Legislature(2003 - 2004)
01/27/2003 03:15 PM House L&C
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 27, 2003
3:15 p.m.
MEMBERS PRESENT
Representative Tom Anderson, Chair
Representative Bob Lynn, Vice Chair
Representative Nancy Dahlstrom
Representative Carl Gatto
Representative Norman Rokeberg
Representative Harry Crawford
Representative David Guttenberg
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING
Commissioner, Department of Labor & Workforce Development
Greg O'Claray - Juneau
- CONFIRMATION(S) ADVANCED
PREVIOUS ACTION
No previous action to record
WITNESS REGISTER
GREG O'CLARAY, Commissioner
Department of Labor & Workforce Development
Juneau, Alaska
POSITION STATEMENT: Testified as appointed commissioner of the
Department of Labor & Workforce Development.
ACTION NARRATIVE
TAPE 03-2, SIDE A
Number 0001
CHAIR TOM ANDERSON called the House Labor and Commerce Standing
Committee meeting to order at 3:15 p.m. Representatives
Anderson, Lynn, Gatto, Crawford, and Guttenberg were present at
the call to order. Representatives Rokeberg and Dahlstrom
arrived as the meeting was in progress.
HB 4 - EXPAND PUBLIC CORRECTIONAL FACILITIES
Number 0068
CHAIR ANDERSON briefly called the committee's attention to House
Bill NO. 4, "An Act relating to publicly owned correctional
facilities." He explained that Representative Crawford's bill
is not relevant to this committee, so it will probably be
referred to the House State Affairs Standing Committee and the
House Finance Committee.
CHAIR ANDERSON announced that HB 4 will be waived from the
committee. This action will be formally announced at the next
House session on Wednesday, January 29. [End of discussion of
HB 4.]
CONFIRMATION HEARING
Commissioner, Department of Labor & Workforce Development
CHAIR ANDERSON announced that the committee would consider the
confirmation of the appointment of Greg O'Claray as commissioner
of the Department of Labor & Workforce Development.
Number 0278
GREG O'CLARAY, Commissioner, Department of Labor & Workforce
Development, explained that he was born in Portland, Oregon, and
came to Juneau in 1950. He has lived in the state except when
working on ships, attending school, and lobbying for Alaskan
issues in Washington, D.C. He has spent most of his life, since
age 14, doing work involving the ocean. Most recently he has
represented the seafaring unions of organized labor and lobbied
for various clients before the Alaska State Legislature, the
State of Alaska administration, and the U.S. Congress.
COMMISSIONER O'CLARAY explained that Governor Frank Murkowski
has set the agenda for the Department of Labor & Workforce
Development by appointing him, a representative of organized
labor, as commissioner, and Ed Fisher, who has a long background
in management, as deputy commissioner. Commissioner O'Claray
noted that the charge of the department has expanded. In
addition to offering the required core services that protect
workers' health and safety, fair wages and hours of work, the
department is also required to partner with management to train
the workforce for the 21st century. An administrative order
[No. 205, dated January 20, 2003] authorized the creation of a
new division, the Division of Business Partnerships. The
division will assume some responsibilities formerly handled by
the Division of Employment Security and the Alaska Workforce
Investment Board. Commissioner O'Claray explained that the new
division's charge is to train the state's human resources to
fill the jobs in future natural resource development projects.
The department must act as the economic engine to make sure that
construction dollars paid to workers stay in our economy and
don't go south, as they did with laborers imported to work on
the trans-Alaska pipeline.
Number 0589
CHAIR ANDERSON quoted Governor Murkowski's December 9, 2002,
press release announcing the appointment of Commissioner
O'Claray to the Department of Labor & Workforce Development.
The release described the department as "moribund, highly
politicized." He asked Commissioner O'Claray to respond.
Number 0620
COMMISSIONER O'CLARAY explained that the governor's statements
reflected information gleaned during the campaign and during the
transition to his administration. Interviews with large and
small employers revealed that the department was not friendly to
employers. Commissioner O'Claray said his charge is to change
that image. Department staff are quickly reaching out to
employers and the business community. He said that without
businesses, there are no jobs, and without jobs, there's no need
for federal dollars to train workers. Commissioner O'Claray
said the department's job is larger than handing out
unemployment checks.
