Legislature(2013 - 2014)ANCH LIO Rm 210
11/07/2013 09:00 AM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Understanding Labor Contracts | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
JOINT MEETING
SENATE LABOR AND COMMERCE STANDING COMMITTEE
SENATE STATE AFFAIRS STANDING COMMITTEE
9:02 a.m.
MEMBERS PRESENT
SENATE LABOR AND COMMERCE
Senator Mike Dunleavy, Chair
Senator Donald Olson
SENATE STATE AFFAIRS
Senator Fred Dyson, Chair
Senator Cathy Giessel, Vice Chair
Senator Bill Wielechowski
MEMBERS ABSENT
SENATE LABOR AND COMMERCE
Senator Peter Micciche, Vice Chair
Senator Bert Stedman
Senator Johnny Ellis
SENATE STATE AFFAIRS
Senator John Coghill
Senator Bert Stedman
COMMITTEE CALENDAR
PRESENTATION: UNDERSTANDING LABOR CONTRACTS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CURTIS THAYER, Deputy Commissioner
Department of Administration (DOA)
Anchorage, AK
POSITION STATEMENT: Delivered a presentation on understanding
labor contracts.
KATE SHEEHAN, Deputy Director
Department of Administration (DOA)
Anchorage, AK
POSITION STATEMENT: Provided information related to labor
contracts.
FATE PUTMAN, Assistant Executive Director
Alaska State Employees Association (ASEA)
General Government Unit (GGU)
Juneau, AK
POSITION STATEMENT: Provided information relevant to the
discussion of labor contracts.
JAKE METCALFE, Executive Director
Public Safety Employees Association (PSEA)
Juneau, AK
POSITION STATEMENT: Provided information relevant to the
discussion of labor contracts.
ACTION NARRATIVE
9:02:39 AM
CHAIR DYSON called the joint meeting of the Senate Labor and
Commerce Standing Committee and the Senate State Affairs
Standing Committee to order at 9:02 a.m. Present at the call to
order were Senators Giessel, Wielechowski, Olson, Chair Dunleavy
(via teleconference), and Chair Dyson.
^PRESENTATION: UNDERSTANDING LABOR CONTRACTS
PRESENTATION: UNDERSTANDING LABOR CONTRACTS
9:03:22 AM
CHAIR DYSON announced the business before the committee would be
a presentation on understanding labor contracts.
9:04:15 AM
CURTIS THAYER, Deputy Commissioner, Department of Administration
(DOA), introduced himself, Ms. Sheehan, and Ms. Neal. He
explained that the state is going into negotiations with five
public employee unions, and the goal today is to lay out some of
the bargaining priorities. He highlighted that the state would
like to make some corrective actions to some of the legacy
issues in the contracts. He spoke to the following bargaining
points:
· Negotiations are mandated by the Public Employment
Relations Act (AS 23.40.070-23.40.250).
· Bargaining begins in accordance with the terms set forth in
the collective bargaining agreements. They usually commence in
October, but this year the majority will start in December and
January.
· The State must negotiate and enter into written agreements
on matters of wages, hours and other terms and conditions of
employment. These are considered mandatory subjects of
bargaining. Mandatory subjects include: cost of living
increases, merit increases, pay increments, leave accrual, and
health insurance.
· The State may, but is not required, to negotiate permissive
subjects of bargaining. Examples of these include:
classifications, benefits for retirees, and representation of
non-permanent employees.
· Monetary terms of the agreement must be submitted to the
legislature no later than the 60th day of the legislative
session to receive consideration during that calendar year (AS
23.40.215). The goal is to have the document available for
legislative consideration on or about March 18, 2014. This will
give the legislature a full 30 days to review the contracts.
9:07:17 AM
CHAIR DYSON asked if it's appropriate for the process to be
public at any time so that the legislature could be aware of the
issues.
MR. THAYER replied the legislature hasn't traditionally done
that; it addresses the monetary terms, but not necessarily the
issues.
CHAIR DYSON asked him to comment on negotiations about working
conditions and the working environment.
MR. THAYER responded that for the past 30 some years that's been
management's prerogative and not a subject of the negotiations.
MR. THAYER continued to describe bargaining. He explained that
if negotiations don't lead to agreement and mediation fails,
employees (except protective service personnel) have the right
to strike. Employees who strike do not get paid, but may not be
terminated because they choose to lawfully strike. Striking
employees may be replaced temporarily for the duration of the
strike, but only under certain circumstances can they be
permanently replaced. He emphasized that the State's goal is to
reach a fair and balanced agreement.
MR. THAYER explained that contracts are generally three years in
duration, but may be shorter. The State typically bargains 3-5
separate agreements each year.
9:09:08 AM
MR. THAYER described the three strike classes for public
employees specified under AS 23.40.200.
Strike Class 1
This class is composed of police and fire protection employees,
jail, prison and other correctional institution employees, and
hospital employees. These employees may not strike.
Strike Class 2
This class is composed of public utility, snow removal,
sanitation and educational institution employees other than
employees of a school district, a regional educational
attendance area, or a state boarding school, and AMHS vessel
employees through the Alaska Labor Relations Agency decision.
These employees may strike after mediation, subject to a vote in
which a majority of members vote by secret ballot. The strike
may only last for a limited time which is determined by the
interests of the health, safety or welfare of the public.
Strike Class 3
This class is composed of all other public employees who are not
included in Strike Classes 1 or 2. These employees may strike if
a majority of the employees in the collective bargaining unit
vote by secret ballot to do so. The contracts that are being
bargained this year fall into the first two classes. Public
Safety is in Strike Class 1 and AVTECTA and the Marine Highway
fall into Strike Class 2.
