Information about http://www.etp.ca.gov/docs/minutes/03Mar27Minutes.PDF
STATE OF CALIFORNIA EMPLOYMENT TRAINING PANEL MEETING …
Tags: aram, assistant executive director, budget hearings, california employment training, committee subcommittee, dean robert, director peter, executive staff, holiday inn on the bay, joan dean, legislative subcommittee, mcnamee, member executive, member tom, peter demauro, san diego california, senate budget committee, suchil, tom rankin, vice chairperson,Pages: 14
Language: english
Created: Tue Apr 15 15:03:10 2003
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STATE OF CALIFORNIA
EMPLOYMENT TRAINING PANEL MEETING
Holiday Inn on the Bay
1355 North Harbor Drive
San Diego, CA 92101
March 27, 2003
PANEL MEMBERS
Marsha Kwalwasser
Chairperson
Aram Hodess
Vice Chair
Barry Broad
Member
Joan Dean
Member
Tyrone Freeman
Member
Robert Lennox
Member
Tom Rankin
Member
Executive Staff
Peter McNamee
Executive Director
Steve Suchil
Assistant Executive Director
Pamela Haynes
Assistant Executive Director
Peter DeMauro
General Counsel
Ada Carrillo
Chief of Staff
STATE OF CALIFORNIA
EMPLOYMENT TRAINING PANEL MEETING
Holiday Inn on the Bay
Pacific A Ballroom
1355 North Harbor Drive
San Diego, California 92101
March 27, 2003
I. PUBLIC PANEL MEETING CALL TO ORDER
Aram Hodess, Co-Chair, called the public Panel meeting to order at 9:30 a.m. He
recommended moving the presentation of contracts forward on the Agenda because of
an anticipated quorum problem later that day.
II. ROLL CALL
Members Present
Aram Hodess, Vice Chairperson
Barry Broad
Joan Dean
Robert Lennox
Tom Rankin
Member Absent
Marsha Kwalwasser, Chairperson
Tyrone Freeman
Executive Staff Present
Peter McNamee, Executive Director
Pam Haynes, Assistant Executive Director
Peter DeMauro, General Counsel
Ada Carrillo, Chief of Staff
III. REPORTS OF THE CHAIRPERSON/PANEL MEMBERS
Tom Rankin, Chairperson for the Legislative Subcommittee, reported on upcoming
Budget hearings. Subcommittee 3 of the Senate Budget Committee Subcommittee
3 will meet on April 3, 2003, and Subcommittee 4 of the Assembly Budget
Committee will meet on April 22, 2003.
Mr. Rankin stated there are four bills pending in the Legislature that directly pertain
to ETP: AB 1061 (Firebaugh), AB 1551 (Kehoe), AB 1667 (Kehoe), and SB 817
Employment Training Panel March 27, 2003 Page 2
(Ducheny). He recommended opposing AB 1061 unless it is amended. The intent
of the bill, according to the Author's staff and the sponsor of the bill, the Latino
Business Association Institute (LBAI), is to increase the number of direct, single
employer, small business contracts, especially those that are subcontractors for
aerospace and defense prime contractors. Mr. Rankin stated there are problems
with AB 1061. First, the implication of this bill is that ETP does not serve small
businesses, which is not accurate since 67 percent of all businesses served had 100
or fewer workers, and 36 percent of all ETP training dollars expended last year went
to these businesses. Small businesses are served primarily through multiple
employer contracts, which have been shown to be the most efficient method. From
this standpoint, the bill is not necessary. Second, this bill is not specifically limited to
aerospace or defense small business subcontractors, if this is its intent. Third, AB
1061's goal of 25 percent direct single employer contracts would be costly for ETP to
implement and would require use of substantial employee resources, especially in
light of the proposed budget, which is predicated on an $8.5 million reduction in ETP
funding in FY 2003-2004. Fourth, the bill would remove the Panel's discretion for
wage waivers in high unemployment areas (HUA). And, fifth, the provisions defining
HUAs are redundant.
Mr. Rankin said AB 1551, AB 1667, and SB 817 need to be watched as they are
considered "spot bills" and may be amended.
