Bill aims to include recently laid-off miners in unemployment extension

ST. PAUL — A bill expanding extended unemployment benefits to include the latest round of workers laid off from Iron Range mines easily passed out of its first committee on Wednesday, Feb. 18.

Rep. Spencer Igo, R-Wabana Township, introduced the measure. It offers an additional 26 weeks of benefits to miners laid off between Jan. 15 and March 15, which includes the 45 workers laid off from Hibbing Taconite at the beginning of February. The same extension was passed for the 630 miners laid off from Cleveland Cliff’s Minorca and Hibtac mines last year.

“The reason the Legislature, for generations, has came and given these support and given these extensions is because we work in such a unique industry,” Igo told the Minnesota House Workforce, Labor, and Economic Development Finance and Policy Committee.

“... And because when we go through downtowns in mining, we need those jobs to remain and stay so that when it ticks back up, they’re there to take their jobs back and keep being the engine of not only just northeastern Minnesota’s economy, but one of the state’s legacy industries and the backbone of the nation’s steel industry.”

The bill now moves to the Ways and Means Committee, where there will be more information shared on how the measure will impact the unemployment insurance fund.

John Arbogast is a representative for United Steelworkers District 11, which includes all six taconite mines on the Range. He explained that most of Cleveland-Cliff's taconite goes toward automobiles, and the downturn in production is driven by an oversupply of pellets and a lack of demand for new vehicles.

“Cliffs has got to weather the storm when it comes to automotive, and I think they will. I mean, these cars can’t sit on the lots forever, and interest rates can’t stay high forever,” he said. “Where U.S. Steel might be diversified a little more than Cleveland-Cliffs, when it comes to their products. ... It’s not good news at U.S. Steel either, it’s just better news than Cleveland-Cliffs.”

Arbogast, Hibbing Mayor Pete Hyduke and St. Louis County Commissioner Mike Jugovich also spoke in support of the bill, explaining that once people start a career in mining, they stick with it. When layoffs occur, workers have to choose between trying to stick it out until the mine reopens or moving to a new community where there are mining jobs.

“It’s not like we just lose one job,” Igo said. “We might lose three kids in our schools, which now is going to affect how our schools are funded. We’re now going to lose five more people at the local church. We’re now going to lose that aspiring small business owner, who maybe wants to do something on the side. We’re going to lose the people that are going to volunteer at the local Lions club.

“That trickle-down effect is what’s devastating to our communities.”

But Igo also tried to focus on the good: This difficult time shows how tight-knit Range communities are, and soon-to-open Mesabi Metallics will be a shot in the arm for the whole region.

“We just need another band-aid,” Arbogast said. “I think all these other things will work themselves out eventually.”