredictable                                                               
schedules,  so if  they are  laid off  in the  winter, they  find                                                               
other work and do not return, which is the crux of the issue.                                                                   
                                                                                                                                
2:18:29 PM                                                                                                                    
SENATOR  SHOWER asked  what solutions  the unions  and AMHS  have                                                               
considered so  crew have work  but the  vessels are run  based on                                                               
the level of ridership.                                                                                                         
                                                                                                                                
MR.  WALLI responded  that when  a vessel  goes into  layup, AMHS                                                               
retains  one crew  to work  in either  the Portland  or Ketchikan                                                               
shipyard.  He suggested  they could  alleviate it  by having  two                                                               
crews, each  working two weeks  on and  two weeks off  to provide                                                               
consistent  work.  However,  he  also  acknowledged  that  during                                                               
federal  capital  improvement  programs (CIP)  everyone  will  be                                                               
pulled off  the vessels. While it  is not a perfect  solution, it                                                               
would mean that members would get longer hours.                                                                                 
                                                                                                                                
2:20:44 PM                                                                                                                    
SENATOR  SHOWER  asked  whether members  were  receptive  to  the                                                               
proposal.                                                                                                                       
                                                                                                                                
MR.  WALLI  stated  that  IBU  currently is  in  the  process  of                                                               
collective  bargaining  discussions,  so   he  did  not  wish  to                                                               
comment.                                                                                                                        
                                                                                                                                
SENATOR SHOWER referred  to the sleep schedule, which  was also a                                                               
big issue  in the airline  industry. He asked whether  the unions                                                               
have suggested changes.  He offered his belief  that policy could                                                               
address this issue. He asked what was blocking resolution.                                                                      
                                                                                                                                
MS. ADAMSON stated  that MMP had offered  numerous suggestions to                                                               
remedy this in  the past. She said that ten  years ago, MMP added                                                               
language to its  contract to allow the crew to  work on an 8-hour                                                               
day, but the USCG, not MMP, determines the schedule.                                                                            
                                                                                                                                
2:21:53 PM                                                                                                                    
CHAIR MYERS asked  whether the change ports were the  same as the                                                               
yard locations.                                                                                                                 
                                                                                                                                
MS. ADAMSON  responded that  Southwest vessels  go to  the Seward                                                               
yard, which is  not a change port. However,  in Southeast Alaska,                                                               
Ketchikan has the yard and is a change port.                                                                                    
                                                                                                                                
CHAIR MYERS  wondered if that  could make transferring  people to                                                               
the yard easier.                                                                                                                
                                                                                                                                
MS. ADAMSON related that the  LeConte is a Juneau-based boat, and                                                               
the crew  lives in Juneau.  When the  LeConte goes into  layup in                                                               
Ketchikan, the crew is paid to travel to the yard.                                                                              
                                                                                                                                
2:22:55 PM                                                                                                                    
MS. ADAMSON turned to slide 17, Where are They Going?                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
   • MEBA Union Hall Postings                                                                                                   
       • Engineer jobs are going unfilled due to AMHS'                                                                          
        reputation                                                                                                              
      • These Officers are choosing other posting due to                                                                        
        payroll issues and holdovers among other things                                                                         
   • For MMP - Pilots Associations (SEAPA, SWPA and AMP)                                                                        
   • Since a majority of pilotage is already required by                                                                        
      AMHS, the transition to the Pilots' Associations is                                                                       
     relatively easier                                                                                                          
   • The licensure is comparable                                                                                                
   • Pilot positions are significantly more lucrative                                                                           
                                                                                                                                
MS.  ADAMSON  deferred  to  Mr.   Goldrich  to  cover  MEBA.  She                                                               
explained that MEBA is the only  union that uses the hiring hall.                                                               
MMP and MEBA  members can sail the offshore routes  and make more                                                               
money, but  their time off  is in large  chunks. The crew  has no                                                               
say in  the specific run, but  AMHS members are willing  to do so                                                               
because it provides job security.                                                                                               
                                                                                                                                