ACTION: Mr. Rankin moved the Panel adopt the Budget and Legislative Report,
which recommends opposing AB 1061 (Firebaugh) and watching
AB 1551 (Kehoe), AB 1667 (Kehoe), and SB 817 (Ducheny); and
authorize the Executive Director to write a letter opposing AB 1061 to
Legislators. Mr. Broad seconded.
Motion carried, 5 0.
IV. APPROVAL OF AGENDA
ACTION: Mr. Rankin moved and Ms. Dean seconded the Panel approve the
Agenda as revised.
Motion carried, 5 0.
V. APPROVAL OF MINUTES
ACTION: Mr. Rankin moved and Mr. Broad seconded the Panel approve the
Minutes of February 27, 2003.
Motion carried, 5 - 0.
Employment Training Panel March 27, 2003 Page 3
VI. APPROVAL OF PROJECTS OF LESS THAN $100,000
ACTION: Mr. Broad moved and Mr. Rankin seconded the Panel approve
adopting those proposals that are less than $100,000 including the
Small Business Pilot Projects (SBPP). The following projects were
approved:
Atlas Pacific Engineering Company, Incorporated $53,248
California Pro-Specs, Incorporated DBA
Production Specialties $89,600
El Camino Community College District (Amendment) $23,443
Hilmar Cheese Company (Amendment) $832
Keiser Corporation $72,800
ID8 Media, Incorporated $54,000
Adcon Technical Institute, Incorporated $88,960
B & K Electric Wholesale, Incorporated $77,160
Rantec Power Systems Incorporated $60,840
California Chassis, Incorporated $53,360
Pacific Marine Sheet Metal Corporation d.b.a.
Southwest Fabricators $83,200
Owens Design, Incorporated (SBPP) $9,360
Motion carried, 5 0.
VII. AGREEMENTS AND AMENDMENTS
Communities In Schools of South Bay, Incorporated
Ron Tagami, Manager of ETP's North Hollywood field office, presented a One-Step
Agreement for Communities in Schools of South Bay, Inc., in the amount of
$105,484 to train 69 individuals in Computer Skills. The Contractor is requesting a
wage waiver to the ETP minimum wage of $11.92 for 39 trainees that are from areas
where the unemployment rates are at least 25 percent higher than the State
unemployment rate. These individuals lack the essential skills to improve their
employment opportunities. The lowest wage to be earned by these trainees is $9
per hour. The wages for these trainees will be raised by 7 percent at the end of the
retention period.
Mr. Tagami introduced Shirley Allen, Executive Director. Mr. Hodess questioned the
computer training. Ms. Allan stated the computer training offered by Communities in
Schools is given in a customized format and is delivered in a much shorter
timeframe. Trainees need the short-term training to get jobs rapidly. They cannot
afford the long-term training program given at the Community Colleges. Mr. Hodess
requested ETP staff to monitor this training program to ensure that those receiving
bookkeeping training are employed as bookkeepers. Ms. Carrillo stated that in order
Employment Training Panel March 27, 2003 Page 4
for payment to be considered earned, staff verifies that trainees are being placed in
the occupations for which they were trained.
ACTION: Mr. Rankin moved and Mr. Lennox seconded the Panel approve the
One-Step Agreement as presented.
Motion carried, 5 0.
Los Angeles County Electrical Training Trust
Mr. Tagami presented a One-Step Agreement for Los Angeles County Electrical
Training Trust in the amount of $159,730 to retrain 200 frontline workers in
Commercial and Computer Skills. This training project has the support of The
International Brotherhood of Electrical Workers/AFL-CIO Local 11.
Mr. Tagami introduced Byron Cummins, Director. There were no questions from the
Panel.
ACTION: Mr. Lennox moved and Mr. Rankin seconded the Panel approve the
One-Step Agreement as presented.
Motion carried, 5 0.
UAW Labor Employment and Training Corporation
Mr. Tagami presented a Proposed Agreement for UAW Labor Employment and
Training Corporation (UAW LETC) in the amount of $447,256 to train 406 retrainees
in Advanced Technology Computer Skills and 40 retrainees in Make-Up and Hair
Styling Skills. The curriculum was developed by the UAW LETC, four unions, and
the Contract Services Administration Trust Fund (CSATF), which consists of industry
employers and is administered by a board of directors appointed by the Alliance of
Motion Picture & Television Producers. The Contractor is requesting Advanced
Technology reimbursement of $20 per hour for all Computer Skills training.
