Labor Union Objects to North Dakota Wind Project Staffed by Out-of-State Workers

Members of the Laborers’ International Union of America protest June 21, 2024, in Bismarck to raise awareness about the NextEra Energy Resources Oliver IV wind project hiring primarily out-of-state workers. The company declined to provide information about its workforce, but said it’s committed to hiring local workers when possible. (Provided by LIUNA via the North Dakota Monitor)

(North Dakota Monitor) -A company building a wind farm in central North Dakota told state regulators it would hire “as much local labor as possible,” but the project appears to be primarily staffed by out-of-state workers, leaders of a labor union say.

The Laborers’ International Union of America supported the Oliver IV wind project that’s under construction in Oliver and Mercer counties. Union leaders received assurances from developer NextEra Energy Resources that the company would work with the union to staff the project with North Dakota workers, said Kevin Pranis, marketing manager for LIUNA.

Labor union member Jessie Smith was among those who testified in support of the project during a January North Dakota Public Service Commission hearing.

Smith, who lives in Hensler in Oliver County, said in an interview she has experience working for nearby coal-fired power plants and she wants to gain experience in the wind industry.

“It sounds like the coal-fired power plants are being replaced,” Smith told the North Dakota Monitor. “Wind power is the future and we’d like to hop on that bandwagon.”

Clay Cameron, director of development for NextEra Energy, said during the hearing that its engineering, procurement and construction hiring contractor is responsible for hiring, but “we commit that our EPCs will hire as much local labor as possible.”

“We agree with LIUNA that using local labor is good for the community,” Cameron told commissioners. “It’s also good for the project because it reduces travel and expenses.”

The labor union did an informal survey of vehicle license plates at the job site, finding that nearly 40% of the vehicles had Texas plates and about 5% had North Dakota plates, Pranis said.

He said that figure likely undercounts the number of Texas-based workers since they tend to carpool from their housing units while North Dakotans likely drive themselves.

“It’s a bait and switch with more Texans than North Dakotans on the project,” Pranis said.

In total, the union estimates that more than 90% of the workforce is from out of state based on its informal survey.

A NextEra representative declined to answer questions about how many local workers it hired for the project.

“NextEra Energy Resources respects the role labor unions have in the construction industry and recognizes the value of prioritizing local hiring, to the extent possible in the states where our projects are located,” Sarah Borchardt, marketing and communications leader, said in a statement.

Julie Fedorchak, a member of the Public Service Commission, said business hiring practices are beyond the scope of the commission’s permitting process, and applicants pledge to hire local talent when it’s available.

“We don’t get involved in the company hiring decisions at all,” Fedorchak said.

The new wind farm will feature 71 wind turbines and employ up to 200 during construction, according to the company’s website. It is expected to generate more than 200 megawatts of electricity once construction is completed by the end of 2024. The project was estimated to cost $390 million for construction of the wind farm, corresponding substation and transmission lines, Cameron said during the hearing.

In June, LIUNA organized a protest outside of a Bismarck Verizon store to raise awareness about the hiring practices on the project. Verizon has an agreement to purchase the power produced by the wind project.

Smith, a 25-year union laborer who was between coal jobs this summer, said she thinks she has experience that would be comparable to some positions on the wind farm project. Instead, she has watched from her home as equipment is transported to and from the job site.

“Multiple times a day I see parts for the wind farm going out,” she said. “I wish I could’ve been working this summer on that project.”