Legislature(2011 - 2012)BARNES 124
01/26/2011 03:15 PM House LABOR & COMMERCE
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| Overview of the Department of Labor and Workforce Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT MEETING
SENATE LABOR AND COMMERCE STANDING COMMITTEE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 26, 2011
3:19:05 p.m.
MEMBERS PRESENT
SENATE LABOR & COMMERCE STANDING COMMITTEE
Senator Dennis Egan, Chair
Senator Bettye Davis
Senator Linda Menard
Senator Cathy Giessel
HOUSE LABOR & COMMERCE STANDING COMMITTEE
Representative Kurt Olson, Chair
Representative Craig Johnson
Representative Paul Seaton
Representative Dan Saddler
Representative Steve Thompson
Representative Lindsey Holmes
Representative Bob Miller
MEMBERS ABSENT
SENATE LABOR & COMMERCE STANDING COMMITTEE
Senator Joe Paskvan, Vice Chair
HOUSE LABOR & COMMERCE STANDING COMMITTEE
All members present
COMMITTEE CALENDAR
OVERVIEW OF THE DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CLARK "CLICK" BISHOP, Commissioner
Department of Labor and Workforce Development (DOLWD)
Juneau, AK
POSITION STATEMENT: Gave an overview of the Department of Labor
and Workforce Development
Tom Nelson, Deputy Commissioner
Department of Workforce and Labor Development
Juneau, AK
POSITION STATEMENT: Explained what the DWLD currently does to
aid Alaska's small businesses.
ACTION NARRATIVE
3:19:05 PM
CHAIR DENNIS EGAN called the joint meeting of the House and
Senate Labor and Commerce Standing Committees to order at 3:19
p.m. Present at the call to order were Senators Menard, Davis,
Giessel, and Egan and Representatives Seaton, Thompson, Holmes,
Miller, and Olson.
^Overview of the Department of Labor and Workforce Development
3:19:56 PM
CHAIR EGAN announced the business before the committee was to
hear an overview from the Department of Labor and Workforce
Development.
3:20:23 PM
CLARK "CLICK" BISHOP, Commissioner, Alaska Department of Labor
and Workforce Development (DOLWD) introduced some of his staff
in attendance: Deputy Commissioner, Tom Nelson; Assistant
Commissioner, Guy Bell; and Special Assistant, Paula Scavera. He
said the mission of the DOLWD is to provide safe and legal
working conditions for the men, women, and youth in the state of
Alaska. They deliver that mission through three core service
areas. First, DOLWD protects workers through wage and hour,
child labor law enforcement, mechanical inspection, occupational
safety, and health compliance enforcement inspections. Second,
they develop Alaska's workforce through the operation of 23 job
centers throughout the state of Alaska. They also have an
online labor exchange system that connects job seekers and
employers. This online service has job training and support
services which include serving Alaskan's with disabilities and
adult basic education. He said that at the DOLWD he signs 1,500
or more General Education Diplomas (GED) per year. The Alaska
Vocational Technical Center (AVTEC) is also run through the
DOLWD which gives kids, who are not on a traditional pathway to
a four-year college program, a good alternative.
Finally, he said, the DOLWD offers incomer placement through
unemployment insurance programs, social security disability
determination services, and by ensuring fair workers'
compensation benefit pay payments to injured workers. The
department has had successes despite the downturn in the United
States' economy and has had a significant impact on the general
picture of Alaska's employment.
3:24:22 PM
REPRESENTATIVE CRAIG JOHNSON joined the committee.
COMMISSIONER BISHOP said in the area of worker protection there
was a nine percent reduction in lost work due to illnesses and
injuries between FY09 and FY10. Workers' compensation premiums
declined in 2010 for the third year in a row. He said that the
DOLWD should take some credit for this because it has
reinvigorated the Governor's Safety Council. This is an annual
convention in Anchorage where safety professionals come together
to host workshops on workplace safety.
He continued that the Trends Magazine now includes a safety
minute in each publication. DOLWD has also become more pro-
active in public safety announcements, such as crane safety and
seatbelts. This will help lower accident and injury rates in the
workplace, which allows the DOLWD to keep the work premium rates
lower.
3:26:27 PM
REPRESENTATIVE DAN SADDLER joined the committee.
COMMISSIONER BISHOP continued that in the area of youth safety,
DOLWD is partnering with K-12 schools by bringing consultation
officers into the classroom to discuss youth safety and
employment. Labor Standards of Safety did an outreach in 2009 to
5,300 students and approximately 5,100 students in 57 schools in
2010. The number of work-related incidents for minors dropped
from 169 in 2008 to 38 in 2010. He said that when work place
safety is engrained at a young age that will hopefully
transition throughout the rest of the person's life.
In the area of income replacement, he said that despite the
historically high claims for unemployment benefits, Alaska's
Unemployment Insurance Trust remains solvent. The December 31,
2010 fund balance was $243,900,000. This, he explained, is
excellent news given that 30 states have had to collectively
borrow $40 billion from the Federal Government in order to
continue giving unemployment insurance (UI) checks. He said that
Alaska is one of the only states in the union where the employee
pays a portion of the UI tax.
