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Ethanol plant shuts out local workers as construction starts

Date Posted: September 15 2006

MARYSVILLE - A new $95 million ethanol plant here seems ready to be a big jobs producer - for Minnesota construction workers.

Owned by Marysville Ethanol, LLC, the plant is expected to employ 300 construction workers. Unfortunately for Hardhats in this area south of Port Huron, the project manager, Fagen, Inc. of Granite Falls, Minnesota, has recently indicated that it intends to self-perform the majority of the construction and import their own (nonunion) crews from their home state.

Some 300 building trades workers walked informational pickets along the plant's construction gates on Busha Highway on Sept. 5-6 protesting the use of out-of-area workers. Picket signs said "Local jobs for local people" and "Support your local businesses and contractors."

Mike Moran, an IBEW Local 58 business agent who sits on the Board of Economic Directors for St. Clair County, said during the application and permitting process, Marysville Ethanol LLC representatives had verbally assured state and local officials that local labor would be used on the project.

But just as construction was about to start, Moran said they changed their tune, claiming they would self-perform the work.

"There are a lot of people around here who can use the work," he said. "They should live up to their commitments."

Some site work has started and union electrical and plumbing contractors have performed a small amount of work on the project. But the vast majority of the work seems on a course to go to the out-of-state workers.

"There's a voracious appetite for jobs in the area," said Marysville Mayor Gary Orr, who is a candidate for Michigan Senate, 25th District and is endorsed by the Michigan Building and Construction Trades Council. He met with pickets on Sept. 5. "It's really disappointing. I've met with the plant delegation five or six times and they make no secret that they plan to self-perform the work."

The decision by the plant comes despite local and state tax incentives. According to the Port Huron Times Herald, Marysville Ethanol was given a four-year, 100 percent tax abatement by St. Clair County. After that the abatement will be reduced, and eliminated by 2018.

"Our contractors aren't even being given a chance to bid," said Iron Workers Local 25 Business Agent Zane Walker. "We've been talking to the people at the plant for over a year, and until recently we never had an indication that our local trades people were going to be shut out. It's frustrating."