Mr. Tagami stated that staff has been unable to determine specifically how the jobs
of makeup artists and hair stylists are changing and what skills trainees will be
performing differently following training. The Contractor is requesting to include
payroll companies as eligible participating employers in this project.
Staff recommended denial of the training for make-up artists, hair stylists, and the
use of payroll companies. Staff recommended that the Panel: (1) approve the use of
a single Certification Statement from the CSATF along with a list of member
employers to show employer demand for this proposal, on the condition that
completed, Certification Statements signed by each participating employer would be
submitted prior to the start of training for each company's workers, (2) approve the
Proposed Agreement, if funding is available and the project meets the Panel
priorities, and (3) delegate to the Executive Director the authority to approve the
Employment Training Panel March 27, 2003 Page 5
Final Agreement contingent upon the submission of all required documentation,
including letters from the Workforce Investment Board and local elected officials
authorizing the UAW LETC to contract with ETP as a Grant Recipient.
Mr. Tagami introduced Robert Nelson, UAW LETC President, CEO, and Gavin
Kuhn, Executive Director, CSATF. Mr. Broad questioned if the terms under which a
payroll company operates as the employer of record are set out in a collective
bargaining agreement. Mr. Kuhn replied payroll companies are signatories to the
Agreement. Mr. Broad stated that the motion picture industry is unique and wanted
assurance that the Panel would not be setting a precedent by allowing the use of
payroll companies. Mr. DeMauro stated language could be added to the Contract
specific to the entertainment industry allowing the use of payroll companies that are
signatories to the Agreement.
Mr. Rankin questioned the exception of ETP training for Make-Up Artists and Hair
Stylists. Mr. Tagami stated staff recommended eliminating the Make-Up and Hair
Styling Skills training from the curriculum because the Contractor had not provided
sufficient information to support the proposed training would be for new skills and not
training for standard cosmetology skills. Mr. Nelson described the new high
technology involved in applying enhancement devices and appliances that
completely change appearances.
ACTION: Mr. Rankin moved and Mr. Lennox seconded the Panel approve the
Proposed Agreement including Make-Up Artists and Hair Stylists, with
the contingency that (1) payroll companies be signatories to the
Agreement and they are included in the Collective Bargaining
Agreements, (2) a single Certification Statement from the CSATF
along with a list of member employers showing employer demand for
this proposal, on the condition that completed, Certification Statements
signed by each participating employer be submitted prior to the start of
training for each company's workers, (3) delegate to the Executive
Director the authority to approve the Final Agreement contingent upon
the submission of all required documentation, including letters from the
Workforce Investment Board and local elected officials authorizing the
UAW LETC to contract with ETP as a Grant Recipient, and (4) the
Panel recognizes that the motion picture industry is unique and the
Panel is not constituting a precedent by allowing the use of payroll
companies in this Agreement.
Motion carried, 5 0.
Community Career Development, Incorporated
Diana Torres, Manager of ETP's San Diego field office, presented a One-Step
Agreement for Community Career Development, Inc., in the amount of $145,440.
Community Career Development, Inc. (CCD), is a non-profit, community-based
Employment Training Panel March 27, 2003 Page 6
organization established to work with government, business and the community to
train its clients for employment. The Federal Communications Commission (FCC)
mandated that all broadcast and media companies transition to digital services.
CCD stated that, with the FCC mandate, the need for better-trained operators,
engineers, technicians and customer service representatives has increased
dramatically. Los Angeles broadcast and medial employers have begun upgrades,
but cannot find comprehensive training programs that comply with FCC standards
for their employees. CCD proposes to train 80 incumbent workers in Advanced
Technology, Digital and High Definition Skills.
The in-kind contribution from participating employers is estimated at $84,210.
CCD stated that 70 of the trainees will be provided mandatory, paid training but
training provided to 10 trainees from participating employers with fewer than 10
employees will be voluntary, non-compensatory training.
Ms. Torres introduced Ebony Shakoor-Akbar, Business Development Director.