9:10:35 AM
MR. THAYER spoke to a chart that shows the bargaining units (BU)
that will have contracts that expire in the next three years.
Contracts That Expire on June 30, 2014
# of Employees
AVTECTA - Alaska Voc/Tech Teachers Association 41
IBU - Inlandboatmen's Union of the Pacific 669
MEBA - Marine Engineers' Beneficial Association 107
MMP - Masters, Mates and Pilots 98
PSEA - Public Safety Employees Association 509
Contracts That Expire on June 30, 2015
ACOA - Alaska Correctional Officers Association 885
LTC - Public Employees, Local 71 2,274
TEAME - Teachers' Ed Assoc. of Mt. Edgecumbe 199
Contracts That Expire on June 30, 2016
8,931
ASEA - Alaska State Employees Association 2,274
APEA - Alaska Public Employees Association 199
CEA - Confidential Employees Association 199
Non-Covered - Exempt, Part Exempt and Excluded 1,370
CHAIR DYSON asked if some Village Public Safety Officers are in
the PSEA bargaining unit.
KATE SHEEHAN, Deputy Director, Department of Administration
(DOA), said no; PSEA represents Alaska State Troopers and
Airport Police and Fire Officers.
MR. THAYER highlighted that the contracts that will be
negotiated this year represent 1,424 employees, whereas the
contracts that were negotiated last year represented about
11,000 employees.
9:11:45 AM
MR. THAYER reviewed average yearly base salaries for FY13.
Avg. Yr. Pay
AVTECTA - Alaska Voc/Tech Teachers Association $75,876.24
IBU - Inlandboatmen's Union of the Pacific $51,334.92
MEBA - Marine Engineers' Beneficial Association $73,228.68
MMP - Masters, Mates and Pilots $85,077.00
PSEA - Public Safety Employees Association $84,632.40(AA)
$70,169.22(AP)
ACOA - Alaska Correctional Officers Association $61,716.48
LTC - Public Employees, Local 71 $54,697.80
TEAME - Teachers' Ed Assoc. of Mt. Edgecumbe $64,363.20
ASEA - Alaska State Employees Association $57,087.72
APEA - Alaska Public Employees Association $82,825.68
CEA - Confidential Employees Association $58,096.20
Non-Covered - Exempt, Part Exempt and Excluded $99,474.48
He explained that the AA designation signifies Troopers and the
AP designation signifies Airport, Police and Fire Officers. He
related that three of the negotiations this year include the
most highly compensated.
CHAIR DYSON asked what the starting salary and highest salary
would be for an employee in the MMP Unit.
MR. THAYER deferred the question about the highest salary until
later in the presentation and offered to follow up with
information on the starting compensation.
CHAIR DYSON asked if total personnel costs add 30-40 percent to
the salary.
MR. THAYER deferred the question until later in the
presentation.
SENATOR GIESSEL asked how many of the members of the Masters,
Mates and Pilots Bargaining Unit are Alaska residents.
MR. THAYER estimated that about 90 percent are residents.
MR. THAYER addressed personnel data for the AVTECTA Bargaining
Unit. He explained that there are 41 members; the average age of
the members is 51; and the average years of State service is
8.4. The average monthly and annual pay for permanent full-time
members is $6,323.02 and $75,876.24 respectively. The total
gross pay in FY13 is about $3 million. This includes premium pay
but excludes benefits, which run about 49 percent of costs.
9:14:31 AM
MR. THAYER reviewed personnel data for the IBU Bargaining Unit.
The IBU has 669 members; the average age of the members is 47;
and the average years of State service is 6.88 years. The
average monthly and annual pay for permanent full-time members
is $4,277.91 and $51,334.92 respectively. Ten percent of these
members reside out of state. Excluding benefits, the total gross
pay in FY13 is about $34 million.
CHAIR DYSON asked if these are deck hands and food service
employees.
MR. THAYER said yes.
CHAIR DYSON offered his understanding that these employees need
to be Coast Guard certified.
MR. THAYER agreed.
9:15:51 AM
MR. THAYER reviewed personnel data for the MEBA Bargaining Unit.
The MEBA has 107 bargaining members, 38 percent of which reside
out of state. The average age of these members is 47 and the
average years of State service is 6.31 years. The average
monthly and annual pay for permanent full-time members is
$6,102.39 and $73,228.68 respectively. Excluding benefits, the
total gross pay in FY13 is about $10 million.
9:16:22 AM
SENATOR WIELECHOWSKI asked about the possibility of increasing
the number of in-state residents among these bargaining members.
He queried whether there is a lack of Alaskan residents for
these jobs.
MR. THAYER replied that the cost of living differential (COLD)
was put in place in 1977 to help addresses this issue by paying
Alaska residents more, but it's an ongoing struggle and concern.
CHAIR DYSON said he assumes that they commute to work.
MR. THAYER confirmed that the employees are responsible for
their transportation to their home port.
CHAIR DYSON asked him to comment on scheduling and the time the
members spend aboard as opposed to time off.
MS. SHEEHAN explained that the typical schedule is two weeks on
and two weeks off, but on some vessels the marine engineers work
28 days straight.
CHAIR DYSON asked if the non-resident employees work on the
vessels that go to Bellingham, Washington.
MS. SHEEHAN said yes, but Bellingham isn't a change port so they
are responsible for getting to wherever their bid job happens to
be.
SENATOR WIELECHOWSKI asked if the State needs to work with the
university to provide training to help increase Alaska hire.
