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DOA explains shift of labor-relations functions to Department of Law, says some HR duties remain in DOP
Summary
Department of Administration staff told senators the Department of Law will assume legal oversight for labor relations and negotiation support while the Division of Personnel will retain day‑to‑day enforcement, discipline and delegated letters of agreement; senators asked for clarity about operational efficiency and LOA effectiveness.
The Senate Finance Subcommittee on March 17 questioned the Department of Administration about recent administrative changes that move certain labor‑relations responsibilities to the Department of Law and the governor's office.
“Providing direct legal assistance and oversight to the labor relations team, allowing the legal team to be able to review and analyze contract terms as a part of the negotiating process,” Eric Demolen, Administrative Services Director, said as he summarized the rationale in the department's written response. He said the move is intended to give negotiators earlier access to legal review and to scale legal resources for grievances, arbitrations and contract interpretation.
Demolen clarified that the Division of Personnel (DOP) will retain several functions: letters of agreement (LOAs) that have been delegated, dispute letters, disciplinary matters, grievances and day‑to‑day enforcement and compliance responsibilities. He said LOAs that are non‑delegated — those with broader fiscal or unit‑wide impact — are moving to the Department of Law for legal review.
Senators expressed concern that the people who work daily with collective bargaining agreements will no longer lead changes to those agreements. Senator Keel asked whether moving negotiation authority away from HR practitioners could reduce effectiveness; Demolen said the intent is to combine legal expertise with departmental knowledge and that HR would continue to handle enforcement, payroll implications and operational interpretation.
Senator Tobin and others asked about LOAs being used to address staffing shortages (for example, at the Anchorage facility) and whether LOAs are effective recruitment and retention tools. Demolen said LOAs “do have their place” and that the state intends to measure LOA effectiveness more consistently.
The committee did not take action; members requested further documentation explaining which LOA categories are delegated to DOP and which will be handled by the Department of Law.