Mr. Hodess questioned voluntary training. He stated training that is required to up-
grade workers' skills to comply with an FCC mandate is considered mandatory
training and trainees should be compensated while attending training. Mr. DeMauro
stated the Department of Industrial Relations criteria for voluntary vs. mandatory
training is for all companies regardless of size.
ACTION: Mr. Hodess moved the Panel approve the One-Step Agreement with
all employees being recognized as receiving mandatory training and
the training hours for all are compensated. Mr. Rankin seconded.
Motion carried, 5 0.
Rands Systems, Incorporated
Ms. Torres presented a One-Step Agreement for Rands Systems, Inc., in the
amount of $1,364,946. Rands Systems provides customized job-specific
manufacturing technology training for businesses that manufacture products and
parts requiring process manufacturing. Rands proposes to train 150 new hires and
202 retrainees in Manufacturing Skills and Advanced Technology. To demonstrate a
quantifiable commitment to training, all participating employers will make a
contribution to training-related costs not covered by ETP funding totaling $991,950.
Ms. Torres introduced Robert Rapkin, President, and Dennis Jones. Mr. Broad
questioned wage increases for retrainees. Mr. Rankin questioned the amount of
health benefits applied to meet wage levels. Mr. Rapkin replied in some cases
health benefits amount to as little as $.25 per hour and in other cases as much as $1
per hour. Mr. Hodess questioned training for machinists, for which there is an
existing apprenticeship program. Mr. Rapkin stated the apprenticeship program
takes a longer period of training time and includes specific and complicated skills
Employment Training Panel March 27, 2003 Page 7
acquisition. He stated Rands is training "to the task." He stated Rands does not
compete with apprenticeship programs but does refer people to those programs.
Mr. Hodess stated that portions of the machinist training proposed in this Agreement
appear to duplicate components of an apprenticeship program. Mr. Rapkin stated
that some of the occupations listed on the training plan, on the surface, do appear to
be apprenticeship occupations. He stated, to clear up any misunderstanding, Rands
will remove any apprenticeable occupation from this Agreement. Mr. Hodess would
also like to see a guaranteed wage increase following training.
ACTION: Mr. Broad moved the Panel approve the One-Step Agreement
contingent upon trainees receiving at least a 5 percent wage increase
at completion of employment retention (this increase would be
exclusive of a cost of living increase).
Motion carried, 5 0.
Teichert, Inc.
Charles Rufo, Manager of ETP's Sacramento field office, presented a One-Step
Agreement for Teichert, Inc., in the amount of $718,900 to retrain 700 workers.
Teichert, Inc., is organized into two major operational divisions: Teichert Materials
and Teichert Construction. Teichert plans to implement an enterprise resource
planning system to link all parts of the company into a single integrated database.
Cement Masons Local 400, Machinists and Mechanics Lodge No. 2181, Operating
Engineers Local Union No. 3, Construction and General Laborers' Local 185, and
General Teamsters Local No. 439 support Teichert's training initiative.
Mr. Rufo introduced John Cassidy, Tax Manager, and Donald Grady, Change
Management Project Manager. There were no questions from the Panel.
Mr. Hodess requested all contracts that include on-site training and the employer
claims in-kind contribution credit for wages paid during training include the
statement, "trainees will not produce products or services during training."
ACTION: Mr. Broad moved and Ms. Dean seconded the Panel approve the One-
Step Agreement, which will include the statement "trainees will not
produce products or services during training."
Motion carried, 5 0.
Calpine Operating Services Company, Incorporated
Mr. Rufo presented a One-Step Agreement for Calpine Operating Services
Company, Incorporated, in the amount of $234,000 to retrain 320 employees in
Commercial Skills, Computer Skills, and Management Skills. Calpine has begun a
$15 billion construction project, which includes building five new California power
plants. Calpine officials state that without ETP funding there would be less training
Employment Training Panel March 27, 2003 Page 8
done in California because of budget constraints. Calpine is requesting a waiver of
the ETP 200-hour training limit for 20 trainees in Job 3 who will be trained to operate
the five new plants currently under construction.