REPRESENTATIVE LYNN asked Commissioner O'Claray to identify his
top three priorities and how he plans to work with the public
school systems to promote labor-and-commerce education. He also
asked him to comment on training workers for in-state private
prisons.
COMMISSIONER O'CLARAY responded that one challenge is to change
the image of the department. The second is to make sure the
core services offered - a safe workplace and enforcement of wage
and hour laws - are delivered in a helpful rather than punitive
manner. He said there will be times the department will need to
use the teeth in its laws to bring employers into compliance.
But he noted that the department's style will have to change.
He listed his third priority as efficiency and being accountable
to the public on how general fund and federal dollars are spent.
Number 0935
COMMISSIONER O'CLARAY referenced the governor's concern about
the outmigration of Alaskan college students and the need to
provide good jobs so they can return to the state to work. He
mentioned the example of a vocational education program used in
Florida elementary schools. He said the department is also
considering summer internships for high school students in the
seafood industry, where there's a high percentage of nonresident
workers. He said the department has a large fund of workforce
investment dollars for grantees to provide vocational training.
COMMISSIONER O'CLARAY cautioned that the legislature will deal
with the policy issue of private prisons. But, he added, the
department will train correctional officers, and he is working
with the commissioner of the Department of Corrections to fund
this training.
Number 1117
REPRESENTATIVE GUTTENBERG asked Commissioner O'Claray how the
department intends to work more closely with business while
still helping workers redress their issues with employers. He
also invited him to comment on how the department's mission
statement will change.
COMMISSIONER O'CLARAY clarified that the prime objective of the
Department of Labor & Workforce Development is to advocate for
workers. He said that Governor Murkowski has instructed him to
maintain close ties with organized labor because it is a major
player in improving the state's economy. The governor supports
organized labor's training programs and their provision of
competent journeymen for the crafts. It is also the
department's responsibility to make sure that good jobs are
developed for Alaskans. And part of that task is to foster a
healthy business environment while still making sure that
workers' rights, safety, and health are safeguarded. He
described this dual responsibility as a teeter-totter that must
be kept in balance. Regarding the department's mission
statement, he opined that it will expand to include workforce
training.
Number 1344
REPRESENTATIVE GATTO asked the commissioner how his strong
union-oriented history squares up with right-to-work laws and
project labor agreements.
COMMISSIONER O'CLARAY said he is personally opposed to right-to-
work laws, but as commissioner, he will articulate the
governor's position on labor issues. He believes project labor
agreements have their place, for example, the Trans-Alaska
Pipeline construction project. He said that while it was not
the most efficient way to build this massive project, it kept
labor disputes to a minimum. Commissioner O'Claray said Alaska
is a union state in the construction trades, but he added there
are "double-breasted operations" [in which a union shop company
and an open-shop company are owned by the same parent company].
Number 1540
REPRESENTATIVE DAHLSTROM noted that she's been employed under a
workforce development grant and has witnessed discrepancies
among various grantees in evaluating clients. She asked the
commissioner if he has checks and balances for these programs.
COMMISSIONER O'CLARAY said he hopes to improve the department's
ability to track grantees' expenditures and accomplishments. He
said the measures used to evaluate clients must be fair and
consistent.
Number 1654
REPRESENTATIVE CRAWFORD noted that in his 28 years in the
Alaskan construction industry, he has seen numerous friends
injured and several killed. Protecting workers is a main part
of the department's mission, he said, and he's concerned about
the reduction in safety inspections in recent years.
COMMISSIONER O'CLARAY agreed that accidents and worker safety
are major concerns for him personally and for the department.
He said he is looking closely at the management of the Division
of Labor Standards and Safety. He believes the division should
be doing more courtesy inspections.
Number 1856
REPRESENTATIVE GUTTENBERG described the lack of housing and
sanitation facilities at remote highway construction sites on
the Dalton Highway and in the Paxson area. The contractors are
not required to house construction workers, and people are
living in tents and pickup trucks. Organized labor has been
trying for years to get camps written into these large, multi-
year highway contracts.
COMMISSIONER O'CLARAY said the department has not looked into
the lack of remote site camps, but organized labor has contacted
him to discuss it. With the governor's initiative to build more
roads, this becomes an important issue. Commissioner O'Claray
said he would be in contact with the Department of
Transportation [& Public Facilities, the contracting authority].
Number 2037
REPRESENTATIVE GATTO quoted several lines from Governor
Murkowski's press release announcing Commissioner O'Claray's
appointment. He asked Commissioner O'Claray whether the current
department needs to be "rescued."
COMMISSIONER O'CLARAY responded that the department has an image
problem, but that it's not a bad department. He said there are
many hardworking people in the department who, given the
opportunity to perform to a higher standard, will do so.
Number 2130
REPRESENTATIVE ROKEBERG opined that part of the department's
image problem is caused by a failure to serve non-union
employees. He asked if the commissioner has looked into
proposed non-union apprenticeship programs since the committee's
meeting last week.
COMMISSIONER O'CLARAY said he has not examined this issue in
depth, but said he has spoken with the president of the AGC
[Associated General Contractors], who favors a double-breasted
operation. Commissioner O'Claray said he doesn't prefer union
to nonunion training programs, and that requests for department
training money would be evaluated using the same standards.
Number 2225
REPRESENTATIVE ROKEBERG asked Commissioner O'Claray about his
past practice of working as a union official and as a registered
lobbyist simultaneously. He also asked how he avoided a
conflict of interest when he represented the Avondale Shipyard
Corporation.
COMMISSIONER O'CLARAY answered that in order to avoid any
conflict of interest, he consulted with his union employer
before taking clients. He described his contract with Kennecott
Greens Creek Mine, in which the company wanted its employees to
work at the face of the mine for ten hours instead of eight
hours a day. He coordinated with organized labor to find a
compromise for this much-needed change in the law. With all his
clients, he said, he has tried to find common ground among the
various interests.
COMMISSIONER O'CLARAY said that in the maritime field, if
there's no economic development, there is no movement of cargo
by workers. His unions support economic development, and he
chaired the Juneau Economic Development Council for nine years.
TAPE 03-2, SIDE B
Number 2320
COMMISSIONER O'CLARAY recalled that his contract with the
Avondale Shipyard Corporation involved acquainting the company
with Alaska procurement laws; corporation officials were
interested in bidding on the construction of the [M/V]
Kennicott. He said this contract posed no conflict with the
marine engineers union because he wasn't advocating for union
staffing on the vessel.
Number 2300
REPRESENTATIVE GUTTENBERG asked about Commissioner O'Claray's
contract with Fairbanks Gold Mining, Inc. ("Fairbanks Gold").
He said this issue involved, for some people, the defense of the
eight-hour workday.
COMMISSIONER O'CLARAY explained that the employees of Fairbanks
Gold wanted to work a flexible schedule, with longer days, so
they could spend more time off with their families. He recalled
that a group of employees came to Juneau with company officials
and asked for a waiver to permit them to work the longer hours.
Commissioner O'Claray noted the irony of the situation, because
if Fairbanks Gold workers had had a union contract, their union
could have negotiated a flexible schedule. His role was to try
to get a compromise between the parties.
Number 2215
REPRESENTATIVE ROKEBERG asked how the commissioner would handle
Fairbanks Gold's request for an exemption if he received it
today.
Number 2160
COMMISSIONER O'CLARAY said that in weighing circumstances
similar to Fairbanks Gold's case, he would address the core
question of who would benefit, the workers or the employer. He
added that he would have recommended that the former
commissioner consider an exemption. The legislature did pass
the 10-hours-at-the-face law, a compromise that worked for both
industry and labor, he said.
Number 2073
REPRESENTATIVE GATTO asked Commissioner O'Claray what test he
would use to determine that the department has become more
accountable.
COMMISSIONER O'CLARAY said he's communicating now with the
department's critics. He said he's also looking to department
employees who can suggest improvements. He'll ask these same
questions in six months and then again in another six months.
He'll also be asking the public, the governor, and the
legislature for feedback. He invited Representative Gatto to
suggest ways to measure the department's performance.
Number 1841
REPRESENTATIVE CRAWFORD asked about the status of department
positions that are vacant because of budget cuts. He asked
whether the commissioner will request more funds to hire more
workers.
COMMISSIONER O'CLARAY said he can't answer that question yet,
but that the Murkowski Administration is looking at funding the
department at 90 or 95 percent of this year's budget. He said
he is evaluating the assignments of current staff. He said the
department may have to shift positions to shore up any weak
sections.
