Legislature(1993 - 1994)
01/21/1993 01:30 PM House L&C
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE
STANDING COMMITTEE
January 21, 1993
1:30 p.m.
MEMBERS PRESENT
Rep. Bill Hudson, Chairman
Rep. Joe Green, Vice Chairman
Rep. Eldon Mulder
Rep. Brian Porter
Rep. Bill Williams
Rep. Joe Sitton
Rep. Jerry Mackie
MEMBERS ABSENT
None
OTHER LEGISLATORS PRESENT
Rep. Jerry Sanders
COMMITTEE CALENDAR
Overview of the Department of Labor
WITNESS REGISTER
Charles Mahlen
Commissioner
Department of Labor
P.O. Box 21149
Juneau, Alaska 99802-1149
Phone: 465-2700
Jan Hart De Young
Administrator/Hearing Examiner
Department of Labor
Alaska Labor Relations Agency
P.O. Box 107026
Anchorage, Alaska 99510-7026
Phone: 264-2587
David Teal
Director
Department of Labor
Division of Administrative Services
P.O. Box 21149
Juneau, Alaska 99802-1149
Phone: 465-2720
Judy Knight
Director
Department of Labor
Division of Employment Security
P.O. Box 25509
Juneau, Alaska 99802-25509
Phone: 465-2712
Donald Study, CSP
Director
Department of Labor
Division of Labor Standards and Safety
P.O. Box 21149
Juneau, Alaska 99802-1149
Phone: 465-4855
ACTION NARRATIVE
TAPE 93-2, SIDE A
Number 001
CHAIRMAN BILL HUDSON convened the House Labor and Commerce
Committee meeting at 1:34 p.m. on January 21, 1993. Members
present were Rep. Joe Green, Rep. Brian Porter, Rep. Eldon
Mulder, Rep. Jerry Mackie and Rep. Joe Sitton.
Chairman Hudson introduced CHARLES MAHLEN, COMMISSIONER OF
THE DEPARTMENT OF LABOR.
Number 034
COMMISSIONER MAHLEN introduced the division directors and
gave the following outline of the Department of Labor,
including some of its goals:
1) foster and promote the welfare of the wage earners
of the state;
2) improve their working conditions and advance their
opportunities through profitable employment;
3) provide a healthy and stable workforce upon which
economic development can thrive;
4) assist Alaskan employers to operate in a cost
effective manner; and
5) minimize the impact the unemployed worker has on
the social services.
COMMISSIONER MAHLEN stated that the population was
calculated at 586,900, with the workforce at 262,200. Last
year there was a 1.7 percent increase in the workforce. The
department's budget had been reduced an average of 4.8
percent a year for the last three years. The department's
budget accounted for 1/2 of one percent of the state's
general fund.
COMMISSIONER MAHLEN stated that over 95 percent of the
Division of Employment Security was funded by the federal
government. A large portion of the Division of
Administrative Services' budget came from federal funds.
COMMISSIONER MAHLEN reviewed the budget reductions the
department had implemented. In 1993 the department laid off
four employees, deleted fifteen vacant positions, and
eliminated the mid-management positions of assistant
directors and some chiefs. This was in reply to the
efficiency task force's recommendation to increase spans of
control for managers and supervisors.
COMMISSIONER MAHLEN said the department will have to reduce
occupational safety inspections, wage and hour audits,
investigations, and personnel, and absorb some clerical and
accounting functions to operate under the prescribed budget.
COMMISSIONER MAHLEN outlined the anticipated budget
reductions for fiscal year 1994: one clerical position from
the commissioner's office; eliminate some printing costs
from administrative services; and the Division of Labor
Standards and Safety will have to reduce contractor
licensing, investigations and enforcement.
According to COMMISSIONER MAHLEN, the department has a
capital request for computer equipment that will help
automate and make the programs more efficient.
COMMISSIONER MAHLEN explained that further cuts will be
deletion of the grant to the Alaska Health Project,
combining some certification programs, and eliminating
funding for the Alaska Safety Advisory Council. The
department will also eliminate the review of compromise and
release decisions in the Workers Comp Division, which will
take legislative action.
COMMISSIONER MAHLEN explained the goal is to make the
department as efficient as possible and still remain as
effective as possible.
COMMISSIONER MAHLEN said the department also recommends:
transferring the fish bonding program to the department of
Revenue; legislation to allow the licensing of the
electrical and mechanical administrators; and implementation
of some user fees to offset declining general fund money.
Number 275
COMMISSIONER MAHLEN noted further legislation recommended by
the Department of Labor:
1) extend the State Training and Employment Program
(STEP) for another three years;
2) increase the Labor Relations Board from three to
six and provide for a $100.00 honorarium; and
3) allow the Federal Mediation Service to provide
free mediation service in Alaska Railroad cases.
