Legislature(2015 - 2016)BARNES 124
01/30/2015 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Labor and Workforce Development - Commissioner Heidi Drygas | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 30, 2015
3:16 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Shelley Hughes, Vice Chair
Representative Jim Colver
Representative Gabrielle LeDoux
Representative Cathy Tilton
Representative Andy Josephson
Representative Sam Kito
MEMBERS ABSENT
Representative Mike Chenault (alternate)
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT -
COMMISSIONER HEIDI DRYGAS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
HEIDI DRYGAS, Commissioner Designee
Department of Labor and Workforce Development
Anchorage, Alaska
POSITION STATEMENT: Presented a PowerPoint overview on the
Department of Labor and Workforce Development.
PALOMA HARBOUR, Director
Central Office
Division of Administrative Services
Department of Labor & Workforce Development (DLWD)
Juneau, Alaska
POSITION STATEMENT: Testified during the overview of the
Department of Labor and Workforce Development.
ACTION NARRATIVE
3:16:11 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:16 p.m. Representatives
Josephson, Hughes, Tilton, Kito, and Olson were present at the
call to order. Representatives Colver and LeDoux arrived as the
meeting was in progress.
^OVERVIEW: DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT -
COMMISSIONER HEIDI DRYGAS
OVERVIEW: DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT -
COMMISSIONER HEIDI DRYGAS
3:16:47 PM
CHAIR OLSON announced that the only order of business would be
an overview of the Department of Labor and Workforce Development
by Commissioner [Designee] Heidi Drygas.
3:17:42 PM
HEIDI DRYGAS, Commissioner Designee, Department of Labor and
Workforce Development (DLWD), provided a brief personal and
professional history, relating that she was born and raised in
Fairbanks, and has a history degree from the University of
Alaska Fairbanks. She attended law school in Salem, Oregon,
returned to Fairbanks, and clerked for Alaska Superior Court
Judge Penguilly in Fairbanks. She moved to Anchorage and worked
as an associate for Guess and Rudd, primarily in the area of
insurance defense, and as general counsel for the Alaska
District Council of Laborers for nearly 10 years, handling
negotiations, contract administration, grievance adjudication,
arbitration, and hearings before the Alaska Labor Relations
Agency and the National Labor Relations Board.
3:20:16 PM
COMMISSIONER DRYGAS began a PowerPoint overview by stating the
department's mission: to provide safe and legal working
conditions and advance opportunities for employment for Alaskans
[slide 1]. The department accomplishes this mission and key
program priorities of protecting Alaska's workforce through
statutory and regulatory assistance and enforcement, developing
an Alaskan workforce for Alaska's jobs, and income replacement
for injured, unemployed, and permanently disabled workers. She
highlighted the offices scattered across the state, with red
dots that represent the Alaska Job Center Network, blue dots
that indicate the vocational rehabilitation offices - the Alaska
Vocational Technical Center (AVTEC) is located in Seward - and
finally, green dots that represent the other program offices,
including unemployment insurance, labor standards and safety,
workers' compensation, and other programs that will be discussed
later [slide 2].
3:21:36 PM
COMMISSIONER DRYGAS reviewed the DLWD's organizational chart,
noting this chart lists the organization by key program
priorities. She pointed out that two divisions have programs
that cross program priority lines - Employment Security and
Vocational Rehabilitation, but some lines of distinction are "a
little bit fuzzy." For example, the Division of Workers'
Compensation has some crossover into the "protect workers
priority" since the division must ensure employers have workers'
compensation insurance for their employees. The department has
historically placed the aforementioned division in the "income
replacement" area since workers' compensation primarily ensures
benefit payments to Alaska's injured workers.
3:22:27 PM
COMMISSIONER DRYGAS directed attention to the Alaska Labor
Relations Agency (ALRA) that administers the Public Employment
Relations Act (PERA) and to the labor provisions of the Alaska
Railroad Corporation Act, pertaining to collective bargaining
for public employers. The ALRA facilitates resolution of
disputes between organized labor and public employers.
3:22:38 PM
COMMISSIONER DRYGAS related the Alaska Workforce Investment
Board (AWIB), a 26-member board representing industry, labor,
education, commerce, and Native groups, provides policy
oversight of state and federally funded job training and
vocational education programs. The AWIB provides an annual
report to the legislature on the performance and evaluation of
the state's training programs and will meet in Juneau on
February 2 and 3.
