A growing coalition of labor unions and business leaders is calling for major changes to Minnesota’s environmental permitting process, arguing that delays are stalling investments and killing jobs across construction, manufacturing, and mining.
At the center of the debate is a bipartisan bill (HF8/SF577) designed to accelerate permitting by setting stricter deadlines for the Minnesota Pollution Control Agency, limiting local government extensions, and restructuring permit approvals. According to advocates, the bill is critical for reversing economic losses caused by lengthy regulatory procedures.
“We’re doing nothing to change (Minnesota’s) environmental or labor standards with this bill. What we’re doing is we’re trying to make it easier for applicants to go through the process,” said Sen. Grant Hauschild, DFL-Hermantown, at a news conference on February 13.
Economic Impact of Delays
The business-labor coalition, which includes representatives from laborers, carpenters, operating engineers, and ironworkers, argues that the current system allows project opponents to delay proposals indefinitely.
A Minnesota Chamber Foundation study found that Minnesota’s air permitting review process takes about six times longer than in neighboring states like Illinois, Iowa, and Wisconsin. The economic toll is substantial. The Chamber estimates that aligning with other states could add between $260 million and $910 million in economic activity.
Sen. Justin Eichorn, R-Grand Rapids, highlighted the case of Huber Engineered Woods, which abandoned plans to build an OSB board factory in Cohasset after prolonged permitting battles. The plant, expected to create 150 jobs, was derailed after objections from the Leech Lake Band of Ojibwe over pollution concerns.
Opposition and Environmental Concerns
The proposed bill has drawn criticism from environmental groups and some lawmakers, who argue that the current review process already meets statutory deadlines for most projects. Rep. Sydney Jordan, DFL-Minneapolis, opposed the provision that limits who can petition for environmental reviews, particularly for projects on public land.
Environmental groups called the bill “a solution in search of a problem,” pointing to instances where permitting delays were caused by incomplete applications rather than bureaucratic inefficiencies.
Wage Theft Investigation Leads to Tax Fraud Conviction
In a related labor development, Ramsey County Attorney John Choi announced a guilty plea in one of Minnesota’s highest-profile wage theft investigations—which ultimately led to a tax fraud conviction instead.
Todd Konigson, owner of Stillwater Masonry Restoration Inc., pleaded guilty to tax evasion for failing to file a 2018 withholding tax return. He will pay $70,178 to the Minnesota Department of Revenue and is barred from running a construction business in the state for up to three years. If he repays his debt, his felony conviction will be reduced to a misdemeanor.
Choi framed the case as a warning to contractors engaging in wage theft. “We want to put contractors on notice that we are out there investigating,” he said.
However, Konigson’s attorney, Thomas Beito, pushed back, emphasizing that his client was never charged with wage theft.
Construction Worker Pleads Guilty to Rape at Job Site
A serious labor-related crime came to light on February 13, as a construction worker pleaded guilty to raping a co-worker at Viking Lakes. Juan Diego Medina Cisneros, a 31-year-old Mexican citizen, was charged more than two years ago but was only apprehended last June by Border Patrol agents in Texas. He will serve 36 months in prison, followed by 10 years of probation.
The case gained attention when the North Central States Regional Council of Carpenters was investigating wage theft allegations at Viking Lakes. The victim, Norma Izaguirre, initially reported the assault to her supervisor at Absolute Drywall but was fired soon after. She has since filed a complaint with the Minnesota Department of Human Rights, which is investigating claims of sex discrimination.
Federal Layoffs Under Trump Administration
In a sweeping workforce shake-up, the Trump administration has ordered mass layoffs of federal employees who are still on probationary status. The cuts, affecting potentially hundreds of thousands of workers, span agencies from the Department of Veterans Affairs to the Department of Agriculture.
According to the White House, 75,000 employees have accepted a buyout offer, but union leaders argue the move is illegal and part of a broader effort to weaken federal labor protections.
Minnesota has roughly 18,000 civilian federal employees, though it remains unclear how many will be affected by the cuts.
First Avenue Workers Secure Union Contract
In a victory for hospitality and event workers, staff at First Avenue’s seven Twin Cities venues have ratified their first union contract under UNITE HERE Local 17. The three-year agreement includes substantial wage increases, longevity pay, and improved scheduling protections.
A key provision requires the company to respect workers’ chosen names and pronouns, a measure the union says ensures workplace inclusivity for LGBTQ employees.
