Ørsted and U.S. Building Trades reach a national agreement for workforce planning in Offshore Wind

A November 18  press release from the North America Building Trades Unions (NABTU) and Ørsted Offshore North America  announces a “Landmark MOU for U.S. Offshore Wind Workforce Transition” , which “represents a transformative moment for organized labor and the clean energy industry. This framework sets a model for labor-management cooperation and workforce development in the budding offshore wind industry.”

According to the NABTU  press release, “The partnership will create a national agreement designed to transition U.S. union construction workers into the offshore wind industry in collaboration with the leadership of the 14 U.S. NABTU affiliates and the AFL-CIO.”    The newly-announced MOU is based on the model of an agreement developed by the Rhode Island Building Trades for the Block Island Wind Farm project – the first offshore wind installation in the U.S. which came online in December 2016, and is now operated by Ørsted .

No text of the new agreement is available yet, but the press release specifies:

“As part of this national framework, Ørsted, along with their partners, will work together with the building trades’ unions to identify the skills necessary to accelerate an offshore wind construction workforce. The groups will match those needs against the available workforce, timelines, scopes of work, and certification requirements to fulfill Ørsted’s pipeline of projects down the East Coast, creating expansive job opportunities in a brand-new American industry for years to come and raising economics for a just transition in the renewable sector…..Ørsted and NABTU, along with their affiliates and state and local councils, have agreed to work together on long-term strategic plans for the balanced and sustainable development of Ørsted’s offshore wind projects.”

North America’s Building Trades Unions is an alliance of 14 national and international unions in the building and construction industry that collectively represent over 3 million skilled craft professionals in the United States and Canada.  Previous NABTU model national agreements are available here .  Labour-affiliated BlueGreen Alliance issued a press release immediately, “lauding” the agreement between NABTU and Ørsted .  BlueGreen is also a partner in  New England for Offshore Wind , a civil society coalition which advocates for regional collaboration in New England, and urges state Governors to make commitments to power one-third of New England with offshore wind by 2022.

The Block Island Wind Farm has been described as “a case study in high-quality job creation” by the Center for American Progress in Offshore Wind Means Blue-Collar Jobs for Coastal States  (April 2018). Massachusetts Offshore Wind Workforce Assessment,(2018) is a detailed  study by the Massachusetts Clean Energy Centre, focusing on job-related issues, and highlighting the experience of Block Island.

U.K. energy workforce will need 400,000 workers to reach net-zero emissions by 2050

building the net zero workforceThe U.K. has a target of net-zero emissions by 2050. A new report,  Building the Net Zero Workforce , forecasts the likely employment and skills impacts of that goal for the energy industry, assuming that it will require a 50% increase in low carbon electricity generation; installation of low carbon heating systems in approximately 2.8 million homes; installation of  60,000 charging points to power 11 million electric vehicles (EVs); and development of  carbon capture usage and storage technology as well as hydrogen networks  – all by 2030. 

To accomplish all this, the report projects that the energy industry will need to recruit for 400,000 jobs between 2020 and 2050 – 260,000 in new roles, and 140,000 to replace those who will be leaving in what is an anticipated retirement crunch. The report forecasts both time dimensions and regional needs, concluding that jobs will be available in all regions of  the U.K. and for a diverse range of skills, “from scientists and engineers, to communications professionals and data specialists.”  More specifically,  “The roles included in this analysis are those involved in the operation, generation, transmission, distribution and retail of energy in the UK, as well as those in the supply chain related to building, upgrading, maintaining or operating infrastructure required to reach net zero.”

The report emphasizes the role of young people and a need to encourage women in STEM professions.  In general, there is a need for training and re-training for the emerging technologies such as AI. The report notes, without details, that : “ By investing in retention and retraining, and working collaboratively with government and unions, the sector can help ensure a fair energy transition, one in which workers of all ages and backgrounds and from every community in the UK can play their part.”

The report was written by an independent research company, Development Economics, under a commission by National Grid, a U.K. organization which owns and operates electricity transmission in parts of the U.K., and invests £7.5 million per year in training.