COMMISSIONER DRYGAS directed attention to Alaska Vocational
(AVTEC) whose mission is to provide market-driven vocational and
technical training to prepare Alaska residents for jobs. In FY
[fiscal year] 14, AVTEC had 382 long-term program enrollees and
898 short-term enrollees and AVTEC's FY 14 completion rate was
89 percent, plus 89 percent of AVTEC's FY 13 graduates were
placed in training-related jobs within the following year. She
remarked that the department is very proud of the aforementioned
statistic.
3:23:43 PM
COMMISSIONER DRYGAS turned to the Division of Business
Partnerships, which administers the department's competitive and
pass-through workforce development grant programs [slide 7]. In
FY 14, a total of 2,954 Alaskans received training through the
State Training and Employment Program (STEP). She reported that
87 percent of the FY 13 STEP training participants entered
training-related jobs in Alaska.
3:24:06 PM
COMMISSIONER DRYGAS directed attention to the Employment
Security Division, which provides employment and training
services through the Alaska Job Center Network and online
through the Alaska Labor Exchange System (ALEXsys) [slide 8].
This division also provides economic stability to unemployed
Alaskans through unemployment insurance and adult basic
education services to advance opportunities for employment for
Alaskans who need extra assistance.
3:24:39 PM
COMMISSIONER DRYGAS directed attention to Labor Standards and
Safety, noting this division provides occupational safety and
health, training and monitoring of laws governing occupational
safety and health, wages and hours, child labor, and electrical
and mechanical codes [slide 9]. This division also supports the
Alaska Safety Advisory Council (ASAC) that is responsible for
the annual Governor's Safety Conference. This past year the
division developed a 10-hour Occupational Safety and Health
Administration (OSHA) safety course used to improve safety in
the target industry of seafood processing. As a direct result
of this OSHA course, the state experienced a record low
workplace lost time per 100 employees of 0.51 percent, down from
1.13 percent in FY 13. She characterized this as being a
remarkable drop. A majority of the decrease occurred in the
seafood processing industry and the department is very proud of
that statistic.
3:25:41 PM
REPRESENTATIVE LEDOUX asked what caused the drop in the seafood
processing industry.
COMMISSIONER DRYGAS offered her belief that it was directly
related to the 10-hour OSHA safety course, specifically geared
towards the seafood processing industry, which had a significant
and immediate effect. She indicated the department will
continue this program in the future since it clearly had a
positive effect for Alaska's workforce.
3:26:11 PM
COMMISSIONER DRYGAS stated that the Division of Vocational
Rehabilitation (DVR) assists Alaskans with disabilities to
secure and maintain employment and provides economic stability
to disabled Alaskans through Social Security disability
determinations. In FY 14, the DVR had 607 individuals employed
upon exit of their individualized plan for employment: an
increase from 598 in FY 13 represents the second highest level
on record. The average wage of employed individuals exiting the
program equaled $14.31, an increase from $13.84 in FY 13, she
said. In fact, Alaska has regularly been in the top 15 in the
nation for the average wage.
3:27:02 PM
REPRESENTATIVE HUGHES noticed the map does not show the
Matanuska-Susitna valley as having a vocational rehabilitation
center. She asked whether that center is still in operation.
COMMISSIONER DRYGAS assured Representative Hughes that the
department has a vocational rehabilitation center located in the
Matanuska-Susitna valley.
REPRESENTATIVE HUGHES remarked that her daughter participated in
the center a number of years ago. She had significant hearing
loss and it was a great resource for her, she said. She counted
her daughter among the vocational rehabilitation success
stories, given that her daughter went on to college, is
gainfully employed, and is a good citizen.
CHAIR OLSON commented he heard the Muldoon office might close.
He asked whether the Muldoon job center office is still open.
COMMISSIONER DRYGAS answered yes; however, due to a significant
reduction of federal funds and general funds, it is all but
certain that some job centers will close. The evaluation
process is currently underway, but she would like to review the
final list. She expressed an interest in working with
legislators on offices being considered, commenting that while
the centers may still close, she prefers to use a collaborative
process. She agreed the map needs to be revised to reflect the
Wasilla center to ensure that people know the center offers
services.
