Future job growth in the U.S. auto industry depends on supportive industrial and labour policies

As the inevitable transformation of the U.S. auto industry unfolds, supportive industrial and labour policy can help the industry reclaim its role as a source of well-paying, stable jobs, according to a report released on September 22 by the Economic Policy Institute.  “The stakes for workers in how policymakers manage the coming shift to all-electric vehicles” was written in collaboration with the BlueGreen Alliance, AFL-CIO Industrial Union Council, United Auto Workers, United Steelworkers, and The Greenlining Institute.   

Authors Jim Barrett and Josh Bivens report on the likely employment and job-quality implications of a large-scale shift to Battery Electric Vehicles (BEVs) under various scenarios. Their key findings: employment in the U.S. auto sector could rise by over 150,000 jobs in 2030 under two conditions: 1. Battery electric vehicles rise to 50% of domestic sales of autos in 2030 and 2. U.S. production of electric vehicle powertrain components increases. Supportive policies are seen to make the difference between job losses and job gains. 

The report further states: “For the auto sector to continue providing good jobs for U.S. workers, strong labor standards—including affirmative efforts to encourage unionization—will be needed. … The jobs embedded in the U.S. automobile supply chain once provided a key foundation for middle-class growth and prosperity. A cascade of poor policy decisions has eroded employment and job quality in this sector and this has helped to degrade labor standards across U.S. manufacturing and throughout the overall economy …. The industry transformation coming due to the widespread adoption of BEVs provides an opportunity to reverse these trends. The transformations necessary to ensure that this shift to BEVs supports U.S. employment and job quality—investment in advanced technology production and strengthening supply chains—will redound widely throughout manufacturing and aid growth in other sectors as well.”  

The report is summarized in “What Will It Take for Electric Vehicles to Create Jobs, Not Cut Them?” (New York Times , Sept. 22) .

Growth of ZEV’s impacts trucks, buses – and their drivers too

The International Energy Agency released its annual Global Electric Vehicle Outlook report for 2021 in April, providing data, historical trends and future projections. Despite the pandemic, there was a 41% increase in electric vehicle registrations in 2020 – compared to a 16% contraction of the overall global automobile market. There are now more than 10 million electric cars on the world’s roads, and for the first time, Europe overtook China as the centre of the global electric car market.  In addition, there are roughly 1 million electric vans, heavy trucks and buses globally.  A separate forecast by Bloomberg New Energy Finance, as summarized by The Guardian, projects that electric vehicles will reach price parity with internal combustion engine (ICE) vehicles by 2027.  Another April report from Boston Consulting Group  forecasts that zero-emission vehicles will replace ICE vehicles as the dominant powertrain for new light-vehicle sales globally just after 2035.

Most policy discussions of the electrification of transportation focus on the potential for GHG emissions reductions, consumer preferences, and the economic impacts for the automotive industry. There has been a lack of attention on operational workers – with a few exceptions. A 2020 report from the International Labour Organization and the United Nations Economic Commission for Europe, Jobs in green and healthy transport: Making the green shift , offers modelling of employment impacts in a broad definition of transportation, including personal vehicles, trucks and public transport. It focuses on Europe, and discusses the employment impacts in both manufacturing and operation.

A second notable report: The Impacts of Zero Emission Buses on the Transportation Workforce – is a Policy Statement regarding public transit, was released on April 21 by the Transportation Trades Department of the AFL-CIO, the Amalgamated Transit Union (ATU) and the Transport Workers Union in the U.S.. Their statement  warns that major job losses could occur and workers could be left without adequate training, and calls for the federal government in the U.S. to mandate worker protections, including:  the Federal Transit Administration should require “advance notification of procurements and workforce impact assessments including potential job displacements or significant changes in responsibilities due to the introduction of new technologies to employee representatives”; a right of first refusal for existing employees to newly created jobs; and requirements for employers and employees to bargain in good faith over the terms of implementing the project. The Statement also call for a national workforce training center to be established to train current employees on the new systems, and a guarantee that workers will be represented on task forces and committees around climate change and technology.

These are policies which might be relevant to the response of the Amalgamated Transit Union in Toronto, where the Toronto Transit Commission (TTC), announced  a “green fleet expansion”, in  partnership with Toronto Hydro and Ontario Power Generation. Their April 9 press release states: “The TTC is currently operating 60 battery-electric buses, the largest zero-emissions fleet in North America, made by three different manufacturers: BYD Canada Co. Ltd., New Flyer Industries Inc. and Proterra Inc. All three have been part of TTC’s innovative ongoing head-to-head evaluation …. The Board is expected to discuss the results of the evaluation and subsequently greenlight the procurement of approximately 300 long-range battery-electric buses that will be delivered between Q1 2023 and Q1 2025.”   