Commissioner Mahlen's concluded his overview.
Number 399
CHAIRMAN HUDSON opened the meeting for questions.
REP. JOE GREEN asked for the overall responsibilities of the
Department of Labor.
Number 410
COMMISSIONER MAHLEN offered that some of the more detailed
information would be outlined when the division directors
gave their overviews.
Number 426
REP. GREEN inquired how the budget cuts referenced would
impact the broad scope of duties the Commissioner had
outlined.
Number 440
COMMISSIONER MAHLEN explained that the department does not
touch the divisions that recieve federal money. The cuts
only come in areas that are funded from the general fund.
Number 450
REP. JOE SITTON commended the Department of Labor. He
explained that for the past six or seven years he had
followed the department's budget and had found that they
provided the most benefit for the dollar. He further stated
that they had the second lowest budget of any state
department. Rep. Sitton asked for more information from the
Commissioner regarding how the budget reductions related to
the handling of Title 36.
Number 460
CHAIRMAN HUDSON suggested that the directors address that
area of concern as they give their overviews.
Number 463
CHAIRMAN HUDSON asked the Commissioner to give a listing of
those areas where legislation might be introduced. He also
asked for more information about the transfer of the fish
bonding the Commissioner referenced.
Number 480
COMMISSIONER MAHLEN explained the transfer was one way the
department figured it could streamline state government.
Number 485
CHAIRMAN HUDSON stated that the committee's focus would be
to look into just that sort of thing. He expressed his
desire to work closely with the department to find ways to
make government more of an asset than a liability to the
business people of Alaska. The chairman also expressed his
hope that the department would recognize that the committee
was really looking for how the actions of the department
would impact a business person. He said the committee
needed to make certain that whatever government was paying
the department to do was truly in the public's best
interest, that it was absolutely necessary. A periodic
review of the laws is necessary, according to Chairman
Hudson.
Number 497
COMMISSIONER MAHLEN agreed and stated that the department
was moving closer and closer toward more vital necessary
functions. The department felt that a good, trained,
qualified labor force, with good working conditions and good
wages, was good for Alaska's economy and promoted economic
development.
Number 502
CHAIRMAN HUDSON asked the Commissioner, if the committee
were to ask some of the department's clients for a report
card on the department, how would they fare?
Number 518
COMMISSIONER MAHLEN assured the committee that the
department had and would continue to streamline, privitize,
reduce and do whatever they could to provide the most
services for the least amount of money.
Number 543
CHAIRMAN HUDSON asked that Commissioner Mahlen put a concept
in writing regarding expanding the contributions of the
state sector.
Number 555
COMMISSIONER MAHLEN responded that he had a position/mission
statement.
Number 570
JAN HART DE YOUNG, ADMINISTRATOR, ALASKA LABOR RELATIONS
AGENCY, DEPARTMENT OF LABOR, explained that the agency is
part of the Commissioner's office. The agency operates with
four staff, including the administrator and a three member
volunteer board.
TAPE 93-2, SIDE B
Number 000
According to MS. DE YOUNG, the agency is responsible for
administering the Public Employment Relations Act and the
Railroad Labor Relations Act. The agency covers all public
employers in the state, with the exception of those
municipalities which have exercised the option to reject the
application of the act.
MS. DE YOUNG said the agency's principal role is to referee
disputes between organized labor and public employees. The
agency's methods can be informal (through conciliation) or
formal (through quasi-judicial administrative hearing). The
basic mission is to promote labor harmony between government
employers and government employees with the ultimate goal to
allow energy and time to be focused on the public's business
rather than labor disputes.
MS. DE YOUNG explained that with the contraction of
government budgets the agency has seen a huge increase in
labor difficulties. The agency had a 67 percent increase of
claims between calendar year 1991 and 1992. The agency has
adopted a comprehensive policy and procedures manual and a
comprehensive rewrite of the regulations, which has assisted
in handling the increased case load.
MS. DE YOUNG noted that the Alaska Labor Relations Agency
consolidated the railroad labor regulations with the state
labor relations regulations so there would be a uniform set
of regulations to apply to the public sector. These are
presently under review in the Attorney General's office.
MS. DE YOUNG said the budget was currently at a maintenence
level and would remain so. The agency relies increasingly
on the use of teleconferencing and reducing the travel
expenses to make up for any shortfall.
MS. DE YOUNG stated that the agency will provide an annual
report with statistics to the committee after the February
board meeting.
Number 061
REP. BRIAN PORTER asked, Of the 100 complaints, what was the
percentage between management and labor?
MS. DE YOUNG responded that she had not tracked that
particular statistic.
Number 077
REP. SITTON asked if the agency ever explored the idea of
charging the agency's costs back to those who filed
frivolous complaints.