2:24:19 PM                                                                                                                    
SENATOR MICCICHE  stated that many state  departments face hiring                                                               
retention issues. He  referred to slide 15 and  asked whether the                                                               
unions have a  formal process or if it is  anecdotal. He wondered                                                               
about the source of information for slides 15-17.                                                                               
                                                                                                                                
MS. ADAMSON  agreed that  anecdotal information  was told  to the                                                               
union representative when  they departed. AMHS and  DOTPF have an                                                               
exit packet that does not contain a survey.                                                                                     
                                                                                                                                
SENATOR MICCICHE remarked that it would be helpful.                                                                             
                                                                                                                                
2:25:49 PM                                                                                                                    
MR. GOLDRICH  stated that MEBA  has a  hiring hall. He  said AMHS                                                               
could not operate without it because  it allows them to use fewer                                                               
permanent  engineers.   He  related  that  the   jobs  were  more                                                               
difficult to fill. He said a  Seattle branch agent stated that if                                                               
he  had five  Washington State  ferry jobs  posted and  five AMHS                                                               
jobs,  Washington  state would  fill  theirs  first, which  is  a                                                               
change from prior times.                                                                                                        
                                                                                                                                
2:26:40 PM                                                                                                                    
SENATOR SHOWER  offered his  view that  the nationwide  trend was                                                               
the  same  for  airline  pilots,   truckers,  marine  pilots,  or                                                               
electricians. He asked  whether part of the issue  was related to                                                               
scale  since   Seattle  and  Bellingham   serve  a   much  larger                                                               
population.                                                                                                                     
                                                                                                                                
MR.  GOLDRICH responded  that MEBA's  Seattle labor  hall is  the                                                               
busiest shipping hall nationwide.                                                                                               
                                                                                                                                
MS.  ADAMSON  added  that  the  state  does  not  produce  enough                                                               
mariners  to  fill positions.  She  pointed  out that  Washington                                                               
state currently  has a  huge shortage, that  the union  school is                                                               
inundated with people trying to  get their certifications to sail                                                               
since the mariner industry is  a desirable career. The problem is                                                               
that the demand is higher than  the number of people available to                                                               
meet it.                                                                                                                        
                                                                                                                                
2:28:30 PM                                                                                                                    
SENATOR  SHOWER  referred  to  a  Veterans'  organization,  VIPER                                                               
Transitions, which  assists veterans. Alaska has  the highest per                                                               
capita  veteran  population  in  the  nation.  This  organization                                                               
assists unemployed  veterans, in  part, as  a method  of reducing                                                               
veteran suicide.  He offered  his view  that many  veterans would                                                               
like to stay in Alaska and would like the AMHS jobs.                                                                            
                                                                                                                                
2:29:09 PM                                                                                                                    
MS.  ADAMSON   acknowledged  that   MMP  Headquarters   has  some                                                               
involvement with VIPER Transitions.                                                                                             
                                                                                                                                
2:29:17 PM                                                                                                                    
SENATOR MICCICHE asked whether seasonality  was an ongoing issue.                                                               
He  related that  Washington  State Ferries  and  the Black  Ball                                                               
Ferry Line run continuously. However,  Alaska cannot partner with                                                               
communities south  of the equator.  He asked for a  comparison of                                                               
seasonality in other ferry systems.                                                                                             
                                                                                                                                
MR. WALLI related  that high school and college  students used to                                                               
work on AMHS  in the summer. He stated one  way to revitalize the                                                               
workforce is to get young people involved at job fairs.                                                                         
                                                                                                                                
2:30:44 PM                                                                                                                    
SENATOR MICCICHE  characterized seasonality  as a  challenge, not                                                               
as a  benefit. He  stated that  getting young  people to  come to                                                               
Alaska for fish processing is also a challenge.                                                                                 
                                                                                                                                
MR.  WALLI stated  that  the Washington  state  ferries run  year                                                               
round.                                                                                                                          
                                                                                                                                
MS. ADAMSON  stated that seasonality  was not a problem  for MMP,                                                               
but it presents issues for IBU.                                                                                                 
                                                                                                                                
