Legislature(2013 - 2014)SENATE FINANCE 532

03/25/2014 09:00 AM Senate FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 266 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Scheduled But Not Heard
+= HB 267 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 23 KNIK ARM CROSSING; AHFC TELECONFERENCED
Heard & Held
+= SB 182 PUBLIC EMPLOYEE SALARY DIFFERENTIALS TELECONFERENCED
Moved CSSB 182(FIN) Out of Committee
SENATE BILL NO. 182                                                                                                             
                                                                                                                                
     "An Act  relating to  salary differences  in collective                                                                    
     bargaining agreements subject  to the Public Employment                                                                    
     Relations Act  that are  based on  a difference  in the                                                                    
     cost  of  living outside  the  state  and the  cost  of                                                                    
     living  in the  state; and  providing for  an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:07:52 AM                                                                                                                    
                                                                                                                                
SENATOR   FRED  DYSON,   noted   that   the  Department   of                                                                    
Administration  had   created  a  spreadsheet,   "Top  Three                                                                    
Earners -  Marine Units", which  charted the incomes  of the                                                                    
top three earners  in the three bargaining  units. He stated                                                                    
that a point of contention  in the bargaining units was that                                                                    
employees with seniority got to  choose routes and had first                                                                    
choice  of overtime  hours.  He said  that  the most  senior                                                                    
employees  did well  financially  and workers  lower in  the                                                                    
ranks were not  offered a fair chance for  overtime. He felt                                                                    
that this could restrict  a new employee's opportunities for                                                                    
professional growth.                                                                                                            
                                                                                                                                
9:10:21 AM                                                                                                                    
                                                                                                                                
Senator  Olson asked  why the  bill had  not been  initially                                                                    
presented as a fix for outdated statutes.                                                                                       
                                                                                                                                
Senator  Dyson replied  that he  could  only speculate,  but                                                                    
thought that  the leadership at  the time had not  wanted to                                                                    
address a tough issue and anger the unions.                                                                                     
                                                                                                                                
9:11:07 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough shared  that  the administration  had                                                                    
issued a response to her  question from the previous hearing                                                                    
of the bill  (copy on file). She wondered what  the term "A-                                                                    
days" meant.                                                                                                                    
                                                                                                                                
NICKI  NEAL,  DIRECTOR,  DIVISION  OF  PERSONNEL  AND  LABOR                                                                    
RELATIONS, DEPARTMENT OF ADMINISTRATION, replied that A-                                                                        
days  were typically  accrued in  the  southwest system;  an                                                                    
employee  accrued a  day of  leave for  every day  that they                                                                    
worked.  She said  that when  the employee  was not  at work                                                                    
they turned  in leave so that  they had the ability  to work                                                                    
365 days a year.                                                                                                                
                                                                                                                                
9:12:32 AM                                                                                                                    
                                                                                                                                
KATE SHEEHAN, DEPUTY DIRECTOR,  DIVISION OF LABOR RELATIONS,                                                                    
DEPARTMENT OF ADMINISTRATION, explained  that for the A-days                                                                    
days,  with the  one crew  system, employees  worked 3  to 6                                                                    
months with  no break. A day  of leave was accrued  for each                                                                    
day worked.                                                                                                                     
                                                                                                                                
9:12:53 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough inquired  whether  the  route of  the                                                                    
vessel interfered with regularly changing crews.                                                                                
                                                                                                                                
Ms. Sheehan  replied in the  affirmative. She said  that the                                                                    
routes were longer; crossing the Gulf of Alaska.                                                                                
                                                                                                                                
9:13:12 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough asked  whether employees  accumulated                                                                    
overtime on  those long  routes, in addition  to the  day of                                                                    
leave.                                                                                                                          
                                                                                                                                
Ms. Sheehan  replied that it would  depend; employees worked                                                                    
8  hour  days  and  could potentially  accrue  overtime,  in                                                                    
addition to the A-days.                                                                                                         
                                                                                                                                
