HOUSE LABOR AND COMMERCE STANDING COMMITTEE January 27, 1997 3:10 p.m. MEMBERS PRESENT Representative Norman Rokeberg, Chairman Representative John Cowdery Representative Bill Hudson Representative Joe Ryan Representative Gene Kubina Representative Tom Brice MEMBERS ABSENT Representative Jerry Sanders OTHER HOUSE MEMBERS PRESENT Representative John Davies COMMITTEE CALENDAR *HOUSE BILL NO. 68 "An Act relating to the exemption from the requirement for payment for overtime under a voluntary work hour plan; and providing for an effective date." - CSHB 68(L&C) HEARD AND HELD (* First public hearing) PREVIOUS ACTION BILL: HB 68 SHORT TITLE: VOLUNTARY FLEXIBLE WORK PLAN: OVERTIME SPONSOR(S): REPRESENTATIVE(S) THERRIAULT,Kelly,Vezey,James JRN-DATE JRN-PG ACTION 01/15/97 67 (H) READ THE FIRST TIME - REFERRAL(S) 01/15/97 67 (H) LABOR & COMMERCE 01/27/97 (H) L&C AT 3:00 PM CAPITOL 17 WITNESS REGISTER GENE THERRIAULT, Representative Alaska State Legislature Capitol Building, Room 421 Juneau, Alaska 99801 Telephone: (907) 465-4797 POSITION STATEMENT: Sponsor of HB 68. STEVE LANG, General Manager Fort Knox Mine P.O. Box 73726 Fairbanks, Alaska 99707 Telephone: (907) 490-2201 POSITION STATEMENT: Supported CSHB 68. TOM CASHEN, Commissioner Department of Labor P.O. Box 21149 Juneau, Alaska 99802 Telephone: (907) 465-2784 POSITION STATEMENT: Opposed CSHB 68. DON ETHERIDGE, Representative Alaska District Council of Laborers 8459 Kimberly Street Juneau, Alaska 99081 Telephone: (907) 586-3707 POSITION STATEMENT: Opposed CSHB 68. MANO FREY, Member Alaska AFL-CIO 2501 Commercial Drive Anchorage, Alaska 99501 Telephone: (907) 272-4571 POSITION STATEMENT: Testified on CSHB 68. RAYMOND SMITH, President Western Alaska Building Construction Trades Council 650 West International Airport Road Anchorage, Alaska 99518 Telephone: (907) 562-8843 POSITION STATEMENT: Opposed CSHB 68. TIM SHARP Laborers Union Local 942 1284 Lois Lane Fairbanks, Alaska 99712 Telephone: (907) 457-2749 POSITION STATEMENT: Opposed CSHB 68. RICK BOYLES Teamsters Union Local 959 751 Old Richardson Highway Fairbanks, Alaska 99701 Telephone: (907) 452-2859 POSITION STATEMENT: Testified on CSHB 68. ED KAREEN, Representative International Union of Operating Engineers Local 302 3800 East Huffman Anchorage, Alaska 99516 Telephone: (907) 561-5288 POSITION STATEMENT: Opposed CSHB 68. TOM ARMSTRONG, Construction Worker International Union of Operating Engineers Local 302 6430 East Ninth Avenue Anchorage, Alaska 99504 Telephone: (907) 337-5981 POSITION STATEMENT: Opposed CSHB 68. MIKE DESNOYERS, Electrician Usibelli Coal Mine P.O. Box 33 Healy, Alaska 99743 Telephone: (907) 683-1498 POSITION STATEMENT: Opposed CSHB 68. TOM EVANS Teamsters Union Local 959; and President, Central Labor Council of Anchorage 4300 Boniface Highway Anchorage, Alaska 99503 Telephone: (907) 289-4166 POSITION STATEMENT: Opposed CSHB 68. LARRY GALLAGHER, Business Manager Plumbers and Steamfitters Union Local 367 610 West 54th Avenue Anchorage, Alaska 99518 Telephone: (907) 272-4571 POSITION STATEMENT: Opposed CSHB 68. LOREN CHASE, Shovel Operator Fort Knox Mine 4201 York Avenue Fairbanks, Alaska 99709 Telephone: (907) 456-2030 POSITION STATEMENT: Opposed CSHB 68. GENE ANDERSON, Maintenance Mechanic Fort Knox Mine 3350 Thomas Avenue Fairbanks, Alaska 99709 Telephone: (907) 479-6126 POSITION STATEMENT: Supported CSHB 68. WES GRAF, Construction Worker Laborers Union Local 942 631 Change Lane Fairbanks, Alaska 99708 Telephone: (907) 479-5415 POSITION STATEMENT: Opposed CSHB 68. BILL WILLIAMS, Construction Worker 305 Sixth Avenue, Apartment 1-A Fairbanks, Alaska 99701 Telephone: (907) 458-7248 POSITION STATEMENT: Opposed CSHB 68. SYLVIA SULLIVAN, President Alaskans for a Just Society P.O. Box 2296 Valdez, Alaska 99686 Telephone: (907) 835-3729 POSITION STATEMENT: Opposed CSHB 68. LARRY SPORTSMAN P.O. Box 2684 Valdez, Alaska 99686 Telephone: (907) 835-3691 POSITION STATEMENT: Opposed CSHB 68. DAN CLASPILL, Electrician and Chief Steward Usibelli Coal Mine Healy, Alaska 99743 Telephone: (907) 683-2226 POSITION STATEMENT: Opposed CSHB 68. MIKE FAIR P.O. Box 128 Fairbanks, Alaska 99707 Telephone: Not provided POSITION STATEMENT: Opposed CSHB 68. JAY QUAKENBUSH P.O. Box 82391 Fairbanks, Alaska 99708 Telephone: (907) 465-4248 POSITION STATEMENT: Opposed CSHB 68. MARK ROSSAR 1228 Denali Way Fairbanks, Alaska 99701 Telephone: (907) 456-6176 POSITION STATEMENT: Opposed CSHB 68. MILT BEHR, District Representative International Union of Operating Engineers Local 302 P.O. Box 71938 Fairbanks, Alaska 99707 Telephone: (907) 452-8131 POSITION STATEMENT: Opposed CSHB 68. CHRIS MORLEY 810 Smythe Street Fairbanks, Alaska 99707 Telephone: (907) 452-6744 POSITION STATEMENT: Opposed CSHB 68. MARTIN CARVOLO P.O. Box 1749 Seward, Alaska 99664 Telephone: (907) 455-4993 POSITION STATEMENT: Opposed CSHB 68. CLYDE LORENZ, Construction Worker Laborers Union Local 942 P.O. Box 73114 Fairbanks, Alaska 99707 Telephone: (907) 457-7106 POSITION STATEMENT: Opposed CSHB 68. DEAN NEUMEYER Fairbanks Gold Mining, Incorporated 1280 Heath Fairbanks, Alaska 99712 Telephone: (907) 456-6383 POSITION STATEMENT: Supported CSHB 68. CHRYSTAL KOSIDOWSKI, Teamster 2761 Park Way North Pole, Alaska 99705 Telephone: (907) 488-5796 POSITION STATEMENT: Opposed CSHB 68. ROBERT MCGILL 3088 Larkspur Court North Pole, Alaska 99705 Telephone: (907) 488-8948 POSITION STATEMENT: Opposed CSHB 68. DON SWARNER, Carpenters' Business Representative P.O. Box 70347 Fairbanks, Alaska 99707 Telephone: (907) 452-3862 POSITION STATEMENT: Opposed CSHB 68. ZINN DECKER, Electrician P.O. Box 10955 Fairbanks, Alaska 99710 Telephone: (907) 457-4315 POSITION STATEMENT: Testified on CSHB 68. RICHARD GAUL, Construction Worker Laborers Union Local 942 849 Bohnet Drive Fairbanks, Alaska 99712 Telephone: (907) 488-6145 POSITION STATEMENT: Opposed CSHB 68. CHARLES DERRICK, Construction Worker Laborers Local 942 891 Seldom Seen Road Fairbanks, Alaska 99712 Telephone: (907) 488-3093 POSITION STATEMENT: Opposed CSHB 68. JOSH MOORE, Senior Mill Operator Fort Knox Mine 1311 Dolphin Highway Fairbanks, Alaska 99709 Telephone: (907) 479-3508 POSITION STATEMENT: Supported CSHB 68. KARL HANNEMAN, Statewide President Alaska Miners' Association 626 Second Street, Suite 201 Fairbanks, Alaska 99701 Telephone: (907) 452-8685 POSITION STATEMENT: Opposed CSHB 68. SHAWN LOWERY, Shovel Operator Fort Knox Mine 3350 Thomas Street Fairbanks, Alaska 99701 Telephone: (907) 474-4024 POSITION STATEMENT: Supported CSHB 68. KERMITT MELVIN, Surveyor Fort Knox Mine 888 Gold Pan Road Fairbanks, Alaska 99712 Telephone: (907) 456-5829 POSITION STATEMENT: Supported CSHB 68. HARRY MCNEAL Teamster 939 3262 Repp Road North Pole, Alaska 99705 Telephone: (907) 488-6624 POSITION STATEMENT: Opposed CSHB 68. ROGER LUCAS, Safety Supervisor Fort Knox Mine 464 Shannon Drive Fairbanks, Alaska 99701 Telephone: (907) 457-4522 POSITION STATEMENT: Supported CSHB 68. TOMMY GARNER 2835 King Arthur Way Fairbanks, Alaska 