SENATE COMMUNITY & REGIONAL AFFAIRS January 18, 1994 9:00 a.m. MEMBERS PRESENT Senator Randy Phillips, Chairman Senator Robin Taylor, Vice Chairman Senator Al Adams Senator Fred Zharoff MEMBERS ABSENT Senator Loren Leman COMMITTEE CALENDAR SENATE BILL NO. 2 "An Act requiring pay equity for certain public employees and requiring the compensation of certain public employees based on the value of work performed." PREVIOUS SENATE COMMITTEE ACTION SB 2 - See Community & Regional Affairs minutes dated 11/3/93, 1/11/94. WITNESS REGISTER Mike McMullen Manager, System Services P.O. Box 110201 Juneau, Alaska 99811-0201 POSITION STATEMENT: Opposed SB 2. Alexis Miller Staff to Senator Donley State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Reviewed SB 2. Joseph Wilkey P.O. Box 770290 Eagle River, Alaska 99577 POSITION STATEMENT: Reviewed SB 2. Teresa Anderson ASEA 1237 Kennicott Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 2. Jana Varatti 7030 Foothill Drive Anchorage, Alaska 99504 POSITION STATEMENT: Supported SB 2. Richard Seward ASEA 315 Barnette Street Fairbanks, Alaska 99701 POSITION STATEMENT: Reviewed SB 2. Pat Jones ASEA Women's Issues Committee Chair P.O. Box 2996 Valdez, Alaska POSITION STATEMENT: Reviewed SB 2. Kathy Dietrich ASEA 1951 Red Leaf Road Fairbanks, Alaska 99707 POSITION STATEMENT: Supported SB 2. ACTION NARRATIVE TAPE 94-3, SIDE A Number 001 The Senate Community & Regional Affairs Committee was called to order by Senator Randy Phillips, Chairman, at 9:00 p.m. He introduced SB 2 (PAY EQUITY BASED ON VALUE OF WORK) as the only order of business and noted there was a proposed substitute that had been prepared by the Department of Administration. Number 025 MIKE MCMULLEN, Manager of System Services, Division of Personnel/EEO, Department of Administration, stated the department is opposed to SB 2 in its current form, but that they have a proposed substitute that the department supports. The most significant change eliminates from the bill any obligation to negotiate classification systems with employees. He referred to the Alaska Quantitative Evaluation System Classification of 1986, explaining that the proposed implementational changes to this system are in the present bill. Each bill would require that the covered employers would develop a new classification system. Mr. McMullen discussed a letter from Joseph Wilkey, a retired state supervisor, in which Mr. Wilkey describes a classic example of an affirmative action plan analysis. Mr Wilkey specified a weakness in SB 2 regarding sex based wage disparity and gender based discrimination. The language implies a cause and effect between sex and wages but does not take into consideration other factors. Mr. McMullen pointed out findings in the Gender Gap Report which show that the target groups, state and local employees, of SB 2 are already doing well. Number 245 ALEXIS MILLER, staff to Senator Donley, stated that the letter from Patricia Jones, Alaska State Employees Association (ASEA) and Women's Issues Committee, specifically outlines Senator Donley's concerns. Ms. Miller emphasized that SB 2 refers to pay between job classes. SB 2 will help the state finish conducting job class surveys for all state jobs and rectify any problems. In response to Senator Adam's question, Ms. Miller stated that Senator Donley does not support the committee substitute. Number 278 MIKE MCMULLEN said that the employer's classification system is the only area taken out of collective bargaining. Mr. McMullen gave examples of contracts with collective bargaining provisions. Number 306 JOSEPH WILKEY of Anchorage said he has concern with some of the language in the bill because the way it is worded it intrudes the labor union into the state personnel management system to a degree he would consider undesirable. He added that he is not against collective bargaining, but the way it is worded the public employer would have to meet with the labor union in order to come up with a job evaluation system, and would then have to submit their reports directly to the bargaining unit rather than to the state personnel division. SENATOR TAYLOR asked if the existing draft could be amended to accomplish Mr. Wilkey's concerns. Mr. Wilkey answered that he prefers taking the existing statutes, and if there are some changes needed, to consider other factors that relate to the disparity between wages for males and females. Changes to the statute should be limited to include just what needs to be done to make it more equitable if there is a valid discrimination or factors not being considered that should be considered. Ms. Miller informed the committee that a continuation of the study would determine where there are job class disparities and do what Mr. Wilkey stated above. SENATOR TAYLOR questioned the pay scales for police supervisors. He cited a 37 percent pay differential between Anchorage and Wrangell police supervisors and inquired as to why such a differential existed. Number 365 TERESA ANDERSON, representing the ASEA Women's Committee, voiced support for SB 2. She emphasized the denial of the pay equity problem in state employment and asked what could been done to get SB 2 passed. Furthermore, many studies and reports have been ignored even though they have consistently shown a pattern