In the area of workforce development, the non-resident hire rate
dropped from 19.6 percent in 2008 to 19.1 percent in 2009. This
represents a modest improvement, as Alaska still exported $1.8
billion in wages paid to non-residents. He said that it
continues to be his goal to get Alaskans trained to take the
jobs that are available.
3:31:00 PM
COMMISSIONER BISHOP said he would highlight several successful
training programs. First is the Core Driller Program. He
explained that one responsibility that he has is to sign foreign
labor certifications to allow foreign workers to come into the
state to work. One particular day he had to sign for 20
individuals to work in Alaska, and their average salary would be
$100,000 per year. With unemployment rates in Alaska ranging
from 8-20 percent, depending upon the geographic location, he
realized the need to improve training for Alaskans. Working
collectively, he explained, the DOLWD brought the mining
industry, the drilling industry, the University of Alaska (UA)
Mine Training and Petroleum Division and the Federal Office of
Apprenticeship together in Anchorage. After eight months, they
had designed a curriculum for the first registered Core Driller
Program in the United States or Canada. Thirty-six students from
rural Alaska (Kotzebue, Bethel, and the Donlin Creek area) were
trained the first year of the program. They are now in the
second year of the program and he will be going to another major
mine in hopes of including it in the Core Driller Program. He
mentioned that this program can reach across a lot of different
industries.
COMMISSIONER BISHOP said that another area the DOLWD has been
working in is in corrections. He said he would like to work on a
pre-apprenticeship model in the prison system. They have had
some successes with this, but he would like to expand what they
are doing. He said that he recently visited the new prison
facility at Goose Creek to look at what the prison had in
regards to classroom and shop space. He was impressed with the
amount of space for hands-on educational training, as well as
shop and classroom space.
He gave the example of the Southern California Carpenters, who
engaged in a similar program, where they indentured 94 inmates
into the Southern California Carpenter's Apprentice Program. He
explained that 97 percent of the individuals who participated in
this pre-apprenticeship program remained out of prison one year
after release. His belief is that these individuals need to be
given an education and a skill set to try and make their lives
better.
3:36:58 PM
COMMISSIONER BISHOP continued with the fire fighting program at
Department of Natural Resources (DNR). There are a number of
individuals that come from out of state for the fire season. He
explained that Alaska has the work force to do this job, what
they need is training. For this reason, they funded an entry
level fire fighting training program with over 100 students who
trained in the first year. This is another way that the DOLWD
has been able to reach out to rural Alaskans and give them an
opportunity to be successful. The program was successful this
past year and it will be in the budget again for 2011.
Another program he is proud of is the Law Cadet Program at Mount
Edgecombe High School in Sitka. This is a cadet program for law
enforcement. There is still a need for both Village Public
Safety Officers (VPSOs) and law enforcement needs and it is
important to produce Alaskans who can take up these positions
within the state.
He continued with some legislative items of interest for the
DOLWD. HB 104 and SB 43 would provide sustainable funding for
Alaska performance scholarships to high school seniors with
annual awards of up to $4,755 for those who chose to pursue a
university or technical training career in Alaska.
He said that the DOLWD will be working on workers' compensation
legislation: there is a need for a medical fee schedule to be
put into place and a fee schedule for transportation costs. He
thanked Representative Olson for introducing this legislation.
3:39:48 PM
REPRESENTATIVE THOMPSON asked him to touch on what is happening
with the second entry fund.
COMMISSIONER BISHOP replied he couldn't answer right then, but
he'd make an appointment with the division director and follow
up with an answer.
3:40:52 PM
REPRESENTATIVE HOLMES said that she has been impressed with what
the prison system is doing in regards to the vocational training
for inmates. She said that another issue that has been raised is
the Prisoner Employment Program (PEP) which has been phased out.
This program included a variety of employment opportunities such
as laundry facilities, furniture making, and sewing that are
being phased out of the Department of Corrections. She asked for
his views and the extent to which DOLWD might be able to help in
reinstating some of those programs.
COMMISSIONER BISHOP offered to follow up and have a more in-
depth conversation on the issue.
REPRESENTATIVE HOLMES asked what is happening with employment on
the North Slope, in the support industry, and with Alaska
residents versus out of state residents.
COMMISSIONER BISHOP answered DOLWD has been working to get the
numbers in those three areas. Employment numbers are up overall,
and he'd seen different sets of numbers for the different
industries and hoped to shortly be able to answer questions at
length.
REPRESENTATIVE HOLMES said she, too, had seen a variety of
numbers, and it would be helpful to get as much specific
information as possible.
COMMISSIONER BISHOP said, as an example, the DOLWD is
forecasting 1,800 new jobs for the next year. However, he has
seen other numbers in print from the press that state that the
job estimates are 4,500-4,800. The good news, he said, is that
employment numbers are up when they were expected to be down.
The nonresident hire report will be out soon which will help to
enlighten everyone.
3:46:27 PM
SENATOR MENARD asked what was being done to help keep small
businesses from going into foreclosure and bankruptcy. She said
Alaska is built on small businesses and in Wasilla a large
number of businesses have folded. She has said that she has
heard that there is not a program that works directly with them.
COMMISSIONER BISHOP answered the DOLWD has worked to make
employees that are owed wages whole when the business they work
for goes under. DOLWD is also involved in creating job clubs
with individuals who are knowledgeable of different types of
businesses.
3:49:01 PM
TOM NELSON, Deputy Commissioner, Department of Labor and
Workforce Development, explained that the DOLWD provides
information and referrals for small businesses that come through
the job center. They can also connect them with other essential
state services, such as the Department of Commerce, Department
of Community and Economic Development, and others. He continued
by explaining that they also have connection to the Trade
Adjustment Act. This means that if a small business has gone out
of business because of, for instance, foreign competition they
have the ability to help formulate a petition to the Federal
Government. This can make them Trade Act eligible which will
allow their employees to be eligible for services and
retraining.
He continued that the DOLWD also has smaller programs that are
designed for companies that have 50 employees or more or 49
employees or less. These programs are for lay off aversion and
"rapid response." Rapid response allows them to pro-actively
work a company before they completely shut down in order to
provide them with information, referrals, and aid in beginning
the process of retraining.
3:50:22 PM
SENATOR MENARD returned to the recent Trend Magazine publication
that came out in 2011. At the bottom of the cover of the
magazine it mentioned the growth rate that the Matanuska Valley
is experiencing. She asked whether the commissioner had seen
this article and could comment on it to better aid her
colleagues in understand the growth rate they are experiencing.
COMMISSIONER BISHOP replied he would have to re-read the foot
note and follow up with a response.
3:51:20 PM
REPRESENTATIVE THOMPSON asked if there are many companies in
Alaska that are not purchasing workers compensation insurance.
COMMISSIONER BISHOP answered that, yes, they have found some
companies that are not in compliance and the DOLWD has made sure
that they have then purchased workers compensation insurance.
However, it has not appeared to be an epidemic.
3:51:50 PM
REPRESENTATIVE MILLER said he has had several of the unions
visit him in his office throughout the week. One prominent
recurring concern is that it appears that when a general
contractor is awarded a new contract, especially with new
construction, they are sub-contracting independents. These
independent folks are somehow not required or compelled to buy
workers compensation. He asked if there is any way that this can
be tracked, as there is no statute and no enforcement.
COMMISSIONER BISHOP replied that the DOLWD does have fraud
investigators in regards to enforcement. However, he agreed that
it is an issue though.
REPRESENTATIVE MILLER asked if this is just a question, then, of
enforcement and if there are statues that could prevent this
from happening.
COMMISSIONER BISHOP answered that he would need to defer to his
division director.
3:53:43 PM
REPRESENTATIVE SEATON said that two years ago a program was set
into place through the University of Alaska (UA) through the
Kenai Peninsula College for pre-correction and pre-public safety
officers. This allows rural residents of the area can qualify
for those jobs in their rural areas. He said that he knows that
the program has been full and one of the problems was ensuring
that state and local agencies would give priority to people who
have certificates. He asked if the commissioner has had any
interactions on this issue and whether they are able to get
local individuals hired for jobs available in their community,
rather than bringing people from outside the area or the state.
COMMISSIONER BISHOP answered that he will do a follow up with
Commissioner Schmidt. He said that he would like to know himself
as to whether the state of Alaska is utilizing its graduates as
intended by the legislation on education and training that was
funded two years ago.
3:55:11 PM
COMMISSIONER BISHOP said that when the Alaska Gasline Inducement
Act (AGIA) training plan was completed there were four broad
strategies. Strategy two was to develop a comprehensive Career
and Technical Education (CTE) plan for Alaska. In less than a
year the CTE plan was completed. This plan was done in
collaboration with the UA, the Department of Labor, and the
Department of Education and Early Development. He explained that
one of his main goals is to try and increase the graduation
rates and to eliminate the need for reeducation of students when
they go to university. He said the UA Board of Regents, State
Board of Education, and the DOLWD have all found it of value and
he hopes that the body will find the document of value as well.
He said they need to move forward and try and implement the CTE
in order to try and increase the graduation rates.
He explained that he had a company tell him that one of the
reasons they do not hire more Alaskans is they cannot find
enough qualified Alaskans. He has been afforded a chance to talk
to this company and plans on showing them how to increase their
Alaska hire rates. This has been documented in the non-resident
hire report, which fully embraces the concept of what the DOLWD
is trying to implement. It can be done, and it does work.
4:00:12 PM
There being no further business to come before the committee,
Chair Egan adjourned the meeting at 4:00 p.m.
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