MR. THAYER emphasized that having 38 percent of a union living
out of state will be a conversation at the bargaining table.
CHAIR DYSON offered his understanding that there are private
schools in Alaska that provide required Coast Guard training and
certification.
9:19:37 AM
MR. THAYER reviewed personnel data for the Masters, Mates &
Pilots Bargaining Unit. There are 98 members in this bargaining
unit; the average age of the members is 44 and the average years
of State service is 11.39 years. Their average monthly and
yearly pay is $7,089.75 and $85,077.00 respectively. The total
FY13 gross pay excluding benefits is a little over $11 million.
He noted that 19 percent of the union membership resides out of
state.
CHAIR DYSON offered his understanding that federal law cannot
discriminate against employees that reside out of state.
MR. THAYER agreed.
9:20:52 AM
MR. THAYER reviewed the contract negotiations underway for the
PSEA Bargaining Unit. The bargaining unit has 201 Troopers and
78 Airport, Police and Fire Officers. The average age of
Troopers is 42 and 37 for Airport, Police and Fire Officers. The
average years of State service for Troopers is 9.62 and 7.71 for
Airport, Police and Fire Officers. The average monthly pay for
permanent full-time Troopers is $7,052.70 and $5,847.46 for
Airport, Police and Fire Officers. The average yearly salary for
permanent full-time members is $84,632.40 for Troopers and
$70,169.52 for Airport, Police and Fire Officers. The FY13 gross
pay, excluding benefits, is about $42.5 million for Troopers and
about $6 million for Airport, Police and Fire Officers.
He noted that further in the presentation there would be
additional discussion about Trooper salaries.
SENATOR WIELECHOWSKI asked about staffing levels and if some
Troopers are forced to work a lot of overtime.
MR. THAYER replied that will be a point of discussion at the
bargaining table. He added that some of the high salaries are
very understandable. For example, the Trooper whose set salary
is $202,000 lives in Dutch Harbor and is on sea duty.
SENATOR WIELECHOWSKI asked what the average overtime levels are
for Troopers.
MR. THAYER offered to follow up with the information. He added
that there tends to be more overtime in rural Alaska because
Troopers travel between villages.
9:23:18 AM
SENATOR GIESSEL asked how the wages for State Troopers compare
to wages for the Anchorage or Soldotna police departments.
MR. THAYER offered to follow up with the information.
SENATOR GIESSEL related that her district includes a large rural
area on the north side of the Kenai Peninsula and the commander
in that area indicated that he has trouble filling positions
because of the wage disparity. She thanked him checking into
that.
CHAIR DYSON offered his understanding that the assignments for
both the Marine Highway System and Troopers is based on
seniority, as is access to overtime hours.
MR. THAYER agreed.
CHAIR DYSON offered his understanding that in the Marine Highway
System the most experienced vessel masters have chosen some of
the easiest routes in Southeast rather than going to Dutch
Harbor in the winter. He observed that the most experienced
employees aren't necessarily where they're needed most.
MR. THAYER agreed that members with seniority bid on jobs that
are beneficial to themselves and possibly their families.
CHAIR DYSON asked if other jurisdictions have found a
satisfactory solution.
MR. THAYER said Alaska is looking in particular at how Alaska
might mirror some of things that the State of Washington has
done to its marine system.
9:27:37 AM
SENATOR WIELECHOWSKI asked if the geographic differential is or
is not working.
MR. THAYER replied that will be addressed at the bargaining
table in the context of the recent geographic differential
studies that were implemented in other bargaining units. He said
that the cost of living differential that was established in
1977 doesn't hold true today, but it is a subject of mandatory
bargaining.
9:28:46 AM
MR. THAYER discussed expenses versus revenue trends, using
Marine vessel operations as an example. He said the total
expenditures of the Marine Highway System are approaching $150
million a year, with personal services representing $80 million
of that cost. The total revenue is $40-$45 million. He said he
anticipates that the State will have to subsidize the Marine
Highway System with about $100 million a year, and that isn't
sustainable. He noted that the administration has taken the
position that the use of day boats will be a cost-cutting
measure, but he believes there will also have to be other ways
to lower costs and operate more efficiently.
9:30:50 AM
CHAIR DYSON expressed interest in the committee seeing the
results of a study he requested several years ago that showed
that, per capita, a disproportionate amount is spent on
transportation in Southeast.
9:32:25 AM
MR. THAYER spoke to the study. It showed that Highways served
674,000 primary users at a net cost to the State of $28 million,
or $42 per capita. Rural Aviation served 207,000 primary users
at a net cost of $43 million, or $166 per capita. The Marine
Highway System served about 107,000 users at a net cost to the
State of $118 million, or $1,100 per capita. He offered to
provide copies of the study.
CHAIR DYSON asked if it would be appropriate to look at the
railroad in the same context.
MR. THAYER pointed out that the railroad is used for tourism in
the summer and isn't considered a major means of transportation
for residents. He acknowledged that residents and tourists
weren't differentiated on the Marine Highway System.
SENATOR OLSON asked if there was an independent study that
validated those numbers.
MR. THAYER replied the numbers came from a study by the
University of Alaska Anchorage (UAA) Institute of Social and
Economic Research (ISER), and he didn't know about their
validity or the methodology.
9:35:01 AM
SENATOR WIELECHOWSKI asked what amount would be sustainable for
the Marine Highway System.
MR. THAYER replied that is a decision for the governor and
legislature. He expressed hope about having a conversation about
personnel costs in this bargaining cycle, but he didn't believe
there is a single fix. Other issues include scheduling,
salaries, the type of vessels and how they're operated.