European and U.S. studies discuss training needs for green and greenable jobs

The 2019 edition of the European Commission’s flagship analytical report Employment and Social Developments in Europe (ESDE) was released in July, dedicated to the theme of sustainability.  On September 10, the European Trade Union Institute hosted a conference to discuss Chapter 5 of that report, titled “Towards a greener future: employment and social impacts of climate change policies”. The chapter, downloadable from this link , focuses on three aspects of environmental and social sustainability in the EU: 1. the definitions and discussion framework of green jobs and occupations in the EU economy;  2. the key findings of recent studies of the expected impacts on employment, skills, income and task structures of jobs in a clean transition;  and 3. energy poverty and the link between climate action, air pollution and human health.  In general, the chapter states that the transition to a climate-neutral economy is expected to provide additional jobs in growing, green(ing) sectors both in industry and services, including construction, waste management and sustainable finance, but will require significant reskilling and labour reallocation across sectors and occupations, with careful and early policy intervention required to ensure success.  Opinions from the ETUI discussants  is summarized here , including the view that the chapter may underestimate the costs of transition.

Training for “greenable jobs”

Chapter 5 of the EU report states that “Analysis of task content also shows that green jobs vary in ‘greenness’, with very few jobs only consisting of green tasks, suggesting that the term ‘green’ should be considered a continuum rather than a binary characteristic. While it is easier to transition to indirectly green rather than directly green jobs, greening is likely to involve transitions on a similar scale and scope of existing job transitions. Non-green jobs generally appear to differ from their green counterparts in only a few skill-specific aspects, suggesting that most re-training can happen on-the-job.”

Appendix 1  of Chapter 5 (p. 36) highlights four recent studies on the “greenness of jobs” with one North American study: Bowen et al.   “Characterising  green employment: The impacts of ‘greening’ on workforce composition” which appeared in Energy Economics in May 2018.  Using the U.S. O*NET database and its definition of green jobs, the paper estimates that “19.4% of U.S. workers could currently be part of the green economy in a broad sense, although a large proportion of green employment would be ‘indirectly’ green, comprising existing jobs that are expected to be in high demand due to greening, but do not require significant changes in tasks, skills, or knowledge.”

insulalater2-365x365O*NET describes itself as   “the primary source of occupational information” for the United States, part of the U.S. Department of Labor/Employment and Training Administration.  O*NET  counts any occupation that will be affected by greening as a greenable job, and defines three subcategories, according to the effect that greening will have on the tasks, skills, and knowledge required for the job –  namely changing skill green occupations (e.g. construction workers and farmers); higher demand green occupations (e.g. bus and train drivers and renewable energy engineers); and new green occupations (e.g. energy and sustainability auditors and sustainable finance managers).

 

 

Coal transition funds announced for Alberta and Saskatchewan communities

On June 28, the federal government announced funding of $4,489,100 through the Canada Coal Transition Initiative.  Details of the funded projects – four in Alberta and five in Saskatchewan –  are listed in the Backgrounder . The Saskatchewan projects include establishing a solar installation training program in Estevan; development of business retention and expansion plans for Weyburn, Estevan, Moose Jaw and Coronach; and an economic and employment impact analysis with a regional strategic economic mitigation plan to support the Coronach & Region Coal Transition Initiatives. The Canada Coal Transition Initiative is a $35 million, five-year strategic fund to support skills development and economic diversification activities for workers and communities impacted by the government’s February 2018 decision to phase out traditional coal-fired electricity generation by 2030.

Since the June 28 announcements, brief reactions  have appeared: “Federal government gives $1.2M to Sask. groups to phase out coal” at CBC Saskatchewan; “Feds announce funding for coal energy transition in Saskatchewan, Alberta”which quotes a United Mineworkers spokesperson and the official province of Saskatchewan response;  “Leduc, Parkland counties among recipients of federal coal transition handout” in the Edmonton Journal, and  “Edmonton-area counties get help from Ottawa for coal transition” at CBC Edmonton.

The June 28 funding press release also  states:

In response to the Task Force on Just Transition for Canadian Coal Power Workers and Communities, the Government of Canada intends to:

Create worker transition centres (funded through Budget 2018);

Explore new ways to protect wages and pensions; and

Create a $150 million infrastructure fund, beginning 2020-21, for impacted communities, administered by Western Economic Diversification Canada and the Atlantic Canada Opportunities Agency.

