HB 311 MINERS: PAY & MAXIMUM HOURS OF WORK DOUG ROBERTS, Mayor of Wrangell, stated support for HB 311 as it will provide an employment opportunity for Southeast Alaskans. Kennecott Greens Creek Mining Co. representatives came to Wrangell recently to discuss work opportunities at the mine. With an unemployment rate of about 30 percent in Wrangell, that industry can provide much needed jobs. HB 311 MINERS: PAY & MAXIMUM HOURS OF WORK  CLYNTON NAUMAN, General Manager of the Kennecott Greens Creek Mine on Admiralty Island testified in support of HB 311, which extends the number of hours a person can work underground from eight to ten, at the face. Greens Creek plans to reopen in the fourth quarter of 1996, and at that time will have about 250 employees. Greens Creek currently hires 150 employees, 80 percent are Alaskans. If HB 311 passes, Greens Creek intends to offer jobs to qualified people in Southeast Alaska, subsidize transportation costs from their home community to Admiralty Island where they would be housed for possibly 20 days, and transport them back to their communities for 10 days. This plan would avoid a housing problem in Juneau, and allow people from Southeast to work without relocating their families. If HB 311 does not pass, and Greens Creek is locked into eight hour underground shifts, it will have to run three shifts per day which will change the economics of the mine. MR. NAUMAN explained Greens Creek is requesting a change to ten hours in statute, rather than using the variance method proposed by the Department of Labor, because to implement the Southeast hire plan, Greens Creek will need to construct facilities with a cost of several million dollars. Greens Creek needs the certainty of a statute in order to amortize that investment and needs the stability and two-shift rotation in order to provide sustained, lower operating costs that will eventually provide more job security for employees by allowing Greens Creek to withstand volatility in a commodities market and in the global marketplace. A permit approach is less certain, and contains vague requirements, such as whether changing the eight hour underground work day to ten hours is in the best interest of the workers of the state. That will be difficult to determine before the workers are doing it. Greens Creek does not believe that standard is objective. Greens Creek is also uncertain about the length of the permit and the possibility of revocation. Permit regulations do not exist at this time, yet Greens Creek is ready to hire at this time. Greens Creek has spent considerable time with Commissioner Cashen trying to find common ground and appreciates the effort he has made, but needs the certainty of a statute to make the necessary investments. A ten-hour work day is safe, and promotes an opportunity for Alaskan jobs for qualified people, reduces the economic exposure of Greens Creek to inevitable fluctuations in the market, and allows it to be competitive on a global basis. Number 263 WENDY NATKONG, representing the workforce at Greens Creek Mine, submitted a letter to the editor she wrote to the Juneau Empire which was endorsed by 34 underground workers at the Greens Creek Mine, and a petition signed by 128 Greens Creek employees. As the medical coordinator, she does not believe safety is an issue with this bill. The original restriction on hours worked at the face of a mine was legislated in 1913; working conditions have improved substantially since that time. Current Greens Creek workers only spend about six hours at the face of the mine. Greens Creek employees support this measure because it will decrease the amount of commuting time to Admiralty, will allow for more time with their families, and for more productive shifts. The employees understand this schedule will not be dictated; that will be allowed to present proposals for the schedule to the management. BERNIE MILLER, Executive Director of the Southeast Conference, testified in support of HB 311 because it will make it easier for mining companies in Southeast Alaska to hire local residents. The economy in Southeast Alaska has changed dramatically in the last few years, and further changes may occur in the immediate future. The visitor industry has grown steadily, the timber industry has contracted significantly, and the fishing industry is confronted by new challenges daily. If mining companies are afforded the conditions they need to run a camp-type operation, workers will be able to commute from where they live now. More jobs should go to Southeasterners as a result which could be critical to the well being of communities in Southeast if further economic dislocations occur. For the Southeast Conference, the bottom line is high paying, full-time, private sector jobs. The Conference has no preference with respect to whether the relief mining companies need comes in statute or regulation, so long as companies operating in Southeast Alaska can hire people who live here. Number 189 ED FLANAGAN, Deputy Commissioner of the Department of Labor, stated DOL supports the concept of allowing a ten-hour work day. Commissioner Cashen has met with all of the mining interests that are proposing projects in the area and is personally interested in mining, however believes this legislation to be special interest because it meets the concerns of one company, however valid, despite the fact that those concerns can be met under an acceptable alternative. The variance procedure is not a permit: variances are routinely granted under Title 18, Chapter 60, for all OSHA regulations. For example, OSHA regulations ban night blasting, which would be a critical problem in Prudhoe Bay in the winter, therefore DOL grants a variance. MR. FLANAGAN continued. If HB 311 is enacted, this change will not only apply to Greens Creek, it will apply to every mine in the state. The law passed in 1913 may be old but has stood the state in good stead all of this time. In this community alone, there were three fatalities since 1989 in other mines in the development phase. Mining is a hazardous industry, however responsible companies can allow for safety to ensure that fatigue is not a factor. The Greens Creek camp is not a done deal. In previous testimony, Mr. Nauman stated his workers spend a 12 hour day to do 5.7 hours of work at the face. Those workers could be working up to 8 hours at the face at this time. If Greens Creek does not put in its camp, the workers will be putting in a 16 hour day. The variance procedure is responsive, and although it is time consuming on occasion, the Commissioner could issue an interim order ex parte and grant the variance pending resolution of the formal variance procedure. MR. FLANAGAN stated DOL commends Green Creek for trying to hire Southeast residents, however repeated the variance procedure can address Greens Creek's concerns. He was unaware of any variances revoked by DOL. He thanked the committee for their time. Number 103 GARY PAXTON, Sitka City Manager, testified via teleconference. Greens Creek representatives recently came to Sitka for a two-hour briefing on its hiring plan. The meeting had a substantial turnout. The City and Borough of Sitka supports HB 311. KEITH PERKINS, Sitka Assembly Member, voiced support for HB 311. Many people in Sitka are looking for work as Sitka has had a soft landing but its economy has finally hit bottom. The potential for high paying blue collar jobs is important for this reason. JENNIFER TENNY, testifying from Ketchikan, commented her husband was laid off as a logger, and recently became employed by Greens Creek Mine. HB 311 would allow her family to continue to work and live in Southeast Alaska. Because of the price and scarcity of housing in Juneau, she is not able to move her family. If he could work 20 days on and 10 off, the family could remain where they are. Her husband worked in two mines in Montana, one an underground mine. In both mines, he worked ten hour shifts, and sometimes 12 hours. He also worked in the sawmill industry with ten hour shifts. In 17 years of working full-time, he has never had a time- loss accident. Safety lies in the environmental and attitude that both the employee and employer must participate in. If a company spends time and resources in making a workplace safe, conditions will be as safe as possible. TAPE 96-35, SIDE A Number 000 MS. TENNY did not believe conditions are any more dangerous in a mine than they are in a sawmill, and questioned whether the 1913 was a special interest law to begin with. SENATOR GREEN moved CSHB 311(JUD) out of committee with individual recommendations. There being no objection, the motion carried.