Other EV News from Canada  

British Columbia’s new report, Zero-Emission Vehicle Update 2020 , states that B.C. has the highest electric vehicle uptake in North America – with 54,469 light-duty ZEVs registered and over 2,500 public charging stations in the province at the end of 2020.  On May 14, the province announced increased weight allowances for trucks, “to offset the loss of payload capacity that commercial operators experience with greener vehicles. Low-carbon options weigh more than standard diesel trucks due to the size of their battery packs and hydrogen tanks.” In Vancouver, a draft Climate 2050 Transportation Roadmap was presented to City Council on April 21 – the second in a series of ten Roadmaps that will guide the region’s climate actions to 2050. The Roadmap describes and recommends strategies to increase EV uptake –including an outreach program to large employers to encourage the installation of EV charging stations at workplaces, and facilitate fleet replacement.  

In Ontario, two new reports from the Pembina Institute discuss fleet replacement: Making the Case for Electric Urban Delivery Fleets in the GTHA and Making the Switch to Electric Urban Delivery Fleets in the GTHA. Both are directed at fleet managers, but act as useful overviews of the complex issues in such a conversion.  Making the Switch acknowledges (though only briefly) the need for training for both drivers and maintenance workers. Information about the impact of driver attitudes and habits appears in Long-haul trucking fleets take emission reductions into their own hands – an April report with case studies of three companies with heavy-duty trucks. These reports are the latest in a series of reports from Pembina, reflecting their sustained interest in the transportation sector.

Sierra Club green recovery plan calls for “ironclad labor and equity standards”

The Sierra Club U.S. report How to Build Back Better: A 10-year Plan for Economic Renewal  is a blueprint for economic renewal – in which the environmental advocacy group continues to demonstrate clear support for the needs of workers.  Released in March, this report includes a call for public investments which “must come with ironclad labor and equity standards to curb racial, economic, and gender inequity instead of reinforcing the unjust status quo.”  To support the job quality theme, the Sierra Club also released a 1-pager titled Cross-cutting environmental, labor and equity standards and  a 3-page summary titled Why Standards Matter, an overview of job quality issues .


Briefly, the Sierra Club recommends a pandemic recovery plan which would create over 15 million good jobs, based on public investment of $1 trillion per year for ten years. Investments would go to many sectors including infrastructure and clean manufacturing, but also the care sector and the public sector. In addition to job creation, the plan addresses systemic racism, supports public health, and cuts climate pollution nearly in half by 2030. The economic renewal plan is based on the THRIVE Agenda, which is itself based on job projections and modelling by academics at the Political Economy Research Institute (PERI), led by Robert Pollin. Their latest analysis was published by PERI as Employment Impacts of Proposed U.S. Economic Stimulus Programs (March 2021).  Sierra Club released a  3-page summary of  job projections; an interactive Jobs Calculator ; and Fact Sheets for each of the sectors considered: regenerative agriculture, clean energy, care and public sector, transportation, manufacturing, buildings, and clean water for all, and pollution-free communities. All these accompanying documents, along with the full report, are available here.

THRIVE stands for “Transform, Heal, and Renew by Investing in a Vibrant Economy” and is summarized in the Sierra Club press release of  March 25. The coalition has grown out of the Green New Deal Network, itself a coalition of 15 U.S. organizations that are focused on combating social inequity and environmental destruction through political action. 

How will electrification of vehicles impact auto workers?

Threats to traditional auto manufacturers are outlined in “The top trends killing the auto industry” in Corporate Knights (Feb. 3), including the climate crisis, the fall of fossil fuels, electrification and autonomous EV fleets, unfunded pension liabilities (US$14.4 billion for G.M., US$10.2 billion for Ford), as well as  shifting government policies, and dampened demand in general. All the more reason to celebrate the good news about investment in EV production in Canada by GM, Ford and Fiat-Chrysler , as well as GM’s January 2021 announcement that it will  sell only zero emissions vehicles by 2035. In February, Ford announced its target to sell EV’s only in Europe.  But the good news is complicated, as described in  “Auto industry peers into an electric future and sees bumps ahead” (Washington Post, Feb. 6)  , and by  “Canada and the U.S. auto sector’s abrupt pivot to electric vehicles” (National Observer, Feb. 15) . For Canada, the challenges include competition for the development of battery technology and the policy challenge of the new “Made in America” Executive Order by President Biden on January 25.  Despite the brief and optimistic overview presented in  “Jerry on the Job: How the president of Canada’s largest union, Jerry Dias, is driving the country’s electric vehicle push” (Corporate Knights, Feb. 4), our highly integrated North American auto industry has a complicated path forward. 