Boundary Dam facility estevan

Boundary Dam facility in Estevan -photo by Don Healy / Regina Leader-Post) 

How the coal transition is impacting the communities across Canada is evident from the What we heard from Canadian coal power workers and communities report which accompanied the release of the Final Report of the Task Force on Just Transition for Canadian Coal Power Workers and Communities in January 2019.  Climate Justice Saskatoon has also published the results of its interviews with people in Estevan and Coronach in its Bridging the Gap project.   Articles have also appeared: “Estevan, Sask. preparing for coal phase-out putting hundreds of jobs at risk”  at Global News (May 2019)  is a profile of the community;  “Saskatchewan reaches agreement with Ottawa to cut power-generation emissions”(January 2019) outlines the agreement reached between the federal and provincial government, allowing  Boundary Dam Three near Estevan to continue beyond 2030, thanks to its nearly $1.5 billion Carbon Capture and Storage  retrofit.

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.”

GM Oshawa investment will save 300 jobs; Toyota announces new production in Cambridge

GM May 2019On May 8, General Motors Canada and Unifor held a joint press conference and  issued a statement  announcing that GM will invest $170 million to save approximately 300 of the 2,600 union jobs at the Oshawa Ontario manufacturing facility, slated for closure by the end of 2019 as part of  the North American restructuring announced in November 2018.

After a vigorous and high profile union campaign against the closure, an “Oshawa Transformation Agreement” has been reached, including:

  • A $170 million investment by GM to convert the plant from vehicle assembly to stamping, related sub-assembly, and “other miscellaneous activities for GM and other auto industry customers.”
  • Part of the Oshawa Plant property will be converted into a test track for autonomous and advanced technology vehicles, to  support GM Canada’s existing  Canadian Technical Centre , in particular its Oshawa and Markham campuses where the company  develops software and hardware for Autonomous Vehicle Systems, Embedded Controls, Active Safety Systems and Infotainment.
  • The company will also donate the three-acre Fenelon Park and the 87-acre McLaughlin Bay wildlife preserve to the City of Oshawa “for the permanent benefit of all its citizens.”

But what about the workers?

A separate Jobs Transition Backgrounder states:

  • GM Canada will offer special relocations to Oshawa employees for jobs at the St. Catharines propulsion plant or the Woodstock Distribution Centre;
  • GM will offer enhanced retirement packages to retirement-eligible Oshawa Assembly employees “including vouchers toward the purchase of new GM vehicles, a benefit that will support both retiring employees and GM dealerships in Durham Region and surrounding areas.”
  • In June 2019, GM Canada, Unifor and the Ontario government will open a Jobs Action Centre in Oshawa, offering  personalized transition counselling, a skills / jobs matching database and “other supports.” Durham College, the local community college,  will support the Job Action Centre with a dedicated jobs portal and several job fairs planned for 2019.
  • Durham College, Centennial College, and Trent University Durham will offer training tailored to regional and GTA-based partner employers.
  • “GM Canada will offer training support for qualified Oshawa Assembly hourly employees.” (no further details stated in the public release).

Unifor Local 222 , which represents the workers at the Oshawa plant, have called a meeting on May 9 to inform the membership about the resolution of their grievance against the company, which sought to increase incentives and severance packages.

In better news for Ontario’s auto industry:   Starting in 2022, Toyota will begin to produce the luxury  Lexus NX at its Cambridge plant, in both gasoline and hybrid versions . ( Cambridge currently produces of the mid-size luxury Lexus RX and RX hybrid). According to a report in the  Hamilton Spectator : “Prime Minister Justin Trudeau, Deputy Ontario Premier Christine Elliott, and a host of local mayors and dignitaries were at the Fountain Street facility Monday afternoon to announce the plant had secured the right to make the company’s Lexus NX gas and hybrid compact SUVs starting in 2022. The news came almost a year after the federal government partnered with the province — at the time led by Kathleen Wynne and the Liberals — to each invest $110 million in the company as part of an overall investment of $1.4 billion by Toyota.”