Mr. Rufo introduced Doug Williamson, Vice President (represented by John Cole,
Director of Employee Training & Development), and Sue Middleton, CMMS Training
Specialist. Mr. Rankin questioned the percentage of managers and supervisors
being trained. Mr. Cole replied that this is the first management-training program
Calpine has started. Calpine has promoted several employees recently and the
Company is planning an intense management-training program. Mr. Rankin and
Mr. Hodess had concerns regarding job occupations appearing to be apprenticeable,
i.e., Plant Operators and Plant Maintenance. Mr. Cole replied that he is not aware of
an apprenticeship program for power plant personnel. Mr. Hodess requested the
Contractor return to the Panel next month after further researching apprenticeship
programs and a guarantee for a better completion rate on this training project.
Dey, L.P.
Mr. Rufo presented a One-Step Agreement for Dey, L.P., in the amount of 932,710
to retrain 694 employees in Business Skills, Computer Skills, Continuous
Improvement, Literacy Skills, Management Skills, and Manufacturing Skills. Dey is a
manufacturer and distributor, producing and distributing prescription medications to
California, nationwide, and worldwide customers. With the purchase of new
computer software, process changes, and technological advancement, Dey needs to
implement new skills training. As manufacturing lines become more technical with
machines and computer systems measuring and maintaining quality, inspectors
need to learn the new operating systems. Leaders at all management levels must
manage technological and process changes, measure results, and improve staff's
abilities.
Mr. Rufo introduced Pamela Marrs, Executive Vice President & CFO, and Jason
Moehring, Senior Management Development Specialist. There were no questions
from the Panel.
ACTION: Mr. Rankin moved and Mr. Lennox seconded the Panel approve the
One-Step Agreement.
Motion carried, 5 0.
The Boeing Company, Airlift & Tanker Programs (presented out of order)
Mr. Tagami presented a One-Step Agreement for The Boeing Company, Airlift &
Tanker Programs in the amount of $2,366,000. The Boeing Company proposes to
train 2,150 workers in Continuous Improvement in order to maintain the C-17 military
aircraft production facility in Long Beach as a high performance workplace. The
Employment Training Panel March 27, 2003 Page 9
United Automobile, Aerospace, Agriculture Implement Workers of America, UAW
Local 148 supports this training project.
Mr. Tagami introduced Ed Schaniel, Director of Employee Involvement. There were
no questions from the Panel. Mr. Hodess requested adding to the contract the
phrase "trainees will not produce products or services during training." Mr. Schaniel
agreed.
ACTION: Mr. Broad moved and Ms. Dean seconded the Panel approve the One-
Step Agreement adding the phrase "trainees will not produce products
or services during training" to the Agreement.
Motion carried, 5 0.
Intel Corporation
Intel Corporation was withdrawn from consideration at this month's Panel meeting.
Sun Microsystems, Inc.
Creighton Chan, Manager of ETP's San Mateo field office, presented a One-Step
Agreement for Sun Microsystems, Inc. (Sun), in the amount of $3,950,100. Sun is a
major producer of computer workstations, servers, networking system software,
storage technologies and applications, and services for network computing
environments. Sun must invest heavily in research and development, initiate
business process improvements and new manufacturing technologies, and
implement a retraining program focusing on frontline workers in order to remain
competitive. Sun proposes to train 6,300 employees in Continuous Improvement,
Manufacturing Skills, Computer Skills, and Business Skills.
Mr. Chan introduced Majuana Martin, Global Business Operations Manager, and
Phillip Herrera, Herrerra & Company. There were no questions from the Panel.
Mr. Hodess requested adding the statement "trainees will not produce products or
services during training."
ACTION: Mr. Rankin moved and Mr. Lennox seconded the Panel approve the
One-Step Agreement adding the phrase "trainees will not produce
products or services during training" to the Agreement.
Motion carried, 5 0.
California Commerce Bank
Mr. Tagami presented a One-Step Agreement for California Commerce Bank in the
amount of $224,900 to retrain 173 employees in Continuous Improvement,
Management, Business, and Computer Skills.
Employment Training Panel March 27, 2003 Page 10
Mr. Tagami introduced Dennis Campos, Senior Vice President. There were no
questions from the Panel. Mr. Hodess requested adding the statement "trainees will
not produce products or services during training." Mr. Campos agreed.
