SENATE BILL REPORT

ESB 5740

BYSenator Vognild

Revising provision relating to ferry employees' compensation.

Senate Committee on Transportation

Senate Hearing Date(s):March 5, 1987

Majority Report:  Do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Bender, Conner, DeJarnatt, Garrett, Halsan, Patterson, Smitherman.

Senate Staff:Larry Plummer (786-7321)

                  March 23, 1987

AS PASSED SENATE, MARCH 19, 1987

BACKGROUND:

Current statute allows ferry system management and employee organizations to bargain collectively for insurance and health care plans other than those provided to state employees under the State Employees' Insurance Board.  Employer contributions by the state to such insurance and health care plans may exceed that of other state agencies,  due to higher insurance premiums.

If employer contributions exceed that of other state agencies, however, the excess amount is to be subtracted from funds available for compensation purposes, to include future salary increases.

There are six major ferry employee organizations which receive employer contributions in excess of those for other state agencies, for insurance and health care plans.  Employer contribution levels vary among these organizations. Compensation agreements with ferry employee organizations have not been finalized for the 1985-87 or 1987-89 bienniums.

Current statute language could be interpreted to say that wage increases must be decreased by this differential in benefit plans in each successive biennium.  Such an interpretation would, in effect, require ferry employees to pay for this differential out of wages more than once.

SUMMARY:

If ferry employees, by bargaining unit, have absorbed an offset of wage increases in the 1985-87 biennium, equal to the differential between employer contributions for their insurance and health care plans and those of other general government state employees, ferry employees shall not be required to absorb further offsets in subsequent fiscal bienniums.

If the offset of wage increases in the 1985-87 biennium is less than the differential in benefit plan costs, the amount available for compensation must be reduced to absorb the remainder of the differential.

If the differential in benefit plan costs is increased, the increase in the differential must be used to reduce the amount available for compensation.

Compensation is defined to include all wages and employee benefits.

Fiscal Note:      available

Effective Date:This act is effective July 1, 1987.

Senate Committee - Testified: Senator Vognild