2:31:44 PM                                                                                                                    
MS.  ADAMSON turned  to  the  next section  on  slide 17,  Pilots                                                               
Association (SEPA, SWPA, and AMP).                                                                                              
                                                                                                                                
MS. ADAMSON  said that the Southeast  Alaska Pilot's Association,                                                               
the Southwest  Pilot's Association, and the  Alaska Marine Pilots                                                               
are  experiencing significant  retirements, so  job openings  are                                                               
abundant. She characterized AMHS as  a cradle for these positions                                                               
because AMHS  pilotage licensure is  similar. She said  that most                                                               
of  the base  pilotage was  the  same. She  highlighted that  the                                                               
Alaska Marine  Pilots earn nearly  four times the salary  of AMHS                                                               
captains.   The  positions   are   seasonal,   but  pilots   work                                                               
consistently  for  six  months  and then  have  six  months  off.                                                               
Although  AMHS employees  have gravitated  to the  marine pilots,                                                               
since the  marine pilots have  had large openings, this  year 4-6                                                               
MMP members  will leave  AMHS. She  anticipated an  additional 14                                                               
would go  in the next four  years. She stated that  AMHS has been                                                               
hiring third mates but losing captains.                                                                                         
                                                                                                                                
SENATOR SHOWER asked for the career progression for captains.                                                                   
                                                                                                                                
MS. ADAMSON responded that it  would depend on whether the person                                                               
has an ocean  or inland license, but it typically  would take 10-                                                               
15 years.                                                                                                                       
                                                                                                                                
2:33:44 PM                                                                                                                    
MS.  ADAMSON noted  she  had  skipped slide  16,  Where are  They                                                               
Going?                                                                                                                          
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     • Retirements                                                                                                              
     • Other companies such as Washington State Ferries, Black                                                                  
        Ball, west coast tugging companies and offshore companies                                                               
     • More lucrative positions are available                                                                                   
     • More reliable time off                                                                                                   
     • Holdover has become an issue                                                                                             
     • Increased job security                                                                                                   
                                                                                                                                
2:34:13 PM                                                                                                                    
MS. ADAMSON  reviewed slide 18,  Washington State and  Black Ball                                                               
Ferry Wage Comparison.  The information in the four  boxes on the                                                               
slide read:                                                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     • WSF Masters make on average 23% more than AMHS                                                                           
        • In the highest category  33% more                                                                                     
     • WSF Chief Mates - 27% more                                                                                               
     • WSF 2nd Mates  14% more                                                                                                  
                                                                                                                                
     • WSF Chief Engineers on average make 35% more than                                                                        
        AMHS                                                                                                                    
        • In the highest category  53%                                                                                          
        • Will receive an additional 3.25% pay increase on                                                                      
          July 1, 2022                                                                                                          
                                                                                                                                
        • Black Ball Masters make on average 41%more than                                                                       
          AMHS                                                                                                                  
        • BB Chief Mates - 48% more                                                                                             
        • BB 2nd Mates - 53% more                                                                                               
        • BB 2nd Mates vs AMHS Master - 8.9% higher                                                                             
                                                                                                                                
        • Black Ball Chief Engineers make on average 71%                                                                        
          more than AMHS BB 1st Engineers - 57%                                                                                 
        • BB 2nd Engineers - 63.%                                                                                               
        • BB 2nd Engineers vs AMHS C/E - 31.6% higher                                                                           
                                                                                                                                
2:34:27 PM                                                                                                                    
MS.  ADAMSON directed  attention to  the red  print in  the boxes                                                               
related to the  wage comparison for the  Washington State Ferries                                                               
(WSDOT) and  Black Ball Ferry  Line (BBFL). She related  that the                                                               
companies used  for wage comparison  to the AMHS  operate similar                                                               
vessels and  have similar license requirements,  particularly for                                                               
the BBFL.                                                                                                                       
                                                                                                                                