Reports on the future of Ontario’s auto industry: one by experts, one by the Ontario government

future of auto industryIn The Future of Canada’s Auto Industry , released on February 26, co-authors Charlotte Yates and John Holmes assess  the sector’s current state – focusing on trade agreements and technological innovation –  and recommend a suite of policies to boost competitiveness and avoid plant closures, especially timely in the aftermath of the “shocking” closure announcement of GM Oshawa.  Although concentrated in Ontario, the industry is important nationally: “The automotive industry contributes significantly to Canada’s economic prosperity through investment, employment and technological innovation. Currently, it is Canada’s second largest manufacturing industry, adding $18.28 billion a year to GDP, $86.58 billion a year to Canadian exports (17% of total merchandise exports), and employing over 126,000 people directly and half a million people indirectly.”

The authors acknowledge the importance of the future trend to electric and autonomous vehicles, and propose a green industrial policy with targeted supports for companies that commit to building green vehicles sustainably. They point out current  shortages of skilled workers and the aging workforce in the industry, and call for   a workforce development plan that will invest in engineering, technical and data analytic skills, including trades and apprenticeships and income supports for skills retraining towards a just transition for workers.  They acknowledge the challenges of global competitiveness and the need for research and development, and call for financial incentives, including tax credits and grants, and better access to capital for small- and medium-sized Canadian technology companies, as well as more focused R & D investments. In general, they call for deep collaboration between the federal and Ontario government, rising above bureaucratic and jurisdictional interests.  Flagged as the most important condition for future success for the industry:  “government policy needs to prioritize the North American automotive platform centered on the Great Lakes. Canada–U.S. auto production and trade could be further integrated to create even greater competitive advantages of efficiency associated with a larger regional production footprint. Canada continues to need preferential tariff access to the American market for finished goods for this model to succeed.”

The Future of Canada’s Auto Industry was published by the Canadian Centre for Policy Alternatives.  A summary article which appeared in the Toronto Star on February 26,   “Electric, driverless vehicles key to survival of Canada’s auto industry ” gives short shrift to the trade relationships and the complex global dynamics of the auto industry, which figure more prominently in the actual report.  The authors, John Holmes and Charlotte Yates, are both members of Canada’s Automotive Policy Research Centre (APRC), with long and deep knowledge of Canada’s  auto industry.

autostrategy_2019Ontario government discussion paper recommends less red tape and “pro-jobs labour reforms”: 

In a second report, the same issues are discussed but with much different emphasis and level of analysis.  The Ontario government’s  discussion paper, Driving Prosperity: the Future of Ontario’s Automotive Sector  was released in February under the “Open for Business” mandate.  The government describes the paper as:  “… a 10-year vision for how industry, the research and education sector, and all three levels of government, can work together to strengthen the auto sector’s competitiveness and bring new jobs to the province.”  In the introduction, the government states “We are driving prosperity in the industry and creating a pro-jobs environment by cutting red tape, eliminating the cap-and-trade carbon tax, allowing businesses to write off job-creating capital investments faster, and
embracing pro-jobs labour reforms.”

Although the government report acknowledges technological disruption and trade issues as challenges, there is no direct mention of the GM Oshawa plant closing – and in fact, most of the statistics provided are from 2017.   The issue of retraining and skills upgrading is raised in the general context of changing technologies, stating: “ We also want to minimize the disruption caused to workers and their families by technology and production mandate changes. We need to find new ways to respond to complex challenges. We need to establish new relationships with government partners in labour and academia to help Ontarians find faster and smarter training solutions.”

 

Skills and training for Clean jobs in the U.S. : Focus on infrastructure and auto manufacturing

A January 25th blog by the Brookings Institution is a recent addition to a series of publications about  the workforce implications of the transition to a clean economy. “The Green New Deal promises jobs, but workers need to be ready to fill them”   (Jan. 25) broadly discusses the range of occupations which will be affected by the transition to a clean economy, and promises forthcoming research which “will delve deeper” into the workforce issues – going beyond simply job estimates and forecasts to look at skills and training requirements and barriers, as well as working conditions.

