Mining legislation gains labor’s support

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Wisconsin labor organizations have reached a Memorandum of Understanding with Gogebic Taconite in support of Assembly Bill 426, which regulates permitting and operations of ferrous (iron) mining in Wisconsin.

The measure, which is has been modified in the State Senate, could get a boost from the Memorandum, which received the backing of the International Union of Operating Engineers, Local 139; the Iron Workers District Council of the North Central States; the Wisconsin Pipe Trades Association and its Affiliated Local Unions; the North Central States Regional Council of Carpenters; and the Wisconsin Laborer’s District Council.

A compromise Senate bill has been shaped by the Joint Finance Committee and will be voted on today, but it might not have the votes to pass. Mining proponents hope labor support will help sway reluctant Senate Democrats to support the Joint Finance Committee compromise.

The Memorandum not only signals labor’s support AB 426, but for the proposed iron ore mining project in Iron and Ashland Counties. Gogebic Taconite has estimated that as many as 3,000 jobs will be created during the development and operation of the proposed mine. The mine is expected to operate for approximately 35 years.

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“This is a significant step forward for workers, job creation, and the future of mining in Wisconsin,” Tim Sullivan, former president and CEO of Bucyrus and now chairman of the Wisconsin Mining Association, said in a press release. “Organized labor and business are working together to do what is best for Wisconsin workers. We are pleased that these labor trade organizations, representing union workers from all across Wisconsin, were able to move beyond traditional partisan politics and support a plan that will create thousands of family-supporting jobs and help invigorate Wisconsin’s economy.”

The MOU also includes an agreement on the part of Gogebic Taconite to employ union labor during the construction of the proposed iron ore mine. Gogebic Taconite also agreed to use Wisconsin contractors for construction of the project, and hire Wisconsin workers to carry out operations, including mining, processing, and transportation.

The company has announced that it will actively support the development of workforce skills in the areas of mining and related heavy manufacturing to assist not only the proposed project, but also future mining projects in Wisconsin.

Terry McGowan, business manager with the International Union of Operating Engineers, Local 139, noted that thousands of jobs, not only in Iron and Ashland Counties but throughout Wisconsin, would be created during the development and operation of the Gogebic Taconite mine.

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“But these jobs can only be created if Wisconsin lawmakers pass iron mining legislation that includes a reasonable regulatory framework,” McGowan stated in the release.

The legislation, which seeks to streamline the permitting process, is opposed by environmentalists, and with the notable exception of State Sen. Dale Schultz, R-Richland Center, support has fallen mainly along party lines. Schultz sponsored his own mining bill that was unacceptable to Gogebic Taconite, and his critics outside the legislature charge that he’s not interested in a compromise, but actually wants to kill the mining project.

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