Updated: Autonomous vehicles in Canada, job displacement, and bargaining at UPS

autonomous vehicleAutonomous Vehicles and the Future of Work in Canada  is a report released on January 11 by the Information and Communications Technology Council (ICTC) and funded by the Government of Canada’s Sectoral Initiatives Program.  It  provides an overview of the technology and benefits of autonomous vehicles, including “smart cities”. Most of the report is dedicated to an in-depth analysis of the impact of AV’s to Canada’s labour market, forecasting a demand of approximately 34,700 jobs in the industry by 2021, and considering the issues of job displacement and occupational skill requirements. The ICTC forecasts that the integration of AV technology will be slowed down in the trucking industry by a  shortage of drivers (estimated by the Canadian Truckers Alliance as 34,000 by 2024), giving the industry a buffer of time to plan training and retraining strategies. The report considers non-driving occupations (including mechanics, dispatchers, auto assembly workers,  insurance underwriters, heavy equipment operators) in a “deeper dive” about education, wages, and demand. The most in-demand occupations, with the highest wages,  are forecast to be in Information Technology: software and computer engineers, database analysts, computer programmers, etc. . The report concludes with five recommendations centered around the need for more research and  greater integration between policymakers, industry and academic experts, so that Canada can catch up with the autonomous vehicle “powerhouse” countries: U.S., Germany, and Japan.

The Canadian Senate Standing Committee on Transportation and Communication released its report on autonomous vehicles in January 2018, after hearing from over 78 witnesses from across Canada and the United States between March and October 2017  (The testimony is compiled here ).  The Submission by Teamsters Canada (Oct. 2017) focused mostly on the safety concerns of driverless vehicles, but raised the issue of displaced workers and their pension and benefits, stating that  “Teamsters Canada believes the study of automated and connected vehicles is not just a technical study, it must examine the social and workplace consequences of technology adoption.”  A fuller view of the concerns of Teamsters (and B.C. Taxi drivers) appears in an article in The Tyee, “Job Losses from Automated Vehicles Worry Truckers” (Feb. 2).

UPS electric truckThe issue of autonomous vehicles is being tested in the negotiations underway between UPS and the Teamsters in the U.S. An article from the Wall Street Journal is reposted at the Teamsters’ website: “Teamsters tell UPS no Drones or Driverless Trucks“.   The Teamsters Union has been closely monitoring all aspects of the technology and appeared at a House of Representatives Committee hearing on autonomous vehicles, according to a Teamsters press release from June 2017.

Within Canada, Ontario strives to be the leader in autonomous vehicle development, and employs almost 10,000 workers in the industry as of November, 2017, when the Premier announced the launch of an Autonomous Vehicle Innovation Network at Stratford, Ontario. Part of the $80 million investment over 5 years will be spent on a Talent Development Program, to support internships and fellowships for students and recent graduates with Ontario companies advancing C/AV technologies. Full details are at The AVIN Hub .

 

Oil sands companies called on to “keep it in the ground” – but Suncor opens new mine near Fort McMurray, deploys driverless trucks

Parkland report big oil coverThe majority of Alberta oil sands production is owned by the five companies: Canadian Natural Resources Limited (CNRL), Suncor Energy, Cenovus Energy, Imperial Oil, and Husky Energy.  What the Paris Agreement Means for Alberta’s Oil Sands Majors, released on January 31 by the Parkland Institute, evaluates what the 2°C  warming limit in the  Paris Agreement means for those “Big Five” –  by assessing their  emissions-reduction disclosures and targets, climate change-related policies, and actions, in light of their “carbon liabilities.” The carbon liabilities are calculated using  three levels for the Social Cost of Carbon, ranging from $50, $100, and $200 per tonne. Even under the most conservative scenario, the carbon liabilities of each corporation are more than their total value, and the combined carbon liabilities of the Big Five ($320 billion) are higher than Alberta’s GDP of $309 billion. Conclusion: “the changes required to remain within the Paris Agreement’s 2°C limit signals a need for concrete, long-term “wind-down” plans to address the challenges and changes resulting from global warming, including the fact that a significant portion of known fossil fuel reserves must remain underground.” What the Paris Agreement Means for Alberta’s Oil Sands Majors was written by Ian Hussey and David Janzen, and published by the Parkland Institute as part of the SSHRC-funded Corporate Mapping Project.  A National Observer article reviewed the report and published responses from the Big Five companies on January 31.

