Dear GGU member,

The bills which provide funding for the monetary terms of the General Government Unit’s July 1, 2007 to June 30 2010 Collective Bargaining Agreement with the State of Alaska have been introduced in the House of Representatives and the Senate.

The Supplemental Appropriation bills, HB 343 and SB 256 were introduced on January 30, 2008 and contain appropriations to fund the following monetary terms retroactive to July 1, 2007:

• A 4% increase in wages.
• Funding for a $1.00 per hour premium for each hour worked on Saturday and Sunday to be paid to overtime eligible Class One employees working in institutions with continuous operations.
• Funding for the increase in the State’s contribution to health insurance of $16.58 per member per month.

It is not possible to predict how quickly the legislature will consider and pass the supplemental appropriation bill but the Union is urging them to act as soon as possible. Retroactive payments can not be made until after the Governor has signed the appropriation bill into law. I am currently discussing with the Department of Administration the process and timing that they will use to make the retroactive payments to each member. The increase in the State’s contribution to health insurance from July 1, 2007 to June 30, 2008 will be paid directly to the ASEA Health Trust. To hold members harmless from an increase in their health insurance contribution on July 1, 2007 the ASEA Health Trust absorbed the increased cost of health insurance while awaiting approval of the monetary terms.

The Operating Budget, HB 310 and SB 220, which contains funding for the monetary terms for the period of July 1, 2008 to June 30, 2009, was introduced in the House of Representatives and the Senate on January 16, 2008. The following monetary terms are included in the operating budget:

• Funding for an additional 3% increase in wages effective July 1, 2008 to June 30, 2009.
• Funding for the $1.00 per hour premium for each hour worked on Saturday and Sunday to be paid to overtime eligible Class One employees working in institutions with continuous operations during the period of July 1, 2008 to June 30, 2009.
• Funding for an increase in the State’s health insurance contribution for the period of July 1, 2008 to June 30, 2009.

The Operating Budget is normally the last bill to be passed prior to adjournment of the legislative session. The funds contained in the Operating Budget will be available for payment to members beginning on July 1, 2008. I expect to be informed in the near future of the exact amount of the increase in the State’s contribution to health insurance effective July 1, 2008.

The Capital Budget, HB 311 and SB 221, was introduced in the House of Representatives and the Senate on January 16, 2008. The Capital Budget contains an appropriation of $400,000 to conduct a cost of living survey in accordance with AS 39.27.030.

It has been a top priority of the Union to have the funds appropriated for this study that will recommend geographical differentials for pay. Your elected CNC also made this a top priority during bargaining for the July 1, 2007 to June 30, 2010 Collective Bargaining Agreement. While the State would not agree to the study during bargaining it is apparent that the emphasis on this study by the CNC played an important role in having the funding included in the Capital Budget. If the funding is approved and after the study is conducted there is a provision in the contract, Article 21.03, that the Union and the State may renegotiate Article 21.03, Geographic Differential, of the contract.

Again, I can not predict how quickly the legislature will approve the supplemental bill which includes the retroactive funding but we will continue to urge quick action. During the past couple of weeks ASEA lobbyist Fate Putman and I have met with a number of legislators, including the Finance Co-chairs and the President of the Senate to discuss our monetary terms. The response has been very positive and I am very optimistic that the funds will be approved. I will keep you updated as the legislature considers these bills.

If you have any questions regarding the above please feel free to contact me.

Jim Duncan
Business Manager