One of the most important issues ahead is how the conversion to electric vehicles will impact the jobs of current auto workers. In late 2020, Germany’s Fraunhofer Institute for Industrial Engineering conducted a detailed study of this issue on behalf of the Sustainability Council of the Volkswagen Group.  Employment 2030 Effects Of Electric Mobility And Digitalisation on the Quality and Quantity of Employment at Volkswagen (Nov. 2020) is an English-language summary of the full, detailed study, which modelled the impacts of digitization and electrification in the industry. Although the study is specific to  VW production in Germany, its findings are instructive, and include that job losses will be less than anticipated, ( a decrease of 12 percent in this decade, mainly due to planned output volumes and higher productivity).  Digitization will result in a need for new skills, “will necessitate a profound change in corporate culture”, and will include higher employee expectations for job flexibility. A summary appearing in Clean Energy Wire   states: “ …. there is no uniform employment trend in the ‘transformation corridor’ over the coming decade. Instead, there will be a complex, interconnected mixture of job creation, job upgrading and job cuts. It argues that it will be vital to ensure that small and medium-sized enterprises (SMEs) do not fall victim to this reorganisation, and warns that Germany’s automotive sector must establish new forms of cooperation so as not to “recklessly surrender the field of mobility to new market players.”  The study is also summarized in a press release by  VW (with links to the full study in German).

New report offers sector-based strategies for greening California with high road jobs

The Center for Labor Research at the University of California, Berkeley, was commissioned by the California Workforce Development Board under legislated mandate to provide strategies “to help industry, workers, and communities transition to economic and labor-market changes related to statewide greenhouse gas emissions reduction goals.” The demand-side practices of community benefits agreements and project labour agreements were singled out for special attention.  The resulting 636-page report, Putting California on the High Road: A Jobs and Climate Action Plan for 2030 , was presented to the Legislature on September 3.  The official summary is here ; coverage in the Los Angeles Times is here.

The  High Road report is built on the framework of California’s 2017 Climate Change Scoping Plan, which has target of  a 40 percent reduction in greenhouse gas emissions by 2030 from 1990 levels. It incorporates existing academic research, economic models, and industry studies to present information about current labor conditions and the impact on jobs of California’s major climate measures. Most importantly, it provides strategic guidance and best practice examples for policymakers, agencies and institutions with a goal to “generate family-supporting jobs, broaden career opportunities for disadvantaged workers, deliver the skilled workforce that employers need to achieve California’s climate targets, and protect workers in declining industries.”  

Construction sector and blue-collar jobs are key

The Scoping Plan and the new report are organized into sectors based on the state’s major sources of greenhouse gas emissions: Transportation, Industry, Energy, Natural and Working Lands (including Agricultural Lands), Waste, and Water. The report notes the out-sized importance of the construction sector and of blue-collar work – defined as occupations in construction, production, transportation, maintenance, repair, and similar occupations, and specifically emphasizes that “blue collar” does not equate to “low skilled”. This has important policy implications, including the need for industry-based training, and emphasis on addressing job quality, because: “The quality of blue-collar jobs varies tremendously, even within the same industry, depending on the degree of subcontracting and outsourcing, ease of employment law enforcement, unionization rates, and other factors. These differences in job quality within industries and between high and low road employers are often difficult to discern from government data, which also is not able to capture wage theft and other employment violations. Examples are given of many sectors where greening of jobs may have resulted in lower emissions but not necessarily in job quality.

Recommendations

There are dozens of sector-specific recommendations, both demand-side and supply-side  including:

Expand the use of Community Workforce Agreements (CWAs) on climate investments involving large-scale construction projects;

Use inclusive procurement policies for public procurement of large capital equipment, contracts for public services, and in grant programs;

Include responsible employer standards in all climate incentive programs. Include skill standards to ensure safe and proper performance in programs receiving public or ratepayer funds; Incorporate wage and benefits standards and verification of compliance with all employment and labor law, including health and safety standards, into incentive program requirements.

Use metrics to measure the impact of climate policies on job growth, job quality, and job access.

Support existing apprenticeship programs and, where conditions are favorable, create new apprenticeship programs.

