SB 182-PUBLIC EMPLOYEE SALARY DIFFERENTIALS  9:34:01 AM CHAIR DYSON announced that the committee will take up SB 182, an act relating to the salary difference and collective bargaining agreements, subject to Public Employment Relations Act that are based on the difference of cost of living outside of the state and the cost of living within the state. He noted that a copy of a letter has been distributed to the committee from Mr. Bill Milks, Assistant Attorney General, Alaska Department of Law. He noted that Mr. Milks specializes in labor law. He explained that Mr. Milks' letter confirms that there is no legal or constitutional issue with the Senate State Affairs Committee or the Twenty Eighth Legislature in dealing with SB 182. He added that Mr. Milks stated that the consideration of SB 182 does not contravene the National Labor Relations Act. He said Mr. Milk states that if and whenever SB 182 might become law, then the underlying statutes would change; but any negotiations that are completed before that date would be under current law and have no effect. He said as he understands, the maritime unions' negotiations are ongoing and their contracts expire in June. He noted that the effective date for SB 182 is immediate. He revealed that if SB 182 passes the current legislative session before a contract is negotiated, the law will be in place. He asked Mr. Milks if his summary on the bill's impact on negotiations was accurate. 9:36:24 AM WILLIAM MILKS, Assistant Attorney General, Civil Division-Labor and State Affairs, State of Alaska Department of Law, Juneau, Alaska, answered yes. SENATOR WIELECHOWSKI addressed Section 17.02 of the Masters Mates & Pilots contract and noted that the contract says the following: The Cost of Living Differential (COLD) is a mandatory subject of collective bargaining; it should not be changed, modified, adjusted, re-determined, or altered in any way by the state unilaterally and no change shall be made without the consent and agreement with the union. He set forth that SB 182 was a timing issue and the Administration was arguing for a modification without union consent. He asserted that if the bill passes, the Administration was seeking to circumvent the collective bargaining agreement. SENATOR WIELECHOWSKI conceded that the issue does not pertain to the National Labor Relations Act, but does apply to the Public Employee Relations Act. He asserted that the modification from the bill was an unfair labor practice, particularly if SB 182 goes into effect before the end of the contract. He asked if there is Supreme Court case law on what he previously addressed. MR. MILKS replied that there is no Supreme Court case law that he is directly aware of. He explained that the point he was trying to make was that the agreement itself would continue for the term of its agreement. He stated that the section Senator Wielechowski mentioned is subject to negotiation like all of the terms of the contract and is subject to negotiation under the rules that apply, which are what the Public Employment Relations Act states right now. He remarked that the Alaska Department of Law could not envision unfair labor practice. He said he believed that SB 182 states that it does not affect the existing agreement and the existing agreement would continue to be in effect. 9:38:42 AM SENATOR WIELECHOWSKI noted that the bill has an immediate effective date. He set forth that if the bill goes into effect before the end of the contract, COLD statutorily goes away. He asked if it would be better for the bill to go in effect after the end of collective bargaining agreement. MR. MILKS replied that the second part of Senator Wielechowski's question is up to the Legislature. He remarked that as far as changing the terms of the current collective bargaining agreement, the change in law does not affect agreements that were entered prior to the effective date. SENATOR WIELECHOWSKI addressed the collective bargaining agreement from the Inland Boatmen's Union and read the following: This agreement includes a pay plan providing a cost of living differential between employees living in state and those living out of state in accordance to AS 23.40.210. He set forth that the collective bargaining agreement would be citing a statute that does not exist if the bill goes into effect prior to the end of the agreement. He asserted that the safer approach would be to have an effective date after the current collective bargaining agreement expires. CHAIR DYSON asked to clarify that the legal reference to the "State of Alaska" was a term of art that pertained to the executive branch that also includes the judicial and legislative branches. MR. MILKS answered that SB 182 addresses the entities covered under the Public Employment Relations Act. He explained that the law is referring to the general law of the State of Alaska. He reiterated that SB 182 also states that it does not affect agreements that are already in place. 9:41:39 AM CHAIR DYSON disclosed that he was thinking of the classic separation of powers and that a section of law noted could not bind and prohibit the Legislature from changing statute. MR. MILKS answered that he agreed. CHAIR DYSON announced that the Chair will entertain a motion. 9:42:18 AM SENATOR GIESSEL moved SB 182, labeled 28-LS1432\N from committee with individual recommendations and attached fiscal note. CHAIR DYSON asked if there was an objection. SENATOR WIELECHOWSKI announced that he objects. CHAIR DYSON asked if Senator Wielechowski cared to speak to his objection. SENATOR WIELECHOWSKI stated that SB 182 is fundamentally inappropriate for the Administration to come before the Committee during the middle of a collective bargaining agreement and support a change to what they agreed to. He set forth that the Administration specifically agreed to a provision that says they would not seek to change, modify, adjust, or alter in anyway without the consent of the union. He said the unions are not consenting and the bill potentially goes into effect before the expiration of the contracts. He said his second objection is his fundamental disagreement with what the Committee is trying to do which would result in a pay cut to Alaska employees while keeping the pay the same for out of state employees. SENATOR GIESSEL replied that she does not agree with Senator Wielechowski. She explained that SB 182 allows the unions to negotiate the wage they have been receiving as they negotiate the next contract. She set forth that there is nothing in the bill that forces a pay cut and the bill simply places the process in a negotiated arena. CHAIR DYSON noted that having been a mariner most of his life, he is very appreciative of the skills and experience that are necessary and it is very important for the passengers, particularly on the Alaska Marine Highway System (AMHS) to be safe. He stated that he expects the Administration will negotiate a contract that not only keeps, but recruits very qualified people. He said he understands the demand on the North American continent for experienced mariners and most "landsmen" have no idea how much of the world's commerce moves by sea. He noted his recognition and expects a responsible action from the Administration, treating the AMHS folks fairly. 9:44:54 AM CHAIR DYSON asked for a roll call vote. Senators Giessel, Coghill, and Chair Dyson voted yea; Senator Wielechowski voted nay, therefore, SB 182 moved out of the Senate State Affairs Standing Committee by a 3:1 vote.