Alaska Employment Law

Attorney General Tallis Colberg has opined that AGIA (the Alaska Gasline Inducement Act), including its Alaska hire provisions, is constitutional.  As to the labor provisions, the AG’s June 5th opinion emphasizes flexibility inserted into the final version (”to the maximum extent permitted by law”) and, as to the training program, advises the state to be careful in its implementation.  Colberg states:

AS 43.90.130(15) requires, ‘to the maximum extent permitted by law,’ that applicants commit to hire qualified residents from throughout the state for a range of positions on the proposed project; contract with businesses located in the state; establish hiring facilities or use existing hiring facilities in the state; and use, as far as is practicable, the job centers and services operated by the Department of Labor and Workforce Development and an Internet-based labor-exchange system operated by the state.  The ‘Alaska hire” provisions are expressly constrained to ‘the maximum extent permitted by law.’  This requirement does not prohibit other methods of hiring, nor does it limit potential employment to persons residing in the state.  We see no constitutional problems with this aspect of the bill.

To ensure stability of the workforce and timeliness of the project, AS 43.90.130(17) requires applicants to commit ‘to negotiate, before construction, a project labor agreement to the maximum extent permitted by law.’  Project labor agreement is defined as ‘a comprehensive collective bargaining agreement between the licensee or its agent and the appropriate labor representatives to ensure the licensee or its agent and the appropriate labor representatives to ensure expedited construction with labor stability for the project by qualified residents of the state.’  On large projects such as the gas pipeline contemplated under this bill, such agreements are commonplace.  Mandating a project labor agreement supports the state’s legitimate interests in facilitating construction of the gas line as soon as possible to ensure that the state will receive royalty income at the earlier possible time.  Timely completion of the gas line will also reduce the overall cost of the project, again reducing the impact on the tariffs charged to those shipping gas through the line, thereby maximizing the state’s return.

AS 43.90.470 directs the commissioner of labor and workforce development to develop a job training program that will provide training for Alaskans in a range of gas pipeline project positions.  While the term ‘Alaskans’ may raise questions under the federal commerce clause, it is certainly possible to implement this provision without improperly restricting interstate commerce.  We recommend that the commissioner of labor and workforce development take into consideration interstate commerce and equal protection concerns when developing the training program to avoid any legal impediments.

Attorney General Opinion 883-07-0065, 2007 WL 2333365 (Alaska June 5, 2007)