MS. ADAMSON noted that the Black  Ball ferry, Coho, is the sister                                                               
ship to  the AMHS  ferry, Taku.  She stated  that the  same three                                                               
unions  operating  AMHS  ferries  also run  the  Black  Ball  and                                                               
Washington state  ferries. Still, those ferries  typically run on                                                               
a day schedule instead of a semi-monthly or longer schedule.                                                                    
                                                                                                                                
MS. ADAMSON stated  that in terms of salaries,  Black Ball Second                                                               
Mates  earn 9  percent  more  than AMHS  Masters  and Black  Ball                                                               
Second Engineers earn 31 percent  more than AMHS Chief Engineers.                                                               
She noted that AMHS competes with this pool.                                                                                    
                                                                                                                                
2:35:35 PM                                                                                                                    
CHAIR MYERS asked where Black Ball ferries operate.                                                                             
                                                                                                                                
MS. ADAMSON  answered that the  Black Ball Ferry Line,  a private                                                               
company,  operates between  Port  Angeles  and Victoria,  British                                                               
Columbia. The majority of its passengers are tourists.                                                                          
                                                                                                                                
2:36:05 PM                                                                                                                    
SENATOR MICCICHE asked whether the  wage differential was "apples                                                               
to  apples"  or  if  the   company  had  deferred  benefits  that                                                               
increased the overall earnings.                                                                                                 
                                                                                                                                
MR. GOLDRICH answered  that he was unsure about  BBFL. He related                                                               
that  MEBA  has its  own  pension  program but  Washington  State                                                               
employees  are  under  the   Public  Employee  Retirement  System                                                               
(PERS).                                                                                                                         
                                                                                                                                
MS.  ADAMSON  explained  that  the   next  several  slides  would                                                               
somewhat cover it.                                                                                                              
                                                                                                                                
2:37:02 PM                                                                                                                    
MS.  ADAMSON reviewed  slide 19,  Maters, Mates  and Pilots  Wage                                                               
Comparison, which  consisted of  a bar  chart for  Masters, Mates                                                               
and  Pilots. She  stated that  WSDOT Chief  Mates earn  more than                                                               
AMHS Masters  and Second Mates  earn more than AMHS  Chief Mates.                                                               
However, the  benefits differ. AMHS  employees receive a  Cost of                                                               
Living  Differential (COLD)  and leave.  She explained  that AMHS                                                               
employees  that live  in Alaska  receive a  lump sum  COLD, which                                                               
varies  per  position.  For  instance,  AMHS  Third  Mates  would                                                               
receive  approximately $250,  and Masters  would receive  $450 in                                                               
COLD per pay period.                                                                                                            
                                                                                                                                
CHAIR MYERS asked whether the COLD was biweekly.                                                                                
                                                                                                                                
MS.  ADAMSON  replied that  the  figures  were for  biweekly  pay                                                               
periods.                                                                                                                        
                                                                                                                                
SENATOR SHOWER  asked whether the  figures on slide  19 include4d                                                               
COLD.                                                                                                                           
                                                                                                                                
2:38:27 PM                                                                                                                    
MS. ADAMSON offered  to provide graphs with  the updated figures.                                                               
She characterized  it as  a wage comparison  but agreed  that the                                                               
figures did not  include benefits. She noted  that AMHS employees                                                               
earn  significantly  more  leave   than  the  other  two  groups.                                                               
However, the way AMHS employees must  use leave evens it out. She                                                               
stated that WTDOT or BBFL  employees are essentially day workers,                                                               
so if they  are sick for two  days, they return to  the vessel on                                                               
the  third day.  AMHS employees  who are  sick for  two days  are                                                               
replaced for their entire two-week shift.                                                                                       
                                                                                                                                
2:39:17 PM                                                                                                                    
SENATOR  SHOWER wondered  whether  it would  apply  the same  for                                                               
WSDOT and BBFL employees as for AMHS employees.                                                                                 
                                                                                                                                
MS. ADAMSON clarified  that WSDOT and BBFL employees  are back in                                                               
port  every night,  so reliefs  are readily  available for  their                                                               
specific shifts.                                                                                                                
                                                                                                                                