9:13:41 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  inquired whether  the standard  was 8                                                                    
hours with the stipulation of 40 hours per week.                                                                                
                                                                                                                                
Ms. Sheehan  replied that  there was  daily overtime;  if an                                                                    
employee  worked in  addition to  8 hours  in one  day, they                                                                    
would receive overtime for that day.                                                                                            
                                                                                                                                
9:14:14 AM                                                                                                                    
                                                                                                                                
Vice-Chair   Fairclough  understood   that  employees   were                                                                    
accumulating  sick leave  and  annual leave  on  top of  the                                                                    
earned day of leave.                                                                                                            
                                                                                                                                
Ms. Sheehan  responded that it  would depend on  which union                                                                    
the  employee belonged  to. She  explained  that the  Marine                                                                    
Engineers'  Beneficial  Association  (MEBA) gave  A-days  or                                                                    
personal leave but  did not offer annual or  sick leave. The                                                                    
Inland  Boatmen's  Union  (IBU)  offered  a  choice  between                                                                    
annual  leave, sick  leave, or  A-days.  She furthered  that                                                                    
Masters,  Mates  and Pilots  (MMP)  did  not accrue  A-days,                                                                    
instead they received a lump-sum payment in lieu of a rate.                                                                     
                                                                                                                                
9:14:50 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  understood  that  the  accrual  rate                                                                    
worked as such:                                                                                                                 
                                                                                                                                
1 year = 2 - 4 weeks of leave (depending on your union)                                                                         
2 years = 4 - 6 weeks of leave                                                                                                  
3 years = 4 - 8 weeks of leave                                                                                                  
4 years = 8 - 9 weeks of leave                                                                                                  
                                                                                                                                
She surmised  that the cap was  at 8 - 9  weeks. She queried                                                                    
whether employees received annual or sick leave.                                                                                
                                                                                                                                
Ms.  Sheehan responded  that if  an employee  accrued annual                                                                    
leave then  they also accrued  sick leave on days  that were                                                                    
not A-days.                                                                                                                     
                                                                                                                                
9:15:52 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  wondered how  the current  negotiations with                                                                    
the union were going.                                                                                                           
                                                                                                                                
Ms. Sheehan  replied that the administration  was going into                                                                    
negotiations  today with  MMP;  unfortunately and  agreement                                                                    
had not been  made by the 60th day, which  was Friday, March                                                                    
21, 2014. She  said that negotiations were  ongoing and that                                                                    
some  progress had  been made,  but some  significant issues                                                                    
were still contentious.                                                                                                         
                                                                                                                                
9:16:51 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer expressed  frustration that  the legislature                                                                    
should  not   be  involved  in  the   collective  bargaining                                                                    
process. He  would leave the  bill's passage up to  the will                                                                    
of  the  committee,  but  maintained  that  the  legislature                                                                    
should not be involved in union negotiations.                                                                                   
                                                                                                                                
9:18:03 AM                                                                                                                    
                                                                                                                                
Senator  Dyson   responded  that  the  bill   spoke  to  one                                                                    
component  that  was  in  statute   and  was  therefore  not                                                                    
bargain-able. He  felt that  the current  administration had                                                                    
proposed  the legislation  due  to  the impending  financial                                                                    
situation as  a way  to rein in  spending. He  stressed that                                                                    
there was  a desire  to drive  down the  mandatory personnel                                                                    
costs. He stated that the  budget for personnel costs in the                                                                    
Alaska Marine Highway System was  alarming. He believed that                                                                    
the bill  was before the  committee because it was  the work                                                                    
of  the  legislative  finance  committees  to  oversee  cost                                                                    
containment.                                                                                                                    
                                                                                                                                
9:20:06 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy  requested  clarification  that  the  bill                                                                    
would take  the issue out  of statute but would  not prevent                                                                    
it from being negotiated back in sometime in the future.                                                                        
                                                                                                                                
Senator Dyson responded in the affirmative.                                                                                     
                                                                                                                                
