Legislature(1995 - 1996)

02/07/1995 01:30 PM Senate L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SENATE LABOR AND COMMERCE COMMITTEE                              
                        February 7, 1995                                       
                           1:30 P.M.                                           
                                                                               
                                                                               
   MEMBERS PRESENT                                                             
                                                                               
 Senator Tim Kelly, Chairman                                                   
 Senator John Torgerson, Vice Chairman                                         
 Senator Mike Miller                                                           
 Senator Jim Duncan                                                            
 Senator Judy Salo                                                             
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 None                                                                          
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Diane Corso                                                                   
 Labor Relations Manager                                                       
 Division of Personnel/EEO                                                     
 P.O. Box 110201                                                               
 Juneau, AK 99811-0201                                                         
  POSITION STATEMENT:   Reviewed Bargaining Agreements                         
                                                                               
 Dan Spencer                                                                   
 Division of Management and Budget                                             
 Office of the Governor                                                        
 P.O. Box 110020                                                               
 Juneau, AK 99811-0020                                                         
  POSITION STATEMENT:   Reviewed budgetary items.                              
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 Collective Bargaining Agreements                                              
                                                                               
    ACTION NARRATIVE                                                           
                                                                               
  TAPE 95-3, SIDE A                                                            
 Number 001                                                                    
                                                                               
 CHAIRMAN TIM KELLY called the Labor and Commerce Committee meeting            
 to order at 1:30 p.m. and announced they were hearing the details             
 on the monetary terms on collective bargaining agreements:  the               
 unlicensed employees on the Alaska Marine Highway System, Labor               
 Trades and Crafts Unit represented by Public Employees Local 71,              
 and the supervisory unit represented by Public Employees local 71             
 and the supervisory unit represented by the Alaska Public Employees           
 Association.                                                                  
                                                                               
 DIANE CORSO, Labor Relations Manager, Division of Personnel,                  
 reviewed the agreements.                                                      
                                                                               
 SENATOR KELLY asked if these agreements were all made under the               
 Hickel administration.  She replied that they were.                           
                                                                               
 MS. CORSO started the review with the Inland Boatman's Union which            
 represents about 625 unlicensed employees on the vessels.  She said           
 there was an increased rate from $30 to $45 retroactive to July 1,            
 1994 for Jones Act injuries or illnesses.  The retroactive date               
 could have gone back as far as 1990, so this was good for the                 
 state.                                                                        
                                                                               
 There was a pay increase of 3.5% in this agreement for all                    
 employees other than the steward classification (about 1/3 of the             
 bargaining unit).  The last increase was January 1, 1992, she                 
 explained.  There is also a pay increase for 2 specific job                   
 classes, the Junior Engineers and the Oilers.  Their pay was not              
 comparable to that in other similar jurisdictions and there was a             
 recruitment and retention problem as a result.  To offset the pay             
 increase, it was agreed that for probationary employees their wage            
 rate would be reduced from 90% of the full wage rate to 80%.                  
                                                                               
 MS. CORSO explained during the last administration a "health trust"           
 was offered in lieu of health insurance.  Both PSEA (the Troopers             
 Union) and Labor, Trades, and Crafts have health insurance trusts.            
 Inland Boatmen's Union did not exercise that option for 1995.                 
                                                                               
 Number 123                                                                    
                                                                               
 Travel pay was changed with some savings to the state.                        
                                                                               
 In the Labor, Trades, and Crafts Agreement the main change was from           
 37 1/2 hours to a 40 hour work week.  There is no general wage                
 increase in the hourly rate.  However, there is roughly a 6.6%                
 increase in the cost of the current employees were they to continue           
 at the current staffing levels.                                               
                                                                               
 This group has a health insurance trust which is currently being              
 paid by the state at $524 per employee per month.                             
                                                                               
 There were changes in the overtime provisions.  One of the things             
 they have been trying to do over the years, Ms. Corso said, is to             
 bring their contractual requirements in line with the Fair Labor              
 Standards Act (FLSA).  One of the major changes was to go from in-            
 pay status, counting leave and holidays for making the overtime               
 threshold to work which is what the FLSA requires.  In other words            
 you have to actually work over 40 hours per week before you're                
 entitled to overtime pay.                                                     
                                                                               
 Number 180                                                                    
                                                                               
 SENATOR KELLY asked if everyone on per diem is now on the new                 
 current policy of direct expenses plus an allowance?  Ms. Corso               
 said she didn't think this bargaining unit was covered by that.               
                                                                               
 One of the issues that has developed over the last couple of years            
 is the IRS requiring reporting monies in excess of their allowance            
 - like 28 cents for private conveyances for business purposes.  The           
 state was paying 30 cents, so they had to report the difference               
 between the 28 and 30 as income for the IRS.                                  
                                                                               
 MS. CORSO continued saying that they increased the Legal Trust                
 contribution from $8.50 per employee per month to $10.00 effective            
 July 1.  The last increase was in 1987 or 1988.  They also agreed             
 to increase the stand-by for overtime ineligible employees.                   
                                                                               
 Health insurance went up from $432.50 to $450 starting in 1996.               
                                                                               
 In the third year of this contract there would be reopeners for               
 wages, health insurance, and overtime provisions.                             
                                                                               
 Leave accrual rates would change under this agreement with the                
 change to 40 hours.  Thus leave would accrue at an increased rate.            
                                                                               
 In FY 97, Lincoln's Birthday, a floating holiday, will go away - a            
 savings to the state of $228,000 per year.  This bargaining unit              
 also agreed to delete language on Presidential Proclamations of               
 holidays.                                                                     
                                                                               
 Number 291                                                                    
                                                                               
 SENATOR KELLY asked for figures on how much these things were going           
 to cost in general funds.  MS. CORSO noted there were some                    
 calculations in their packets.                                                
                                                                               
 Number 313                                                                    
                                                                               
 DAN SPENCER, Division of Budget Review, noted that there was a                
 summary of the costs attached to each agreement.  The Inland                  
 Boatmen's Union would be all Alaska Marine Highway System funds.              
 Labor, Trades, and Crafts he said had not been completely broken              
 down by funding source.                                                       
                                                                               
 SENATOR KELLY asked what $2.6 million in "other funds" meant.  MR.            
 SPENCER said there was a list of 27 other funds - a gamut from CIP            
 receipts to federal receipts, international airport funds, etc.               
                                                                               
 SENATOR KELLY thanked them for their testimony and noted the                  
 Committee had a list of names referred to them for confirmation and           
 asked them to notify him if they had an objection.                            
                                                                               
 Number 372                                                                    
                                                                               
 SENATOR KELLY adjourned the meeting at 1:57 p.m.                              
                                                                               

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