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.