The Wrangell sentinel., 1956-02-17
THROUGH THE SENTINEL TELESCOPE
ESC Sauabhle

ESC Squabble
 As the Employment Security Commission squabble roars o Il with mounting evidence that reg ularly employed workers in South east Alaska are being discriminated against in favor of the construc- tion workers of the Westward and Interior, the mail brings letter from Senator Marcus Jensen ot Douglas which we feel is very en- tightening on the subject. Senator Jensen, with Senators Doris Barnes and Iumes Nolan of Wran5ell, tried to bring a little sense out of chaos in the last Legislature in connection with ESC but the free wheelers from the Westward had the votes with the result that ESC is giving off an odor about as strong as the athlethic situation at the University of Washington with nuDody benefiting.
 Following is Senator Jensen's letter:
 To the Editor
 Wlangell sentinel
 Where shall we put the blame? Who is responsible for the depleted Employment Security funds? What effort was made to correct this condition? q
 I think it is time MT. and Mrs. Public takes a look at the record. In 1853 the Legislature passed a new formula for the ESC, as it was felt by the members of the Legislature that some restrictions should be enacted to tighten up benefit payments before it was too late. At this time there was over nine million dollars in the reserve fund. This 1853 Act stated that the Commission should apply the for mula of the Act and declare em- ployers seasonal if their payroll in any three months period was less than fifty per cent of their payroll during a three months ni2n period. The high and low were taken over a two year period. The effect Of this formula would have been to declare seasonal any type of em- ployer, regardless ot what industry he was in, if his payroll declined by e in the fall, winter, or even the spring months.
 In 1853 the salmon industry was declared seasonal by the Acting Director but he did not apply the law to the other industries. The courts held this was an injustice and suit was won by the Fidalgo Company for cannery employees.
 In the meeting If the Commis- sion in Anchorage in May .l9oA, Mr. Jernberg and Mr. Anderson went on record and voted to apply this formula, but Mir. Dixon nnd Mir. Van Housen refused 70 apply the formula prescribed by law. Chairman Jernberg stated, and l quote: II would like to state that my interpretation of the law, Chap ter 99, is that any employers meet ing the formula contained iE the law are seasonal, and it Is imcum- bent upon us to carry out the dir ectiI es of the law anH oNr only duty is to determine the sea sons The management mem bers of this Commission warned labor at the public meeting il Jun eau last October G953J that the fund was in dangerou; position... The problem is present and the 1853 Legislature supplied the tools for solving it
 The facts of the case are that the law was never applied because the two labor representatives of the Commission refused to apply It and the fund has spent the g mil lion dollars reserve which was on hand at the beginning of 1853 and is now indebted to the federal gov ernment for 8 million dollars. This borrowed money is practically all that is available now for winter benefit payments.
 Because of the depleted fund, all emp4oyees, under the new 1855 Act, were called upon to contribute one-half of one per cent to Keep the fund operating. This means that steady employee, who earns s3.60O a year, pays SIS year into the fund but receives no direct ben eft whatsoever. It's time that both the year-round employee and the employer realize they are paying into a fund from which they receive little or no benefit. Who do the labor leaders represent? The can nery workers? No. The steady em- ployee in the small business? No! The loggers or the pulp mill work CTS? No!
 Our free enterprise system IS fighting to survive. The people must take an interest in good gov ernment before it is too bate. May