3:29:03 PM
COMMISSIONER DRYGAS stated that the Workers' Compensation
Division aids Alaskans with employment-related injuries and
illnesses by administering the Alaska Workers' Compensation Act,
the Fishermen's Fund, the Workers' Compensation Benefits
Guaranty Fund, and the Second Injury Fund [slide 11].
3:29:31 PM
COMMISSIONER DRYGAS directed attention to the FY 2016 Governor's
endorsed budget, which totals $179.4 million, of which $94.4
million or 53 percent is derived from federal funds. The
department's unrestricted general funds in the FY 16 endorsed
budget total $29.2 million, which is down $4.2 million from FY
15. She indicated this is equivalent to a 12.5 percent
reduction. To implement this reduction, the department will
focus on the governor's goal of redesigning administrative
infrastructure to maintain maximum program and services and
delivery [slide 13]. She said there will obviously be funding
implications for programs resulting from a cut of this
magnitude, but she is committed to streamlining services,
finding efficiencies, and developing partnerships to maintain
key services and program priority.
3:30:31 PM
COMMISSIONER DRYGAS outlined her vision for the department. She
related she has had an opportunity to visit many of the
department's campuses in Anchorage and Juneau and looks forward
to visiting those offices in the Matanuska-Susitna valley,
Fairbanks, and in other outlying areas. She has been struck by
the staff's attitude and commitment to protect the public and
provide assistance. She emphasized that her goals are to
streamline programs and revamp the workforce development system
to ensure maximum effectiveness and efficiency within a
sustainable budget. Under consideration is a proposal that
would return the department to its FY 13 structure, with
workforce development grants administered by the Division of
Employment Securities instead of a separate Division of Business
Partnerships, she said, estimating this will result in a savings
of $850,000. This revamp is critical to ensuring the maximum of
funds are being distributed in the form of grants for training
and workforce development opportunities for Alaskans.
3:32:07 PM
COMMISSIONER DRYGAS emphasized the importance of increasing
Alaska hire to ensure that Alaskans are getting Alaska's jobs.
Part of this effort will be more targeted workforce development
funding in areas with high nonresident hire and increasing the
focus on Alaska hire enforcement. In fact, the DLWF is charged
by statute to enforce the state's resident hire laws. Hiring
Alaskans to fill Alaska's jobs is critical to the economic
success of the state and the residents the department serves,
she said. Alaska has one of the highest ratios of nonresident
to resident workers in the nation, which impacts the rate of
unemployment among residents. Further, nonresident workers use
services provided by the state but do not contribute fairly to
the cost of those services because the state has no personal
income or sales tax. She concluded that Alaskans suffer
economically when nonresidents displace qualified residents
since resident workers contribute to local taxes as well as
their share of royalties from natural resources. She offered to
continue to focus on the department's other key priority program
areas of fostering economic stability for injured, unemployed
and disabled workers and ensuring safe and legal working
conditions for Alaska's workers.
3:33:26 PM
CHAIR OLSON asked for further clarification whether the
department will continue with the construction academies.
COMMISSIONER DRYGAS said she thinks it is a good example of
training young Alaskans. She characterized it as a terrific
program that exposes youth to the construction trades. She
acknowledged that it uses general fund monies, but she will work
hard to maintain the funds since the program is important and
vital to young Alaskans.
3:34:10 PM
CHAIR OLSON commented that he is familiar with the one in Kenai
and the program has been helpful as the region ramps up for
gasline projects. He recalled that the DLWD suffered budget
reductions last year.
COMMISSIONER DRYGAS agreed.
3:34:56 PM
REPRESENTATIVE HUGHES recalled the governor mentioning
vocational education and partnering with the schools. She asked
whether any work has been done with the Department of
Corrections in assisting inmates return to the workforce.
COMMISSIONER DRYGAS answered that the governor is committed to
vocational and technical training. He has requested that the
commissioners of the Department of Labor and Workforce
Development (DLWD), Department of Education and Early
Development (EED), and the university partner together to work
on making workforce development opportunities more efficient and
essentially do more with less. In fact, she met with University
of Alaska President Gamble to discuss vocational and technical
training and they plan to work together on the aforementioned
issues. In addition, she met with Commissioner Hanley [EED] on
career and technical training education. The DLWD, EED, and the
UA are partnering together and hope to identify key areas for
workforce training and are excited about the opportunity.
