Legislature(1995 - 1996)
02/23/1995 01:30 PM L&C
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
SENATE LABOR AND COMMERCE COMMITTEE February 23, 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 All members present COMMITTEE CALENDAR SENATE BILL NO. 76 "An Act relating to salaries for officers and employees of the state who are not members of a collective bargaining unit; and providing for an effective date." WITNESS REGISTER Arthur Snowdon II, Administrative Director Alaska Court System 303 K Street Anchorage, AK 99501-2084 POSITION STATEMENT: Supported SB 76. Mike McMullen, Acting Director Division of Personnel Department of Administration P.O. Box 110201 Juneau, AK 99811-0201 POSITION STATEMENT: Commented on SB 76. ACTION NARRATIVE TAPE 95-7, SIDE A SL&C 2/23/95 SB 76 NONUNION STATE EMPLOYEE SALARY INCREASE CHAIRMAN KELLY called the Senate Labor and Commerce Committee meeting to order at 1:30 p.m. and announced SB 76 to be up for consideration. He said this legislation was introduced at the request of Arthur Snowdon, Administrator of the Alaska Court System. ARTHUR SNOWDON explained that the non-covered employees of this State, not just the Judicial Branch, have not received a pay raise in over five years. The unions received a pay raise of 3.2% about three years ago. He noted that by statute the Personnel Board must do a study every year on salaries within the State and they have produced the study which recommends the statutory pay scale for non-covered employees be increased by 6.2% as of July 1, 1995. That is because they are 6.2% behind the union employees. He said AS 39.25.152 (b) requires that non-covered employees be paid the equivalent of union employees and AS 39.27.035 says that union and non-union employees are to be paid the same amount of annual wages taking into account reasonable pay relationships. MR. SNOWDON said that he knew the Legislature might cut state salaries in the future, but he thought everyone should be on the same footing before that happened. SENATOR KELLY asked if this was an overall percentage increase and do people still get merit increases every year. MR. SNOWDON responded that everyone is on a step increase system. Number 80 MIKE MCMULLEN, Acting Director, Division of Personnel, said his department produced the report this legislation was based on. He explained that the report was done in July 1994. At that time the statutory salary schedule was 3.6% behind the salary of all the bargaining units. In addition, one bargaining unit had a signed agreement for a pay raise effective July 1, 1995. The recommendation was to catch up the 3.6% the unions had for several years, plus the known 2.5% for the one union that had the signed agreement beginning in July 1995. Since then, he said, the Supervisory Bargaining Unit has agreed to a contract proposal that would raise their rates 6.67% July 1, 1995 and at the same time would move them to a 40-hour work week. The Labor, Trades, and Crafts Bargaining Unit has settled for an agreement which extends their normal work week to 40 hours providing the de facto 6.67% pay increase. The Administration has taken the position with the largest bargaining unit, General Government, which is still in negotiations. That pay increases would have to come from a refinancing internally to the bargaining unit. MR. MCMULLEN said the ultimate outcome was still a question. Number 160 SENATOR KELLY asked what the timing was. MR. MCMULLEN answered that negotiations were going this afternoon and it was hard to predict when there would be an agreement. SENATOR KELLY said the ultimate decision would be made in the Finance Committee. SENATOR MILLER moved to pass SB 76 with individual recommendations. There were no objections and it was so ordered. SENATOR KELLY adjourned the meeting at 1:40 p.m.