Legislature(2003 - 2004)
01/30/2003 01:35 PM Senate L&C
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ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 30, 2003
1:35 p.m.
MEMBERS PRESENT
Senator Con Bunde, Chair
Senator Alan Austerman
Senator Ralph Seekins
Senator Bettye Davis
Senator Hollis French
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
Confirmation Hearing - Greg O'Claray, Commissioner, Department
of Labor and Workforce Development
CONFIRMATION ADVANCED
PREVIOUS ACTION
No previous action to record.
WITNESS REGISTER
Commissioner-designee Greg O'Claray
Department of Labor & Workforce
Development
PO Box 21149
Juneau, AK 99802-1149
ACTION NARRATIVE
TAPE 03-2, SIDE A
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:35 p.m. Present were Senators
Seekins, French and Chair Bunde. Senators Davis and Austerman
arrived shortly thereafter.
He announced the purpose of today's meeting is to conduct a
confirmation hearing for Commissioner Greg O'Claray.
MR. GREG O'CLARAY, Commissioner-designee of the Department of
Labor and Workforce Development (DOLWD), joined the committee
and submitted answers to questions he was asked at the previous
hearing. He also reviewed the March 2002 DOLWD publication
entitled, Alaska Economic Trends, which contains information
regarding age distribution in the workforce.
COMMISSIONER-DESIGNEE O'CLARAY gave a brief synopsis of the
biographical information contained in his resume and told
members he became a professional mariner before he graduated
from high school. His maritime career spanned several decades
and included membership in the Seafarer's International Union,
the Inland Boatmen's Union of the Pacific and the Marine
Engineers Beneficial Association (AFL-CIO). That group
represents off-shore licensed marine engineers, captains and
mates who crew the boats that haul ANS crude to market from
Valdez, as well as Alaska Marine Highway System workers. He said
he has also been involved in civic activities that deal with
economic development. He told members, "The maritime industry is
very pro-active in terms of jobs in the economy. Alaska is a
non-contiguous maritime state that relies heavily on surface
transportation so anything that affects Alaska's economy affects
maritime."
He said he recently represented the Greens Creek Mining Company
with respect to a long-term law that restricted access to the
face of the mine, which is underground. He helped modernize the
law to meet today's working conditions. He also lobbied for the
Fairbanks Gold Mining Company regarding work hours. He no longer
represents those clients; he now is a public servant for the
State of Alaska for the first time in his life.
CHAIR BUNDE noted the Governor indicated some internal
performance audits would be done in some departments and asked
how that was going.
COMMISSIONER-DESIGNEE O'CLARAY replied that the audit would
determine things that could be changed immediately and there
would be a systematic evaluation of all programs following the
missions and measures guidance set up by the Legislature. He
said he would also like to set up a measuring device that
mirrors the one used by the Denali Commission to track training
grants. The Governor wants dollars to be spent on training as
well as placement to provide real jobs at good pay
COMMISSIONER-DESIGNEE O'CLARAY explained the department has a
vacant internal auditor position because that employee filled a
vacant position in the administrative service directorship. The
department was recruiting for the auditor position as of that
day. He also had the Department of Labor hallways cleared of
accumulated furniture after the recent re-carpeting and he
ordered OSHA inspections. There were no life-threatening hazards
within the building, but some things needed to be addressed and
those would be done by the end of May.
He said he was trying to address the perception that the
department is not friendly to employers and he has reached out
to employers, businesses and labor by meeting with Commonwealth
North, the Anchorage Chamber of Commerce, the Anchorage Economic
Development Council and employer groups that are attached to the
various workforce investment boards.
The Commissioner-designee explained that Governor Murkowski
issued an executive order creating the Division of Business
Partnerships and renaming the service delivery side of the old
Employment Security Division to the Division of Workforce
Services. Catherine Farnam from BP Exploration was recruited and
brings experience in reorganization and direct industry contact.
COMMISSIONER-DESIGNEE O'CLARAY said the Governor is also
concerned about the size of the boards that administer the
workforce investment programs and their travel expenses to
attend meetings. The thought is that the number of boards could
be reduced. He also found that industry was weary of the boards'
bureaucratic system and was frustrated about how slow the
process is to get grants on the street that actually train
people for jobs.
He noted that almost 30 percent of workers in most industries
would retire or leave in the next five years. The construction
industry is gearing up for that now, but needs additional
assistance and funding for apprenticeship programs. Most
industries in Alaska recognize this problem and he advised that
his department could play a major role in filling that gap
through the Workforce Investment Act. He stated, "The vocational
training must start even as early as the elementary years and K-
12."
1:58 p.m.
COMMISSIONER-DESIGNEE O'CLARAY explained that in the last 20
years our school system has moved away from vocational training,
particularly in Bush areas. That change is due to the addition
of soft skills training for things like appearance, hygiene, and
time/budget management skills. He said the Governor asked him to
partner with the Department of Health and Social Services and
the Department of Corrections to see if they could complete the
welfare-to-work initiative. He acknowledged the overcrowded
conditions in state correctional facilities and said [the
administration] would like to bring the offenders that are
incarcerated in Arizona back to Alaska.
CHAIR BUNDE said he would do anything he could to get the
Legislature to help "restore the dignity of working with your
hands." He emphasized the need for the school-to-business
partnership.
SENATOR ALAN AUSTERMAN agreed with the need for vocational
education and said he would like to see it extended to K-14 to
include the university system.
SENATOR SEEKINS said he employs 120 people and all of them are
required to read, write and do mathematical calculations. If
they know how to communicate, they can be taught just about
everything else they need to know. He asked if the commissioner
sees the department as a conduit to the educational system to
put emphasis on obtaining the basic skills that employers
require regardless of whether those skills are obtained through
a college degree program or vocational program.
