Local Hire Issues

Now that the Alaska State Senate Labor & Commerce Commission has convened to study and investigate North Slope labor practices, outsiders verses insiders, I offer testimony. I worked for Pioneer Natural Resources soon after start-up of its Oooguruk oil development project until it was time to hang it up, as it was clear and convincing that this “Independent” was pretty irresponsible, upon the environment and many other areas wherein responsibility was mandatory – but nobody was watching. Maybe being new to the lucrative North Slope oil business and in competition with “Big Oil” made a difference, as I was used to seeing things done right, or at least an attempt to do things right at any expense - including the hiring practices in efforts to draft and retain the most qualified individuals, those with North Slope experience. When I worked for “Big Oil” I had this badge that weighed in at close to a 1/2-pound, with all these credentials for mandatory training, on just about every subject pertaining to doing business up north. At Pioneer's man-made island in the Colville River Delta, gateway to the Beaufort Sea, it was a whole lot different. It was basically like kindergarten, wherein new hires were welcome and made up a majority of the workforce, but without an experienced backbone, it meant a whole lot of trial and error “errors”! This was not a place to test things out. And what was heart-breaking was the fact that a majority of the workers were from outside, as Pioneer did not seek qualified workers from local job fairs. Did you ever see a “PNR Help Wanted” add? And there were factors that fostered this type of dereliction. First and foremost, as an Independent with not so deep pockets the hourly wage offered potential employees was no where near in comparison to what could be realized with a “Big Oil” company, so it usually meant unqualified labor, wherein many hired had no idea what it meant to perform up North – that “responsibility” thing. And what was the sad fact of the matter, there was no excuse for labor rates that disallowed for experienced craftsmen, as Pioneer sought and was awarded “Royalty Relief” by the state early on this venture. In fact the PNR CEO visited your chambers down in Juneau on several occasions when this Texas based oil developer went “Texas Hold'm” gambling for such relief, and talked up a storm about hiring in-state “qualified” help which would require decent wages and with a little help from the legislators with the “relief” would allow for hiring the highest caliper of help money could buy, or something to that effect. So relief was granted, but even though it helped the bottom-line and this CEO made a pretty hefty take-home pay, it didn't help in the worker ranks wage base. It is all based on money. The wage difference is about $15.00 an hour. That equates to an annual benefit of $40,000 a year! So the operation would hire unqualified help and soon after a little experience under the belt, even new hires would find work across the gravel road, at Conoco or British Petroleum. Talk about a pay raise. See, local hire usually meant experienced and qualified individuals as a whole, as a whole bunch of us have been at it for 30-years by now. If you can't pay the prevailing wage, it means “outside” help to fill the vacancies. So if you hear a bunch of hoopla from industry bosses during this session before your committee on “Local Hire”, especially from a company that receives relief, it is all a smokescreen. They asked for relief, you came through, then we were all fooled. Like is required for hazardous waste clean-up crews and many other “mission critical” jobs, Independents should have stricter hiring practices that are policed with respect to “qualifications” and that will cost more as it is the cost of doing business up North. That may not sit well with the shareholders, but so what. I know that is a “Big Brother” syndrome, more control, but if we lose it due irresponsible behavior from inexperienced hands, we loose any chance to develop further into the Beaufort. Bottom line, you get what you pay for. But there is a simple solution. It is called a UNION or in softer tones, “Collective Bargaining” wherein a contract provides a pay that keeps people from looking elsewhere and with that ownership, which equates to “Responsibility”!