99709 Telephone: (907) 479-1537 POSITION STATEMENT: Opposed CSHB 68. DAN SIMIEN 307 Wedgewood Drive Fairbanks, Alaska 99708 Telephone: (907) 456-4929 POSITION STATEMENT: Opposed CSHB 68. ALLEN SMITH, Mine Shift Supervisor Fairbanks Gold 2136 Alston Road Fairbanks, Alaska 99709 Telephone: (907) 451-0064 POSITION STATEMENT: Supported CSHB 68. RANDY WETSON, Grader Operator Fairbanks Gold P.O. Box 84656 Fairbanks, Alaska 99708 Telephone: (907) 456-6166 POSITION STATEMENT: Supported CSHB 68. DAVID GUTTENBERG P.O. Box 80731 Fairbanks, Alaska 99708 Telephone: (907) 455-6394 POSITION STATEMENT: Opposed CSHB 68. JERRY MARSHALL, Senior Mill Operator Fort Knox Mine Telephone: (907) 488-8756 POSITION STATEMENT: Supported CSHB 68. KEITH UPTON, Construction Worker International Brotherhood of Electrical Workers P.O. Box 71961 Fairbanks, Alaska 99707 Telephone: (907) 479-6802 POSITION STATEMENT: Opposed CSHB 68. KEVIN BROWN, Chief Mine Engineer Fairbanks Gold 440 Shannon Drive Fairbanks, Alaska 99701 Telephone: (907) 488-4653 POSITION STATEMENT: Supported CSHB 68. ACTION NARRATIVE TAPE 97-3, SIDE A Number 001 CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce Standing Committee to order at 3:10 p.m. Members present at the call to order were Representatives Rokeberg, Cowdery, Hudson, Ryan, Brice and Kubina. HB 68 - VOLUNTARY FLEXIBLE WORK PLAN: OVERTIME Number 023 CHAIRMAN ROKEBERG announced there would be a public hearing on HB 68, "An Act relating to the exemption from the requirement for payment for overtime under a voluntary work hour plan; and providing for an effective date." He asked Representative Therriault to present his sponsor statement. He also indicated there were witnesses to testify via teleconference from Fairbanks, Anchorage, Valdez and Bethel. Number 058 REPRESENTATIVE GENE THERRIAULT stated the Fort Knox mine began operating, after many years of construction, this past fall. He said the mine and most of the mine employees are located in his district. The mine employees have expressed desire for a flexible work schedule because they want to spend less time commuting to and from work and more time with their families. The current statute precludes the employees from this because it states anything over 8 hours per day or 40 hours per week have to be paid at time and a half. He said for the Fort Knox project, that is not economically feasible. Representative Therriault said shortly after he introduced HB 68, he realized it affected other industries that he had no intention of impacting. He said he has prepared a draft committee substitute for HB 68 that would only apply to surface mining operations. In the current statute, he believes there is an exemption for small mining operations of 12 employees or less. Representative Therriault said a number of people have contacted him who work at the Mapco Refinery. They currently work 12-hour shifts and were afraid the legislation would impact the overtime that they're currently being paid. He said he tried to assure them that isn't his intent and he would be taking steps to make sure that was written into the law. The current committee substitute does narrow that. He said there has been a lot of discussion as to how the affects of the bill could be realized through some other means. One of his staff members spoke to a person in Fairbanks and the gist of the argument boiled down to if the employees want some flexibility, they should unionize. Current statutes allow any group of employees represented by a collective bargaining agreement to voluntarily exercise the type of flexibility the proposed CSHB 68 is offering. The Fort Knox employees have chosen not to unionize and passage of the legislation would not preclude employees from unionizing in the future. Representative Therriault said he didn't think that employees who would like a flexible work schedule should have to unionize. If employees and employers are agreeable they should be permitted to work out a flexible work plan. The work plan would have to be voluntary, written between employee and employer and submitted to the commissioner of the Department of Labor for approval. Representative Therriault agreed to introduce the legislation after reviewing the petition signed by almost all the employees at Fort Knox. He stated that he anonymously contacted employees to make sure there was no coercion involved by management to evoke employee support of the flexible work plan. Number 597 REPRESENTATIVE JOHN COWDERY made a motion to adopt CSHB 68(L&C). CHAIRMAN ROKEBERG asked if there was an objection. Hearing none, CSHB 68 (L&C), LSO329\E, Cramer, 1/27/97, was adopted. Number 610 REPRESENTATIVE COWDERY asked how many employees are involved and the average distance employees have to drive to Fort Knox. REPRESENTATIVE THERRIAULT replied approximately 250 employees and from 25 to 40 miles one way to Fort Knox. Number 660 REPRESENTATIVE COWDERY questioned if most of the Fort Knox employees agree that they want the flexible work plan. REPRESENTATIVE THERRIAULT replied that to be correct. REPRESENTATIVE COWDERY noted there were public opinion messages from union workers in opposition to CSHB 68 as well as letters of support from Fort Knox employees. Number 697 REPRESENTATIVE BILL HUDSON asked if the flexible work plan reduces the pay of the employees or if it is an overall increase. REPRESENTATIVE THERRIAULT stated under the current schedule, employees work 160 hours at straight time pay and 8 hours at overtime pay, totaling 168 hours in a four week period. Under the proposed schedule, employees would work 152 hours at straight time and 16 hours at overtime, therefore, there would be a slight pay increase for that same four week period of time. Number 800 STEVE LANG, General Manager, Fort Knox Mine, said he has held this position since November 1, 1996. He said he sent petitions to all 243 Fort Knox employees, resulting in 241 employee signatures. He said he thought it was his responsibility, as General Manager, to bring the request to the committee. He explained he believes he has a responsibility to ensure the long-term viability of the operation in order to protect the shareholder's investments as well as the employees jobs. Mr. Lang indicated the overruns in construction and development costs have pushed the investment to over $400 million. In addition, Amax Gold needs to recover the $180 million spent in acquiring the property. An excess of $30 million is needed to sustain the capital and to keep the operation moving. Mr. Lang remarked "Given the current gold prices, it is a very a difficult situation." Number 929 MR. LANG stated in order to run the 12-hour shifts without the passage of CSHB 68, employees would have to be paid one hour of overtime for every two hours of straight time pay, adding $1.5 million to the operating cost and $18 million to the life of the project. The mine cannot afford to pay the additional $18 million. Mr. Lang believes the economic interests of the