2:39:44 PM                                                                                                                    
MS.  ADAMSON  reviewed  slide  20,  Marine  Engineers  Beneficial                                                               
Association Wage  Comparison. She indicated that  the graphs were                                                               
based  only on  wages,  so it  does not  consider  COLD or  leave                                                               
earnings. WSDOT  only has one  category for  Assistant Engineers,                                                               
which is comparable  to the AMHS First  Assistant Engineer. Black                                                               
Ball  Chief   Engineers  earn  nearly  double   what  AMHS  Chief                                                               
Engineers  earn.  WSDOT  Assistant Engineers  make  significantly                                                               
more than AMHS Chief Engineers.  She stated that even though AMHS                                                               
employees  have COLD  and additional  leave earnings,  it is  not                                                               
enough to retain them.                                                                                                          
                                                                                                                                
2:40:39 PM                                                                                                                    
SENATOR MICCICHE  asked for the  slides to be updated  to provide                                                               
an apples-to-apples comparison.                                                                                                 
                                                                                                                                
2:40:59 PM                                                                                                                    
SENATOR KIEHL  surmised that AMHS  employees are  primarily going                                                               
to WSDOT and BBFL. He  asked what other companies were attracting                                                               
AMHS MMP and MEBA employees, such as Bluewater Sailing.                                                                         
                                                                                                                                
MS.  ADAMSON  offered to  do  some  research  and report  to  the                                                               
committee.  She  explained that  most  MMP  are leaving  AMHS  to                                                               
become Alaska  Marine Pilots for  better schedules  and salaries.                                                               
However, a few have gone to  WSDOT, the offshore hiring hall, and                                                               
the International Longshore and Warehouse Union (ILWU)].                                                                        
                                                                                                                                
MR.  GOLDRICH  responded  that many  MEBA  members  gravitate  to                                                               
sailing the deep sea for better schedules.                                                                                      
                                                                                                                                
MR.  WALLI responded  that  many of  the  Inland Boatman's  Union                                                               
members  go  to  the  tugboat companies  and  use  the  Seafarers                                                               
International  Union  hiring  halls   or  the  American  Maritime                                                               
Officers  (AMO)  union  to obtain  offshore  work.  For  example,                                                               
members  have  gone  to  British Petroleum  or  Polar  Marine  as                                                               
unlicensed stewards or deckhands.                                                                                               
                                                                                                                                
2:42:51 PM                                                                                                                    
SENATOR MICCICHE  expressed an interest  in the  differential pay                                                               
for the Black Ball Ferry  Line. He wondered what a private-sector                                                               
employer  like  BBFL does  not  have  to provide  employees  that                                                               
allows  it to  pay higher  wages. He  cautioned that  he was  not                                                               
leaning toward privatizing AMHS but  would like to understand why                                                               
Alaska is not competitive.                                                                                                      
                                                                                                                                
MR. GOLDRICH  responded that MEBA  stated that BBFL  provides pay                                                               
increases twice  annually, with  a minimum of  2 percent  tied to                                                               
the Consumer Price Index.                                                                                                       
                                                                                                                                
MS.  ADAMSON  added that  BBFL  has  a reliable  and  predictable                                                               
customer  base, consisting  of a  mix of  commuters and  tourists                                                               
that helps its business model.                                                                                                  
                                                                                                                                
2:44:35 PM                                                                                                                    
SENATOR SHOWER  asked whether other  ferries, such as  East Coast                                                               
ferries could be  used for comparison instead of  WSDOT and BBFL.                                                               
He wondered if Alaska could look  to other state ferry systems to                                                               
help improve AMHS retention for the long term.                                                                                  
                                                                                                                                
