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Mar 7, 2009 10:37 am US/Central
As Mines Close, Entire Iron Range Suffers
HIBBING, Minn. (AP) ―
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In recent weeks several steel companies have either temporarily shut down taconite mines or announced plans to do so.
AP
If Jason Hemphill cuts corners in his personal finances, he thinks he can "survive the summer."
The heavy equipment operator at Hibbing Taconite is one of 440 union workers who will be furloughed by the end of May when Cliffs Natural Resources shuts down the entire plant until at least September.
"The more a guy thinks about it, the more he starts to worry," Hemphill said. "I guess you just lay back and pray for the best."
The former auto mechanic has been working at HibTac for more than two years. In addition to unemployment, that entitles him to a portion of his former wage and continued medical insurance -- a better deal, he said, than some colleagues with less seniority who will have to survive on unemployment.
"If you have two years in, you can definitely survive the summer," Hemphill said. "You have to cuts costs a little bit, but nothing too bad."
Similar calculations are playing out across Minnesota's Iron Range, as the economic downturn forces idled plants and job cutbacks throughout the mining industry. HibTac, Minorca, Northshore Mining Co., and Keewatin Taconite have either been idled or will be later this spring, and U.S. Steel laid off about half its workforce at Minntac, putting 590 people out of work.
There's hope that infrastructure projects contained in the federal economic stimulus package could boost steel production and help the mining industry bounce back quickly. But in the meantime, workers are worrying about how to make ends meet.
"Anybody who gets laid off, it's a tough time, especially when it's an indefinite situation," said Frank Jenko, president of United Steelworkers Local 2705. "It's difficult for everybody, especially with the economy this bad."
Hemphill said he has the option of falling back on work as a mechanic, but said he nearly doubled his wages when he left that profession to work in the mine. He said things looked great two years ago, and his new job enabled him to buy a new house and pickup truck.
As has long been the case for the Iron Range, the entire economy takes a hit when the mines suffer. Local business-owners report plunging revenue as their customers are forced to tighten belts.
"We've been through this before -- some of us three or four times," said Jon Anderson, a regional manager for P&H Minepro Services, a mining equipment manufacturer. "When mining goes down, it hurts."
P&H has so far been able to avoid cutting its own local workforce, Anderson said, but has cut costs elsewhere.
Terry Miller is the owner of B. Miller Products in Hibbing, which sells janitorial supplies to the mines. He said his sales have dropped steadily since last fall. He's cut inventory, and has only avoided layoffs by reducing employee hours.
Miller said the news of HibTac's pending shutdown hurt.
"It's news we didn't want to hear," he said. "We know it affects everyone on the Range."
Like everyone, he said he hopes it's short term.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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