Brookings AV workforce infographicSpecific to the transformation of the auto manufacturing industry, Brookings has published “What GM’s layoffs reveal about the digitalization of the auto industry”   (Dec. 13 2018) and in February 2019,  “Equipping today’s AV workforce with skills to succeed tomorrow” , which defines the “digital mobility workforce” to include truck drivers, automotive service technicians and mechanics, and many other jobs beyond the engineers we normally associate with autonomous vehicle production.  The article cites the Michigan Alliance for Greater Mobility Advancement (MAGMA),  a component of the Workforce Intelligence Network for Southeast Michigan (WIN), which  exists to identify the skill needs, and train for, “Michigan’s rapidly changing automotive industry as it moves towards CAV, cybersecurity, embedded software systems, and other emerging technologies.”

Earlier Brookings reports focus on infrastructure jobs,  including  Infrastructure skills: Knowledge, tools, and training to increase Opportunity (May 2016), and  Renewing the water workforce: Improving water infrastructure and creating a pipeline to opportunity   (June 2018) .  Opportunity Industries: Exploring the industries that concentrate good and promising jobs in metropolitan America  (Dec. 2018) also provides an important look at the potential to improve workforce development policies, although it focuses on “good jobs” and “ promising jobs”,  rather than green jobs,

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.

New York state announces new funds for clean energy training, electric vehicles 

New York State Governor Andrew Cuomo issued a press release on September 4,  announcing $15 million to help promote clean energy workforce development and training programs at various campuses of the State University of New York (SUNY). Some of the programs awarded funding include: a  “Solar Ready Vets” program on site at Fort Drum to train veterans transitioning to civilian life in renewable energy ; updates including electrical/solar photovotaic information for continuing education curricula for architects, engineers, and building and code inspectors at  Erie Community College; development of a wind operations technician training program  at the Off-Shore Energy Center of  SUNY Maritime . These initiatives are part of the Clean Climate Careers Initiative, announced in June 2017,  which aims to  create 40,000 new, good-paying clean energy jobs by 2020. The Clean Climate Careers Initiative partners the state government with Cornell University’s Workers’ Institute, as well as  Climate Jobs NY , a labour union coalition led by the Building and Construction Trades Council of Greater New York, New York’s Central Labor Council, and the Service Employees International Union.

According to the latest available report from the  New York State Energy and Research Development Authority (NYSERDA) in Q12018, 3,919 New Yorkers had been trained in a range of energy efficiency and renewable energy courses, through the Green Jobs – Green New York Act (2009). The funding program ended in December 2016, although one training program still continues.   The New York Clean Energy Industry Report for 2017  reported that there were  146,000  clean energy  jobs in New York State by December 2016 – 110,000 of those in energy efficiency roles.

Electric vehicles:  Governor Cuomo issued another press release on September 5,  announcing that the state will utilize $127.7 million received from the 2016 Volkswagen diesel emissions settlement to increase the number of electric and clean vehicles, by reducing the cost of  new transit and school buses, trucks, and other vehicles, as well as supporting electric vehicle charging equipment.  The new proposals are detailed in  the NYS Beneficiary Mitigation Plan.    The existing Charge NY  program to incentivize electric vehicle adoption is credited with a 67 percent increase in ev’s sold in New York state between 2016 to 2017.

Unifor calls for federal leadership in Just Transition and a role for collectively-bargained protections

unifor logoMore than sixty members of Unifor met federal Members of Parliament in Ottawa on May 24, to convey the union’s positions on four major issues: pharmacare, child care, public control of airports, and Just Transition.  The press release is here ; the four page Just Transition backgrounder is here . In it, the union expresses its broad support of the Pan-Canadian Framework on Clean Growth and Climate Change and carbon pricing, calls for federal policy leadership to ensure that workers do not bear the brunt of climate change-induced industrial restructuring, and offers specific recommendations.