2:45:47 PM                                                                                                                    
MS. ADAMSON responded  that she researched the  Maine State Ferry                                                               
(MaineDOT),  North Carolina  Department of  Transportation, Ferry                                                               
Division  (NC  Ferry  Division),  and a  small  ferry  system  in                                                               
Florida. All  three ferry systems used  small Lituya-type vessels                                                               
operating from one  point and back. She explained it  was hard to                                                               
compare  those  systems  because   AMHS  serves  3,500  miles  of                                                               
coastline.  A Scottish  group, Caledonian  MacBrayne (CalMac),  a                                                               
public-private  corporation, provides  the best  comparison since                                                               
the ferries  operate larger vessels  on longer runs.  She related                                                               
that Southeast Conference used it as  a great example in its AMHS                                                               
report. She offered to provide  some comparisons, but since it is                                                               
foreign-owned and  operated, it  was not likely  to result  in an                                                               
apples-to-apples comparison.                                                                                                    
                                                                                                                                
2:47:04 PM                                                                                                                    
SENATOR  MICCICHE remarked  that the  potential change  to reduce                                                               
the minimum route  from 50 to 20-miles  in federal infrastructure                                                               
criteria was  significant. He surmised  that AMHS was  likely the                                                               
only one in  the US that could qualify,  although Catalina Island                                                               
might   have  similar   seasonality   demand.   He  related   his                                                               
understanding that it would be difficult to find comparisons.                                                                   
                                                                                                                                
MS. ADAMSON stated MMP was open  to using other ferry systems for                                                               
comparison but these  comparisons were based on  ferry systems in                                                               
the US  that were relatively  close to AMHSs  system.  She agreed                                                               
that CalMac  was similar to  and the most  relevant international                                                               
ferry system for comparison purposes.                                                                                           
                                                                                                                                
2:48:15 PM                                                                                                                    
MS. ADAMSON  stated that  slide 21,  Inland Boatman's  Union Wage                                                               
Comparison was self-explanatory.                                                                                                
                                                                                                                                
2:48:38 PM                                                                                                                    
SENATOR  MICCICHE commented  that Alaska  was different  and that                                                               
the differences  were significant. He  stated that BBFL  does not                                                               
have  staterooms or  food  service but  strictly  moves cars  and                                                               
people. He suspected this was  reflected in the wage structure of                                                               
the other positions.                                                                                                            
                                                                                                                                
MR. WALLI pointed out that BBFL  has a Steward Department, but it                                                               
was minimal  because it  is a  day boat.  He indicated  that they                                                               
have some cooks and pursers.                                                                                                    
                                                                                                                                
2:49:59 PM                                                                                                                    
MS. ADAMSON  reviewed slide 22,  Union Recommendations  to Retain                                                               
and Recruit Crewmembers.                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     • Work Crew Members Year Round                                                                                             
        • Create security that there will be regular                                                                            
          paychecks                                                                                                             
     • Utilize Union Halls for certain positions                                                                                
        • These can be filled on an as-needed basis                                                                             
     • Address Payroll and Labor Relations Issues                                                                               
     • Allow Union Dispatching                                                                                                  
      • Adjust AMHS Determined Minimum Qualifications to                                                                        
        Facilitate Bidding                                                                                                      
        • This can be done now                                                                                                  
     • Set Up A Training Fund for Entry Level Unlicensed                                                                        
        Positions                                                                                                               
      • Offer training for free with a 2 year commitment                                                                        
     • Change Shipyard Schedules for Unlicensed                                                                                 
        • Incentivize regular crew that are familiar to                                                                         
          stay for yards                                                                                                        
        • Create a way to prevent crews from being trapped                                                                      
         away from their families for months at a time                                                                          
        • Recruit at Job Fairs, High Schools, Maritime                                                                          
        Academies, etc.                                                                                                         
                                                                                                                                
MS.  ADAMSON   stated  that  the   unions  had   suggested  these                                                               
recommendations over the years.                                                                                                 
                                                                                                                                
2:50:44 PM                                                                                                                    
SENATOR  SHOWER  asked whether  each  line  item required  policy                                                               
changes or legislation.                                                                                                         
                                                                                                                                
MS. ADAMSON responded that working  crew members year-round would                                                               
involve  contract  negotiations.  She cautioned  that  the  three                                                               
unions could not  discuss some things because  they are currently                                                               
negotiating their  contracts. Some items  on slide 22  were being                                                               
addressed in negotiations.                                                                                                      
                                                                                                                                