Support curriculum upgrades and teacher training for emerging technologies in occupations critical to the transition to a carbon-neutral economy.

Recommendations regarding Just Transition are: Short term: “Fully explore alternatives to plant closures when there are other strategies available that will achieve greenhouse gas emissions reductions and local pollution abatement. Longer term: Convene an interagency task force to develop concrete, specific plans for short-term and long-term transition.”

The full report is 636 pages long, with Lead Author Carol Zabin, Director of the Green Economy Program at the Labor Center, University of California Berkeley. Co-authors include J. Mijin Cha , author of Chapter 4 on Just Transition.  Much of the research was undertaken in 2018, relying on data from 2017, though the report is dated June 2020, and was only publicly released in September 2020.  Previous related reports from the Green Economy Program are listed here. Other relevant articles by J. Mijin Cha include “Environmental Justice, Just Transition, and a Low-Carbon Future for California” in Environmental Law Reporter 2020 and “A just transition for whom? Politics, contestation, and social identity in the disruption of coal in the Powder River Basin” in Energy Research & Social Science, Volume 69, 2020. Both academic articles have restricted access to the full text.

The clean economy workforce in the U.S. and proposals to make it more inclusive

brookingsclean-energy-jobs_wages Figure2-finalAdvancing inclusion through clean energy jobs  is a report  released  by the Brookings Institution in April 2019,  with a goal to determine “ the degree to which the clean energy economy provides labor market opportunities for historically disadvantaged groups, with a particular focus on equity”.  It examines a range of occupations, not just the traditionally-identified “green jobs”,  identifying approximately 320 unique occupations in three major industrial sectors: clean energy production, energy efficiency, and environmental management.  The report includes detailed discussion of its methodology and data sources, and emphasizes the size of the clean energy economy and its potential to make an impact on the equity of the U.S. labour market.

Some highlights about the “nature” and “ quality” of clean energy economy jobs:

  • Workers in clean energy earn higher and more equitable wages when compared to all workers nationally. Mean hourly wages exceed national averages by 8 to 19 percent.
  • Roughly 50 percent of workers in the clean energy economy have a high school diploma yet earn higher wages than similarly-educated peers in other industries – for example, plumbers, electricians, and carpenters.
  • Some occupations within the clean energy production and energy efficiency sectors require greater scientific knowledge and technical skills than the average American job.
  • The clean energy economy workforce is older, dominated by male workers, and lacks racial diversity when compared to all occupations nationally. Fewer than 20 percent of workers in the clean energy production and energy efficiency sectors are women, while black workers fill less than ten percent of these sector’s jobs.

In the accompanying press release , first author Mark Muro states: “Clean energy occupations are varied, accessible to workers without a bachelor’s degree, and good paying, but they are not yet as inclusive as they should be. To deliver on the sectors’ full promise for economic inclusion, more work needs to be done in front-line communities to ensure under-represented communities and women are more widely included.”  The report concludes with  proposals directed at state and local policy makers, education and training sector leaders, and community organizations.  Broadly, the policy proposals include: “modernizing and emphasizing energy science curricula, improving the alignment of education and training offerings, and reaching underrepresented workers and students.”

Women and minorities still at a disadvantage in U.S. solar industry

solar industry 2019 diversity infographicThe U.S. Solar Industry Diversity Study 2019  was released by The Solar Foundation ,  in partnership with the Solar Energy Industries Association on May 6, reflecting  a growing  industry awareness of the need to promote inclusion. The 2019 study is based on survey responses from 377 employers and 398 employees in the winter of 2018, and reports on  job satisfaction, career paths and progression, and wages.

Some highlights: 

  • Among the senior executives reported in the survey, 88% are white and 80% are men.
  • Three of the top five recruitment methods rely on professional and personal networks – putting minority applicants at a disadvantage to be hired  (Only 28% of Hispanic , Latino, and African American  respondents reported that they found their jobs through a referral or by word of mouth, compared to 44% of white respondents).
  • There is a 26% gender wage gap across all position levels. 37% of men earn in the range of $31 to $74 per hour, compared to only 28% of women.  The median wage reported for men was $29.19, and for women it was only $21.62.

The full report is available here (registration required). This is the second Diversity Report, but the first, in 2017, is no longer available online. An accompanying  Best Practices Guide  is a brief guide aimed at HR managers to encourage diversity and inclusion programs.  A summary  of the report appears in Think Progress .

Other reports which confirm the need for more diversity in the solar industry: 

Solar Empowers Some  (February 2019)  focused on the state of diversity and inclusion in Baltimore and Washington D.C.

