Scramble for Jobs in the Marcellus Shale Gas Industry

by Duane Nichols on December 4, 2011

The level of unemployment in Wetzel county is about 12%, the highest in WV, with Marshall (8.5%), Ohio (7.5%), Brooke (9%), and Hancock (10.5%) being close behind.  Overall, the State of West Virginia has been at about 8%, and all these numbers would be higher if those no longer looking for work were included.  Gas well drilling, truck haulage, pipeline construction and the new separation plant at Natrium are all potential for increased employment, says various industry representatives and county commissioners.

 The Mayor of Benwood is pleased about the Fluids Management’s new drilling mud plant expected to create 12 to 15 full-time jobs.

 A ShaleNET project is now underway in WV, PA, and OH with a $4.9 million grant from the US Dept. of Labor.  The training curriculum is to be finished early in the new year, with local training by the WV Northern Community College.  A Web site, www.shalenet.org, is being developed that will help with the job search.

The Independent Oil and Gas Association (IOGA) hosted a Job Fair in Moundsville on November 30th, at the Alan Mollohan Training Center so as to recruit, hire and then train employees for long-term and good paying jobs, according to a recent report.

About 1,400 people came out to apply for jobs at this Job Fair; and, the 40 some companies are reported pleased with the applicants and plan to do some hiring from this pool. IOGA may hold a similar job fair somewhere in the Harrison County area in the new year.  This is to be posted at:  www.iogawv.com.

Organized labor unions say that the jobs in the expanding Marcellus shale development should go to local workers rather than to those coming in from other States. Larry Young of International Union of Operating Engineers Local 132 said,  “They promote Marcellus Shale like it is the biggest thing in the world that will produce millions of dollars. But the local people sure don’t see much of that. When Dominion doesn’t hire local workers, that makes the company a bad steward of the community.” Chuck Penn, media relations manager for Dominion in West Virginia, said “Dominion hires contractors that have the technical expertise and the experience to perform the work we need to be done. The contractors in turn hire people who will meet that end as well.”

Dave Efaw, the secretary-treasurer of the West Virginia State Building Trades, has been leading the effort in lobbying companies to hire workers native to the Mountain State. “West Virginia workers are some of the best in the country,” Efaw said. “We want people to know it and we want people to use them.” Part of the push for local workers includes working with county commissions, and municipalities. Efaw says the “Marcellus Principles,” which have been adopted in Wirt, Marshall, and Wetzel counties, include a passage that encourages hiring local workers. Efaw says partnerships with local governments have been working so far. Efaw also says the Legislature could pass further tax incentives for companies that hire local workers.

The WV Legislative Select Committee on Marcellus Shale has included a labor provision in the proposed Marcellus framework to be considered starting December 12th. However, the Governor has said that he finds this problematic, and will likely oppose its adoption. This is as follows: 

§21-1-3a. Duties of employers and owners conducting horizontal well drilling activities.

Beginning January 1, 2012, an employer shall submit the following information to the Division of Labor: (1) The total number of employees in-state and out-of-state identified by full time and part-time status; (2) The city and state in which the employee lives; (3) The state or states in which the employee pays income tax; (4) The total payroll for all employees regardless of location of the employees, and a break down of payroll comparing in-state verses out-of-state total payroll; (5) A comparison of the number of in-state residents versus the number of out of state residents being employed in the above activities; and (6) The average salary per job type.

It appears that Governor Tomblin intends to revise a number of the amendments to the SB-424 bill, based upon industry input to his Office, in spite of the long and difficult work done by the Select Committee to construct their proposed Marcellus framework.

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