One of the foundational pillars of the Alaska Native Claims Settlement Act (ANCSA) was to create economic opportunities for Alaska Native people. A part of this legislation is the responsibility of Alaska Native Corporations (ANCs) to provide jobs and provide benefits for their shareholders.
In 1992, Congress passed amendments to ANCSA that strengthened the ability for ANCs to meet their employment opportunity obligations. Under Section 1626(g) of the 1992 ANCSA Amendments, ANCs were granted the right to adopt shareholder hire policies—allowing them to give hiring preference to their shareholders without violating federal employment laws. This amendment clarified that ANCs are not subject to Title VII of the Civil Rights Act in this area, meaning they cannot be accused of discrimination simply for prioritizing their shareholders over non-shareholders in the hiring process.
Since then, many corporations have expanded these policies into a hiring preference pyramid that places shareholders at the top, but also extends preference to descendants, other Alaska Natives and American Indians, and shareholder spouses before non-shareholder or Non-Native applicants from the general public.
However, there is still often misunderstanding as to what “shareholder hire preference” actually means. Some shareholders assume that this preference guarantees shareholders access to any job they may apply for regardless of their qualifications. However, this is not the case. In practice, the shareholder hire preference applies when two or more applicants have equal or similar qualifications, experience, and education—in those cases, preference is given to the shareholder.
This distinction is essential. Shareholder hire ensures that qualified shareholders are prioritized while maintaining fairness and high standards in the hiring process. By following this policy, ANCs both honor their responsibility to shareholders and build strong, skilled workforces that contribute to the long-term success of the corporation.
In support of creating opportunities for shareholders and descendants, Kootznoowoo is proud to provide funding to the Kootznoowoo Cultural & Educational Foundation for higher education and vocational scholarships. These scholarships give shareholders and descendants the ability to pursue academic or technical studies that prepare them for meaningful careers and help them to meet certain qualification requirements of some job opportunities. This summer, Kootznoowoo also launched a new internship program, designed to provide hands-on experience and training to help prepare the next generation of workers and leaders.