mine would be protected under CSHB 68. The benefits to the employees would be additional time off from work. Mr. Lang stated that currently on an 8-hour schedule, regardless of schedule rotation, to get 24-hour coverage, employees have to work 21 out of every 28 days. On a 12- hour schedule, the 21 days on the job is reduced to 14 days doubling the number of days off totaling 91 additional days off a year. This also results in a 2.3 percent increase in salary. Mr. Lang indicated this is not a substitution for an employee pay increase as the last pay increase was given on January 1, 1997. The cost of the 2.3 percent increase is about one quarter of a million dollars a year to the mine, but with increased productivity the mine will be able to recover. Mr. Lang believes 12-hour shift schedule benefits the employees with a 2.3 percent pay increase and double the number of days off work. Number 1053 MR. LANG stated there is nothing illegal about 12-hour shifts and indicated that several mines run safe 12-hour shifts and do so safely. He said all of the available data indicates that has been no correlation between safety and the length of the shift. He referred to the publication the "24-Hour Business," by Dr. Richard Coleman, which summarizes the economic health and safety issues relating to shift work in union and nonunion operations. Accident analysis studies indicate there are no conclusive impacts inherent on the length of the shift. Mr. Lang referred to his own experience as general manager at the Twin Creeks Mine, that changed from 10-hour shifts to 12-hour shifts. Under the 10-hour shift, the loss time frequency was at 1.6, one loss time accident for 200,000 man hours. The U.S. national average of loss time is at 3.2. Under the 12-hour shift the loss time dropped to 0.18, less than six percent of the U.S. average. In August of 1996, Twin Creeks achieved working one billion consecutive man hours without a loss time accident. Mr. Lang stated he was general manager at the Lone Tree Mine, prior to working at the Twin Creeks Mine, at which he experienced a .38 percent loss time under the 12-hour shift schedule resulting in a million consecutive man hours without a loss time accident. He also mentioned that Dupont has more than 20 years of experience with the 12-hour shifts and has an excellent safety record. Amax Coal Mines, after switching to the 12-hour shift, won the Sentinel of Safety Award as one of the safest surface mines in the U.S. Mr. Lang does not believe that the safety of mine operations depends on the length of the shift, rather it is a result of a schedule that meets the needs and the desires of the employees. He stated well rested employees are in a better state of mind to work more productively and safely. Number 1243 MR. LANG stated that the flexible work plan would not effect the employment level at Fort Knox. The only change would be in the number of days employees have to come to work. CSHB 68 does not affect the local hire issue. "This is not an exemption that would by any means not allow people to fly in fly out." He indicated that out of the 243 Fort Knox employees 220 employees were hired from within Alaska, 17 were transfers from Cypress-Amax and 6 employees were hired outside Alaska. MR. LANG stated the amendment on the restriction to surface mining was a result of the Commissioner of Labor's concern that HB 68 was too broad. Committee Substitute HB 68 addresses the commissioner's concerns and still accomplishes what the Fort Knox employees want. He further stated, "This is identical in many formats to the current 10-hour exemption. We at Fort Knox do have one portion of the operation where people do work under the flex-time with the 10- hour -- Fort Knox working flex-time on the 10-hour has presented no problem that we are aware of to those operations." MR. LANG addressed the issue of coercion and stated that the Commissioner of Labor was invited to Fort Knox to talk with employees to see if that has occurred. The commissioner would have the oversight of approving any flexible work schedule. MR. LANG said, "As I see it in summary, first off this legislation would be a significant personal benefit to the employees at the Fort Knox mine and their families, be a boost to preserving the economic viability of the mine, be a neutral to positive impact on the safety, in no way affect the employment level of the mine, have no adverse impact on what I believe is an excellent local hire record, allow a 24-hour operation the same flexibility and work hours currently available on 10-hour schedules, only be applied at operation with the consent of the employees, and maintain the commissioner of Labor's oversight on it. Therefore, I would ask that you support the committee substitute that has been introduced before you." Number 1446 CHAIRMAN ROKEBERG asked if the flexible work plan would cost the mine money or would result in a three-quarter of a million dollar savings to the mine. MR. LANG replied by going to the 12-hour schedule and by paying the extra overtime, it would cost the mine additional money. Number 1471 CHAIRMAN ROKEBERG questioned that if CSHB 68 were to pass, it would save the mine money. MR. LANG replied the payroll would increase on the 12-hour schedule. Number 1485 REPRESENTATIVE THERRIAULT indicated that under the proposed flex- time schedules, 160 hours of straight time will drop to 152 hours, 8 hours of overtime will increase to 16. This will cause a slight increase in cost to the mine, but they hope to make the cost up because instead of having three shift changes where the amount going through the mill might slow down while employees are shifting from one shift to another, there would only be two. So they hope to make up the difference. REPRESENTATIVE HUDSON asked what would happen to the employees who do not want to sign the flex-time petition and if they would be required to have the 12-hour shift. MR. LANG said he would propose to not put them on the 12-hour shift as there are areas of the operation that would not go to 12-hour shifts. REPRESENTATIVE HUDSON stated that nobody would be fired or forced to work the if they don't agree to sign off on the 12-hour shift. MR. LANG replied, "That is correct." Number 1575 REPRESENTATIVE BRICE indicated confusion. He questioned what the impact would be if they were to work the proposed schedule, under the current statute, with 10 hours a day possible. MR. LANG said they looked at the cost of going to a 12-hour shift, based on the current statute of paying overtime above eight hours a day, the flexible work plan specifies a 10-hour shift and they would be running a 12-hour shift. He said if they are paying overtime after eight hours they would be paying an hour of overtime for every two hours worked straight time. That cost to the company would be about a $1.5 million a year. REPRESENTATIVE BRICE replied, currently statute allows 10 hours under flex-time with the application to the commissioner, with the