COMMISSIONER-DESIGNEE O'CLARAY replied he expects to have "not
only cross-pollination, but total integration of the philosophy
st
of training a 21 century workforce that fits the industry
needs...." Basic skill training has to start in the elementary
years.
SENATOR SEEKINS informed the committee that he helped establish
a joint training program with the Ford Motor Company at the
University of Alaska Anchorage. Ford Motor Company provided the
trainer while the University provided the facility and
curriculum. A student can graduate with an associate degree in
automotive technology after two years.
CHAIR BUNDE reiterated his support of teaching the "basics" in
school.
SENATOR SEEKINS reemphasized the importance of getting the basic
skills so that employers can "teach them the rest and keep you
as an employee."
2:15 p.m.
SENATOR FRENCH questioned Commissioner-designee O'Claray about
some of the details on his resume.
COMMISSIONER-DESIGNEE O'CLARAY explained that the AFL-CIO is
like a federation that people are not required to belong to.
Under the AFL-CIO constitution, officers are elected to give the
organization representative status when lobbying issues in
Washington D.C.
SENATOR FRENCH asked Mr. O'Claray to comment on his lobbying
efforts for GCI, Greens Creek Mining Company and the Trial
Lawyers on tort reform.
COMMISSIONER-DESIGNEE O'CLARAY said he represented the Trial
Lawyers of Florida on an issue before Congress. A certain
congressman was attempting to exclude foreign seamen from access
to the United States tort system for either wage claims, damage
claims or other claims that could not be adjudicated under a
labor agreement or some other forum. Most of the foreign
flagships operate out of Florida and that's where most of the
tort business was on those claims.
With respect to his Greens Creek/Kennicott lobbying efforts, he
said a law had been on the books since the 1920s that restricted
access to below ground areas for more than eight hours a day.
Greens Creek wanted to allow for a 10-hour day below the surface
so it could offer a flex-schedule. They argued that it was a
productivity issue. The type of work that miners do now is so
different from the work miners did in 1920 that it made sense to
update the law. In a joint venture with Reed Stoops and James
Clark, he worked to convince the labor movement that this would
assist the company into sustainability as a year-round employer.
Before this legislation was offered, Greens Creek had gone into
layoff for a year. The effort was successful and offered the
additional benefit of making it worthwhile for people who lived
in other areas to commute to Juneau and work in the mine.
COMMISSIONER-DESIGNEE O'CLARAY said the struggle between GCI and
ACS is over which one controls telecommunications in Alaska. He,
Mr. Stoops and Mr. Clark lobbied the Legislature on how the
Public Utilities Commission (PUC) operated. He was "conflicted
out" because GCI was a non-union company.
SENATOR FRENCH asked him to comment on cuts to the department in
reference to a letter to the editor about them.
COMMISSIONER-DESIGNEE O'CLARAY replied that he couldn't give any
specifics on the Governor's budget proposal. All departments
were directed to look at reducing their budgets by 5 to 10
percent. He informed the committee that he requested scrutiny of
the Independent Living Program, which provides services to
disabled folks to get them into the job market or assistance so
they can live independently of institutions.
TAPE 03-02, SIDE B
COMMISSIONER-DESIGNEE O'CLARAY said he proposed cutting just the
general fund contribution of $619,000. The budget review is not
complete, but the lawmakers who originally funded the
[Independent Living] program wrote him a letter supporting the
funding and that letter somehow got publicized and made him look
bad. He explained:
We were trying to evaluate the program. There will be
cuts in almost all of our programs mostly made by
efficiencies because we will continue to provide the
service that they have...but I can't give you
specifics. I'm not so sure that letter to the editor
was accurate in terms of describing my personal
feeling about disabled folks.
SENATOR FRENCH asked his position on Little Davis-Bacon wage
issues.
COMMISSIONER-DESIGNEE O'CLARAY replied that the Little Davis-
Bacon Act is the prevailing wage act that applies to the State
of Alaska. He said:
The law requires on public funded projects that the
prevailing wages of the region be paid to construction
workers whether they be union or non-union. Those
rates are required to be paid. I can tell you it has
been a stabilizing effect on our economy because we
are a construction state. I will not tell you that I
favor doing anything that would harm that. Both our
Governor and our congressional delegation are in
support of the Davis Bacon...
SENATOR SEEKINS asked why this is called the "little" Davis
Bacon Act.
COMMISSIONER-DESIGNEE O'CLARAY replied that the Davis Bacon Act
is a federal act and the "little" Davis Bacon Act is that act
tweaked to apply to Alaska.
SENATOR FRENCH asked him to give a short description of the
Marine Engineers Beneficial Association.
COMMISSIONER-DESIGNEE O'CLARAY responded:
The Marine Engineers Beneficial Association is the
oldest maritime union in the United States. It's over
126 years old. It was formed by a group of engineers -
licensed marine engineers - in Chicago sometime in the
late 1800s. What the organization does is it lobbies
for and competes for, supports, trains workers for the
American flag merchant marine. The Sealine ships that
you see coming in and out of the Port of Anchorage are
staffed by licensed marine engineers and licensed
masters and mates, as well as the Seafarers
International Union.
He added it is one of the smallest international unions, but it
contributes a lot of hard and soft money to congressional
campaigns because of the need for access to promote that
industry.
SENATOR SEEKINS made a motion to forward Commissioner-designee
O'Claray's name to the full body for consideration to confirm.
There was no objection and it was so ordered.
CHAIR BUNDE adjourned the meeting at 2:30 p.m.
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