of lower pay for women's jobs. She stated that if the wage gap between men and women is not closed, more people will require assistance. Ms. Anderson said some legislators are against SB 2, and she questioned what was wrong with paying people for what they are worth, no matter if they are male or female. She added that female dominated jobs have been the lowest paid, not because they are less responsible, not because they have less work hazards and not because they have less education, but because they are traditional female positions. Concluding her testimony, Ms. Anderson said pay equity is a fairness issue, which affects not only women, but everyone, and she urged passage of the legislation. Number 415 SENATOR TAYLOR commented that the entire basis of SB 2 seems to assume that an hour's worth of work put in by anyone is equal to an hour's worth of work being put in by anyone else. He asked if anyone could answer what the basis is for evaluating work and what the difference is in the wages of the shoe salesman, the truck driver, the equipment operator, the executive, etc., that may have something to do with the job they're doing as opposed to the sex that they bring to the job. TERESA ANDERSON responded that she believes right now the difference is sex based and this is the very thing they want changed. She suggested requiring equivalent education, skills, training, responsibilities and work hazard in a points rating system to create fairness without regard to sex. CHAIRMAN RANDY PHILLIPS revealed that his secretary makes more money than him, while he has more responsibilities than she. Ms. Anderson stated that a points rating system would clarify who actually has more responsibility. Number 460 JANA VARATTI, testifying from Anchorage, said that the wage disparity in state government has been well documented in several states. She urged passage of SB 2 as it stands. RICHARD SEWARD, ASEA, testifying from Fairbanks noted that his 1993 study of state jobs in the executive branch found that a vast majority of our job classes are segregated by sex and that employees in female dominated job classes earn 30 percent less than men. Even when education is factored into the study women still earn less than men at all education levels. He asserted that there should be no wage disparity between jobs traditionally held by women versus jobs traditionally held by men. He said that SB 2 does not affect affirmative action. He expressed ASEA's opposition to the administration's substitute bill. Mr. Seward explained that collective bargaining and pay equity should be connected throughout the process. He suggested three reasons for keeping collective bargaining in SB 2: to ensure that action is taken, to lower costs to the state, and to ensure better decisions by using labor and management in the process. In conclusion, he commented that ASEA wants to use collective bargaining in the implementation of the study so that the study is done properly, cheaply, and that sex discrimination in wage scales is eliminated. Number 562 SENATOR PHILLIPS asked if it's the responsibility of the legislature to ensure equal opportunity or equal outcome. Mr. Seward cited equal opportunity as the legislature's responsibility, outcome should be based on merit not on sex. SB 2 talks about the educational level necessary for the position not the educational level of the employee. TAPE 94-3, SIDE B Number 570 SENATOR TAYLOR stated that labor unions, in his opinion, had done more to bring about wage disparity than the state itself. He expressed that just because people have a college degree they are not necessarily worth more to society nor should they achieve more money. Mr. Seward pointed out that the study will not only consider the educational level for a position but also the hazards, the amount of training necessary, the amount of physical strength required, and most importantly the amount of responsibility. Number 545 PAT JONES, ASEA, Chair of the Women's Issues Committee testifying from Valdez, clarified that Mr. Wilkey's letter dealt with wage disparity within one job class. SB 2 deals with wage disparity between job classes. She voiced opposition to the draft bill due to its lack of response to incumbent employees, the deletion of "and the work shift" and the elimination of collective bargaining. Number 466 MIKE MCMULLEN clarified that there is a separate statute on shift differential to also include it as a factor in the classification. KATHY DIETRICH, ASEA testifying from Fairbanks, explained that the 1991 National Caucus of State Legislatures called on federal and state lawmakers to adopt comparable worth language. She noted that any collective bargaining agreements negotiated with any unions (The Teamsters) have been by mutual agreement. She urged passage of SB 2. Number 390 CHAIRMAN RANDY PHILLIPS stressed that letters are always welcome and that constituents are entitled to express their view and furthermore he is obligated to listen to every constituent's point of view. He said that this letter was completely unsolicited. Chairman Randy Phillips stated that SB 2 would be taken up once again the following week. Number 380 There being no further business to come before the committee, Chairman Randy Phillips adjourned the committee at 10:10 a.m.