two hours paid overtime on the 12-hour shift. He said that is what he was talking about under Section 14 of the statute. He asked what kind of savings would they realize then. He also asked Mr. Lang if they have thought about applying the current statute at 10 hours. Number 1708 MR. LANG responded it would be more costly to go to the 12-hour shift and try to apply the 10-hour exemption. Number 1729 REPRESENTATIVE GENE KUBINA asked if the 12-hour shifts were to take effect, could any employee wanting to stay on the 8-hour shift do so for as long as they wanted to. MR. LANG answered that to be correct. Number 1755 CHAIRMAN ROKEBERG asked if Mr. Lang had received an approved flexible schedule from the commissioner for the 10-hour plan. MR. LANG answered that he would have to defer the question to the superintendent of Human Resources at the mine. ChAIRMAN ROKEBERG asked if the mine was paying overtime to the employees on the 10-hour shifts. MR. LANG replied he did not know, but noted they are working the 10-hours and are being paid for over 40 hours a week. Number 1791 REPRESENTATIVE COWDERY asked if the two employees who did not sign the petition were not in agreement with the 12-hour shift. MR. LANG replied that all employees might be in agreement but they just have not gotten to sign the petition. REPRESENTATIVE COWDERY indicated he had received several letters regarding the flexible work hours from employees, including some letters from the children of employees, stating that they do not see their mothers/fathers enough. He asked if the employees would have the option to organize. MR. LANG responded that the decision to organize is strictly a decision the employees make. REPRESENTATIVE COWDERY further asked if Mr. Lang anticipated an increased number of employees and if Mr. Lang could explain the difference between Fort Knox Mine and the Usibelli Mine. MR. LANG responded he expected the number of employees employed to stay about the same. The Usibelli Mine is organized and runs some 12-hour shifts as well as some shorter shifts. REPRESENTATIVE COWDERY noted that it is not Fort Knox's intent to impact any other operation. MR. LANG replied, "That is correct." Number 1977 REPRESENTATIVE JOE RYAN asked Mr. Lang if anyone has spoken to him about making CSHB 68 more site specific to not impact the laws for the entire state of Alaska. MR. LANG stated he met with Commissioner Cashen and other labor leaders and would be open to other options that would be more acceptable to the labor leaders and still meet the employee needs. Number 2012 TOM CASHEN, Commissioner, Department of Labor (DOL), stated he is a mining supporter and helped form the Alliance for Juneau's Future, a pro-mining group. He read a memorandum he wrote to Governor Tony Knowles urging the Governor to sign HB 197, which was introduced in the Nineteenth Alaska Legislature: "I've been a wholehearted supporter of your position of HB 207 which has put the oil industry in the world on notice that we are indeed open for business and are willing to do everything possible to encourage exploration and development of our oil and gas resources in Alaska. For the same reason I urge you to sign into law HB 197, we need also to send the same message on behalf of the mining industry. Mining does not produce the same revenue to the state as oil, but is much more labor intensive and creates jobs that are among the highest paying in the nation, see attached Department of Labor wage information. Please let me know if the Department of Labor can be of any assistance in providing you with any information that would useful in helping you reach a decision on HB 197." Number 2116 COMMISSIONER CASHEN indicated that the Governor did sign HB 197, Mineral Exploration Incentive Tax Credits. He stated he is a mining supporter because it is the top paid industry in the state, in 1994 the average weekly earnings were $1,205, average hourly earnings were $24.30. Number 2139 COMMISSIONER CASHEN stated he is here to testify against CSHB 68 as he believes CSHB 68 does not comply with AS 23.05.10. He said, "The mission of the DOL is to foster and promote the welfare of the wage earners of the state, improve their working conditions and advance their opportunities for profit of employment." He said he feels Fort Knox is proposing special interest legislation, as they are not willing to pay overtime paid by the rest of the industry. He felt that it was unfortunate that the price of gold was not higher, and that Fort Knox had a cost overrun on the project, but it was not the fault of Alaskan Labor. Commissioner Cashen stated, "In my opinion CSHB 68 is not good public policy and a bad precedent to set." He said every time a company had financial problems, it would go to the legislature to request a change in the state's labor laws. He referred to the oil industry in the 1980s when the price of oil was low and indicated the industry had never tried to dismantle the state's labor laws. When the oil industry worked their employees on 12-hour shifts, they paid four hours in overtime. COMMISSIONER CASHEN felt that the employee choice of flexible hours was a result of their "killer schedule." He indicated he had received the sincere letters of support from the Fort Knox employees and he feels the company has convinced the employees that it is the DOL's or the legislature's fault that they are working this horrible work schedule. Commissioner Cashen indicated that a company can assign any work schedule they want to and asked the committee to keep this in mind upon hearing the testimony from the Fort Knox employees. He also stated another reason he is not in favor of extending the 10-hour exemption to 12 hours is because of abuse to the exemptions as voluntary plan can become a condition of employment with some employers. He felt that although Fort Knox would not fire any existing employees that do not support the 12- hour shift schedule, they will not hire people who are not willing to submit to the 12-hour shift. He stated that Alaska is pro- industry and would like industry to come to Alaska but not at any cost. For instance the state of South Carolina would do anything to lure an industry from another state. Number 2476 COMMISSIONER CASHEN stated he would like to see CSHB 68 die in committee, keeping the state of Alaska's labor laws intact for future generations. TAPE 97-3, SIDE B Number 015 CHAIRMAN ROKEBERG indicated there are over 60 people who would like to testify via teleconference on CSHB 68. He referred to a flex- plan contract the DOL would have to approve between an employee and an employer and asked of there would be a prohibition of any outside employment by that employee. COMMISSIONER CASHEN responded that he didn't know, but would look into it. CHAIRMAN ROKEBERG asked Commissioner Cashen to look at the proposed work schedule plans and run some numbers to see what the various differentials are and perhaps see if we could coordinate that to verify with