ACTION: Ms. Dean moved and Mr. Lennox seconded the Panel approve the
One-Step Agreement adding the phrase "trainees will not produce
products or services during training" to the Agreement.
Motion carried, 5 0.
Northrop Grumman Corporation
Mr. Tagami presented a One-Step Agreement for Northrop Grumman Corporation in
the amount of $904,800 to retrain 1,700 employee of the Company's Air Combat
Systems (ACS) group. ACS is the principal subcontractor to Boeing on the F/A-18
program, which is a fighter/ground attack aircraft, principally used by the U.S. Navy
on aircraft carriers.
Mr. Tagami introduced Michael Lawler, Manager of Contracts and Pricing, and Ian
MacAllister, Manager, Lean Integration. There were no questions from the Panel.
Mr. Hodess requested adding the statement "trainees will not produce products or
services during training." Mr. Lawler agreed.
ACTION: Mr. Lennox moved and Ms. Dean seconded the Panel approve the
One-Step Agreement adding the phrase "trainees will not produce
products or services during training" to the Agreement.
Motion carried, 5 0.
One Health Plan of California, Incorporated
Mr. Tagami presented a One-Step Agreement for One Health Plan of California, Inc.,
in the amount of $698,984 to retrain 367 employees. One Health Plan conducts
medical management services to insurance companies in California.
Mr. Tagami introduced Ernie Pero, Vice President. Mr. Rankin asked how many
people in California are covered by One Health Plan. Mr. Pero answered over
60,000. Mr. Hodess requested adding the statement "trainees will not produce
products or services during training." Mr. Pero agreed.
ACTION: Mr. Rankin moved and Mr. Lennox seconded the Panel approve the
One-Step Agreement adding the phrase "trainees will not produce
products or services during training" to the Agreement
Motion carried, 5 0.
Employment Training Panel March 27, 2003 Page 11
Gen-Probe, Incorporated
Ms. Torres presented a One-Step Agreement for Gen-Probe Incorporated in the
amount of $313,120. The estimated in-kind contribution is $369,841. Gen-Probe
develops, manufactures, and markets nucleic acid testing products used for the
clinical diagnosis of diseases and screening of donated human blood. According to
Gen-Probe, the customers are in constant competition with each other to increase
their share of the diagnostic testing market by using the newest and most reliable
testing devices available. Gen-Probe must demonstrate to its customers that its
products are designed and manufactured using the latest technologies. Gen-Probe
anticipates introducing several technologically advanced products over the next two
years. These product developments are specifically designed to address the needs
of its customers and increase Gen-Probe's market share. To meet Company-wide
goals, Gen-Probe has developed a comprehensive training plan to train 468
employees located in San Diego.
Ms. Torres introduced Robin Vedova, Vice President of Administration and Signatory
to the Agreement, and Roy Burchill, Director, Human Resources. There were no
questions from the Panel. Mr. Hodess requested adding the statement "trainees will
not produce products or services during training." Ms. Vedova agreed.
ACTION: Mr. Lennox moved and Ms. Dean seconded the Panel approve the
One-Step Agreement adding the phrase "trainees will not produce
products or services during training" to the Agreement
Motion carried, 5 0.
Loews Coronado Bay Resort
Ms. Torres presented a One-Step Agreement for Loews Coronado Bay Resort in the
amount of $108,160. The estimated in-kind contribution is $112,188. Loews
Coronado Bay Resort is a 440-room resort, convention/conference hotel with over
65,000 square feet of functional meeting and conference room space that competes
national and internationally for customers. This is the second Agreement between
Loews Coronado Bay Resort (Loews) and ETP. In the first Agreement, Loews
began its transition to a high performance workplace by providing front-line staff with
team problem solving processes and guest service skills. The ETP training boosted
the careers of many employees through internal promotions as a direct result of the
training. Since this Agreement, the hospitality industry and the resort have
undergone significant changes. The tourist industry in California has taken a major
blow since September 11, 2001. Out-of-State tourism in 2002 was down
significantly from 2001. The current economic and security changes in the country
require that the hotel restructure how it runs its business. Today, the needs of the
guests and business travelers have changed significantly since the prior Agreement.