CHAIR DYSON expressed interest in knowing the current cost of
fuel compared to what it was a decade ago.
MR. THAYER offered to follow up with the numbers. He explained
that the numbers in the presentation are from 2005 to the
present to take the fast ferries into account.
CHAIR DYSON asked Mr. Thayer to continue the presentation.
9:37:22 AM
MR. THAYER reviewed examples of monetary terms found in
collective bargaining agreements. According to state statutes,
marine highway vessel employees residing in Alaska receive a
cost of living differential (COLD) payment, either in a lump sum
each pay period or built in to their hourly rates. MMP and MEBA
members receive an additional $500-$600 each pay period, and the
COLD is embedded in the hourly wage for IBU members.
He mentioned travel pay and non-watch pay as other monetary
terms that could be topics of conversation for the bargaining
table. Travel pay is pay for time spent traveling outside of
work hours to a temporary work location.
CHAIR DYSON asked for an explanation of non-watch pay.
MS. SHEEHAN explained that masters, mates, and pilots receive
non-watch pay in lieu of daily overtime, although MMP members
can get both non-watch pay and overtime on the fast ferries.
CHAIR DYSON asked the justification for both non-watch pay and
overtime on the fast ferries.
MS. SHEEHAN replied she would have to look at the bargaining
notes to understand the intent at the time it was negotiated.
9:40:06 AM
MR. THAYER continued to discuss monetary terms. He noted that
the PowerPoint uses an arbitrary one percent increase for wages
for demonstration purposes. He acknowledged that legislative
leadership indicated a preference in a letter last year that the
wages would not increase for any of the bargaining units. He
reviewed the illustrations of one percent wage increases for the
three unions:
· Inlandboatmen's Union of the Pacific: In FY15 the
increase would be about $500,000; the cumulative total
over three years would be about $5 million.
· Marine Engineers' Beneficial Association: In FY15 the
increase would be about $156,000; the cumulative total
over three years would be about $1.6 million.
· Masters, Mates & Pilots: In FY15 the increase would be
$166,000; the cumulative total over three years would be
about $1.7 million. He highlighted that, cumulatively, a
one percent increase adds about $8 million to the cost of
operating the ferries at the end of three years.
MR. THAYER reviewed the cost of living differential (COLD)
payments:
· Inlandboatmen's Union of the Pacific: The COLD is embedded
in the hourly rate, which could see an increase of $4.06 to
$5.14 per hour for employees whose primary residence is
within Alaska.
· Marine Engineers' Beneficial Association: In both FY11 and
FY12 the value of the COLD is a little over $1 million.
· Masters, Mates & Pilots: In both FY11 and FY12 the value of
the COLD is a little over $1 million.
MR. THAYER highlighted that, combined, the State pays almost $8
million for IBU, MEBA, and MMP members living in Alaska. He said
that's something to address at the bargaining table in light of
the recent geographic differential studies.
He noted that the forgoing numbers do not reflect vacancy or
turnover so it's a very high representation.
9:43:08 AM
SENATOR WIELECHOWSKI asked if the 2.5 percent salary increases
that the Personnel Board recommended for commissioners and the
governor sound reasonable.
MR. THAYER replied he wasn't prepared to speak to those
recommended salary increases, but his understanding was that for
commissioners it's tied to what has been negotiated and passed
by the legislature.
CHAIR DYSON asked how residency is ascertained
MR. THAYER deferred to Ms. Sheehan.
MS. SHEEHAN explained that employees are required to annually
fill out a form that lets the State know whether or not their
primary place of abode is within Alaska. If there is any
question, additional information like utility bills and travel
information is requested. The information is also aligned with
the permanent fund rolls.
9:45:56 AM
MR. THAYER continued to discuss monetary terms. He explained
that the consumer price index (CPI) increase is a factor,
particularly for the MMP, MEBA and IBU bargaining units, but it
isn't used in the bargaining methodology. He reviewed the
following chart:
Year CPI Increase MMP/MEBA IBU GGU
2004 2.6% 7.0% 7.0% 0.0%
2005 3.1% 6.0% 6.0% 1.5%
2006 3.2% 6.0% 6.0% 2.0%
2007 2.2% 3.0% 0.0% 4.0%
2008 4.6% $2,381 Lump Sum $2,137 Lump Sum 3.0%
2009 1.2% 5.0% 5.0% 3.0%
2010 1.8% 4.0% 4.0% 1.0%
2011 3.2% 0.0% 2.0% 2.0%
2012 2.1% 0.0% 2.0% 2.0%
2013 Unknown 0.0% 1.0% 1.0%
TOTAL 24% 31% + $2,381 33% + $2,137 19.5%
He maintained that the forgoing shows that the State has been
fairly generous with cost of living increases, well above the
CPI and in some cases above the GGU.
CHAIR DYSON asked if the CPI is national or state.
MR. THAYER replied it's the Anchorage-based CPI. He also noted
that the GGU increases do not include step increases that are
based on longevity, because the maritime bargaining is strictly
cost of living.
9:48:49 AM
MS. SHEEHAN reviewed the following chart and key that compares
hours of leave accrual per calendar year for each of the
bargaining units and ACOA:
Years
of
Service IBU MEBA MMP ACOA
Annual Sick A-days Personal A-days Annual Sick Personal
(2)
1-2 84 180 1460 118 2929 84 180 192.14
2-3 168 180 1824.8 250 2929 168 180 239.98
3-4 252 180 1824.8 318 2929 252 180 239.98
(1)
4-5 336180 1824.8 390 2929 336 180 239.98
5-7 336 180 2190 468 2929 420 180 288.08
(5)
7-10 336 180 2555551 2929 504 180 288.08
(4) (5) (4)
10+336 180 2555638 2929 504180 336.18
KEY:
(1) If hired before 2008 the accrual increases to 420
hours per year after 5 years of service.