autonomous electric mining truckRather than keeping it in the ground, Suncor Energy announced on January 29 that it is continuing to ramp up production at its Fort Hill oilsands mine, about 90 kilometres north of Fort McMurray.  The next day, Suncor also announced  the beginning of a 6-year phase-in of approximately 150 autonomous electric trucks at numerous locations. The company said it will “continue to work with the union on strategies to minimize workforce impacts,” and that “current plans show that the earliest the company would see a decrease in heavy equipment operator positions at Base Plant operations is 2019.”   Reaction from the local union is here in a notice on the website of Unifor 707A;  Unifor National Office response is here:  “Driverless trucks aren’t the solution for Suncor” .  The National Observer published an interview with a Suncor spokesperson on January 31.  According to”Suncor Energy says driverless trucks will eliminate a net 400 jobs in the oilsands” , Suncor is the first oil sands company to use driverless trucks, and “Suncor’s plan to test the autonomous truck systems was initially criticized by the Unifor union local because of job losses. But Little says Suncor is working with the union to minimize job impacts by retraining workers whose jobs will disappear. The company has been preparing for the switch by hiring its truck drivers, including those at its just−opened Fort Hills mine, on a temporary basis.”

The good news is that  “the era of oil sands mega-projects will likely end with Suncor Energy’s 190,000 barrel-per-day Fort Hills mining project, which started producing this month”, according to an article by Reuters.  The bad news is in the title of that article:  “Why Canada is the next frontier for shale oil” (Jan. 29) . The article extols the strengths of Alberta’s mining industry, and quotes a spokesman for Chevron Corporation who calls the Duvernay and Montney formations in Canada “one of the most promising shale opportunities in North America.”  For a quick summary, read   “Montney, Duvernay Oil and Gas Fields Seize the Momentum from Athabasca Tar Sands/Oil Sands” ( Jan. 31) in the Energy Mix.

Also,  consider the work of Ryan Schultz of the Alberta Geological Survey.  Most recently, he is the lead author of  “Hydraulic fracturing volume is associated with induced earthquake productivity in the Duvernay play”, which  appeared in the journal  Science on January 18 , and which is summarized in the  Calgary Herald  on January 18.  It discusses the complexities of how fracking has caused earthquakes in the area.

New Zero Emissions Standard takes effect in Quebec January 11, 2018

Electric car London 2013On December 27, Quebec enacted  a new Zero Emissions Vehicle Standard  in the form of Final Regulations to Bill 104, An Act to increase the number of zero-emission motor vehicles in Quebec, (which passed in October 2016).  The new Standard  comes into effect January 11, 2018, and is meant to increase the supply so  that  10% of new-vehicle sales or rentals in the province will consist of zero-emission vehicles (ZEV) or low-emission vehicles (LEV) by 2025.  Earlier in December, the government had announced a committee to monitor implementation of the regulations, with  representatives from the Corporation des concessionnaires automobile du Québec (CCAQ), the provincial Department of Sustainable Development, Environment and the Fight Against Climate Change (MDDELCC) and the Coalition zéro émission Québec (CZÉQ), as well as environmental group Équiterre.  Équiterre’s reaction to the new Standard  is favourable ; the Global Automakers of Canada press release states it “needs more work”, reflecting the  industry opposition reported in the Montreal Gazette  when the regulations were first unveiled in July 2017. Full details and documentation are available from the Quebec government website in English and in French .

