Legislature(1995 - 1996)
02/07/1995 01:30 PM Senate L&C
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SENATE LABOR AND COMMERCE COMMITTEE
February 7, 1995
1:30 P.M.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator John Torgerson, Vice Chairman
Senator Mike Miller
Senator Jim Duncan
Senator Judy Salo
MEMBERS ABSENT
None
WITNESS REGISTER
Diane Corso
Labor Relations Manager
Division of Personnel/EEO
P.O. Box 110201
Juneau, AK 99811-0201
POSITION STATEMENT: Reviewed Bargaining Agreements
Dan Spencer
Division of Management and Budget
Office of the Governor
P.O. Box 110020
Juneau, AK 99811-0020
POSITION STATEMENT: Reviewed budgetary items.
COMMITTEE CALENDAR
Collective Bargaining Agreements
ACTION NARRATIVE
TAPE 95-3, SIDE A
Number 001
CHAIRMAN TIM KELLY called the Labor and Commerce Committee meeting
to order at 1:30 p.m. and announced they were hearing the details
on the monetary terms on collective bargaining agreements: the
unlicensed employees on the Alaska Marine Highway System, Labor
Trades and Crafts Unit represented by Public Employees Local 71,
and the supervisory unit represented by Public Employees local 71
and the supervisory unit represented by the Alaska Public Employees
Association.
DIANE CORSO, Labor Relations Manager, Division of Personnel,
reviewed the agreements.
SENATOR KELLY asked if these agreements were all made under the
Hickel administration. She replied that they were.
MS. CORSO started the review with the Inland Boatman's Union which
represents about 625 unlicensed employees on the vessels. She said
there was an increased rate from $30 to $45 retroactive to July 1,
1994 for Jones Act injuries or illnesses. The retroactive date
could have gone back as far as 1990, so this was good for the
state.
There was a pay increase of 3.5% in this agreement for all
employees other than the steward classification (about 1/3 of the
bargaining unit). The last increase was January 1, 1992, she
explained. There is also a pay increase for 2 specific job
classes, the Junior Engineers and the Oilers. Their pay was not
comparable to that in other similar jurisdictions and there was a
recruitment and retention problem as a result. To offset the pay
increase, it was agreed that for probationary employees their wage
rate would be reduced from 90% of the full wage rate to 80%.
MS. CORSO explained during the last administration a "health trust"
was offered in lieu of health insurance. Both PSEA (the Troopers
Union) and Labor, Trades, and Crafts have health insurance trusts.
Inland Boatmen's Union did not exercise that option for 1995.
Number 123
Travel pay was changed with some savings to the state.
In the Labor, Trades, and Crafts Agreement the main change was from
37 1/2 hours to a 40 hour work week. There is no general wage
increase in the hourly rate. However, there is roughly a 6.6%
increase in the cost of the current employees were they to continue
at the current staffing levels.
This group has a health insurance trust which is currently being
paid by the state at $524 per employee per month.
There were changes in the overtime provisions. One of the things
they have been trying to do over the years, Ms. Corso said, is to
bring their contractual requirements in line with the Fair Labor
Standards Act (FLSA). One of the major changes was to go from in-
pay status, counting leave and holidays for making the overtime
threshold to work which is what the FLSA requires. In other words
you have to actually work over 40 hours per week before you're
entitled to overtime pay.
Number 180
SENATOR KELLY asked if everyone on per diem is now on the new
current policy of direct expenses plus an allowance? Ms. Corso
said she didn't think this bargaining unit was covered by that.
One of the issues that has developed over the last couple of years
is the IRS requiring reporting monies in excess of their allowance
- like 28 cents for private conveyances for business purposes. The
state was paying 30 cents, so they had to report the difference
between the 28 and 30 as income for the IRS.
MS. CORSO continued saying that they increased the Legal Trust
contribution from $8.50 per employee per month to $10.00 effective
July 1. The last increase was in 1987 or 1988. They also agreed
to increase the stand-by for overtime ineligible employees.
Health insurance went up from $432.50 to $450 starting in 1996.
In the third year of this contract there would be reopeners for
wages, health insurance, and overtime provisions.
Leave accrual rates would change under this agreement with the
change to 40 hours. Thus leave would accrue at an increased rate.
In FY 97, Lincoln's Birthday, a floating holiday, will go away - a
savings to the state of $228,000 per year. This bargaining unit
also agreed to delete language on Presidential Proclamations of
holidays.
Number 291
SENATOR KELLY asked for figures on how much these things were going
to cost in general funds. MS. CORSO noted there were some
calculations in their packets.
Number 313
DAN SPENCER, Division of Budget Review, noted that there was a
summary of the costs attached to each agreement. The Inland
Boatmen's Union would be all Alaska Marine Highway System funds.
Labor, Trades, and Crafts he said had not been completely broken
down by funding source.
SENATOR KELLY asked what $2.6 million in "other funds" meant. MR.
SPENCER said there was a list of 27 other funds - a gamut from CIP
receipts to federal receipts, international airport funds, etc.
SENATOR KELLY thanked them for their testimony and noted the
Committee had a list of names referred to them for confirmation and
asked them to notify him if they had an objection.
Number 372
SENATOR KELLY adjourned the meeting at 1:57 p.m.
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