(2)Engineers working on the M/V Aurora and the M/V
Tustumena must have 5 years of service with AMHS to be
eligible for A-days. Engineers working on the M/V
Kennicott do not have to meet a threshold before
receiving A-days.
(3)MMP members do not receive A-days. All members who
have achieved seniority (12 months of service) receive
$57.86 bi-weekly in lieu of A-days.
(4) If hired before 1985 the accrual increases to 588
hours per year after 10 years of service.
(5) If hired before 1985 the accrual increases to one
day of leave for one day of work after 9 years of
service. This equates to 2920 hours.
MS. SHEEHAN explained that only IBU and MMP accrue both annual
and sick leave. All the other unions have been converted to
personal leave. IBU also has A-days, but those were bargained
out of the MMP contract in 2000. In lieu of A-days, MMP members
receive a lump sum payment. She further explained that A-days
for MEBA mean that working for a day earns a day of paid leave;
this is unlimited so a member could be in pay status up to 365
days a year. IBU members also accrue A-days but they're limited.
She pointed out that personal leave for ACOA was included
because it is somewhat comparable to the marine units; the
majority of those members work 7 days on/7 days off.
9:53:01 AM
MR. THAYER reviewed the following chart that shows the three
most highly compensated employees in the four bargaining units:
MMP Reg. Pay Premium Pay Other Pay Total
Master 1 $120,588.34 $45,395.73 $2,304.64 $168,288.71
Master 2 $111,179.90 $54,632.78 $2,304.64 $168,117.32
Master 3 $130,107.14 $29,702.81 $7,081.64 $166,891.59
MEBA Reg. Pay Premium Pay Other Pay Total
Chief Engineer
$143,637.22 $17,853.70 $22,429.40 $183,920.32
Chief Engineer
$149,127.64 $16,270.15 $10,085.08 $175,482.87
1st Assist. $101,701.15 $39,858.12 $19,858.14 $161,417.41
IBU Reg. Pay Premium Pay Other Pay Total
PSWIC $74,455.05 $34,928.34 $13,039.60 $138,608.89
Able Seaman $80,700.31 $34,286.68 $2,756.76 $117,743.75
A/B Bosun $68,342.79 $28,767.04 $19,653.96 $116,763.79
PSEA Reg. Pay Premium Pay Other Pay Total
Trooper $191,971.97 $7,105.08 $3,756.00 $202,833.05
Sergeant $153,067.98 $46,733.56 $756.00 $200,557.54
Sergeant $137,283.50 $54,776.52 $3,756.00 $195,816.02
He explained that the master has overall responsibility and
authority for all shipboard activities, safe navigation of the
vessel, and is the management representative of the Alaska
Marine Highway System. Chief engineers are responsible to the
master for the administration and supervision and safe
operations of all machinery and equipment aboard the vessel. The
first assistant assumes the duties and responsibilities of the
chief engineer in his/her absence.
For the IBU, the Passenger Service Worker in Charge (PSWIC)
leads the vessel PSWs in providing food and beverages, passenger
assistance, and cleaning aboard the fast ferries. Able Bodied
Seamen stand navigational watch and are responsible to the
licensed deck officer on watch during offloading activities. The
Able Bodied Bosun is responsible for making sure that members of
the deck crew perform their duties properly and safely.
For the PSEA, the Trooper serves in Dutch Harbor and the
Sergeants are located in Kotzebue and Bethel. These salaries are
driven by the geographic differential and overtime.
9:56:30 AM
CHAIR DYSON asked if there are provisions in the bargaining
units that limit the ability of management to use modern control
systems in order to reduce crew size for the operation of the
vessel.
MR. THAYER replied the Marine Highway System staffs vessels
according to Coast Guard regulations, but the day boats require
fewer crew members than the larger ferries.
9:58:23 AM
MR. THAYER reviewed health insurance for public employees. He
said that the 41 members of AVTECTA, 669 members of IBU, and 107
members of MEBA are covered by AlaskaCare. The 98 members of MMP
and 279 members of PSEA are covered by Health Trusts that are
outside the state system, although the state pays an employer
contribution.
CHAIR DYSON asked the difference between the employer
contributions for AlaskaCare versus the Health Trusts.
9:59:40 AM
MR. THAYER replied that it's negotiated but it's generally the
same benefit credit as under AlaskaCare. This year it's about
$1,380.
MR. THAYER reviewed a chart showing that the total leave
liability for FY13 is close to $170 million. He noted that
legislation and negotiations last year for most unions capped
leave at 1,000 hours, increased mandatory usage, and reduced
leave for new employees. He said the state is being very
transparent about its intention this year to bargain these same
leave terms for Public Safety employees.
SENATOR WIELECHOWSKI asked if there are issues with Public
Safety employees being denied leave because of staff shortages.
MR. THAYER acknowledged that there are issues and that those
items need to be discussed at the bargaining table. Negotiations
with the other unions allow leave to be held over if it was
denied. Another accommodation was that employees did not lose
leave if they had accumulated 1,000 hours.
10:02:40 AM
MR. THAYER reviewed the top ten examples of leave liability.
