SAINT PAUL, Minn. – Today, the House Jobs and Economic Development Finance Division discussed legislation authored by Rep. Julie Sandstede (DFL – Hibbing) to provide additional Unemployment Insurance benefits to mine workers – and those in jobs which indirectly support mining – laid off due to the COVID-19 pandemic. As a result of the economic slowdown and subsequent reduction in demand for steel, several mines have shut down and over 2,000 workers have been laid off so far.
“It’s incumbent upon all of us to help each other. As this global recession continues with no end in sight soon, mine workers and their families are facing a dire financial situation. While the entire state in enduring hardships, our region is unique because mining is the bread and butter of our regional economy. Without jobs in mining and related occupations, families will need these benefits to pay bills and put food on the table,” Rep. Sandstede said. “The people of the Iron Range have experienced tough times before, and we’re no strangers to slowdowns and recessions. Like everyone, we’re hopeful for a turnaround, but we need more than hope right now. We see the stark economic realities before us and that’s why the additional benefits under this bill are so important.”
Minntac, Hibbing Taconite, Keetac, and Northshore Mining have either reduced operations or have idled completely. As a result, over 2,000 workers have found themselves out of a job. Rep. Sandstede’s bill would provide additional unemployment insurance benefits to laid off workers in the iron mining industry, or those who work supplying goods or services to the industry. A worker qualifies for benefits under the bill once they have exhausted their regular unemployment benefits, and they are eligible for additional benefits until May 1, 2021, for a maximum of 26 weeks of additional benefits.
Additional benefits paid under the bill would not affect an employer’s experience rating for future tax purposes. Applicants who are eligible for other federal unemployment benefits or federal trade readjustment assistance would not be eligible for additional benefits.
The hearing was informational in nature, and no votes were taken. Video of the hearing is available from House Public Information Services’ YouTube channel. Rep. Sandstede’s legislation could be considered in the upcoming special session, expected to start Monday.