Legislature(1999 - 2000)
03/07/2000 02:45 PM Senate L&C
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SENATE LABOR AND COMMERCE COMMITTEE
March 7, 2000
2:45 p.m.
MEMBERS PRESENT
Senator Jerry Mackie, Chairman
Senator Tim Kelly, Vice Chairman
Senator Dave Donley
Senator Lyman Hoffman
MEMBERS ABSENT
Senator Loren Leman
COMMITTEE CALENDAR
SENATE BILL NO. 230"An Act relating to the relationship between
employees and labor organizations; and prohibiting collective
bargaining contracts that require employees to join a labor or
employee organization; and providing for an effective date."
-HEARD AND HELD
SENATE BILL NO. 272
"An Act eliminating certain taxes under AS 21.09 on premiums from
the sale of workers' compensation insurance; relating to the
establishment, assessment, collection, and accounting for service
fees for state administration of workers' compensation and worker
safety programs; establishing civil penalties and sanctions for
late payment or nonpayment of the service fee; and providing for an
effective date."
-SCHEDULED BUT NOT HEARD
PREVIOUS SENATE COMMITTEE ACTION
SB 230 - See Labor & Commerce minutes dated 3/2/00.
SB 272 - See Community & Regional Affairs minutes dated 3/1/00.
WITNESS REGISTER
Mr. Steve Boyd
Manager of Alaska Chapter
National Electrical Contractors Association
712 W. 36th Ave.
Anchorage, AK 99503
POSITION STATEMENT: Opposed to SB 230.
Senator Lyda Green
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of SB 230.
Mr. William Theuer
4321 Gannett Circle
Anchorage, AK 99504
POSITION STATEMENT: Opposed to SB 230.
Mr. Mano Frey
President, Alaska AFL-CIO
Manager, Laborers Union 341
2501 Commercial Dr.
Anchorage, AK 99501
POSITION STATEMENT: Opposed to SB 230.
Mr. Raymond Smith
President
Western Alaska Building & Construction Trades Council
650 W. Intl. Airport Rd. 100
Anchorage, AK 99518
POSITION STATEMENT: Opposed to SB 230.
Mr. Gary Brooks
Manager
International Brotherhood of Electrical Workers Local 1547
3333 Denali St.
Anchorage, AK 99503
POSITION STATEMENT: Opposed to SB 230.
Mr. Andrew Hodnik
International Union of Operating Engineers Local 302
P.O. Box 71342
Fairbanks, AK 99704
POSITION STATEMENT: Opposed to SB 230.
Ms. Valerie Baffone
Alaska State Workers Compensation Board
Public Employees Union Local 71
10606 Flagship Circle
Anchorage, AK 99515
POSITION STATEMENT: Opposed to SB 230.
Mr. Jay Quackenbush
International Brotherhood of Electrical Workers Local 1547
P.O. Box 82391
Fairbanks, AK 99708
POSITION STATEMENT: Opposed to SB 230.
Mr. Bill Corbus
General Manager
Alaska Electric Light & Power Company
5801 Tonsgard Ct.
Juneau, AK 99801
POSITION STATEMENT: Opposed to SB 230.
Mr. Kevin McGee
President, American Federation of Government Employees
AFL-CIO Local 3028
419 E. 12th Ave.
Anchorage, AK 99501
POSITION STATEMENT: Opposed to SB 230.
Mr. Don Swarner
748 Cranberry Ridge Dr.
Fairbanks, AK 99712
POSITION STATEMENT: Opposed to SB 230.
Mr. John Cyr
President of National Education Association-Alaska
Address Not Provided
Juneau, AK 99801
POSITION STATEMENT: Opposed to SB 230.
Mr. R. Scott Bridges
Address Not Provided
Anchorage, AK 99501
POSITION STATEMENT: Opposed to SB 230.
Mr. David Ford
Business Manager of Ironworkers Union Local 751
8141 Schoon
Anchorage, AK 99518
POSITION STATEMENT: Opposed to SB 230.
Mr. Bob Toth
1530 Rifle-Board
Fairbanks, AK 99712
POSITION STATEMENT: Opposed to SB 230.
Mr. Don Valesko
Business Manager
Public Employees Union Local 71
2510 Arctic Blvd
Anchorage, AK 99503
POSITION STATEMENT: Opposed to SB 230.
Mr. Tim Sharp
Laborers Union Local 942
2117 Kiana Street
Fairbanks, AK 99709
POSITION STATEMENT: Opposed to SB 230.