Advancing inclusion through clean energy jobs  (April 2019)  by the Brookings Institution goes beyond just the solar industry to include all clean energy and energy efficiency occupations. It reports that fewer than 20 percent of workers are women, and less than 10 percent are black, confirming that the clean energy economy workforce is older, dominated by male workers, and lacks racial diversity compared to all occupations nationally.  This report, importantly, also documents skills and educational requirements, and is written in the context of labour market issues for a transition to a clean economy.

We have little comparable research in Canada. As reported in the WCR  previously,  Bipasha Baruah at Western University in London researches the gender issue in the renewable energy industry, and in 2016 presented a report,  Creating and Optimizing Employment Opportunities for Women in the Clean Energy Sector in Canada, at Imagining Canada’s Future, an SSHRC Knowledge Synthesis Symposium at the University of Calgary.

Can unions deliver good green jobs at Tesla?

tesla injury ratesThe “Driving a Fair Future” website has documented the complaints against Tesla for years – including an analysis of  Tesla injury rates between 2014 and 2017 at its Freemont California plant, which showed that injuries were 31% higher than industry standards.  In June 2018, the U.S. National Labor Relations Board  began to hear some of the workers’ complaints of safety violations and anti-union harassment, with the United Auto Workers representing them.  Two themes have emerged in the saga of Tesla’s bad labour relations:  1. how can the apparently “green jobs” become decent, good jobs?  and  2. would unionization at Tesla give a toehold at other precarious Silicon Valley workplaces such as Google, Amazon, and their like.

“Tesla’s Union Battle Is About the Future of Our Planet” (Oct. 9) in Medium describes the union drive at the Freemont California electric vehicle  manufacturing plant, in light of its environmental mission. The article contends : “ This case isn’t just about Tesla. It’s about the future of an industry that sees itself as key to addressing the climate crisis. Clean tech companies peddle a progressive vision of a low-carbon future, but Tesla’s anti-union fervor suggests that some in the industry have lost sight of their work’s bigger point.”

Workers from Tesla’s solar panel factory in Buffalo New York  expressed similar sentiments in interviews with the  local news organization . Taking pride in their green jobs, they are seeking better pay, benefits, and job security through a unionization drive announced in December.  The Tesla Gigafactory 2 in Buffalo received $750 million in taxpayer funding for the state-of-the-art solar production facility, promising new jobs in a high unemployment area; the unionization campaign involves about 300 production and maintenance employees in a partnership between the International Brotherhood of Electrical Workers and the United Steelworkers. The drive is endorsed by the Labor Network for Sustainability , which states: “We are hearing a lot about the need for a Green New Deal that will provide millions of good jobs helping protect the climate. These Tesla workers represent the Green New Deal in action.” Follow developments on the Facebook page of the Coalition for Economic Justice Buffalo.

Implications for High Tech workers: Why Elon Musk’s latest legal bout with the United Auto Workers may have ripple effects across Silicon Valley” is a thorough overview  about the UAW unionization drive at Tesla’s auto  manufacturing plant at Freemont California, from CNBC   in early December.  Similar themes appeared in  “What Tesla’s union-busting trial means for the rest of Silicon Valley” appeared in Verge in September 2018,  chronicling the arguments of the UAW and Tesla management – including Elon Musk and his tweets – during the NLRB hearings  in June 2018.   The article concludes that “Tesla’s case [is] a bellwether — particularly for Amazon. … Tesla might be a car company, but it’s also a tech company — and if its workers can unionize, tech workers elsewhere are bound to start getting ideas.”

What is life like for these high tech workers? A New Kind of Labor Movement in Silicon Valley” in The Atlantic (Sept. 4  )  gives a good overview, and introduces nascent groups as Silicon Valley Rising  and Tech Workers Coalition  .

 

Just Transition for energy workers in Northern England includes job quality, skills training

liverpool harbourRisk or reward? Securing a just transition in the north of England  is a study released in late October by the Institute for Public Policy Research North (IPPR), based in Manchester and Newcastle of the U.K. – an area disproportionately at risk for job losses in the shift to a low carbon economy as it is the home of  the majority of England’s coal and gas power stations.  This Interim report estimates that approximately 28,000 jobs in the coal, oil and gas industries could be lost by 2030 as the low carbon economy grows.  In 2017, the IPPR forecasts that up to 46,000 low-carbon power sector jobs and 100,000 jobs could be created by 2030 by its Northern Energy Strategy , including a  Northern Energy Skills Programme .