MS. ADAMSON  said that MEBA  currently uses union halls,  and MMP                                                               
and IBU  were negotiating this  point. She explained that  it was                                                               
complicated  because the  union hall  requirements differed  from                                                               
the AMHS contract.  Thus, the negotiations were  broader, but the                                                               
unions were open  to changes. For example, it  is complicated for                                                               
MMP  to  hire  using  union  halls  since  those  employees  lack                                                               
pilotage  and  would  be   eligible  for  lower-level  positions.                                                               
However, MEBA  and IBU  are more  flexible since  those employees                                                               
have already met their requirements.                                                                                            
                                                                                                                                
2:52:46 PM                                                                                                                    
SENATOR SHOWER  asked if employees must  be union or if  they can                                                               
be non-union members.                                                                                                           
                                                                                                                                
MS.  ADAMSON answered  that nothing  prevents someone  from being                                                               
hired if they choose not to join the union.                                                                                     
                                                                                                                                
2:53:26 PM                                                                                                                    
SENATOR  MICCICHE asked  whether  there were  currently any  non-                                                               
union employees in MMP, MEBA, or IBU.                                                                                           
                                                                                                                                
MS.  ADAMSON responded  that MMP  had hired  two members  as non-                                                               
union members but they later joined.                                                                                            
                                                                                                                                
MR.  GOLDRICH  responded that  he  was  unaware of  any  nonunion                                                               
members on AMHS but it would be possible.                                                                                       
                                                                                                                                
MR.  WALLI offered  his view  that IBU  currently has  three non-                                                               
union members.                                                                                                                  
                                                                                                                                
2:54:12 PM                                                                                                                    
MS.  ADAMSON  returned  to slide  22,  Union  Recommendations  to                                                               
Retain  and  Recruit  Crewmembers.  She  offered  to  make  broad                                                               
statements  on  the  issues  because  the  unions  are  currently                                                               
negotiating. She  stated that these  issues impact  retention and                                                               
potential  hires because  they  affect AMHS's  reputation in  the                                                               
industry. She deferred to Mr.  Walli to discuss the bullet "Allow                                                               
Union Dispatching."                                                                                                             
                                                                                                                                
2:54:48 PM                                                                                                                    
MR.WALLI  stated   that  many  of   the  IBU  issues   relate  to                                                               
dispatching and  payroll. He said  that IBU believes that  if the                                                               
union  were responsible  for dispatching,  there wouldn't  be any                                                               
issues. He  highlighted IBU's concerns related  to incorrect crew                                                               
lists that require filing grievances to correct them.                                                                           
                                                                                                                                
CHAIR MYERS stated that the  dispatcher informs the drivers where                                                               
to go in the trucking  industry. He shared his understanding that                                                               
the unions would pick the employees sailing on the vessels.                                                                     
                                                                                                                                
MR. WALLI  noted that IBU  is based  on seniority, so  the issues                                                               
arise when members are not dispatched per their seniority.                                                                      
                                                                                                                                
SENATOR SHOWER asked whether that  would be resolved via contract                                                               
negotiations or if it would require legislation.                                                                                
                                                                                                                                
MR.  WALLI answered  that  it  could be  resolved  via policy  or                                                               
negotiations.                                                                                                                   
                                                                                                                                
2:56:25 PM                                                                                                                    
SENATOR  MICCICHE  stated  that  the executive  branch,  not  the                                                               
legislature,  has that  responsibility. He  said it  was nice  to                                                               
know the  issues, but he  felt uncomfortable discussing  them. He                                                               
asked  how the  legislature could  help provide  funding for  any                                                               
gaps,  so the  department has  the room  to negotiate  and retain                                                               
employees.  He  expressed  interest in  enticing,  motiving,  and                                                               
retaining professional marine employees to stay in Alaska.                                                                      
                                                                                                                                
2:58:22 PM                                                                                                                    
MS. ADAMSON  emphasized the  need to  fund contracts  at industry                                                               
standards and to address training and how the crew is used.                                                                     
                                                                                                                                