Mr. Dwight Perkins
Deputy Commissioner
Department of Labor & Workforce Development
P.O. Box 21149
Juneau, AK 99802-1149
POSITION STATEMENT: Opposed to SB 230.
ACTION NARRATIVE
TAPE 00-09, SIDE A
Number 001
CHAIRMAN MACKIE called the Senate Labor and Commerce Committee
meeting to order at 2:45 p.m. Present were Senators Mackie, T.
Kelly, Donley, and Hoffman. The first order of business to come
before the committee was SB 230.
SB 230-RIGHT TO WORK
SENATOR LYDA GREEN stated SB 230 encourages workers and employees
to maintain employment through assistance of a union or other
programs. Every person should have the right to work for a union
or independently.
MR. STEVE BOYD, Manager of the Alaska Chapter of National
Electrical Contractors Association(NECA), stated opposition for SB
230. It interferes with the collective bargaining process that has
been established under federal law and is guided by State law. The
process is to benefit employees, employers, and public interests.
SB 230 could create dissention in the workplace. It takes a
democratic process to establish union representation.
MR. WILLIAM THEUER, representing himself, stated opposition for SB
230. The legislature should focus toward new investments in
Alaskans, new businesses attracted to the clean environment, open
space, and availability of field employees. Mr. Theuer commented
on the Right to Work Law in Florida and how it made the economy get
much worse.
Alaska needs a long-term prosperity strategy that makes strategic
investments in infra-structure, education, resources, and Alaskans.
A partnership between government, industry, education, and Alaskans
should be formed to prepare the State for challenges of the new
century.
Number 824
MR. MANO FREY, President of Alaska AFL-CIO, and Manager of Laborers
Union Local 341, stated opposition for SB 230. People should have
the choice of working for a union. Any person under a collective
bargaining agreement has the choice of becoming a member. Beck
Rights are granted to people who do not want to join a union in
Alaska, but want the representation.
MR. RAYMOND SMITH, President of Western Alaska Builders &
Construction Trades Council (WABCTC), stated opposition for SB 230.
SB 230 is anti-worker. It does not help the economy, and the
economics of the worker. SB 230 gives a right to pay lower wages
and would not help the State of Alaska.
MR. GARY BROOKS, Manager of International Brotherhood of Electrical
Workers (IBEW) Local 1547, stated opposition for SB 230. IBEW 1547
represents 5000 members across the State. Mr. Brooks asked where
in society do Americans allow the concept of the minority to force
the views and impact the majority in a situation like the right to
work does in our country. There are no other scenarios. The will
of the majority dictates which direction to head in. With right to
work the majority decides if they will be represented by a labor
organization. If 51 percent of the people make the decision to
join a labor organization, the group is to support that decision.
People are not required to join, but they must participate
financially. SB 230 is harmful to the working person, and has a
detrimental impact on wages in the State.
Number 1681
MR. ANDREW HODNIK, International Union of Operating Engineers
(IUOE) Local 302, stated opposition for SB 230. Mr. Hodnik stated
he does not want to financially support a non-dues paying member
for the same benefits, and is happy to pay his union dues to
receive the benefits the union provides and security for the
future. The legislature should send the strong message that Alaska
will never become a right to work state.
MS. VALERIE BAFFONE, Alaska State Workers Compensation Board,
Public Employees Union Local 71, stated opposition for SB 230.
Right to work legislation has a consistent track record showing
results have weakened unions in every state where right to work has
been enforced. Workers safety would suffer, and in Alaska the
working elements are already dangerous.
MR. JAY QUACKENBUSH, International Brotherhood of Electrical
Workers (IBEW) Local 1547, stated opposition for SB 230. SB 230
could be destructive for Alaskan workers, and SB 230's purpose is
to weaken the ability of working people to have a collective voice
while bargaining with their employer. The promoters of the
legislation try to paint an ugly picture of what unions represent.
The working men and women that make up unions make the decisions;
unions are not a lone dictatorship.
Number 2045
MR. BILL CORBUS, General Manager of Alaska Electric Light & Power
Company(AEL&P), stated AEL&P has had a collective bargaining
agreement with IBEW since 1948. A collective bargaining agreement
is beneficial to both parties in the end. The collective
bargaining agreement and IBEW have provided a fair way to address
compensation issues, resolve employee/employer conflicts, and
provide trained craftsmen for AEL&P. Right to work weakens the
power of the unions and hurts the collective bargaining process.
MR. KEVIN MCGEE, President of American Federal Government Employees
ALF-CIO Local 3028, stated every worker should have the right but
no worker should feel compelled to join a labor union. Those
workers who choose not to support or join a labor union should not
expect to receive the same opportunities, benefits, and
representation of those workers that make the choice to join a
union.
