03/04/2014 09:00 AM Senate STATE AFFAIRS

          SB 182-PUBLIC EMPLOYEE SALARY DIFFERENTIALS                                                                       
                                                                                                                                
9:34:01 AM                                                                                                                    
CHAIR DYSON announced that the committee  will take up SB 182, an                                                               
act relating  to the salary difference  and collective bargaining                                                               
agreements, subject  to Public Employment Relations  Act that are                                                               
based on  the difference of cost  of living outside of  the state                                                               
and the cost of living within the state.                                                                                        
                                                                                                                                
He noted  that a  copy of  a letter has  been distributed  to the                                                               
committee  from  Mr.  Bill  Milks,  Assistant  Attorney  General,                                                               
Alaska Department of Law. He  noted that Mr. Milks specializes in                                                               
labor  law. He  explained that  Mr. Milks'  letter confirms  that                                                               
there is no  legal or constitutional issue with  the Senate State                                                               
Affairs  Committee or  the Twenty  Eighth Legislature  in dealing                                                               
with  SB   182.  He  added   that  Mr.  Milks  stated   that  the                                                               
consideration of  SB 182 does  not contravene the  National Labor                                                               
Relations Act.  He said Mr. Milk  states that if and  whenever SB
 might become law, then  the underlying statutes would change;                                                               
but any  negotiations that are  completed before that  date would                                                               
be  under  current  law  and  have  no  effect.  He  said  as  he                                                               
understands, the  maritime unions'  negotiations are  ongoing and                                                               
their contracts expire in June.  He noted that the effective date                                                               
for SB  182 is immediate. He  revealed that if SB  182 passes the                                                               
current legislative session before  a contract is negotiated, the                                                               
law will be in place.                                                                                                           
                                                                                                                                
He  asked Mr.  Milks  if  his summary  on  the  bill's impact  on                                                               
negotiations was accurate.                                                                                                      
                                                                                                                                
9:36:24 AM                                                                                                                    
WILLIAM MILKS,  Assistant Attorney General,  Civil Division-Labor                                                               
and State  Affairs, State  of Alaska  Department of  Law, Juneau,                                                               
Alaska, answered yes.                                                                                                           
                                                                                                                                
SENATOR  WIELECHOWSKI  addressed  Section 17.02  of  the  Masters                                                               
Mates  & Pilots  contract and  noted that  the contract  says the                                                               
following:                                                                                                                      
                                                                                                                                
     The Cost  of Living Differential (COLD)  is a mandatory                                                                    
     subject  of collective  bargaining;  it  should not  be                                                                    
     changed, modified, adjusted,  re-determined, or altered                                                                    
     in  any way  by the  state unilaterally  and no  change                                                                    
     shall be  made without  the consent and  agreement with                                                                    
     the union.                                                                                                                 
                                                                                                                                
He  set   forth  that  SB  182   was  a  timing  issue   and  the                                                               
Administration  was  arguing  for a  modification  without  union                                                               
consent. He asserted that if  the bill passes, the Administration                                                               
was seeking to circumvent the collective bargaining agreement.                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI conceded that the  issue does not pertain to                                                               
the National  Labor Relations Act,  but does apply to  the Public                                                               
Employee Relations  Act. He asserted  that the  modification from                                                               
the bill  was an  unfair labor practice,  particularly if  SB 182                                                               
goes into  effect before  the end  of the  contract. He  asked if                                                               
there is Supreme Court case law on what he previously addressed.                                                                
                                                                                                                                
MR. MILKS  replied that there is  no Supreme Court case  law that                                                               
he  is directly  aware of.  He explained  that the  point he  was                                                               
trying to make  was that the agreement itself  would continue for                                                               
the term  of its  agreement. He stated  that the  section Senator                                                               
Wielechowski mentioned is subject to  negotiation like all of the                                                               
terms of  the contract  and is subject  to negotiation  under the                                                               
rules that apply, which are  what the Public Employment Relations                                                               
Act states right  now. He remarked that the  Alaska Department of                                                               
Law  could  not  envision  unfair  labor  practice.  He  said  he                                                               
believed that SB 182 states that  it does not affect the existing                                                               
agreement  and the  existing agreement  would continue  to be  in                                                               
effect.                                                                                                                         
                                                                                                                                
9:38:42 AM                                                                                                                    
SENATOR  WIELECHOWSKI  noted  that  the  bill  has  an  immediate                                                               
effective date.  He set forth that  if the bill goes  into effect                                                               
before the  end of the  contract, COLD statutorily goes  away. He                                                               
asked if it  would be better for  the bill to go  in effect after                                                               
the end of collective bargaining agreement.                                                                                     
                                                                                                                                
MR. MILKS replied that the  second part of Senator Wielechowski's                                                               
question is  up to the  Legislature. He  remarked that as  far as                                                               
changing  the   terms  of   the  current   collective  bargaining                                                               
agreement,  the change  in law  does not  affect agreements  that                                                               
were entered prior to the effective date.                                                                                       
                                                                                                                                
