DES MOINES, Iowa (AP) - The head of Iowa’s economic development agency said Monday she will try to aid communication between labor leaders and officials overseeing construction of a $1.8 billion fertilizer plant that recently issued layoffs, but she warned she will be limited in what she can do.
Iowa Economic Development Authority Director Debi Durham told lawmakers at the Capitol that she is open to hosting a meeting. However, she said Iowa Fertilizer, which will operate the plant in southeastern Iowa, and construction officials are not breaking any rules from their contract.
She said she hopes the company will communicate better with labor officials.
“Their contract with us is based on certain performance measurements that aren’t affected by this,” Durham said.
Durham didn’t offer a timeline for a meeting. Labor officials say they hope it happens in the next few days.
Iowa Fertilizer had about 3,000 workers at its construction site at its peak, according to labor officials. In April, layoffs were issued to more than 1,400 employees when a subcontractor was terminated. Some have since been hired back for temporary work.
The company issued a statement afterward and said the move was related to management.
Ryan Drew, business representative for International Union of Operating Engineers Local No. 150, said construction officials have not properly communicated with labor leaders about who will be hired back as other subcontractors take on more work. Labor leaders also claim officials are now trying to hire workers from outside the region to replace laid-off workers.
The state of Iowa issued $100 million in state tax breaks for construction of the plant. Drew said labor leaders want to make sure as many of the jobs as possible stay within the region because it will encourage local skills training.
Iowa Fertilizer did not immediately respond to the claims about outside hiring. But it said in a statement Monday that it was hiring the best workers available.
“Throughout the project, Iowa Fertilizer has committed to hiring subcontractors based on safety record, skill, ability to meet the construction schedule, and price,” the company statement said. “We fully expect the subcontractors to hire the best workers available who meet that criteria.”
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