Senator Dunleavy understood that  if the system found itself                                                                    
struggling to  find qualified workers  to fill  positions in                                                                    
the  future   then  incentives  would  be   built  into  the                                                                    
agreements of future negotiations.                                                                                              
                                                                                                                                
Senator Dyson responded that it  was possible. He noted that                                                                    
there  was  an  internal   problem  of  employees  lower  in                                                                    
seniority not being able to get  the time it took to qualify                                                                    
for  the   next  license,  which  would   open  entry  level                                                                    
positions.                                                                                                                      
                                                                                                                                
9:21:29 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy thought  removing  the  statute would  not                                                                    
impact the negotiations process because  it did not create a                                                                    
cap on salaries or benefits.                                                                                                    
                                                                                                                                
9:22:07 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman wondered  whether  the immediate  effective                                                                    
date could extend to a later date.                                                                                              
                                                                                                                                
Senator Dyson responded  that the hard date was  meant to be                                                                    
motivational.                                                                                                                   
                                                                                                                                
9:23:15 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  agreed that the  legislature should  not be                                                                    
introducing   legislation  that   would  affect   or  impact                                                                    
negotiations. He  asserted that  it was not  the committee's                                                                    
place  to   interject  legislation  that  would   color  the                                                                    
negotiations of the bargaining unit.                                                                                            
                                                                                                                                
Co-Chair Meyer noted that the  effective date would coincide                                                                    
with the fiscal years.                                                                                                          
                                                                                                                                
9:23:52 AM                                                                                                                    
                                                                                                                                
Senator Hoffman rebutted that it  could take effect during a                                                                    
fiscal year further in the future.                                                                                              
                                                                                                                                
Senator Dunleavy  clarified that the bill  would not prevent                                                                    
future  negotiations and  believed that  the effective  date                                                                    
should remain as written.                                                                                                       
                                                                                                                                
9:24:32 AM                                                                                                                    
Senator Dyson said that the  bargaining unit had substantial                                                                    
leverage.                                                                                                                       
                                                                                                                                
Co-Chair  Meyer was  not convinced  that the  effective date                                                                    
needed to be changed.                                                                                                           
                                                                                                                                
Senator Dyson thought that  the administration believed that                                                                    
it  was important  that the  legislation  be implemented  as                                                                    
soon as possible.  He felt that the  administration had been                                                                    
generous to  grandfather in the existing  employees. He said                                                                    
that if moving  the effective date was what it  was going to                                                                    
take for the bill to pass then so be it.                                                                                        
                                                                                                                                
9:26:45 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:26:54 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Fairclough  MOVED to REPORT CSSB  182(FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  182(FIN)  was  REPORTED  out   of  committee  with  no                                                                    
recommendation  and with  a  new  indeterminate fiscal  note                                                                    
from   the   Department   of   Transportation   and   Public                                                                    
Facilities.                                                                                                                     
                                                                                                                                
9:27:15 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:30:19 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
SB182 - opposition - Tengs 2.msg SFIN 3/25/2014 9:00:00 AM
SB 182
SB182 opposition Nelson.msg SFIN 3/25/2014 9:00:00 AM
SB 182
HB 23 - Knik Arm Bridge -Fread.msg SFIN 3/25/2014 9:00:00 AM
HB 23
HB 23 - Knik Arm Bridge -Fread.msg SFIN 3/25/2014 9:00:00 AM
HB 23
HB23 Testimony Catchpole.pdf SFIN 3/25/2014 9:00:00 AM
HB 23
HB023SCSCS(FIN)-DOR-KABATA-03-25-14.pdf SFIN 3/25/2014 9:00:00 AM
HB 23
HB023SCSCS(FIN)-DOT-KABATA 3-21-14.pdf SFIN 3/25/2014 9:00:00 AM
HB 23
HB23 Public testimony - French.pdf SFIN 3/25/2014 9:00:00 AM
HB 23
HB23 Goldsmith KABATA Senate Finance Testimony March 25 2014.docx SFIN 3/25/2014 9:00:00 AM
HB 23