02/24/1994 01:40 PM House FIN

  HOUSE BILL NO. 456                                                           
                                                                               
       "An  Act   making   appropriations   to   satisfy   the                 
       agreed-upon  monetary  terms   of  certain   collective                 
       bargaining agreements for certain public employees; and                 
       providing for an effective date."                                       
                                                                               
  NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION                 
  testifie1d on behalf of HB  456.  She explained that HB  456                 
  would  ratify labor contracts  negotiated by the Department.                 
  HB  456  would  make  a  total appropriation  of  $368,630.0                 
  thousand dollars to satisfy the monetary terms of collective                 
  bargaining agreements  with the Alaska  Vocational Technical                 
  Center  Teachers'   Association  (AVTEC)   and  the   Marine                 
  Engineers' Beneficial  Association  (MEBA).    She  provided                 
  members with a list of the Department's contract negotiation                 
  goals and objectives (copy on file).   She stressed that the                 
  Department's goals are to:                                                   
                                                                               
       *    Maximize  the  quality,  cost  effectiveness,  and                 
            productivity of government services to the public;                 
                                                                               
       *    Enhance   management   flexibility    to   respond                 
            effectively to changes in economic conditions  and                 
            operational needs;                                                 
                                                                               
       *    Realign the cost  of wages and benefits  to, bring                 
            the   state's   compensation  package   back  into                 
            appropriate  standards,  reflect  the current  and                 
            foreseeable economic  environment, and  prioritize                 
            benefits   and   funding   to   meet   labor   and                 
            managements's  common  interest  in providing  for                 
                                                                               
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            employees' greatest benefit needs; and                             
                                                                               
       *    Modify the  contract to provide  opportunities for                 
            improving       productivity,      accountability,                 
            consistency,  and  efficiency of  state government                 
            operations.                                                        
                                                                               
  Commissioner  Usera emphasized  the  Department's desire  to                 
  provide a more  flexible benefit package.  She  stressed the                 
  importance  of employee  involvement.   She maintained  that                 
  growth   and  inflation   factors   must  be   included   in                 
  considerations.  She  reminded members that during  the time                 
  the  Alaska  pipeline was  being  constructed the  state had                 
  difficulty attracting and  maintaining qualified  employees.                 
  She asserted that one of  the goals of the Department  is to                 
  continue to attract and maintain qualified employees.                        
                                                                               
  Commissioner Usera provided  members with  a summary of  the                 
  state's  eleven  bargaining  units  (copy  on  file).    She                 
  reviewed the status  of each of the  bargaining unit's labor                 
  contract negotiations.                                                       
                                                                               
  Commissioner  Usera  discussed  the  AVTEC  contract.    She                 
  observed that the unit is comprised  of 36 employees who are                 
  affiliated with  the National Educational  Association.  She                 
  noted that the contract contains:                                            
                                                                               
       *    A management rights clause;                                        
                                                                               
       *    Clarification  of  layoff procedures,  specific to                 
            the facility;                                                      
                                                                               
       *    Added, at employer  discretion, sabbaticals  after                 
            seven years of continuous service;                                 
                                                                               
       *    Eliminated  and  cashed  out FY  95  annual leave,                 
            (employees  now receive five  days of annual leave                 
            and sick leave.)                                                   
                                                                               
       *    Added complaint procedures for disputes other than                 
            interpretation of contract;                                        
                                                                               
       *    Clarified that additional educational credits must                 
            be job-related;                                                    
                                                                               
       *    Allowed a COLA of up to 2 percent;                                 
                                                                               
       *    Established a per employee health coverage cost to                 
            allow unions to determine individual packages.                     
                                                                               
  Co-Chair Larson  noted that  HB 456  funding information  is                 
  incorrect.    He  observed  that  sections   2  and  3  make                 
                                                                               
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  appropriations from the Alaska  Marine Highway System  Fund.                 
  Funding contained  in section  2 was  added to  other funds.                 
  Section 3 was added to general funds.  He suggested that, in                 
  order to  maintain consistency, funding in sections  2 and 3                 
  should be listed together.                                                   
                                                                               
  DAN SPENCER, FISCAL  ANALYST, OFFICE  OF THE GOVERNOR  noted                 
  that the Office of the  Governor advises that appropriations                 
  from  the Alaska  Marine Highway  System  fund be  listed as                 
  other funds.                                                                 
                                                                               
  Representative   Martin   requested   information  regarding                 
  frequent flyer  mileage.    Commissioner  Usera  noted  that                 
  negotiations   by   the   previous  administration   awarded                 
  ownership of  frequent flyer  miles to  employees through  a                 
  letter of agreement.                                                         
                                                                               
  Representative  Martin expressed  concern  that the  highest                 
  paid   employees   receive   the   best  benefit   packages.                 
  Commissioner Usera noted that health coverage benefits are a                 
  set  amount per employee.   Retirement benefits  are tied to                 
  salary.                                                                      
                                                                               
  Commissioner   Usera  provided   members  with   a  detailed                 
  breakdown of the MEBA contract (copy on file).                               
                                                                               
  Co-Chair MacLean asked  if the Department  of Administration                 
  had considered a unilateral COLA freeze.  Commissioner Usera                 
  explained that  the Department has  placed a COLA  freeze on                 
  exempt employees.    She observed  that the  state is  under                 
  obligation to bargain with other units.                                      
                                                                               
  Representative Brown asked how many employees participate in                 
  the MEBA Vacation  Committee.  Commissioner  Usera clarified                 
  that 4 or 5 employees participate on the committee.                          
                                                                               
  MILA DOYLE, LABOR RELATIONS ANALYST explained that employees                 
  meet 2 to  3 times a year.    Issues are resolved  in one to                 
  five days.                                                                   
                                                                               
  Representative  Navarre  MOVED  to  report  HB  456  out  of                 
  Committee  with individual  recommendations. There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  HB   456   was   reported   out   of   Committee   with   no                 
  recommendations.