KNIFE RIVER ACCUSED OF DISCRIMINATION AND RETRIBUTION AGAINST UNION WORKERS

FOR IMMEDIATE RELEASE                          
August 12, 2008

Local 49 files formal charge with National Labor Relations Board

St. Anthony, MN – The International Union of Operating Engineers/Local 49 today filed an Unfair Labor Practices charge against Knife River – Central Minnesota Division, a commercial aggregate producer in Sauk Rapids, MN. Knife River, Corp. is the construction materials and mining subsidiary of MDU Resources Group, Inc.

The charge includes allegations of discrimination and retribution against employees who are Local 49 members. According to the charge, filed with the National Labor Relations Board, Knife River – Central Minnesota Division:

• Refused to reinstate a laid off worker because of his (and his brother’s) union activity despite seniority on the callback list
• Threatened to deny benefits to workers solely because of their union status
• Reduced the method and hours paid for union members without negotiating
• Changed employment terms and conditions for union members without negotiating
•  Limited hours worked for union members by creating production quotas without negotiating

Local 49 Area Business Representative Greg Waffensmith says one blatant example of discrimination is the company’s adoption of a “points system” for reinstating laid-off workers. Waffensmith says Knife River had never used a points system in the past and implemented it about four months ago, only after the successful union vote.  Waffensmith says Knife River recently refused to reinstate a laid off worker who had seniority on the callback list. Waffensmith says the worker’s brother is active on the union’s negotiating team.

Local 49 Business Manager Glen Johnson said Knife River’s failure to negotiate in good faith is an issue that extends well beyond Sauk Rapids.  The company, headquartered in Bismarck, ND, is doing business in eight central Minnesota counties and is one of the top 10 aggregate producers in the United States.

“This is just the tip of the iceberg,” Johnson said. “We need Knife River to get serious about negotiating before even more hard working men and women in Minnesota - and across the country - are subjected to the same discriminatory working environments.”

The National Labor Relations Board will investigate the charges.

About Knife River Corp

Knife River, Corp. purchased Bauerly Brothers aggregate company in 2001.  Knife River, Corp.is a subsidiary of MDU Resources Group, Inc., a publicly owned company based in Bismarck, North Dakota. MDU Resources includes natural gas and oil production, natural gas pipelines and energy services, construction materials and mining, construction services, and electric and natural gas utilities.

About Local-49

The International Union of Operating Engineers Local 49 is a labor union 13,000 members strong in Minnesota and the Dakotas.  For more information on this issue or to learn more about Local 49 click on their website. www.local49.org or you can go to www.stabbedintheback.net

http://www.stabbedintheback.net