German unions call for mass retraining to support the electrification of vehicle manufacturing by 2030

IGMetall logoOn June 7, the European unions IG Metall and IndustriAll Europe  released a report which models the employment impacts of the possible fuel efficiency standards required to further decarbonize the European automotive industry.  The report, whose title translates as  Effects of vehicle electrification on employment in Germany,   presents three scenarios: the first, close to existing regulations, will require a 2030 automotive fleet consisting of  15% plug-in hybrids and 25% battery-electric vehicles, and is forecast to result in an 11% loss of employment by 2030, or 67,000 jobs.  The second and third scenarios predict even more job loss –  108,000 or 210,000 across Europe.

In a press release announcing the study, the automotive advisor of IG Metall and chairman of the automotive committee of IndustriAll Europe says:  “We fully support the evolution towards a new automotive paradigm, but this has to happen in a socially acceptable way. …. It will require the combination of industrial and employment strategies. Mass training programmes will be needed while ambitious reconversion plans should avoid the decline of regions…. In this respect we should not forget that many regions all over Europe are heavily integrated in the automotive supply chains. Equally, we should not forget that thousands of SMEs producing conventional components are at risk as they miss the necessary financial resources, the research capacity and the technologies to invest in alternative products. Also, the aftermarket and its 4m jobs will be severely disrupted as electric vehicles require much less maintenance”.

The report is not available in English, but is summarized in the press releases by IndustriAll  and  by IG Metal  (in German, use the “translate” feature) .  It was initiated by IG Metall,  along with car manufacturers BMW, Volkswagen and Daimler, automotive suppliers Robert Bosch, ZF Friedrichshafen, Schaeffler, and Mahle and the German Association of the Automotive Industry.  Research was conducted by the Fraunhofer Institute for Ergonomics and Organization (IAO) in Stuttgart , using  data from the companies involved.

Industriall logoIn March 2018, IndustriAll  announced that it was one of the stakeholders in a newly-approved EU  Blueprint for Sectoral Cooperation on Skills in the automotive industry (part of the New Skills Agenda for Europe).  The March press release   characterized the automotive sector as “in turmoil because of so many structural changes taking place at the same time: the ever stricter emission standards and the resulting quest for alternative powertrains, the digitalisation of production processes, automated driving, the increasing connectivity of cars with the outside world, development of mobility as a service.”

 

Infrastructure Canada invests in public transit and requires Community Employment Benefits agreements

An April 11 article in the National Observer, “After massive investments , Trudeau government puts public transit on track” attempts to explain the political and bureaucratic tangle of the Canada Infrastructure Plan in the wake of a series of press releases by the federal government.  Those press releases have announced  $33 billion in funding for infrastructure projects through bilateral agreements with the provinces and territories, with the lion’s share – $20.1 billion –  going to public transit.  The National Observer article also profiles some public transit projects already announced or in progress: the 12.5-kilometre, 13 stations Ottawa light rail project; a  $365 million plan to extend the Montreal’s  Blue Line for five stops; Calgary’s Green Line LRT; Victoria B.C.’s plan to improve resilience against seismic activity; and new electric and hybrid buses for Gatineau and Laval, Quebec, and London Ontario. Another excellent update of Canada’s public transit appeared in Corporate Knights magazine in January 2018, “The e-bus revolution has arrived”. And in March, Winnipeg Transit released its report on electrification of its bus fleet- summarized by the CBC here ; Winnipeg is home to the New Flyer Industries, which manufactures the battery-electric buses in use.