Personal Annualized Value of Bargaining
Leave Hourly Rate Leave Unit
Balance Accrued
3,810.56 $63.22 $240,903.60 Supervisory
3,170.57 $75.46 $239,251.21 Public Safety
3,363.58 $63.98 $215,201.85 Supervisory
3,183.61 $60.49 $192,576.57 Supervisory
3,938.50 $45.56 $179,438.06 Supervisory
3,159.65 $54.44 $172,011.35 Gen. Government
4,469.96 $31.80 $142,144.73 Confidential
Correct. Officers
3,141.19 $40.04 $125,773.25
3,130.20 $26.17 $81,917.33 Gen. Government
3,185.66 $24.74 $78,813.23 Gen. Government
TOTAL 34,553.48 $1,668,031.18
He said the State needs to do a better job of educating
employees that it is better to transfer leave to a deferred
compensation account tax free than to take it in a lump sum at
retirement, because the IRS will take a majority of it.
SENATOR WIELECHOWSKI asked if there are provisions in the Public
Safety contract that say employees who are hurt while working
may lose their job if they're unable to return to work within a
certain period of time.
MS. SHEEHAN explained that a provision called administrative or
injury leave guarantees employees a year's worth of base pay in
order to recover from an injury. Once the year is up and the
leave entitlements are exhausted, the employee could be
separated. This is standard for all state employees, she said.
SENATOR WIELECHOWSKI observed that Public Safety officers have
high risk occupations and they probably bank a lot of leave
because their careers are potentially over if they're injured.
He expressed hope that the State would take that into
consideration as it negotiates the PSEA contract.
10:05:20 AM
MR. THAYER said the State of Alaska is very generous and that
definitely is taken into consideration. He continued to point
out that the ten employees highlighted didn't lose their leave,
but once it falls below 1,000 hours all the caps and mandatory
usage will apply.
MR. THAYER explained that the State of Alaska looks to
Washington State when bargaining with the marine unions, because
it's the closest comparison to the AMHS. The State looks at the
following:
· Fiscally feasible agreements within a fiscally restricted
environment.
· Limitations on overtime as a percentage of straight time,
with the goal of 5 percent or less.
· Removing Masters/Captains from the union that represents
other crew on the ferries to increase management presence
on the ferry, with the goal of increasing accountability
and responsibility.
· Reduce the amount of paid travel time.
· Align benefits with other State of Alaska employees.
He reiterated that DOA is being very transparent with the PSEA
union that what is being discussed today will be presented at
the bargaining table. That is what was in the contracts last
year, he said.
10:08:10 AM
CHAIR DYSON called an at-ease.
10:17:22 AM
CHAIR DYSON reconvened the meeting.
10:17:37 AM
MR. THAYER stated that he wanted to correct a previous statement
about working conditions. He clarified that some wages, hours,
terms, and conditions are negotiated at the bargaining table,
primarily with PSEA.
CHAIR DYSON said he thought it would deal with living and safety
conditions, particularly the Marine Highway System and perhaps
Public Safety officers living in remote locations in temporary
housing.
MR. THAYER confirmed that those conditions are sometimes
negotiated.
CHAIR DYSON asked if grievances about safety or living
conditions often become part of the bargaining process.
MS. SHEEHAN explained that grievances, by definition, are a
violation of the collective bargaining agreement, but there is a
right to file a complaint and some of those things come up at
the bargaining table. Mandatory subjects to bargain include
wages, hours, and terms and conditions of employment, but
permissive subjects may also be bargained.
CHAIR DYSON asked if it's fair to infer that if the arbitrator
rules in favor of the complaint, that subject would
automatically become part of the next bargaining agreement for
that unit.
MS. SHEEHAN said it's possible, and added that if the arbitrator
made a ruling and DOA wanted a different interpretation to apply
it would need to be bargained.
10:20:50 AM
MR. THAYER reviewed the following bargaining priorities and
concerns for the Marine Units:
· Fiscally prudent cost of living increases or decreases.
· Provide increased operational flexibilities in the
vessels.
· Address the conflict of interest aboard vessels between
Masters and fellow union members.
· Eliminate pass privileges for dependents and family
members. He noted that marine highway employees' family
members currently receive free passes to ride the AMHS,
which is a benefit not afforded other state employees.
· Limit or eliminate cash advances on salaries during
vessel sailing. This is an old maritime provision that
dates back to times when vessels were sailing between
countries. It is clearly before ATMs which are available
in every port and sometimes aboard the vessel.
· Obtain voluntary, balanced agreements for all parties.
· If a strike occurs, continue to provide essential
services to citizens.
· Clarify limitations on the right to strike or the right
to cross a picket line.
CHAIR DYSON asked if an agreement could be reached that doesn't
prohibit essential crew members from striking.
MR. THAYER replied it is DOA's belief that AMHS vessel
employees, who are in Strike Class 2, have the right to strike,
but provisions in statute allow the state to file an injunction
forcing the employees back to work while negotiations or
arbitration continues. He noted that strike plans were also
updated in the negotiations last year.
MR. THAYER reviewed the following bargaining priorities and
concerns for the Public Safety Employees Association (PSEA).
· Fiscally prudent cost of living increases.
· Reducing the cost of longevity steps, or pay increments.
These are the same provisions that have been negotiated
with other unions.
· Reduce the legacy costs of leave liability.
· Provide increased operational flexibility.
· Obtain a voluntary, balanced agreement or prevail in
interest arbitration if agreement cannot be reached.
10:27:42 AM
MR. THAYER discussed bargaining priorities and concerns for the
Alaska Vocational Technical Center Teachers' Association
(AVTECTA).