Given that Loews Coronado Bay Resort is located on an island and next to several
military bases, employees must work even harder to continue to attract new
Employment Training Panel March 27, 2003 Page 12
business, make guests feel safe, and maintain a high level of hospitality standards.
Loews proposes to train 190 workers in Literacy Skills, Business Skills, Continuous
Improvement, Computer Skills, and Management Skills.
Ms. Torres introduced Kathleen Cochran, General Manager. Mr. Rankin questioned
service charges. Ms. Cochran replied banquet workers earn approximately
13.5 percent in service charges, which increase their hourly wage rate to an average
of $19 - $22 per hour. Mr. Hodess approved the project with the inclusion that
13.5 percent of the banquet service charge be reimbursable to the banquet servers.
Ms. Cochran agreed.
ACTION: Mr. Hodess moved and Ms. Dean seconded the Panel approve the
One-Step Agreement including a provision that 13.5 percent banquet
service charges be reimbursed to the banquet employees.
Motion carried, 5 0.
Strategic Hotel Capital, The Ritz-Carlton, Laguna Niguel
Ms. Torres presented a One-Step Agreement for Strategic Hotel Capital, The Ritz-
Carlton, Laguna Niguel, in the amount of $545,940. The employer in-kind
contribution is estimated at $805,000. Since September 11, tourism has diminished
and the hotel has suffered from fewer guests and a decrease in revenues. The
Company must increase customer satisfaction, increase efficiency and productivity
of its workers, streamline processes, and develop new and improved standards of
excellence to regain and maintain its five-star rating. To meet its objectives, the
Ritz-Carlton proposes to train 526 employees in Business and Management Skills.
The Ritz-Carlton is using mandatory service charges for one of the occupational
groups in the training plan.
Ms. Torres introduced John Dravinski, General Manager and Signatory to the
Agreement, and Christoph Hilscher, Director of Training. Mr. Rankin questioned the
service charges. Mr. Dravinski stated The Ritz-Carlton's service charge is similar to
Loews. Mr. Rankin asked if the Ritz-Carlton would agree to the same requirement of
Loews regarding banquet service charges. Mr. Dravinski agreed. Mr. Hodess
requested adding the statement "trainees will not produce products or services
during training." Mr. Dravinski agreed
ACTION: Mr. Rankin moved and Mr. Lennox seconded the Panel approve the
One-Step Agreement including a provision that banquet service
charges be reimbursed to the banquet employees and a provision that
trainees will not produce products or services during training.
Motion carried, 5 0.
Employment Training Panel March 27, 2003 Page 13
VIII. REPORT OF THE EXECUTIVE DIRECTOR
Mr. McNamee reported on the Governor's tour of the New United Motors
Manufacturing Incorporated (NUMMI) plant in Fremont. The site visit was a
collaborative effort between NUMMI, California Manufacturers Technology
Association, and ETP. Aram Hodess and Tom Rankin represented the ETP. He
stated the workers in the plant had a favorable reaction to the visit.
IX. REPORT OF THE GENERAL COUNSEL
Mr. DeMauro had no report.
X. APPRENTICESHIP POLICY
Mr. Hodess stated, because further clarification was needed on apprenticeship
issues, that Mr. McNamee, Mr. DeMauro, Ms. Haynes, and he met with Chuck Cake,
Director of Industrial Relations, and staff, as well as Henry Nunn, Director of the
Division of Apprenticeship Standards (DAS), and staff. Mr. Hodess stated
discussions would be ongoing as to how staff can obtain more consistent information
when ETP receives a contract that may include some apprenticeable training. The
DAS will provide a staff person that ETP can contact direct who would have the
information ETP requires.
Mr. McNamee reported ETP's budget would be presented at a Senate
Subcommittee Budget Hearing on April 3, at the Capitol, and an Assembly
Subcommittee Budget Hearing on April 22.
XI. PUBLIC COMMENT
John Clair, General Manager, High Sierra Plastics, spoke on this company's
successful ETP training program. He spoke in favor of using payroll service
companies under special circumstances.
XII. EXECUTIVE SESSION
There was no Executive Session at this month's Panel meeting.
XIII. ADJOURN
There being no further business and no objection, the meeting was adjourned at
11:30 a.m.
Employment Training Panel March 27, 2003 Page 14