Mr. Lang in making sure they are appropriate numbers. He said he'd like to see the different scenarios. He thought that the DOL would be able to give the committee some suggestions on shift organizations. Number 076 REPRESENTATIVE KUBINA stated the House Labor and Commerce Committee was the only committee of referral for CSHB 68. He said he wanted to make sure the committee was not being rushed on legislation. CHAIRMAN ROKEBERG agreed and stated "We want to do a thorough job of examining this bill." REPRESENTATIVE KUBINA asked Commissioner Cashen to provide the committee with information on other mine's work schedules in the state of Alaska. He stated he would be frustrated if he had to participate in the current Fort Knox work schedule, and could see why employees would want a schedule change. He inquired that if the goal is to change to labor laws why is it only for one mine and not good for everybody. Number 150 REPRESENTATIVE HUDSON asked Commissioner Cashen if he supported last year's legislation relating to going from eight hours to ten hours. COMMISSIONER CASHEN stated he supported a version of the legislation. Organized labor opposed it entirely and Commissioner Cashen supported the 10-hour concept but wanted the DOL to have an oversight on it. The reason for his support was because he hoped Greens Creek would hire Southeast Alaska residents as they proposed. He stated that this has not occurred, there are 14 residents from Southeast Alaska, other than Juneau, currently working at Greens Creek. Number 197 REPRESENTATIVE HUDSON asked if Commissioners Cashen's opposition to CSHB 68 is because of Fort Knox's failure to pay overtime or because of the added hours. COMMISSIONER CASHEN replied that overtime is to discourage working more than eight hours. In some industries there is no way around working extended hours and Congress wanted to make sure working overtime was imperative by providing a penalty of overtime pay for employers. REPRESENTATIVE COWDERY asked Commissioner Cashen if the employers that abuse the exemption were in the mining industry. COMMISSIONER CASHEN replied the abuse was in the construction industry. REPRESENTATIVE COWDERY asked, "What has the state done, particularly in the DOL, to attract the $580 million investment on this project?" COMMISSIONER CASHEN replied the state has provided the backing of the Alaska Industrial Development Authority to provide financing which would save them several millions of dollars. Number 299 REPRESENTATIVE COWDERY asked if CSHB 68 would cost the state of Alaska anything. COMMISSIONER CASHEN replied, "No, it isn't going to cost the state of Alaska anything. We are just fearful that it will spill over into other industries and become a statewide problem." Number 365 REPRESENTATIVE BRICE asked Commissioner Cashen to let him know, at the next committee meeting on the measure, the number of other surface mines CSHB 68 would be applicable to. Number 398 CHAIRMAN ROKEBERG noted that Representative John Davies had been in the room for the past 45 minutes. Number 408 REPRESENTATIVE THERRIAULT asked if similar language was proposed in the hours at the face of the mine bill last year as a possible compromise from the administration. COMMISSIONER CASHEN replied no, the overtime was never an issue at Greens Creek, there was a previous law that prohibited employees from working more than eight hours at the face of the mine. The employees wanted to be able to work ten hours at the face and overtime was never an issue because Greens Creek Mine was willing to pay the overtime. Number 468 REPRESENTATIVE THERRIAULT stated that Alaska is different from Commissioner Cashen's South Carolina reference in that CSHB 68 is site specific, for example, if another gold mine wanted the overtime exemption and the DOL looked at the economics of the operation, and the price of gold was up to $600 an ounce, the DOL would be able to make the decision that economics did not warrant the exemption and the application could be turned down. Similarly, if the price of gold were to go up, and the employees of Fort Knox did not feel they were getting their fair share they would have the power to collectively bargain and to unionize. Representative Therriault stated that CSHB 68 is not wide open as it does not extend outside the surface mining industry and the DOL is there as a safeguard. COMMISSIONER CASHEN replied that the state of Alaska is not down on the state of South Carolina. He further stated that because of the voluntary nature of the plan, the DOL really would not have much latitude regarding approval and disapproval. Number 575 REPRESENTATIVE HUDSON stated that he had been told CSHB 68 would cover surface coal mining, surface gold mining and surface gravel exploration. He said he would like to know exactly what the implications are under CSHB 68. CHAIRMAN ROKEBERG stated for the record, "Our staff has been researching it and there is no real differential in the Alaska statute." He stated that staff would be looking into this issue further. Number 616 REPRESENTATIVE RYAN said, "Section 6(i) of the statehood compact reserves the subsurface of mineral state to the state of Alaska. So there is an argument that the whole subsurface of Alaska is a mineral state which would be subject to mining." Number 670 DON ETHERIDGE, Representative, Alaska District Council of Laborers, came before the committee to give his testimony. He stated "We are coming out opposing this bill also. We do support the mining industry. We love to see it growing. Our concerns are, as stated earlier, the gravel pits. Right now, the way everything stands we're told it'll affect our construction right now as the fact that all construction on roads and so forth have a lot of pits, gravel pits, rock pits, whatever they need and we can already see that starting to affect them." He further stated he felt that the Fort Knox employees are being coerced by their current work schedule. MR. ETHERIDGE felt that there are a lot of employers who would abuse this system in the construction industry. He stated that the fishing, logging and construction industries depend on overtime to get them through the winter. He felt this would result in more people on welfare. He stated the Usibelli Mine would renegotiate its contract upon the passage of CSHB 68 to not have to pay overtime. He said he does not think Alaska should change a statute that would affect 241 people. He said, "We made some suggestions earlier to Mr. Lang about cutting their wages. Well, they've got a lot of reason why they don't want to do that. I think that could be a very distinct possibility to where they can work them the 12 hours, pay them the overtime." Number 828 CHAIRMAN ROKEBERG asked Mr. Etheridge who represents the Usibelli Mine. MR. ETHERIDGE indicated it is the Teamsters. Number 842 MANO FREY, Member, Alaska AFL-CIO, testified via teleconference from Anchorage. He said he wanted to make it clear that CSHB 68 was not a union issue