· Fiscally prudent cost of living increases.
· Revise yearly step increases to be consistent with reducing
the cost of longevity steps found in other agreements.
· Obtain a voluntary, balanced agreement.
· Review leave benefits, which are slightly different from
other state employees.
· Re-define layoff language to be more in alignment with
other state employees.
CHAIR DYSON asked him to comment on the surprisingly large
AVTECTA salaries compared to the other categories of employees.
MR. THAYER said the salaries reflect that these employees are
basically adjunct professors.
MS. SHEEHAN added that these employees have salary schedules
that are similar to teachers; the step and range depends on
education level and experience.
10:29:32 AM
MR. THAYER discussed the following next steps:
· Once the Department of Administration submits the monetary
terms of an agreement, the legislature decides whether or
not to fund the monetary terms, according to AS 23.40.21.
If the legislature fails to fund the monetary terms of an
agreement, the next steps vary by bargaining unit and may
be affected by whether a tentative agreement was reached
with sufficient time to permit submittal by the 60th day of
the session. For some, impasse is considered to exist and
for others the parties have 10 days to reach agreement.
However, each situation must be evaluated and is fact-
specific.
· If the monetary terms of the parties' agreement are
submitted to the legislature after the 60th day of the
session, that does not prevent the legislature from either
considering or funding the agreement.
· The appropriation is subject to the ratification of the
collective bargaining agreement by the union's membership.
If a union fails to ratify the agreement, the funding is
reduced proportionately.
10:31:23 AM
SENATOR WIELECHOWSKI asked if there were requests for outside
counsel to assist in the negotiations.
MR. THAYER replied that the legislature approved funding for DOA
to contract a law firm to help, primarily looking at trends in
other states. The $50,000 a year contract started last year and
will continue for the next three years.
SENATOR WIELECHOWSKI asked for a copy of the contract, whether
there was an RFP, and information about the firm. He commented
on the number of attorneys employed by the Department of Law and
the Department of Labor and Workforce Development, and expressed
surprise that it was necessary to go outside the state to hire a
firm to do this work.
MR. THAYER said there was an RFP and no law firms in Alaska came
forward with a successful proposal. He agreed to follow up with
the information.
SENATOR WIELECHOWSKI asked the name of the firm and the hourly
billing rate.
MR. THAYER said he wasn't sure on the hourly billing rate, but
the firm is Clark Baird Smith LLP and they're located in
Rosemont, Illinois. They primarily work for local governments.
CHAIR DYSON asked him to comment on the allegation that the
arbitration process often doesn't work well for the employer.
MR. THAYER said it goes both ways, but DOA does have concerns
with some arbitrator decisions. For example, a case pending
before the Alaska Supreme Court is one of a State Trooper who
arrested a husband on a domestic violence charge. Several hours
later, while the husband was in jail, the Trooper went back to
the house and had sex with the wife with their minor children in
the house. The Trooper was dismissed but put back to work by an
arbitrator with three days suspension.
10:36:52 AM
MS. SHEEHAN provided another example. A juvenile justice officer
was spit upon by a youth who was in custody, and the officer
punched the youth in the face. The officer was dismissed and an
arbitrator put him back to work. She said there are also
examples of arbitrations that illustrate erosion of management
rights such as the recent arbitration involving correctional
officers and moving to a new schedule.
MR. THAYER added that the correctional officer remedy would cost
the state upwards of $14 million annually. DOA is appealing that
remedy through the judicial system, and is unwilling to ask the
legislature for this appropriation until they have exhausted
their management rights for the remedy since they disagree with
the cost.
CHAIR DYSON asked if in North America another model of
arbitration might be found that works better.
10:39:23 AM
MS. SHEEHAN replied there are various methods that states have
incorporated. For example, the Anchorage Police Department (APD)
has a clause in its collective bargaining agreement that sends
discipline grievances to a three-person committee comprised of
management and labor. She noted that the Public Employment
Relations Act (PERA) requires binding arbitration.
CHAIR DYSON asked if current statutes allow DOA to move to a
committee system like APD's for disciplinary grievances.
MS. SHEEHAN replied that would need to be bargained because
arbitration is within the collective bargaining agreements.
CHAIR DYSON restated the question.
MS. SHEEHAN said she would have to do further legal research.
CHAIR DYSON commented on some amazing grievances that were filed
while he worked on the North Slope. He asked for examples of
extreme arbitrations.
MR. THAYER said there have been arbitrations over the type of
potato chips served on AMHS vessels and the type of free lattes.
CHAIR DYSON asked about an arbitration that is forcing the state
to pay employees for time they didn't actually work.
MS. SHEEHAN said the most obvious is if an employee is dismissed
and put back to work, but another example is a correctional
officer who was skipped over when he signed up for overtime and
was awarded the overtime pay in the arbitration. The State paid
the overtime twice, and because the state was unsuccessful in
bargaining a different remedy, it's still current practice.
10:46:29 AM
SENATOR GIESSEL asked how much the state spends annually on
arbitrations.
MS. SHEEHAN said the arbitrator fees average $10,000 but go as
high as $25,000, and the bargaining agreements generally have a
loser pays provision. She calculated that in 2013 DOA has won
about half of the 12 to 14 arbitrations it has had. She noted
that there are also costs associated with going to arbitration.
SENATOR WIELECHOWSKI asked how many state employees fall under
collective bargaining.
MS. SHEEHAN said there are about 15,000.
SENATOR WIELECHOWSKI calculated about $150,000 in arbitration
costs for 15,000 employees.
MS. SHEEHAN responded that most arbitrators charge about $1,800
per day.