Risk or Reward?  forecasts job numbers, but also discusses the quality of jobs using compensation levels of representative energy jobs.  The report concludes that “Fundamentally, there is a failure to incorporate a just transition into industrial strategy and decarbonisation policy more generally; but, even if it were acknowledged, the skills system is ill-equipped to provide support for those that need retraining or for the next generation. Compounded by the uncertainty of Brexit amidst international competition for labour and skills, there is a real risk that the transition to a low carbon economy will not be just.”

Risk or Reward is an interim report.  IPPR promises a Final Report in 2019 which will recommend a strategy for government action,  to put just transition “at the heart of decarbonisation and industrial strategy”, and to build a skills system capable of supporting existing and future workers through well-paid, skilled and secure jobs.  “This strategy will also consider other challenges facing the low-carbon sector both now and in the future, including how to ensure it can deliver good working conditions and a diverse workforce. In addition, it will set out the crucial role of trade unions in delivering well-paid, secure and high skilled jobs, as well as a successful industrial strategy and improving productivity.”

Companion reading to Risk or Reward is  the broader perspective of  Prosperity and Justice: A plan for the new economy  – the final report of the IPPR Commission on Economic Justice  , established in the 2016 in the wake of Britain’s vote to leave the European Union.  The Final Report is here; an Executive Summary is hereProsperity and Justice  presents a 10-part plan for economic reform and makes more than 70 recommendations – which it states “ offer the potential for the most significant change in economic policy in a generation”. It includes a chapter titled “Ensuring Environmental Sustainability”  as fundamental to its economic goal of just growth.  The IPPR Commission on Economic Justice published an Interim Report (2017), as well as discussion and policy papers –   including including Power to the people: How stronger unions can deliver economic justice.

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. 

Proposals for a green transition that is just and inclusive in Ontario

decent_work_in_the_green_economy-coverDecent Work in the Green Economy, released on October 11 , combines research on green transitions worldwide with the reality of  labour market trends in Ontario, and includes economic modelling of  Ontario’s cap and trade program, conducted by EnviroEconomics and Navius Research.  The resulting analysis identifies which sectors are expected to grow strongly under a green transition (e.g. utilities and waste management and remediation),  which will see lower growth (e.g. petroleum refining and petrochemical production), and which will see a transformation of skills requirements (e.g. mining, manufacturing, and  forestry). Section 3 of the report discusses the impacts on job quality (including wages, benefits, unionization, and job permanence), as well as skills requirements.  The general discussion in Section 3 is supplemented by two detailed Appendices about the employment impacts by economic sector,  and by disadvantaged and equity-seeking groups (which includes racialized workers, Indigenous people, workers with disabilities, newcomers, women, and rural Ontarians.) A final  Appendix describes the modelling behind the analysis, which projects employment impacts of low carbon technologies by 2030.

The paper calls for a comprehensive Just Transition Strategy for Ontario, and proposes  six core elements illustrated by case study “success stories”.   These case studies include the Solar City Program in Halifax, Nova Scotia, (which uses local supply chains and accounted for local employment impacts), and the UK Transport Infrastructure Skills Strategy (which incorporated diversity goals and explicit targets in workforce development and retraining initiatives).  An important element of the recommended Just Transition Strategy includes a dedicated Green Transitions Fund, to transfer funding for targeted programs to communities facing disproportionate job loss; to universities or colleges to provide specialized academic programs; to social enterprise or service providers to carry out re-training programs; to directly impacted companies to invest in their employees; and to individuals in transition (much like EI payments).

The authors also call for better data collection to measure and monitor the link between green economy policies and employment outcomes, and better mechanisms for regular, ongoing dialogue.  This call for ongoing dialogue seems intended to provide a role for workers (and unions, though they are less often mentioned). The authors state: “No effort to ensure decent work in the green economy will be successful without meaningfully engaging workers who are directly impacted by the transition, to understand where and how they might need support. Just as important will be the ongoing engagement with employers and industry to understand the changing employment landscape, and how workers can best prepare for it.” And, on page 39,  “Public policy will be a key driver in ensuring that this transition is just and equitable. …. Everyone has a role to play in this transition. Governments, employers, workers, unions and non-profit organizations alike must remember that if we fail to ensure that the green transition is just and inclusive, we will have missed a vital opportunity to address today’s most pressing challenges. But if we design policies and programs that facilitate this transition with decent work in mind, they have the potential to benefit all Ontarians.”

Decent Work in the Green Economy was published by the  Mowat Centre at the University of Toronto, in cooperation with the Smart Prosperity Institute at the University of Ottawa.  In addition to economic modelling, the analysis and policy discussion is based on an extensive literature review as well as expert interviews and input from government, industry, labour and social justice representatives. Part of the purpose of the report is to initiate discussion “between those actively supporting the transition to a green economy and those advocating for decent work” as defined by the ILO.  Further, the report states: “ Importantly, this conversation must address the need for equal opportunities among historically disadvantaged and equity-seeking groups who currently face barriers to accessing decent work.”

A shorter work week can slow climate change in a post-growth economy

Two recent articles have been added to the long-standing discussion of the “degrowth” movement – including about the potential of a shorter work week to make an impact on climate change.  In relation to their recently published book, “Just Cool It! The Climate Crisis and What we can do , David Suzuki and co-author Ian Hanington posted a blog  item on on May 11: “Long work hours don’t work for people or the planet” . The article describes  “a seemingly endless cycle of toil and consumerism” which has been the norm throughout the 20th century,  and  says “It’s time to pause and consider better ways to live”.  They reference the U.K. thinktank New Economics Foundation, which in 2010 proposed “21 Hours – the case for a shorter work week” , arguing that a shorter work week would address a number of interconnected problems: “overwork, unemployment, over-consumption, high carbon emissions, low well-being, entrenched inequalities, and the lack of time to live sustainably, to care for each other, and simply to enjoy life.”   The Suzuki/Hanington article also refers to “Reducing work hours as a means of slowing climate change”  published by the Center for Economic and Policy Research in Washington D.C. in 2013. The author, David Rosnick, used economic modelling to argue that reducing average annual hours by just 0.5% per year through shorter workweeks and increased vacation would “likely mitigate one-quarter to one-half, if not more, of any warming which is not yet locked-in.”

Another recent article, “How to kick the growth addiction”  was posted at The Great Transition Initiative website and re-posted by Resilience on May 17.  The article is a transcript of an interview with  ecological economist Tim Jackson   , the author of the classic book,  Prosperity Without Growth: Foundations for the Economy of Tomorrow. It provides some insight into Jackson’s latest thinking  about a “post-growth” economy .  He states: “Can we imagine an economy in which enterprise provides outputs that enable people to flourish without destroying ecosystems; where work offers respect, motivation, and fulfillment to all; where investment is prudential in terms of securing long-term prosperity for all humanity; and where systems of borrowing, lending, and creating money are firmly rooted in long-term social value creation rather than in trading and speculation?” The second edition of  Prosperity without Growth was released in 2017, discussing four pillars of a post-growth economy—enterprise as service, work as participation, investment as commitment, and money as a social good.

Clean Energy creates more jobs than fossil fuels, with a wage premium

Following on the January 2017  report US Energy and Employment  from the U.S. Department of Energy, more evidence of the healthy growth of the clean energy industry comes in a report  by the Environmental Defense Fund Climate Corps and Meister consultants.  Now Hiring: The Growth of America’s Clean Energy and Sustainability Jobs    compiles the latest statistics from diverse sources,  and concludes that “sustainability” accounts for an estimated 4.5 million jobs (up from 3.4 million in 2011) in the U.S. in 2015. Sustainability jobs are defined as those in energy efficiency and renewable energy, as well as waste reduction, natural resources conservation and environmental education, vehicle manufacturing, public sector, and corporate sustainability jobs.  Statistics drill down to wages and working conditions – for example,  average wages for energy efficiency jobs are almost $5,000 above the national median, and wages for solar workers are above the national median of $17.04 per hour.  Comparing clean energy with the fossil fuel industry, the report states that the  1.4 million jobs  in energy efficiency construction and installation alone is more than double the number of workers in fossil fuel mining, extraction and electric power generation combined.  Now Hiring states that for every $1 million invested in building retrofits and industrial efficiency,  8 direct or indirect jobs are created;  in comparison,  3 are created by a comparable investment in the fossil fuel industry. This final comparison of job multiplier effect  is based on  “Green versus brown: Comparing the employment impacts of energy efficiency, renewable energy, and fossil fuels using an input-output model”  by Heidi Garrett Pelletier at PERI, and appears in the February 2017 issue of Economic Modelling.

