Responsible Labor Act

About AO – 2013-37

Purpose:

To upgrade and Improve Anchorage Municipal Code 3.70

Background:

The Municipality Anchorage as a home rule municipality is able to create its own labor ordinance and is not subject to either State or Federal law governing labor relations. Municipal labor relations are governed by AMC 3.70. Originally adopted in1969, amended in 1977 and 1989 this ordinance:

• Out of date with current municipal operations and modern effective management techniques
• Does not fully recognize the Assembly’s ultimate responsibility to the citizens of Anchorage to effectively budget and control spending.
• Municipality has nine collective bargaining agreements and a large group of non-union employees.

Objectives

• Upgrade code to contemporary standards and best practices
• Assure compliance with federal and state regulations
• Improve fiscal health
  • Align collective bargaining agreements to maximize efficiency
  • Create an efficient and streamlined process
  • Control labor and administrative costs
    • Reduce confusion in contract interpretation
    • Provide fiscal transparency

AO 2013-37-Does NOT amend, alter or void any currently existing labor agreement during its current term. All of the proposed revisions apply to labor negotiations, the impasse process and future labor agreements. AO 2013-37 does not involve the Anchorage School District.

Standardization

• Uniformity of benefit plans
  • In excess of 600 benefit combinations
  • Maintain sustainable benefits
• Adopt standard FLSA (Fair labor Standards ACT)definitions for compensation
• Limitation on application of "past practice"
  • Cannot be used to contradict or add contract terms
• Consistency regarding personnel rules
• Standardize Municipal holidays

3.70.020; 3.70.040; 3.70.160; 3.70.170

Flexibility

• No signatory requirement
• Strengthen scheduling flexibility
• Managed competition program
  • Implementation
  • Determine what services, if any, to be sent to bid
    • Develop fair and open bidding process
    • Current bargaining unit competes for work
    • Develop scope and terms of bid
    • Establish criteria and monitor contract
  • Competitive process assures added efficiency in services
  • Generally means bargaining unit keeps work 3.70.020; 3.70.040; 3.70.090

Transparency

• Direct labor cost defined
  • Inclusive of all costs including benefits and pay enhancements
  • Compared to revenue projections
  • Three year projection of "direct costs" to revenue
• Limit "pay enhancements" 
  • Pay to be tied to classification and job description
• Shop steward timekeeping requirements enforced
• Improve public control of public funds

3.70.010; 3.70.020; 3.70.100-120; 3.70.130

Clarify Impasse Process

• Neutral mediation
  • Cost sharing
  • Attempt to reach agreement voluntarily
• Neutral Fact finding
• Findings released to Public
• Assembly
  • Accept either parties’ Last Best Offer in its entirety
• Negotiations may continue throughout process

3.70.100.B; 3.70.110; 3.70.120

Advantages of Amended Impasse Procedures

• Streamlined process
  • Fact-finding and arbitration largely redundant
    • Fact finder recommends contract terms
    • Arbitration expensive and disruptive
• Focuses parties on voluntary resolution, not adversary proceeding
• Final decision after public hearing, no decision is made in private