SENATOR WIELECHOWSKI asked which arbitrators are used.
MS. SHEEHAN explained that the union and state agree on a panel
of arbitrators. A list of 25 names is requested from the Federal
Mediation and Conciliation Services (FMCS) in Seattle, and the
union and the state settle on 7 or 11 depending on the
collective bargaining agreement. Responding to a further
question, she explained that an arbitration generally takes 2-3
days. If the case is complex it could take up to 5 days and a
letter of warning could take 1 day.
SENATOR WIELECHOWSKI asked for information on all the
arbitrations for the last two years, the win loss ratio, and the
total costs.
MS. SHEEHAN agreed to follow up with the information.
CHAIR DYSON thanked Mr. Thayer and Ms. Sheehan, and asked the
representatives from the bargaining units to comment on the
presentation and discussion.
10:52:35 AM
FATE PUTMAN, Assistant Executive Director, Alaska State
Employees Association (ASEA) General Government Unit (GGU), said
the ASEA/GGU negotiations were finished last year, and he came
to observe the administration's presentation. Responding to a
further question about the process, he stated that arbitrations
allow union members to realize relief without having to go to
court. His perspective is that it's been a successful program.
10:54:10 AM
JAKE METCALFE, Executive Director, Public Safety Employees
Association (PSEA), stated that contract negotiations for PSEA
will start next week. He provided a history of arbitration and
the union's duty of fair representation process. He explained
that if there has been a contract violation and a member wants
to dispute it, a committee within the union looks at the
grievance and votes on whether or not it goes forward. He
mentioned the considerable time and expense of going to
arbitration, and emphasized that the union works very hard to
resolve cases before they get to arbitration. However, he said,
PSEA oftentimes finds there is no interest in solving cases and
arbitration is the only alternative. The union has also found
that arbitrations don't get done quickly due to staff turnover
at the State. He opined that this is probably because people
that have the training to be labor negotiators can find work and
make more money somewhere else.
MR. METCALFE suggested that the legislature ought to look at how
to keep good people in jobs, and that without a retirement
system it's not possible. He said it's a major problem for
police officers in the state that they can't get a defined
benefit retirement, but they can get one in most other states.
The Soldotna Police Department that Senator Giessel referenced
has recruitment problems because of that. Being a police officer
is a physically demanding career and qualified people are better
off going where they can get a 20 year retirement system, he
said.
10:57:50 AM
SENATOR OLSON mentioned the example Mr. Thayer cited and
expressed moral outrage that the union would defend a person who
has been derelict in their duties.
MR. METCALFE said the union looks at whether the person has been
treated fairly and whether the contract has been violated. In
the case that Mr. Thayer mentioned, the arbitrator looked at the
facts of the case and found that the employee wasn't treated
fairly in the process. The employer signed a contract that
people will be treated fairly in discipline situations, and if
they're not the union will stand up and defend the dues paying
member. He offered to follow up with a copy of the arbitrator's
decision and the reasoning she used to give the employee his job
back. The court, too, will look at that information, he said.
SENATOR OLSON took issue with the unions' vigorous defense of
people that have committed inexcusable violations. He mentioned
the new stand your ground law.
MR. METCALFE suggested he read the arbitration decision and look
at the facts that were presented. He noted that the Alaska
Supreme Court will ultimately decide whether or not the
arbitrator made the right decision.
11:03:09 AM
SENATOR GIESSEL clarified that her question was about State
Troopers on the peninsula, and that they do have a defined
contribution retirement. She explained that the commander on the
peninsula indicated that filling the positions is challenging
because applicants often don't meet the requirements of the job.
In addition, it is a significant barrier that trainees at the
academy in Sitka aren't allowed to go home on the weekends
during the entire three-month training, she stated.
CHAIR DYSON said he assumes that it wasn't the union's position
that the man's behavior was appropriate, but that the process
wasn't handled according to the agreed standards.
MR. METCALFE confirmed that there is often conduct the union
doesn't agree with, but the union is concerned with conduct on
the job, whether the rules on the job are followed, and whether
the contract is abided.
CHAIR DYSON commented on the process professional boards use to
watch for bad conduct among members, and offered his assumption
that bargaining units don't have a similar internal process.
MR. METCALFE replied that the union doesn't typically remove
members, but it does have an internal process to tell members
their conduct was inappropriate and that the union would not go
forward with an arbitration. He stressed that PSEA has a strong
interest in making sure that its members are honest, because it
protects the industry. Furthermore, PSEA has helped members to
surrender their license when it's clear they won't prevail
before the watchdog, Alaska Police Standards Council.
CHAIR DYSON opined that Senator Olson reflects a passion that
all legislators share that the public has to be able to trust
the police and courts.
11:09:09 AM
SENATOR WIELECHOWSKI asked what the union is noticing with
recruitment and retention for Public Safety employees.
MR. METCALFE explained that PSEA is seeing State Troopers,
airport police and court service officers that are leaving once
they're vested and going to a place that has a defined benefit
retirement system. He talked about the concern that
understaffing drives up overtime and that this presents personal
problems for the employee and financial problems for the
employer. He concluded that for the public safety of the state,
those departments should be staffed properly.
CHAIR DYSON thanked the presenters.
11:13:14 AM
There being no further business to come before the committees,
Chair Dyson adjourned the Senate Labor and Commerce Standing
Committee and the Senate State Affairs Standing Committee
meeting at 11:13 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DOA-LaborContracts (11-07-13) Senate Joint Cmt.pdf |
SL&C 11/7/2013 9:00:00 AM |