UNFCC Report on Just Transition highlights the work of the ACW

A new technical report by the United Nations Framework Convention on Climate Change ( UNFCCC) “will deepen the international community’s understanding of the need to consider the impact of climate policies on workers, and the essential role that labour unions have in combatting climate change,” according to Carla Lipsig Mummé, in a press release  at the Adapting Canadian Work and Workplaces to Climate Change (ACW) website. Professor Lipsig Mummé, ACW Project Director and Principal Investigator,  was responding to the recognition in the UNFCC report of  ACW’s unique online database of green collective agreements  from Canada,  the  UK, Australia and the U.S..  “I am delighted that our research, produced through a collaboration of academic and organized labour researchers funded by the Social Science and Humanities Research Council of Canada, has contributed to intergovernmental climate change negotiations through the UNFCCC” she stated.

The UNFCC report, Just transition of the workforce, and the creation of decent work and quality jobs describes itself as a step-by-step, “how-to”  guide for Parties, in particular developing country Parties. It  provides a detailed description of the actions and policies of  international organizations such as the UNEP and ILO, but also catalogues the research documents of various sources, including international organizations, research institutes and advocacy groups.   It  utilizes a framework of the qualitative and quantitative impacts of climate change on jobs, and organizes its discussion of mitigation policies using the five principles of a Just Transition, established in the ILO‘s report, Guidelines for a Just Transition towards environmentally sustainable economies and societies for all (2015)  .  The contribution of the labour movement is clearly acknowledged.

At a  meeting of ACW international researchers in Vancouver in November, concerns about Just Transition for workers impacted by climate change mitigation measures were high on the agenda. Participants noted with concern that governments are skirting their obligation to assist workers in the transition to a low-carbon economy.

Recommendations for “High Road” Jobs in Green Infrastructure

A report by Green For All, in partnership with American Rivers, focuses on occupations in green infrastructure programs across the U.S.  It describes current U.S. green infrastructure activity, examines the occupations involved in operations and maintenance (including wage and unionization rates), and argues that the low entry barriers for these occupations have created “low road” jobs.  The paper then profiles specific projects, particularly water utilities, where workforce development programs are leading to stable jobs with career prospects – “high road” jobs.   The report makes 3 recommendations for green infrastructure projects, including that installation and maintenance contracts for publicly funded infrastructure should include community benefits strategies to generate work for local workers and businesses, and should include workforce development commitments.

LINKS

Staying Green and Growing Jobs: Green Infrastructure Operations and Maintenance as Career Pathway Stepping Stones is at  http://greenforall.org/wordpress/wp-content/uploads/2013/04/Staying-Green-and-Growing-Jobs-April-2013.pdf.pdf

Related reports, including Staying Green: Strategies to Improve Operations and Maintenance of Green Infrastructure in the Chesapeake Bay Watershed, and High Road Agreements: A Best Practice Brief are at the Green For All website at http://greenforall.org/resources/reports-research/  .

Overviews of Green Jobs, Skills, and Social Dialogue in Europe and South Africa

Two new reports were released by SustainLabour in February. The first, Green Jobs and Related Policy Frameworks: an Overview of the European Union provides detailed employment data by sector, subsectors, and countries across Europe -estimating that there are about 7,360,000 jobs in the 27 EU countries in green sectors (renewable energies, energy efficiency, retrofitting, organic agriculture, waste management and green transportation.) The report discusses the quality of green jobs, skills development, and gender differences in green job creation. It describes the social dialogue between employer associations and trade unions with European and national examples, and discusses the current major policy instruments, including the Lisbon Strategy, Europe 2020, the European Economic Recovery Plan and national Economic strategies, and Roadmaps 2050 for a Resource Efficient Europe. An extensive bibliography is included.

A South African overview report analysing national policies was posted to the Sustainlabour website but has been removed, and replaced by briefer presentations from February meetings in Johannesburg.  The meetings and report are part of the “Social Dialogue for Green and Decent Jobs. South Africa-European Dialogue on Just Transition”, a collaboration of Sustainlabour with COSATU (South African Trade Union Congress) and the European Trade Union Confederation (ETUC) and funded by the European Union.  In South Africa, with an unemployment rate of 25%, the green economy is seen as a major source of job creation; the New Growth Path policy statement of 2011 included a Green Economy Accord, signed by government, business and trade unions and other civil society organizations.

LINKS

Green Jobs and Related Policy Frameworks: an Overview of the European Union is available at: http://www.sustainlabour.org/documentos/Green%20and%20decent%20jobs-%20An%20Overview%20from%20Europe.pdf

Sustainlabour European Union-South Africa Dialogue on Green Jobs and Just Dialogue on Green Jobs and Just Transition Presentation from 20 February 2013 (comparative summary) is available at: http://www.sustainlabour.org/documentos/Ana%20Sanchez-%20EU-SA%20green%20jobs%20Nairobi.pdf