versus a nonunion issue. The AFL-CIO has an interest in every worker in this state whether they are a union worker or a nonunion worker. He stated that the issue is, "Is it right to change the law to affect 243 people?" He proposed the solution to lower the employees wages by 80 cents an hour, making it revenue neutral, this way the law would not have to be changed and overtime would be earned. REPRESENTATIVE KUBINA indicated he would do the math on Mr. Frey's wage cut proposal. Number 1119 RAYMOND SMITH, President, Western Alaska Building Construction Trades Council, testified via teleconference from Anchorage, against CSHB 68. He felt the law should not be changed for one group of people. Number 1247 TIM SHARP, Laborers Union Local 942, testified via teleconference from Fairbanks, against CSHB 68. He noted he does support employees being able to chose a work shift that suits them. He stated it is not the employees' fault the mine went into overruns and was concerned with what would happen if the Fort Knox employees did not like the 12-hour work shift. RICK BOYLES, Teamster Union Local 959, testified via teleconference from Fairbanks, to waive his time to Mr. Mike Desnoyers of Usibelli Coal Mines, who is making twice the wage rate of Fort Knox for similar hours worked. CHAIRMAN ROKEBERG stated that next the committee would hear testimony via teleconference from Anchorage. Number 1509 ED KAREEN, Representative, International Union of Operating Engineers Local 302, testified via teleconference from Anchorage, against CSHB 68. He stated CSHB 68 exploits workers, is unsafe and will affect all labor industries. Number 1611 TOM ARMSTRONG, Construction Worker, International Union of Operating Engineers Local 302, testified via teleconference from Anchorage, against CSHB 68. He indicated it would affect his overtime. Number 1694 MIKE DESNOYERS, Electrician, Usibelli Coal Mine, testified via teleconference from Fairbanks. He said he is against the passage of CSHB 68 and he agrees with Commissioner Cashen. Number 1703 TOM EVANS, Teamsters Union Local 959; and President Central Labor Council of Anchorage, testified via teleconference from Fairbanks. He stated he is representing 30 members who "adamantly oppose CSHB 68." He stated it is an anti-Alaska work bill and it will facilitate out-of-state workers to obtain labor jobs. Number 1855 LARRY GALLAGHER, Business Manager, Plumbers and Steamfitters Union Local 367, testified via teleconference from Anchorage, said they are in strong opposition to CSHB 68. He said believed CSHB 68 would result in less family time with the 12-hour shifts. Number 1950 LOREN CHASE, Shovel Operator, Fort Knox Mine, came before the committee to address the legislation. He stated that the employees presented the 12-hour work schedule to Mr. Lang. He also noted he would also like to spend time with his family. CHAIRMAN ROKEBERG asked what Mr. Chase's salary is and how long he has been working at the mine. LOREN CHASE responded he makes $21.50 an hour and has been working at Fort Knox for over a year. Number 2090 REPRESENTATIVE THERRIAULT asked that Mr. Loren talk about how the employees were presented with the petition and what the response was from his work shift. MR. LOREN stated that the shifts are absolutely horrible and all employees want a change from this shift. He again stated the employees went to Mr. Lang to push the change in shift schedules. Number 2179 REPRESENTATIVE KUBINA felt he did not know how the Fort Knox employees were able to cope with only two days off between the change from night to day shifts. He suggested that it was very unhealthy. He asked if the employees had looked at other options other than changing the law. He felt the Fort Knox employees goal was to earn the same salary but with a shift schedule that is "much more user-friendly." He asked if the Fort Knox employees thought about the suggestion of an 80 cent wage cut with overtime. MR. LOREN responded that an 80 cent wage decrease would cut into his benefits and would be a loss to the employees when overtime was not being worked. REPRESENTATIVE KUBINA responded maybe there were ways to address the schedule change without changing the law. MR. LOREN responded that employer cannot push CSHB 68 on the employees, since it has to be obtained only through petition. REPRESENTATIVE KUBINA suggested that an unfair work schedule was pushed on the Fort Knox employees by the employer. MR. LOREN replied that employees applied for the job knowing what the schedule was. REPRESENTATIVE KUBINA indicated that he would like to talk to the Fort Knox employees some more to find a solution for them. TAPE 97-4, SIDE A Number 052 GENE ANDERSON, Maintenance Mechanic, Fort Knox Mine, stated he currently works the day shift but started out on the rotating schedule. He sees every operator at Fort Knox and stated the petition is coming from every employee at Fort Knox. He stated CSHB 68 is in the best interest of the employees because the 12- hour shifts would give employees an extra 90 days off. Number 200 CHAIRMAN ROKEBERG asked Mr. Anderson how much he earns. He asked if the committee did not adopt CSHB 68, would he quit. Representative Rokeberg also asked if he had good employers. MR. ANDERSON replied that he makes $19.55 an hour and that he would not quit. He stated that it was the best job he has ever had and that Fort Knox is an excellent employer. Number 248 REPRESENTATIVE THERRIAULT asked Mr. Anderson to talk about the commute. MR. ANDERSON explained that it is about 25 miles or longer, and employees are commuting four to seven days a week. He stated that not only does the commute add time, but costs money in fuel and car maintenance. Number 409 REPRESENTATIVE KUBINA stated that he would take some time to find other options, and he asked if he had thought about a revenue neutral salary. MR. ANDERSON believed that CSHB 68 was the best option. He stated he worked a lot of overtime and would not want a drop in salary. Number 534 WES GRAF, Construction Worker 942, testified via teleconference from Fairbanks, stated that he worked on construction of the Fort Knox Mine and he supports the mining industry. He thinks the company initiated the present work schedule as leverage for not paying overtime therefore he opposes CSHB 68. Number 590 BILL WILLIAMS, Construction Worker, testified via teleconference from Fairbanks, against CSHB 68. He noted he has been an Alaskan resident for 30 years. He said he believes that changing the law to benefit 240 people and hurt 60,000 to 80,000 people was not right nor good for the state of Alaska. He felt this would take work out of Alaska. SYLVIA SULLIVAN, President, Alaskans for a Just Society, testified via teleconference from Valdez, against CSHB 68. She said she works in the tourist industry and stated the industry needs the protection of the labor laws. Number 749 LARRY SPORTSMAN, testified via teleconference from Valdez, stating he would not be affected by CSHB 68 but