Number 1770
REPRESENTATIVE DAHLSTROM asked whether the commissioner believes
the workers' compensation law is fair to both employers and
injured workers.
COMMISSIONER O'CLARAY said he is not totally satisfied with the
current workers' compensation system. He said it is always
important to improve workers' benefits, but it's necessary to
take into account the cost to employers. He said improvements
depend on a tax-driven system. He proposed going back to an ad
hoc committee of organized labor and employers to see what
changes they support.
COMMISSIONER O'CLARAY responded to a question from
Representative Crawford about whether he favored a bill in last
year's legislative session that would have made independent
contractors liable for workers' compensation. Commissioner
O'Claray indicated that he was not familiar with last year's
legislation but would research it and get back with him.
Number 1649
REPRESENTATIVE GUTTENBERG asked whether Commissioner O'Claray
will continue to be an officer of the Juneau Central Labor
Council.
COMMISSIONER O'CLARAY replied that he would not.
Number 1621
REPRESENTATIVE GATTO asked Commissioner O'Claray whether his
past activities of advocating for a cruise ship passenger head
tax and the steamship wharf project in Juneau would negatively
affect his ability to work with the cruise ship industry.
COMMISSIONER O'CLARAY reviewed his actions to fund and improve
Juneau's cruise ship facilities. He said he didn't believe this
advocacy would impact his job. He added that he would not be
involved in Juneau politics or state politics.
Number 1470
COMMISSIONER O'CLARAY responded to a question from
Representative Guttenberg about Alaska's weekly unemployment
benefit that is ranked among the lowest payments in the country.
The commissioner said he favors raising the unemployment
benefit, but is mindful of how such a raise would impact
employers. Other states' funds are threatened with insolvency
because of the extended time that out-of-work employees are
drawing unemployment. Commissioner O'Claray said he is trying
to get labor and management together to work out compromise
legislation to raise benefits. He has not had the opportunity
to brief the governor on this subject, so there is no official
position yet, but he's working on it.
COMMISSIONER O'CLARAY, in response to Representative Rokeberg,
said he will provide more detailed information on Alaska's
national ranking on unemployment benefits.
Number 1302
REPRESENTATIVE ROKEBERG asked for the status of the youth
training program [HB 128 - Approval for Employment of Minors],
passed in 2002, which expedited the hiring process.
COMMISSIONER O'CLARAY responded that he has signed the
regulations and that the Department of Law is doing the final
review.
Number 1225
The committee took an at-ease from 4:32 p.m. to 4:35 p.m.
REPRESENTATIVE ROKEBERG turned attention to the committee report
for confirmations. He said he takes exception to the revised
format of the report that is used to advance confirmations from
committee. The revised form requires a vote of "confirm," "do
not confirm," or "no recommendation." He said this form needs
to be reviewed by the House's new leadership. He suggested
reverting back to the historic method of handling this report,
checking off either "refer [the nomination] to joint session" or
"do not refer to joint session." He said the committee should
continue this system until there's a decision by this year's
leadership.
Number 1151
REPRESENTATIVE ROKEBERG moved to amend the confirmation
committee report to indicate that the committee is reporting the
individual recommendations in a form of "refer to the joint
session" or "do not refer to joint session".
Number 1190
REPRESENTATIVE CRAWFORD objected for discussion purposes. He
asked whether this current form has been used by other
committees in the past for reporting confirmations out of
committee.
REPRESENTATIVE ROKEBERG explained that historically,
confirmation forms have never used the choices of "confirm" or
"do not confirm". It is not appropriate to put committee
members on the spot as to how they're going to vote at the joint
session, he said.
Number 1055
REPRESENTATIVE CRAWFORD withdrew his objection.
Number 1017
CHAIR ANDERSON, hearing no further objections to the motion to
revise the confirmation committee report, announced that it was
so ordered.
CHAIR ANDERSON reminded committee members to sign the [revised]
confirmation committee report [on Commissioner O'Claray's
confirmation] before leaving the meeting.
[Although no motion was made, the House Labor and Commerce
Standing Committee advanced the nomination of Greg O'Claray as
commissioner of the Department of Labor & Workforce
Development.]
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:40 p.m.
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