3:37:17 PM
COMMISSIONER DRYGAS also related that she has met with
Department of Corrections Commissioner Taylor to continue the
partnership with respect to re-employment of prisoners. She
offered that jobs give prisoners a purpose, which has an obvious
effect on recidivism. She related a scenario in which the
judicial system worked with women at the Hiland Correctional
Center. Later she received feedback from a woman who received
the training who credited the training with helping her turn her
life around. She remarked that stories like the aforementioned
one impact us and she's wondered how she could help. Now she
has a chance to enhance the partnership with the DOC on that
program, she said.
3:39:14 PM
REPRESENTATIVE HUGHES related a personal scenario, noting her
husband ran a medical department in five of the correctional
institutions and recalled him sharing that inmates sometimes
purposefully get arrested and return to prison because they
cannot obtain jobs, need medical attention, but cannot afford
it. This also leads her think about veterans. She asked
whether the department partners with the Department of Military
and Veterans Affairs (MVA) on job placement for returning
veterans.
COMMISSIONER DRYGAS stated that the Helmets to Hard Hats is a
program to help employ veterans in the construction trades. In
addition, the department works with the Military Youth Academy
on some of their program requirements. She reported that she
was invited to speak to a group of currently enlisted officers
and members of the military about career opportunities as they
transition into civilian life. She deferred to her staff to
respond.
3:41:32 PM
PALOMA HARBOUR, Director, Central Office, Division of
Administrative Services, Department of Labor & Workforce
Development (DLWD), stated that the Healing Heart program works
with veterans who need assistance adjusting to civilian life.
The department partners with the Healing Heart program through a
state training and employment grant.
3:42:33 PM
REPRESENTATIVE JOSEPHSON said he was interested in Alaska hire.
He understands some constitutional issues prevent the state from
not hiring people from other states. He expressed an interest
on how far the envelope can be pushed. He asked whether the
department has an expert on reform.
COMMISSIONER DRYGAS stated that she is very familiar with many
experts on Alaska hire. She offered that the department is in
the process of an Alaska resident hire study, plus she is
familiar with the challenges from her work at the Alaska
District Council of Laborers. She indicated the department is
committed to enforcing Alaska hire to the fullest extent of the
law. Governor Walker has made it clear that Alaska hire is one
of his top priorities. She said, "It's good for Alaskans, it's
good for the state, and it's good for the economic bottom line
so that will be one of my key focuses moving forward."
REPRESENTATIVE JOSEPHSON asked to be kept informed.
COMMISSIONER DRYGAS agreed to do so.
3:44:41 PM
REPRESENTATIVE KITO referred to the issue of coordination with
the EED and the UA on efforts. He wondered what types of things
all three agencies could work on together.
COMMISSIONER DRYGAS answered that the Department of Education &
Early Development, the University of Alaska, and Department of
Labor & Workforce Development have started discussions. The
governor has made it clear that these three agencies needed to
create a CTE [Career and Technical Education] plan for the
state. She has held discussions with Commissioner Hanley and
although they haven't identified specifics, they have considered
perhaps a task force approach to develop benchmarks to focus on
actual results and improve CTE training in the state. She
highlighted that there is sense of cooperation between the UA,
the DLWD, and the EED. She wants to make an impact when it
comes to CTE.
3:47:10 PM
REPRESENTATIVE KITO asked whether the three organizations will
consider where Alaska's workforce will be in 8-10 years as the
state gears up for a gasline to ensure that resources are
available to train Alaskans.
COMMISSIONER DRYGAS offered that the department previously
worked on a plan when the Alaska Gasline Inducement Act was in
place. Thus, the department has a gas development plan that it
can build on that identifies many different occupations Alaska
needs to be ready to fill in the event of a gas pipeline. She
related that the department wants to update and refine the plan
for this administration. She concluded by saying the nice thing
is that the department is not starting from zero.