he is opposed to it. Number 800 DAN CLASPILL, Electrician and Chief Steward, Usibelli Coal Mine, testified via teleconference from Fairbanks. He stated that all surface mines would be effected and all employees at Usibelli would be against giving up any overtime. He stated that he had worked the same rotating shift in Wyoming and had to leave his job because of it. Number 957 REPRESENTATIVE THERRIAULT asked Mr. Claspill if the employees at Usibelli Coal Mine have looked at the wording of CSHB 68 where it states that the shift change has to be voluntary. He stated he understands the concerns the employees at Usibelli Coal Mine have, but he did not feel the unionized work force would voluntarily sign a change to be imposed against the employees will. MR. CLASPILL replied that there are ways that employers have means to intimidate and encourage employees to do what they want. He felt that the Fort Knox employees should calculate the amount of money they would be losing without the overtime. Number 1033 REPRESENTATIVE THERRIAULT stated that the current law already has an exemption for those employees that are unionized. Unionized employees are under their collective bargaining agreement. He also indicated that CSHB 68 exempts any mining operation that employs fewer than 12 people. He further stated that Usibelli Coal Mine is currently exempt from the statutory protection. MR. CLASPILL responded that it might not always remain that way because there are forces that work to get the union out. He felt CSHB 68 is seeking greater profit for the employers at the employees expense. Number 1113 CHAIRMAN ROKEBERG asked what Mr. Claspill salary is. MR. CLASPILL replied he makes $30 an hour. Number 1156 MIKE FAIR, testified via teleconference from Fairbanks. He said he feels CSHB 68 is an anti-family bill. He had a similar 12-hour shift at Greens Creek Mine and the time of adjustment between shifts took up most of the time off. He stated that CSHB 68 will result in coercion of employees, reduce real wages, increase safety hazards, (indisc.) family and social destructions, in addition to the continuing decline of the American standard of living. Number 1339 JAY QUAKENBUSH, testified via teleconference from Fairbanks, on the behalf of 5,000 Alaskan workers. He stated their emphatic opposition to CSHB 68. He agreed that there is a problem with the Fort Knox's current work schedule but they should accommodate a shift change within the confines of current Alaskan Law. He believes nothing would stop Fort Knox from adopting the 12-hour schedule, including paying overtime. He felt CSHB 68 would erode the labor protections that have been built into law. Number 1433 MARK ROSSAR, testified via teleconference from Fairbanks. He stated he was against the passage of CSHB 68. Number 1463 MILT BEHR, District Representative, International Union of Operating Engineers Local 302, testified via teleconference from Fairbanks, against CSHB 68. He felt that the 12-hour day needs to be tried to see if it works, and inquired what would happen if the employees wanted to go back to the 8-hour shift. He stated that there were other solutions. Mr. Behr was concerned with why Fort Knox could not afford overtime and thought their figures needed to be checked. Number 1630 CHRIS MORLEY, testified via teleconference from Fairbanks, against CSHB 68. He felt that overtime pay is a penalty that employers paid because of keeping their employees away from their families. Number 1679 MARTIN CARVOLO, testified via teleconference from Fairbanks, against CSHB 68. He stated that the impact of CSHB 68 across the state of Alaska needs to be examined. He said that other industries will want to get into this "good deal" of an overtime exemption. Number 1753 CLYDE LORENZ, Construction Worker, Laborers Union Local 942, testified via teleconference from Fairbanks, adamantly opposing CSHB 68. He said he feels CSHB 68 would eliminate safety in the workplace and he did not feel the employees of Fort Knox realized the object of the employer. Number 1820 DEAN NEUMEYER, Maintenance, Fairbanks Gold Mining Incorporated, came before the committee to testify. He said he is in favor of CSHB 68. He stated, "When we came down here today we didn't know all there is to know, we are beginning to find out that there are some other avenues and I am sure that we are going to pursue them." He felt that Mr. Lang would work with the mine employees. Number 1868 CHAIRMAN ROKEBERG stated that he wanted Mr. Neumeyer to tell all the Fort Knox employees the petition is going to be looked at by the members of the Labor and Commerce Committee and that it will become an official part of the record of CSHB 68. Number 1890 REPRESENTATIVE COWDERY stated he wanted to clarify that management was the one responsible for coming forward with the idea for CSHB 68. MR. NEUMEYER answered that it was not management and that everyone in the mill came forward with the idea and that all Mr. Lang is doing is supporting CSHB 68. CHAIRMAN ROKEBERG asked if Mr. Neumeyer would accept a rollback in wages. MR. NEUMEYER responded yes, for himself, if the rollback could be shown on a neutral, no loss basis. Number 1970 CHRYSTAL KOSIDOWSKI, Teamster, testified via teleconference from Fairbanks, against CSHB 68. She stated that the Fort Knox Mine wants to take money away from employees to give it to a non-Alaskan company. Number 2003 ROBERT MCGILL, testified via teleconference from Fairbanks, against CSHB 68. He stated a non-Alaskan company should be not given more money at the employees expense. Number 2025 DON SWARNER, Carpenters' Business Representative, testified via teleconference from Fairbanks, against CSHB 68. He stated that CSHB 68 is bad public policy and felt CSHB 68 should just refer to a single mine site rather than the entire state of Alaska. Number 2082 CHAIRMAN ROKEBERG stated that the Constitution of the State of Alaska, Article 2, Section 19, "prohibits local or special acts," therefore, the legislation could not be specialized just to the Fort Knox Mine. Number 2103 ZINN DECKER, Electrician, testified via teleconference from Fairbanks. He ask Mr. Neumeyer if the Fort Knox employees signed the petition before their raise in January. Number 2140 MR. NEUMEYER replied that it had been signed way before the raise. MR. DECKER stated that he had spoken to an employee who had signed the petition, about the negative aspects of CSHB 68, who as a result would not sign the petition now. He further stated that $1.5 million is a small price to pay for a company that expects to make millions off of gold mining. Number 2192 RICHARD GAUL, Construction Worker, Laborers Union Local 942, testified via teleconference from Fairbanks, opposing CSHB 68. He stated that he did not feel the legislation should be dealing with this issue it is a Fort Knox Mine management issue. Number 2256 CHARLES DERRICK, Construction Worker, Laborers Union Local 942, via teleconference from Fairbanks, against CSHB 68. He