Number 084
MS. DE YOUNG explained that the agency is governed by the
Administrative Procedures Act, which does not provide the
authority to assess costs and fees.
Number 115
DAVID TEAL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF LABOR, explained the division is responsible
for the internal working of the department. The management
services section of the division has 33 employees and does
the payroll, personnel training, budget monitoring and
preparation, grants monitoring, bill paying, mailroom,
supplies, and procurement.
According to MR. TEAL, another function of the division is
the research and analysis section, which provides the
following information and services: economic rorecasts and
analysis, wage rate survey, publications and typesetting
support, news releases, policy analysis, planning
assistance, clerical and administrative support, as well as
special information requests and reports.
Number 215
CHAIRMAN HUDSON inquired where the information produced by
research and analysis is deposited.
MR. TEAL explained that the information is transmitted to
the state library in some form and much of the information
is published and available from the research and analysis
section of the division.
Number 265
REP. PORTER asked what the length of residency was that the
division used in their research.
MR. TEAL replied that the residency requirement was 30 days,
but the division uses the permanent fund file to a great
extent; so in actuality, the data was one year.
Number 275
REP. ELDON MULDER inquired what the total budget was for the
department, and what were some of the other sources of
funding.
COMMISSIONER MAHLEN pointed out that the money from the
general fund only constitutes 1/2 of one percent of the
general fund.
MR. TEAL interjected that some funds come from other state
agencies.
Number 352
JUDY KNIGHT, DIRECTOR, DIVISION OF EMPLOYMENT SECURITY,
DEPARTMENT OF LABOR, spoke to the committee regarding the
mission and goals of her office. She said the mission as
they saw it was to "promote employment and economic
stability by meeting the needs of employers and job seekers
statewide."
MS. KNIGHT noted, to this end, the employment office had
three main goals:
1) to provide an effective labor exchange;
2) to coordinate with employment and training
entities; and
3) to support Alaska's economic growth and
development.
MS. KNIGHT went into detail regarding the size of her
division and the number of unemployed persons coming to the
employment service. She noted that in Fiscal Year 1992,
100,000 persons came through the employment offices looking
for jobs. She pointed out that there are only approximately
500,000 people in the state. Ms. Knight commented that the
number was significantly up; three years ago the number of
persons utilizing the employment office was 60,000.
Number 443
REP. GREEN asked if those were all people residing in the
state.
MS. KNIGHT responded, "Yes, they were all individuals and
not repeat clients." She added that the office maintains
800 numbers for the benefit of rural areas that don't have
an employment office.
Number 554
MS. KNIGHT noted there had been a significant increase in
unemployment. The agency paid 61,550 people benefits last
year, which added up to $152,000,000. Ms. Knight further
noted that the unemployment scene did not look like it would
change in the near future.
MS. KNIGHT said she was very concerned about the workforce
in Alaska. She noted that her office sees more and more
people who simply don't have work skills or work ethics; in
short, they don't have a clue about what work is. Ms.
Knight noted that the employment service is working towards
educating young people in this area. The agency has created
a partnership between the Job Training Partnership Act, the
employment agency, and some schools to test a pilot program
to teach kids the skills they need out of high school.
Number 624
DON STUDY, DIRECTOR, DIVISION OF LABOR STANDARDS AND SAFETY,
DEPARTMENT OF LABOR, spoke to the committee regarding the
division's primary mission, which is to oversee and provide
for the health and safety of Alaskan workers and the
citizens of this state. He said the division is made up of
three sections - occupational safety and health, mechanical
inspection, and wage and hour.
TAPE 93-3, SIDE A
Number 001
MR. STUDY explained that the occupational safety and health
section enforces safety and health regulations and standards
to protect employees from work related injuries and
illnesses and assists employers in developing workplace
safety programs by providing consultation and training
services.
MR. STUDY noted that the mechanical inspection section
oversees the safe installation of mechanical facilities for
the safety of the workers and the public, and inspects
existing facilities such as elevators, escalators, amusement
rides, boilers, pressure vessels and plumbing.
MR. STUDY said the wage and hour program was modeled after
the federal Fair Labor Standards Act. The program includes
the enforcement of minimum wage and overtime, the collection
of wage claims, the enforcement of child labor laws, and the
enforcemnt of return transportation rights. It also
includes the licensing and monitoring of private employment
agencies, and the enforcment of the Public Contracts Act and
the conduct of the wage survey, the enforcement of
construction contractor licensing, and enforcement of
resident hire on a statewide basis.
Number 320
CHAIRMAN HUDSON asked that the rest of the overview be held
at another time since the committee was pressed for time.
ADJOUNMENT
The meeting was adjourned by Chairman Hudson at 3:20 pm.
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