Mr. McGee gave statistics about anti-union propaganda. Between
1980 and 1998, the average pay of regular working people increased
only 68 percent, while CEO's pay increased 1,596 percent. More
than 2/3 of Americans feel positive or neutral about unions, and
negative attitudes about unions have declined. Mr. McGee stated
opposition for SB 230.
Number 2332
SENATOR DONLEY asked Mr. McGee the pay increase of average workers
compared to CEO's pay.
MR. MCGEE stated between 1980 and 1998, the average worker's pay
increased 68 percent, compared to CEO pay which increased 1,596
percent.
MS. BARBARA HUFF TUCKNESS, Director of Legislative and Governmental
Affairs for Teamsters Local 959, stated opposition for SB 230. SB
230 does not give an employee a right they do not already enjoy.
It sets up a system that would allow an individual to receive the
negotiated wages, health benefits, or to find a job and keep it,
this is a myth. It has been illegal to force a person to join a
union since the passage of the Taft-Hartley Act in 1947.
TAPE 00-09, SIDE B
MS. HUFF TUCKNESS gave an explanation of the Taft-Hartley Act. In
1951, the Taft-Hartley Act was repealed by Senator Taft. It
required government conducted secret ballot elections among workers
to approve union shop clauses. During that time 46,119 elections
were held. Out of that, 97.1 resulted in a vote in the affirmative
for a union shop. The law does not require a person to become a
member of a union. Congress has provided additional protection for
religious objectors. They are not required to pay union dues, they
can donate an equivalent sum to a charity.
Under the Beck Rights decision, the Supreme Court upheld a service
fee concept. The Beck Rights decision found the employee would pay
a fee related to the servicing of that collective bargaining
agreement. If the employee does not agree with the amount of the
service fee, then a third party arbitrator is appointed to review
all the financial documentation. All employees benefit equally
from union representation.
MR. DON SWARNER, stated opposition for SB 230. SB 230 would allow
people not to pay taxes and still receive the benefits those taxes
provide.
MR. JOHN CYR, President of NEA-Alaska, stated NEA-Alaska represents
12,000 people working in schools, and 135,000 children in Alaska.
The average student scores are 43 points higher on SAT exams in
states in which 90 percent of teachers are unionized than in states
where less than 50 percent are unionized. The list of non-union
education states are the lowest performing in education.
Collective bargaining is not a destructive force in public
education. Better working conditions for teachers enable better
learning conditions for students. Mr. Cyr stated opposition for SB
230.
MR. R. SCOTT BRIDGES, representing himself, stated opposition for
SB 230. SB 230 will drive a spike into the heart of working people
in Alaska. The State must not serve oppression on Alaska's workers
by denying them the choice to use economy of scale and representing
their workplace interests.
MR. DAVID FORD, Business Manager for Ironworkers Local 751, stated
opposition for SB 230. Wages are currently 40 percent less in
Alaska because a high influx of people from right to work states
are moving to Alaska.
MR. BOB TOTH, representing himself, stated a union is not
exclusive. Any person is welcome to join, and paying dues helps
wage earnings. Breaking unions will not help Alaska; Alaska is a
resource dependent state and will continue to be. To expect
representation and benefits without paying any cost is not
American. Mr. Toth expressed opposition to SB 230.
MR. DON VALESKO, Business Manager of Public Employees Union Local
71, stated only one person has given testimony in favor of SB 230.
The legislature should give a clear message that Alaska should not
become a right to work state. Alaska's standard of living should
not be compromised. Mr. Valesko stated opposition for SB 230.
Number 1536
MR. TIM SHARP, Laborers Union Local 942, stated opposition for SB
230. SB 230 is an end run to defund its silenced workers' voice on
job sites throughout Alaska, by weakening the vehicle of collective
bargaining. Businesses, contractor associations, and political
organizations do not enjoy the political support of organized
labor. Alaska has dropped annually from leading the nation in
wages and benefits to levels between 7-10 in the nation.
MR. DWIGHT PERKINS, Deputy Commissioner of the Department of Labor
(DOL), stated opposition for SB 230. DOL's mission is to foster
and promote the welfare of the wage earners in the State, improve
their working conditions and advance their opportunities for
probable employment. SB 230 does not consider the best interests
of the wage earners in Alaska.
CHAIRMAN MACKIE stated SB 230 would be held in committee.
There being no further business to come before the committee
Chairman Mackie adjourned the meeting at 3:00 p.m.
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