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continued viability of our operations. Prior to the 

 establishment o£ our operations, employment in the area was 

 totally seasonal and boom-bust cycles had been the rule. 

 Southeast Alaska today is the bright spot in the Alaska economy 

 because o£ the strong renewable resource industries in our 

 region. 



KPC's employment base mirrors the population make-up of 

 Southeast Alaska. Alaska Natives comprise 35% of the total 

 workforce at KPC. At our sawmill complex on Annette Island, 

 80-90% of the jobs support members of the Metlakatla Indian 

 Community. 



Our employees enjoy steady work, good wages and benefits. 

 Indeed, during 1988 our average full-time worker earned 

 $40,800, plus benefits. These amounts of compensation are 

 greatly in excess of the private employment statistics for our 

 state as a whole. Commencing in February, 1987 we instituted a 

 profit sharing plan for all employees. Under this plan ten 

 percent of the company's pre-tax profit each month is shared 

 equally on a per capita basis with all employees. During 1988 

 profit sharing added $3,300 to each employee's annual 

 earnings. Gross salary and wages for all KPC employees in 1988 

 amounted to $32,000,000, plus benefits. Total KPC expenditures 

 in the Ketchikan - Metlakatla - Prince of Wales economy are 

 over $5,000,000 monthly. 



More than anything, we want to emphasize that KPC's 

 position, on behalf of its employees . . . its shareholders 

 . . . and the communities in which we operate, is simple. We 

 desire that the U.S. Government live up to its commitments 



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