SENATOR   WIELECHOWSKI   addressed  the   collective   bargaining                                                               
agreement  from   the  Inland   Boatmen's  Union  and   read  the                                                               
following:                                                                                                                      
                                                                                                                                
     This agreement includes a pay  plan providing a cost of                                                                    
     living differential  between employees living  in state                                                                    
     and  those living  out  of state  in  accordance to  AS                                                                    
     23.40.210.                                                                                                                 
                                                                                                                                
He set  forth that the  collective bargaining agreement  would be                                                               
citing  a statute  that  does not  exist if  the  bill goes  into                                                               
effect prior  to the end of  the agreement. He asserted  that the                                                               
safer  approach would  be to  have  an effective  date after  the                                                               
current collective bargaining agreement expires.                                                                                
                                                                                                                                
CHAIR  DYSON asked  to clarify  that the  legal reference  to the                                                               
"State  of Alaska"  was  a  term of  art  that  pertained to  the                                                               
executive branch that also includes  the judicial and legislative                                                               
branches.                                                                                                                       
                                                                                                                                
MR. MILKS  answered that  SB 182  addresses the  entities covered                                                               
under the Public Employment Relations  Act. He explained that the                                                               
law is  referring to the general  law of the State  of Alaska. He                                                               
reiterated  that SB  182  also  states that  it  does not  affect                                                               
agreements that are already in place.                                                                                           
                                                                                                                                
9:41:39 AM                                                                                                                    
CHAIR  DYSON  disclosed  that  he was  thinking  of  the  classic                                                               
separation of  powers and that a  section of law noted  could not                                                               
bind and prohibit the Legislature from changing statute.                                                                        
                                                                                                                                
MR. MILKS answered that he agreed.                                                                                              
                                                                                                                                
CHAIR DYSON announced that the Chair will entertain a motion.                                                                   
                                                                                                                                
9:42:18 AM                                                                                                                    
SENATOR GIESSEL moved SB 182,  labeled 28-LS1432\N from committee                                                               
with individual recommendations and attached fiscal note.                                                                       
                                                                                                                                
CHAIR DYSON asked if there was an objection.                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI announced that he objects.                                                                                 
                                                                                                                                
CHAIR DYSON asked  if Senator Wielechowski cared to  speak to his                                                               
objection.                                                                                                                      
                                                                                                                                
SENATOR  WIELECHOWSKI   stated  that  SB  182   is  fundamentally                                                               
inappropriate  for   the  Administration   to  come   before  the                                                               
Committee during the middle of  a collective bargaining agreement                                                               
and support  a change to what  they agreed to. He  set forth that                                                               
the Administration  specifically agreed to a  provision that says                                                               
they  would not  seek  to  change, modify,  adjust,  or alter  in                                                               
anyway without the  consent of the union. He said  the unions are                                                               
not consenting and  the bill potentially goes  into effect before                                                               
the expiration of the contracts.  He said his second objection is                                                               
his fundamental  disagreement with  what the Committee  is trying                                                               
to do which  would result in a pay cut  to Alaska employees while                                                               
keeping the pay the same for out of state employees.                                                                            
                                                                                                                                
SENATOR  GIESSEL replied  that she  does not  agree with  Senator                                                               
Wielechowski.  She explained  that SB  182 allows  the unions  to                                                               
negotiate the  wage they  have been  receiving as  they negotiate                                                               
the next  contract. She set  forth that  there is nothing  in the                                                               
bill  that forces  a  pay  cut and  the  bill  simply places  the                                                               
process in a negotiated arena.                                                                                                  
                                                                                                                                
CHAIR DYSON  noted that having been  a mariner most of  his life,                                                               
he is  very appreciative  of the skills  and experience  that are                                                               
necessary  and   it  is  very   important  for   the  passengers,                                                               
particularly on  the Alaska  Marine Highway  System (AMHS)  to be                                                               
safe.  He   stated  that  he  expects   the  Administration  will                                                               
negotiate  a contract  that  not only  keeps,  but recruits  very                                                               
qualified people. He said he  understands the demand on the North                                                               
American continent  for experienced mariners and  most "landsmen"                                                               
have no  idea how much of  the world's commerce moves  by sea. He                                                               
noted his recognition  and expects a responsible  action from the                                                               
Administration, treating the AMHS folks fairly.                                                                                 
                                                                                                                                
9:44:54 AM                                                                                                                    
CHAIR  DYSON  asked  for  a roll  call  vote.  Senators  Giessel,                                                               
Coghill, and  Chair Dyson voted  yea; Senator  Wielechowski voted                                                               
nay,  therefore, SB  182 moved  out of  the Senate  State Affairs                                                               
Standing Committee by a 3:1 vote.