Strong new policies needed for electric vehicle adoption in Canada

Stuck in neutral cover evehicles 2017With a National Zero Emissions Vehicle Strategy expected to be released in Canada in early 2018, two reports released in December decry Canada’s  slow progress to date, and make policy recommendations to speed up electric vehicle adoption.   Clean Energy Canada released  Stuck in Neutral,  which states that  “In 2016, just 0.6 per cent of car sales in Canada were for electric vehicles, well behind the U.S., U.K., China and other world-leading nations (Norway’s market share is a whopping 28.8 per cent).”  The report provides a suite of  recommended policies, starting with strengthening Canada’s aspiration target of 30% EV sales by 2030 to a binding, ambitious national EV adoption target, beginning in 2020. Amongst the other recommendations:  “Develop an EV-charging-infrastructure plan informed by EV sales targets.• Ensure that all residents in multi-unit residential buildings (such as condos and townhouses) have opportunities to charge vehicles at home.• Ensure the National Building Code and the Canadian Electrical Code facilitate EV charging in all new buildings with parking facilities.”  Also,  “• Help Canada’s mining sector capitalize on the global demand for mining and processing metals and minerals that will be central to this shift, while requiring world-leading practices; • Encourage EV parts and vehicle manufacturing in Canada.”

A second new report, from  the Sustainable Transportation  Research Action Team at Simon Fraser University,   is Canada’s ZEV Policy Handbook , summarized  and given context by one of the authors in  “How to get more electric vehicles on the road”   in The Conversation (Dec. 12) .   The report  identifies three effective policy approaches for achieving long-term ZEV sales targets: one, based on Norway’s model of  long-term incentives, a second based on the California model of suppy-side policies, and a third option of radically more stringent regulation for  vehicle emission standards and fuel standards.  The researchers conclude that “Regardless of which option or combination of options policymakers choose, the main message is that Canada needs to stop nibbling around the edges.”

Do electric vehicles create good green jobs? An Amnesty International report on Supply Chains says No

Tesla TruckNovember brought  exciting news about electric vehicles:  BYD,  one of China’s leading electric carmakers, announced that it will open an assembly plant in a yet-to-be-announced location in Ontario in 2018, (though according to the Globe and Mail article,   the new plant will only create about 40 jobs to start ).  Also in mid-November, Tesla revealed a concept design for  an  electric truck in an glitzy release by Elon Musk , and the Toronto Transit Commission announced its plan to buy its first electric buses, aiming for an  emissions-free fleet by 2040.    Unnoticed in the enthusiasm for these announcements was a report released by Amnesty International on November 15:    Time to Recharge: Corporate action and inaction to tackle abuses in the cobalt supply chain  which concludes : “ Major electronics and electric vehicle companies are still not doing enough to stop human rights abuses entering their cobalt supply chains, almost two years after an Amnesty International investigation exposed how batteries used in their products could be linked to child labour in the Democratic Republic of Congo (DRC).” (That earlier report was This is what we die for   released in January 2016) .

Under the heading “The Darker side of Green Technology”, Time to Recharge states: “Renault and Daimler performed particularly badly, failing to meet even minimal international standards for disclosure and due diligence, leaving major blind spots in their supply chains. BMW did the best among the electric vehicle manufacturers surveyed.”   Tesla was also surveyed and ranked for its human rights and supply chain management; Tesla’s policies are described in its response to Amnesty International here.  And further, Tesla has come in for suggestions of  anti-union attitudes  in “Critics Suggest Link to Union Drive After Tesla Fires 700+ Workers” , in  The Energy Mix (Oct. 23), and in an article in Cleantechnica , and for discriminatory policies in “The Blue-Collar Hellscape of the Startup Industry“, published in In these Times and re-posted in Portside.

The Amnesty International report is a result of a survey of 29 companies, including consumer electronics giants Apple, Samsung Electronics, Dell, Lenovo, and Microsoft, as well as electric vehicle manufacturers BMW, Renault and Tesla.  Questions in the survey were based on the five-step due diligence framework set out by the Organization for Economic Co-operation and Development (OECD) in its Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.  Detailed responses from many of the surveyed companies are here.