2:58:56 PM                                                                                                                    
MR.  GOLDRICH  stated  that  MEBA   members  make  a  significant                                                               
investment  to come  to Alaska,  so they  seek predictability  to                                                               
have a  career in Alaska.  Currently, AMHS does not  provide that                                                               
predictability. He  related that  most AMHS MEBA  employees spent                                                               
15-20 years  building careers  in the  past, which  declined with                                                               
the lack of predictability. Members  don't know the funding level                                                               
for AMHS or which vessels will operate, which takes a toll.                                                                     
                                                                                                                                
3:00:01 PM                                                                                                                    
SENATOR SHOWER  reiterated his interest  in knowing if  policy or                                                               
legislation was needed  since the legislature is  working on ways                                                               
to make the ferry work. He emphasized the need for feedback.                                                                    
                                                                                                                                
3:01:09 PM                                                                                                                    
SENATOR  MICCICHE stated  that the  private sector  has the  same                                                               
issues because companies  hiring people for the  North Slope must                                                               
compete with  wages on the Gulf  Coast. He offered his  view that                                                               
Alaska has  not done well in  meeting the goal of  drawing people                                                               
to Alaska  to become  residents. These  issues are  consistent in                                                               
almost every industry in Alaska.                                                                                                
                                                                                                                                
3:02:11 PM                                                                                                                    
SENATOR KIEHL offered his view  that stabilizing the system would                                                               
help  stabilize   the  workforce.   He  related  that   AMHS  had                                                               
experienced numerous fluctuations  in service, including reducing                                                               
service  by  126  weeks  just before  COVID-19.  He  agreed  that                                                               
stabilizing the  level of service  was essential, that  the state                                                               
could make  things better this  year and the next  several years,                                                               
and work on SB 170.                                                                                                             
                                                                                                                                
3:03:39 PM                                                                                                                    
MS.  ADAMSON  stated that  Senator  Shower  raised the  issue  of                                                               
running ships  without sufficient  ridership. She  suggested that                                                               
the  solution would  be  to  work with  unions  to create  better                                                               
schedules and work with the  communities and the state to improve                                                               
service  to  communities.  She  agreed  that  some  vessels  were                                                               
running at  20 percent capacity,  but these vessels should  be at                                                               
90  percent capacity.  She offered  her view  that it  is in  the                                                               
unions' and the state's best interest  to do so. She expressed an                                                               
interest in  working with  the new  AMHS Board,  communities, and                                                               
the state on this bill to create those kinds of solutions.                                                                      
                                                                                                                                
3:04:29 PM                                                                                                                    
SENATOR  MICCICHE recalled  the legislature  did not  realize the                                                               
imperative  nature of  the department,  viewed it  as overfunded,                                                               
noted  that employees  received  geo-differential  pay, and  many                                                               
lived outside  Alaska. He offered  his view that  the legislature                                                               
chipped away  at the  inefficient costs but  did not  address the                                                               
issues. He said he hoped that  the new AMHS Board could help make                                                               
AMHS  vessels  the place  to  work,  that the  legislature  would                                                               
adequately  fund it,  stand  up  for the  employees  and make  it                                                               
happen  by having  the right  vessels  for the  right routes  and                                                               
service. He stated that AMHS had  extra routes, ships not fit for                                                               
service in layup,  and did not know how to  navigate those issues                                                               
effectively.                                                                                                                    
                                                                                                                                
3:06:27 PM                                                                                                                    
MS. ADAMSON  offered her  view that  the state,  the legislature,                                                               
and the unions line up well.  She said that people like Mr. Walli                                                               
and  herself  have  the  licensure   work  history  of  providing                                                               
feedback on  what will and  won't work  at AMHS. She  stated that                                                               
the unions would love the opportunity to work with the state,                                                                   
legislature, and AMHS to create efficiencies and address issues.                                                                
                                                                                                                                
3:07:06 PM                                                                                                                    
CHAIR MYERS held SB 170 in committee.