Public transit is obviously good for reducing Canada’s transportation-related GHG emissions, and investments at this scale are obviously important sources of  job creation. The Bilateral Letter of Agreement with Ontario states: “ a Climate Lens will be applied to these federal investments, and a Community Employment Benefits Reporting Framework will be applied for relevant programs under the Investing in Canada Plan. Both the Climate Lens and the Community Employment Benefits Reporting Framework will be developed in consultation with provinces, territories, municipalities and other stakeholders over the next few months and will be embedded in the integrated bilateral agreements once completed.”   Community benefits agreements are already in place in some transit construction projects in Toronto,  and Ontario passed the  Infrastructure for Jobs and Prosperity Act, 2015 , which states: “Infrastructure planning and investment should promote community benefits …. to improve the well-being of a community affected by the project, such as local job creation and training opportunities”.

For inspiration on another side of the issue, read the recent article, “Connecting green transit and great manufacturing jobs” in Portside on April 14.  It provides a very detailed case study of the fight to bring domestic, union jobs to light rail manufacturing in Los Angeles,  a campaign spearheaded by Jobs to Move America (JMA) .  From their website, JMA “is dedicated to ensuring that the billions of public dollars spent on American infrastructure create better results for our communities: good jobs, cleaner equipment, and more opportunity for historically marginalized people.”  Their website provides research papers and news updates.

electric_bus_banner Winnipeg

New Flyer Electric Bus, Winnipeg Manitoba. Image from http://winnipegtransit.com/en/major-projects/electric-bus-demonstration/ 

 

L7 leaders alert to backsliding on Just Transition at the G7 meetings; Unionists share  Just Transition experiences in Vancouver

clc-logoIn Ottawa on April 4 and 5, the Canadian Labour Congress, along with the International Trade Union Confederation and the Trade Union Advisory Committee to the OECD (TUAC), hosted the L7 meetings of international labour leaders, as part of Canada’s presidency of the G7 this year.  According to the CLC press release, the L7 considered a full range of topics, including extension of bargaining rights, full employment, gender equity, and progressive trade – but also “ welcomed the creation of a new G7 Employment Task Force – a key outcome of the G7 Employment Ministers meeting in Montréal from March 26th to 28th.” The G7 Leaders’ official statement re Employment Outcomes and the Task force is here;  one of the “deliverables”  is to  “Share best practices and identify policy approaches to assist individuals in making the transition and adapting to changes in the labour market.”  In the L7 Evaluation of the Outcomes of the G7 Innovation and Employment Ministerial Meeting  released after the meetings, the unionists point out : “While discussing transitions, the text does not refer to “just transitions” in contrast to the outcomes of the Italian G7 presidency. The main proposals for transitions by the G7 focus on reviewing social protection and training systems. The support for “apprenticeship and training opportunities and adult upskilling programs” is welcome but is not enough and does not address financing and governance challenges.”  The CLC press release states:  “For trade unions, the Task Force should aim for “Just Transition” principles that ensure that workers are not paying the cost of the adjustment to decarbonisation, digitalisation and the shifts in production and services technologies.”

Just Transition Vancouver event 2018

Photo  by Tracy Sherlock, from the National Observer, April 6

On April 5 and 6th  in Vancouver,  labour leaders from around the world presented and discussed their experiences at the Metro Vancouver Just Transition Roundtable, hosted by the B.C. Federation of Labour,  the Canadian Labour Congress, Green Jobs B.C., the City of Vancouver, Vancouver and District Labour Council, and others.  Amongst the speakers:   B.C. Federation of Labour President Irene Lanzinger, who  argued that “the two defining problems of our time are climate change and inequality”, and they need to be addressed together, and urgently.  Samantha Smith, Director of the Just Transition Centre of the International Trade Union Confederation, provided European examples in her Keynote Address, and a spokesman from the United Federation of Danish Workers 3F, the largest trade union in Denmark, spoke of the clean economy investment of members’ pension funds.  Other union speakers were from New Zealand and Norway.   From Vancouver,  City Councillor Andrea Reimer discussed their Renewable City Strategy and the Greenest City Action Plan. The Councillor reported that  Vancouver has 25,000 green jobs (5% of all jobs), and that surprisingly, these are not  in the transportation and waste recovery sectors, but in local food production, clean buildings and local technology companies. For a summary of the event, read  “BC FED President Irene Lanzinger calls climate change and inequality ‘defining problems of our time’”  in the National Observer (April 6). 