commented that the Fort Knox employers set a difficult work schedule to coerce employees into accepting CSHB 68. He further stated that although the Fort Knox employees are not willing to take a wage cut, they are willing to enforce one for the rest of the labor workers in Alaska. Number 2303 JOSH MOORE, Senior Mill Operator, Fort Knox Mine, testified via teleconference from Fairbanks, in support of CSHB 68. He stated that the mine is not going to make any money and that management is participating in CSHB 68 to make the employees happy. He stated that working the existing schedule is comparable to having jet lag all the time. He is making $18.25 per hour. Previously, while working at the Nevada goal field, he worked 12-hour shifts at $15.50 an hour. Number 2370 CHAIRMAN ROKEBERG asked Mr. Moore if he was paid overtime at his previous jobs while working 12-hour shifts. MR. MOORE replied that he was after 8-hour days and over 40 hour weeks. Number 2396 REPRESENTATIVE RYAN asked if he knew of a way a compromise could be made without making changes in the state's labor law. Number 2412 MR. MOORE replied that he would be interested in seeing the numbers from the wage standards receiving overtime without a net change in the annual salary. Number 2431 KARL HANNEMAN, Statewide President, Alaska Miners' Association (AMA), testified via teleconference from Fairbanks, against CSHB 68. He added that AMA does want a solution for the Fort Knox workers. TAPE 97-4, SIDE B Number 005 SHAWN LOWERY, Shovel Operator, Fort Knox Mine, testified via teleconference from Fairbanks, in support of CSHB 68. He stated he has been involved with the mine since September, 1995. He had worked during the construction phase of Fort Knox Mine on 12-hour shifts earning overtime and felt his physical well being and peace of mind was much better than it is now under the current shift schedule. A two-shift rotation would eliminate a third person on the equipment. He stated that he would be happy with the wage he would be making on the 12-hour shift without overtime. He indicated he wanted his letter to be read by the committee. Number 123 KERMITT MELVIN, Surveyor, Fort Knox Mine, testified via teleconference in Fairbanks, in support CSHB 68. He feels this has become an union versus nonunion issue and stated that union workers would be exempt from CSHB 68. He felt that he is making good money and that is not the issue, the issue is a different schedule with more time off. He agreed that seasonal workers would need the overtime but Fort Knox is a year round mine. He stated that without CSHB 68 passing the employees would not quit working at the mine. Mr. Melvin stated that the employees did not want to unionize and that the 12-hour shift was the employees idea. Number 227 HARRY MCNEAL, Teamsters Local 939, testified via teleconference from Fairbanks. He said he is against CSHB 68 primarily due to the effect it will have on other industries and on new hires. He felt there are other rotating shift schedules that could be implemented. Number 318 ROGER LUCAS, Safety Supervisor, Fort Knox Mine, testified via teleconference from Fairbanks, in support of CSHB 68. He stated that moral is very important in regards to safety and 12-hour shifts would increase employee moral. He stated working three to four 12-hour shifts are less tiring then working seven days on an 8-hour shift. He stated that the mine is currently working 400,000 hours without a loss time accident. Number 478 TOMMY GARNER, testified via teleconference from Fairbanks, opposing CSHB 68. He stated that he has worked 12-hour shifts in an assemble line and felt that it jeopardizes safety. Number 538 DAN SIMIEN, testified via teleconference from Fairbanks, opposing CSHB 68. He sympathizes with the Fort Knox employees. He stated the employees and the employers need to come together to work out a different solution that would not affect other industries and change the current work schedule. Number 660 ALLEN SMITH, Mine Shift Supervisor, Fairbanks Gold, testified via teleconference from Fairbanks, in support of CSHB 68. He stated he has been mining for ten years, and has worked all shifts and the 12-hour rotating schedule that gives employees 14 days off every 28 days is the best schedule to work. Number 710 CHAIRMAN ROKEBERG asked if Mr. Smith received overtime on the 12- hour shift. Number 721 MR. SMITH responded that he did not. He worked the same schedule in Colorado that Amax would like to implement. Number 730 RANDY WETSON, Grader Operator, Fairbanks Gold, testified via teleconference from Fairbanks, in support of CSHB 68. He stated employees were not forced to sign CSHB 68. Number 748 DAVID GUTTENBERG, testified via teleconference from Fairbanks, in opposition to CSHB 68. He stated it was not a union/nonunion issue and felt there could be other options, such as a revenue neutral wage cut, unionizing or to pay employees overtime. Number 806 JERRY MARSHALL, Senior Mill Operator, Fort Knox Mine, testified via teleconference from Fairbanks, in support of CSHB 68. He stated he has worked all different shifts and the 12-hour shift is the one that worked best for him. He stated the first time the 12-hour shift change was brought up was at a meeting with Mr. Lang. Mr. Lang asked if the employees had something that they wanted to discuss. A employee asked when they could begin to work 12-hour shifts. Mr. Marshall added that he felt he missed out on his kid's life because of ten years working 8-hour shifts. He stated that no one at Fort Knox ever approached any of the employees to rally in favor of CSHB 68. Number 958 CHAIRMAN ROKEBERG asked if he received overtime while working the 12-hour shifts. Number 967 MR. MARSHALL indicated he doesn't always receive overtime. Number 1003 KEITH UPTON, Construction Worker; and Member, International Brotherhood of Electrical Workers, testified via teleconference from Fairbanks. He stated he lived in Alaska since 1958, and that most people in Fairbanks are against this bill. He felt that the legislature is not a bargaining agent for special interest groups. This law will affect thousands of people not just the 241 employees of the Fort Knox Mine. "The laws are made for the majority of Alaskan residents to better their standard of living." He further stated Fort Knox is in need of a bargaining agent to solve some of their problems, but the Alaskan legislature is not that bargaining agent. Number 1138 KEVIN BROWN, Chief Mine Engineer, Fairbanks Gold, testified via teleconference from Fairbanks, in support of CSHB 68. He stated that the Fort Knox employees understand what they are accepting with the 12-hour work schedule. Number 1233 CHAIRMAN ROKEBERG stated that he will hold further open public testimony on CSHB 68 during the next meeting, or to hear any progress on further solutions. He wants to make sure the committee has full public input. ADJOURNMENT Number 1311 CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Committee at 6:02 p.m.