Labor Issues In The Mineral Industry

ISSUES IN MINING LABOR The examination of mining labor issues is often confined to health, and safety. There are other issues, including the present state of mining manpower availability and utilization, and the nature of mineral industries' industrial relations, which are worthy of consideration. The state of the labor market for mining skills, the availability and utilization of mining engineers and related disciplines, the state of research and its employment of scientists and engineers, and the condition of mining industrial relations with all these groups, all have an important effect on the viability and economic health of the minerals production sector. PRODUCTION LABOR Why examine an industry's production labor market? People involved in an industry should be aware of what labor supplies will be relative to industry requirements. This advance information allows industry and government to plan ahead to alleviate problems by moving to affect labor supplies or to accommodate production to expected labor supplies. This is less costly and less painful than responding after the fact to labor market changes. Any industry requires some form of labor. Labor is especially important to the mining industry. Mining labor is well paid. Average annual earnings are higher than in manufacturing. Average hourly wages are also higher. Payroll costs form a high percentage of total cost in coal mining and nonmetallic minerals mining. In metal mining the percentage is comparable to the average for manufacturing. Payroll cost in oil and gas extraction is quite low, but a major proportion of cost is in the form of income to proprietors, i.e., unincorporated businesses. Mining labor is worthy of specific attention. The minerals extraction labor is unique in many ways. Mining labor and especially underground miners are differentiated from other "unskilled" labor. Miners cannot be considered as part of a larger labor pool. The mining labor market has exhibited a unique combination of characteristics. Mining is the only large sector of United States employment in which hourly wages are high and continuing to rise, yet employment declines. Although industry has introduced new labor-saving investments, and labor requirements continue to decline, there is evidence of a mining labor shortage. Specific problems have arisen in the mining labor market such as a present labor shortage in nonfuels mining. Understanding the causes and remedies for these specific problems is also important. These various problems and questions may be handled in a unified manner by examining the relationships of certain economic variables. The relationship that exists between changes in output, employment, labor productivity, and hours worked per week may be stated explicitly: