The Alaska Gasline Development Corporation (AGDC) today agreed to key terms of an “Alaskans first” hiring agreement with local labor organizations for the construction of an Alaska natural gas pipeline project to deliver natural gas from the North Slope to Southcentral Alaska. The terms are captured in a memorandum of understanding (MOU) signed by the presidents of AGDC, South Central Alaska Building & Trades Council, Fairbanks Building & Trades Council, and the Alaska Petroleum Joint Craft Council.
Today’s agreement provides the framework necessary to advise engineering, procurement, and construction (EPC) firms regarding negotiations of project labor agreements (PLAs) with local labor organizations for the construction of the Alaska LNG project’s three major components: a gas treatment plant located at Prudhoe Bay, an 807-mile pipeline to Southcentral Alaska, and a natural gas liquefaction plant in Nikiski, Alaska.
Agreement terms include work and rotation schedules, drug and alcohol test requirements, and safety training. Wages will be established in accordance with prevailing wage rates for local public construction contracts.
Alaska Governor Bill Walker noted, “The state is leading the charge on this project to give Alaskans control over our own destiny for such a valuable opportunity. This agreement puts Alaskans in the driver’s seat for filling the thousands of jobs that this project will create.”
“Today’s agreement ensures that Alaskans will be prioritized when jobs are filled, reflecting intent language adopted by the Legislature in 2014 directing us to prioritize Alaska hiring,” said AGDC President Keith Meyer. “This agreement sets the stage for future project labor agreements to work for every Alaskan interested in helping build this incredible project, and I’d like to thank our labor partners for their collaboration.”
“An Alaskans-first agreement guarantees qualified Alaska residents will be first in line to construct and operate the major components of this gasline,” said Alaska AFL-CIO President Vince Beltrami. “I’d like to thank Keith and the AGDC team for putting our local workers first as they unlock the value of our stranded North Slope gas.”
Project Labor Agreements are a frequently used cost-management mechanism for major infrastructure and construction projects. The Alaska LNG project is anticipated to generate a massive employment opportunity in Alaska, creating an estimated 88,000 job-years of construction work. Ongoing operations and related activities will create 5,900 permanent jobs. The number of indirect jobs as a result of Alaska LNG construction and the stable, low-cost, clean energy the project will provide for generations of Alaskans is expected to be in the tens of thousands.