Circular economy contributes to clean growth – but what are the implications for jobs?

Circular economy coverGetting to a Circular Economy: A primer for Canadian policymakers was released by Smart Prosperity (formerly Sustainable Prosperity) on January 24, the first in a planned series of policy briefs and blogs on the topic. This introductory Primer starts from the widely-held premise that current global production and consumption models are unsustainable,  and states that “Canadian discussion on the circular economy has been overshadowed by the national emphasis on climate change and clean growth. In fact, the two approaches have significant goals in common: a focus on a low-carbon economy and on economic growth, innovation and new technologies.”

The Primer uses  a broad  definition developed by Canada’s Circular Economy Lab (CEL):  circular economy is “an approach to maximize value and eliminate waste by improving (and in some cases transforming) how goods and services are designed, manufactured and used. It touches on everything from material to business strategy to the configuration of regulatory frameworks, incentives and markets.” The Policy Brief provides a catalogue and description of the major circular economy policies and initiatives from around the world, especially Europe; from Canada, these include the National Zero Waste Council,  the Circular Economy Lab , L’Institut d’environnement, du développement durable et de l’économie circulaire (EDDEC)  in Quebec, and BioFuelNet , through which Warren Mabee of the ACW conducts research on advanced biofuels.   The Brief concludes by proposing  “Top 6 Tools for Accelerating the Circular Economy in Canada” , including  extended producer responsibility programs and policies; green procurement;  and public investments in circular economy related research, development, innovation and pilots.”  The Brief identifies one of the research gaps as the need to understand the social and employment impacts of the circular economy, and how to manage them.

In related news, on January 22 at the World Economic Forum meetings in Davos, the Platform for Accelerating the Circular Economy (PACE) was launched , with an agreement between the United Nations Environment Program and the Ellen MacArthur Foundation, the prominent U.K. charity whose mission is to accelerate the shift to a circular economy. To kick off the project,  eleven global corporations pledged that all their packaging will be reused, recycled or composted by the year 2025.

Canada needs a mix of reactive and proactive Just Transition policies across the country

Hadrian Decarbonization coverMaking Decarbonization Work for Workers: Policies for a just transition to a zero-carbon economy”  was released by the Canadian Centre for Policy Alternatives on January 25th.  In light of  the federal government’s pledge to launch a Task Force on Just Transition in 2018, this report makes a unique contribution by using census data to identify the regions in each province with the greatest reliance on fossil fuel jobs. While fossil fuel dependence is overwhelmingly concentrated in Alberta, with a few “hot spots” in Saskatchewan and British Columbia, the report identifies communities from other provinces where fossil fuel jobs represent a significant part of the local economy – for example, Bay Roberts, Newfoundland; Cape Breton, Nova Scotia; Saint John, New Brunswick; Sarnia, Ontario.  The report also makes the useful distinction between “reactive”  just transition policies, which are intended to minimize the harm to workers of decarbonization, and “pro-active” just transition policies, which are intended to maximize the benefits.   The author argues that, if the broad goal of a just transition is to ensure an equitable, productive outcome for all workers in the zero-carbon economy, a mix of reactive and proactive elements is necessary. Thus,  a national just transition strategy is required for fossil fuel-dependent communities, but workers in any industry facing job loss and retraining costs will also need support from enhanced social security programs.  In addition, governments must invest in workforce development programs to ensure there are enough skilled workers to fill the new jobs which will be created by the zero-carbon economy.

Making Decarbonization Work for Workers is  a co-publication by the Canadian Centre for Policy Alternatives and the Adapting Canadian Work and Workplaces to Respond to Climate Change research program . The author is  CCPA researcher Hadrian Mertins-Kirkwood.