3:48:38 PM
REPRESENTATIVE HUGHES recalled there being spreadsheets that
highlighted the various types of workers that would need to be
trained for the future. She also reported that she visited the
Donlin Gold site this fall and understood the company
anticipates that current 7th grade students will provide the
workforce for its proposed project. She emphasized the
importance of the department working with the Department of
Education and the school districts throughout Alaska. She
suggested that the commissioner should also look at the
Matanuska-Susitna Career and Technical high school as a
competitive model high school.
REPRESENTATIVE HUGHES asked how Commissioner Drygas likes her
new position.
COMMISSIONER DRYGAS said has only been on the job for four
weeks, and although she loved her previous work, it is not often
one has an opportunity to influence and affect Alaskan workers.
She feels like the job provides her with a broader scope due to
the department's emphasis on protecting Alaska's workers and
increasing training opportunities for Alaskans. She said she
finds her staff to be very committed and she is humbled and
honored to serve in this capacity.
3:53:18 PM
CHAIR OLSON highlighted that approximately 1,000 people are
working at Point Thomson and about 400-500 in Cook Inlet on the
new gas work in existing fields and on the prep work at Nikiski.
Many workers come from the Lower 48 since the state lacks
skilled workers. He predicted that further labor shortages will
occur. However, he also noted that most of Alaska's workers are
familiar with [UA] urinalysis tests whereas some Lower 48
workers come in and cannot pass them. He suggested drug testing
might need to be incorporated into training programs. He also
commented that the state is closer [to a gasline] than ever, but
it is not ready for it in terms of skilled workers.
COMMISSIONER DRYGAS agreed. She also agreed that the
aforementioned labor issues need to be addressed. She assured
members that this administration is committed to training
Alaska's workforce and in developing a comprehensive workforce
development plan. She highlighted that the Alaska Workforce
Investment Board (AWIB) will be meeting next week and workforce
development is something the board will consider. She
emphasized her desire to elevate the work this board does for
the state. She offered her belief that the AWIB should be the
overall policy making authority for workforce development in the
state. The governor is also interested in enhancing the AWIB's
role in leading the state in terms of workforce development, she
said.
3:55:48 PM
CHAIR OLSON pointed out that drug testing will get a little more
complicated when marijuana is legalized. He expressed concern
that some people will think it is legal and will fail their UA
testing as a result. He offered his belief that the state
should have studied Colorado and Washington's experiences in
legalizing marijuana prior to taking action.
COMMISSIONER DRYGAS answered that the aforementioned issues were
raised in the Senate Labor & Commerce Standing Committee. She
said plenty of things are legal, but it doesn't mean people can
keep their jobs if they are under the influence of drugs or
alcohol, especially when operating heavy equipment.
3:57:41 PM
REPRESENTATIVE JOSEPHSON brought up a problem with abuse of
independent contractors, with employees not covered by
unemployment insurance or workers' compensation under the guise
of their workers not being employees. He hoped this is
something the department will examine. He said it seems as
though some type of reform is needed.
COMMISSIONER DRYGAS said she is very aware of worker
misclassification issues. She recently met with John Lund from
the federal Department of Labor (U.S.-DOL) in the West Coast.
She recalled he wanted to address worker misclassification and
whether the U.S.-DOL can partner with the state Department of
Labor & Workforce Development on enforcement of those laws. She
offered that the federal agency has a framework for enforcement
actions in terms of independent contractors. She said this
issue has a huge effect on the economy since some independent
contractors are not paying the appropriate taxes, such as
workers' compensation or unemployment insurance. She agreed
there are huge ramifications for that. She stated that Grey
Mitchell, Division of Labor Standards director will work with
Mr. Lund, U.S.-DOL on these issues. She stated that this issue
is very important, not just in terms of the economy, but in
terms of how it affects Alaskans who are injured on the job or
need unemployment insurance benefits. Some independent
contractors don't realize they have to file the appropriate
taxes on their workers, who are employees as defined by the law.
4:00:32 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor & Commerce Standing Committee meeting was adjourned at
4:00 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DOLWD Overview HLC 01-30-15.pdf |
HL&C 1/30/2015 3:15:00 PM |
DOLWD Presentation 1-30-15 |
| Resume of Heidi Drygas 01-30-15.pdf |
HL&C 1/30/2015 3:15:00 PM |
H. Drygas Resume |