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Building back better needs well-rounded economy

Michael Thibault, president, Upper Peninsula Regional Labor Federation

The Upper Peninsula Regional Labor Federation is a non-profit organization of more than 25 unions and over 13,000 members who use their collective voice to advocate for public policies that benefit working families.

We at the UPRLF read with interest and appreciated articles supporting the opportunity that outdoor recreation can provide. We applaud the efforts of the Upper Peninsula Recreation Innovation District to endeavor to bring much needed federal funding to our area.

However, these editorials prompted us to respond with a reminder about a facet of our economy that is a proven opportunity –natural resources based industries, such as mining, forestry and agriculture.

The U.P. is still mineral rich and is one of the last frontiers for minerals that will be used and needed to transition to a greener world. World demand will dictate that these minerals be extracted at some point, either now or in the future.

Technology has evolved to allow for safe, environmentally friendly methods of mining. Historically, the U.P. has been the home of hundreds of mines without seriously affecting our regional beauty.

On the contrary, some mining infrastructure projects are ultimately transformed into pristine recreation areas such as the Greenwood Reservoir.

For the purposes of illustration, we offer the following comparison. Pictured Rocks National Lakeshore saw a record 1.2 million guests in 2020. Visitor spending pumped approximately $54.2 million dollars into the local economy. Fifty percent of those dollars were spent on hotels and in restaurants.

The remaining 50% was split into spending on groceries, camping fees, recreation industries and gas. Although this money is undoubtedly a boon to such businesses, the average hourly wage of a restaurant or hotel employee is significantly lower than that of a worker in the natural resources industry.

Additionally, hospitality and recreation based businesses are often seasonal in nature. There are also serious concerns about the sustainability of the park if tourist numbers remain at this level.

In comparison, just one of our mines, the Tilden Mining Company, generates $483 million dollars for the local economy, of which, a full $141 million is paid directly to local employees. Most union employees at the Tilden Mine can expect to earn at least 400% more in wages than an average hospitality employee.

Mine employees also enjoy some of the most generous benefit packages, including no premium fees on insurance and a defined pension.

These wages allow workers to properly support a family, purchase a home and support a wide variety of local businesses, including businesses that prosper from recreation.

High wage, local, industrial jobs insulate these businesses from seasonal closings by ensuring customers year round. Cleveland Cliffs recently won top honors in the metals industry, in part, because of its environmental stewardship and commitment to sustainability.

The Build Back Better Regional Challenge organized by the U.S. Economic Development Administration (EDA) is designed to “accelerate the economic recovery for the pandemic and build local economies that will be resilient to future economic shocks.”

As The Mining Journal article reported, the EDA will provide investment to revitalize regional economies by growing new regional industry clusters or scale existing ones. The UPRLF proposes that both new and traditional industries need to be considered by community leaders to create an environment that provides more jobs and higher pay for workers so they may enjoy our rich, recreational opportunities. Recreational pursuits are difficult to enjoy when community members cannot afford to live here.

The disbursement of funds available from the newly signed Infrastructure Bill will be decided by our governor and our legislature.

These monies will provide good paying, union jobs and apprenticeships that will allow current and prospective residents to support their families.

The recreation industry attracts tourists, but tourists alone cannot sustain us as a fully functioning community. We need residents.

Residents need the good paying jobs afforded by natural resources based industry, jobs which permits the purchase of affordable housing and the ability to appreciate and enjoy outdoor, recreational amenities.

That is why the UPRLF not only wishes the new recreational industry coalition the best of luck in securing a grant, but believes it is critical to invite leaders and workers in natural resources to the table.

Working in partnership, we can achieve these ends.

Editor’s note: Michael Thibault serves as president of the Upper Peninsula Regional Labor Federation.

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