Reeling Costs: BM1 Hooks $16.5 Million from AK Seafood

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Today’s Key Takeaways:  AFN tables resolution to support Ballot Measure 1 over concern for increased economic burden in Alaska’s small Native village corporations.  Pacific Seafood Processors Association opposes Ballot Measure 1, estimating a $16.5 million dollar increase in labor costs.

The Pacific Seafood Processors Association (PSPA) stands with other business sectors in Alaska in opposition to Ballot Measure 1.

Ballot Measure 1 has three parts. The first part, increases to minimum wage, would have no direct impact on PSPA companies, because they already pay workers more than minimum wage.

The second part of Ballot Measure 1 requires up to 56 hours of paid annual sick leave for all employees, including seasonal workers, and would negatively impact PSPA shoreside processors. Seafood processors already provide paid sick leave and other benefits for full-time employees. Seasonal workers are provided health insurance, transportation, food, and housing, but do not have the same level of benefits as full-time employees, which is common for most businesses across Alaska. Seafood processors have a high percentage of seasonal workers due to the nature and timing of Alaska’s fisheries. The paid sick leave component of Ballot Measure 1 would add at least $16.5 million in estimated additional labor costs to the shoreside processing sector at a time when the Alaska seafood industry is already experiencing an economic crisis due to a significant number of global market factors combined with soaring operational costs. For example, labor costs increased 50% in two years, from 2021 to 2023.

Excerpt from ADN article published on 10/19/2024 sourced here:

The Alaska Federation of Natives, meeting at the Dena’ina Civic and Convention Center less than three weeks before the Nov. 5 election, also decided in a voice vote to indefinitely table a resolution that expressed support for Ballot Measure 1. The measure seeks to increase the minimum wage and improve other working conditions.

An influential voice in Alaska politics, AFN represents about 150,000 Alaska Native members. Its annual convention brings together more than 5,000 Alaska Natives. At the event, they set goals designed to improve Native communities.

The decision to not hold an up-or-down vote on the minimum-wage increase came after Curt Chamberlain, deputy general counsel for Calista Corp., took the floor. Chamberlain raised concerns from the corporation that the measure could lead to increased economic burden for small Alaska Native village corporations with limited resources.

The ballot measure would increase the minimum wage $11.73 to $15 by 2027 and guarantee Alaska workers paid sick leave for the first time. It would prohibit employers from requiring their employees to attend meetings of a political or religious nature, which can sometimes be used to dissuade employees from unionizing.

Debra Call, with resolution sponsor Knik Tribal Council, joined a small number of speakers who expressed support for Ballot Measure 1. She said there needs to be a better economic foundation for people who are struggling to pay rent and other bills.

“It’s about (providing) a living wage,” she said of the increase.

An audience voice vote seemed to favor the side that opposed the measure, said Jodi Mitchell, an AFN board member and moderator of the resolutions meeting. Mitchell said the AFN board could consider the measure in December. But that will be after the November election.