Unifor’s Recommendations are noteworthy in that they explicitly call for a role for collective bargaining (or worker representation in non-unionized workplaces).  From the text:  “Unifor sees two potential avenues to finance Just Transition. The first means is through the new federal carbon tax, which need not be entirely revenue neutral. A portion of the proceeds could be used to create a ‘Green Economy Bank’ or some such fiscal mechanism. The second option is to bolster the Low Carbon Economy Fund, which is already explicitly committed to job creation, but should be geared towards good, green job creation, and widen its mission.” …..  Unifor calls for “Labour market impact assessments to monitor the emergent effects of climate related policy; Community benefit agreements, to support regions that are more heavily dependent on carbon-intensive economic activities; The promotion of green economy retraining and skills upgrading, through appropriate funding for postsecondary institutions. This includes mandatory apprenticeship ratio’s linked to college training programs and skills trades certification processes; Preferential hiring for carbon-displaced workers, including relocation assistance; Income support, employment insurance flexibility and pension bridging for workers in carbon-intensive economic regions and industries; Tax credits, accelerated depreciation, grants and/or investment support for firms and industries that bear an extraordinary burden of change; In unionized workplaces, there needs to be a role carved out for the bargaining agent in negotiating and facilitating workplace transition. In non-unionized workplaces we need to envisage a role for workers to provide input on adjustment processes and procedures.”

Unifor is Canada’s largest private sector union, with more than 315,000 members across the country in climate-vulnerable sectors such as energy, mining, fishing, as well as automobile and auto parts manufacturing.   Some of its existing collective agreements, compiled in the ACW database, have long-established workplace environment committees.

Alternative Budget proposals for a Just Transition and a low carbon economy

The Canadian Centre for Policy Alternatives released its 23rd Alternative Budget (AFB) on February 22 in Ottawa, in advance of the federal government’s February 26 Budget release. According to the summary at Behind the Numbers “Our budget puts forward bold progressive policy ideas rooted in a rigorous economic and fiscal framework. Our approach considers not just standard budget items but delivers a gender-based analysis, examines income distribution effects, and projects the impacts on poverty rates.” High priority areas for the CCPA include universal child care, pharmacare, gender equity, free tuition, and a green, low carbon economy.

The report argues that the current, relatively low unemployment levels make this an opportune time to begin  “in earnest, the just transition to a green jobs future.” In a section called  “Industrial Strategy and Just Transition” the report  calls for a National Decarbonization Strategy to be developed through broad consultation, and to act as a co-ordinating body for other AFB proposals – notably an enhanced Low Carbon Economy Fund to support cities and infrastructure investments, and a trade promotion strategy.  A new $500-million Just Transition Transfer (JTT) is proposed,  to flow federal funds to provinces –  for workers and communities  affected through actions under the  National Decarbonization Strategy or for existing provincial just transition programs, such as Alberta’s Coal Workforce Transition Fund.  Finally, the AFB calls for  a new $1Billion Strategic Training Fund to increase training capacity at colleges and trade schools  – with the funds contingent on improved representation of  women, racialized Canadians, immigrants, First Nations and other groups that have been historically excluded from the skilled trades.

Regarding the environment, some of the  top-level goals are : Remove all direct and indirect subsidies for fossil fuel exploration, development and transportation; enforce a stringent national carbon pricing standard  (rising to $50 per tonne by 2020); contribute Canada’s fair share of global climate financing; improve energy efficiency for Canadian homes, with $600 million annually to offset the costs of  retrofitting and construction; create a network of protected areas covering 17% of Canada’s land and freshwater and 10% of its oceans; strengthen environmental protection laws and make advances toward sustainable fisheries, and invest $50 million annually for a stronger environmental data and science system at Statistics Canada.

Read the full Alternative Federal Budget 2018  in English  or in French.

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.

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.

Union conference focus: fighting climate change with innovative campaigns

LNS convergence meetingLabour and climate activists gathered to exchange experiences and plan for future action at the Second Labor Convergence on Climate event, held on September 23-24, under the banner “Building Worker Power to Confront Climate Change.”  The meeting was hosted by the Labor Network for Sustainability (LNS), which  recently released a report on the meetings  summarizing the impressive initiatives and projects,  including:  the Canadian Postal Workers Union proposal Delivering Community Power,  which envisions expansion and re-purposing of the postal station network to provide electric vehicle charging stations, farm-to-table food delivery, and  community banking ; the International Brotherhood of Teamsters described the San Francisco Zero Waste program that now diverts 80% of municipal waste from landfills into recycling and composting and provides union jobs; Service Employees International Union (SEIU) 1199  described their environmental and climate justice programs, resulting from the impact of disasters  like Superstorm Sandy;  worker training programs at the Net-Zero Energy training facility built by the  International Brotherhood of Electrical Workers (IBEW) Local 595 in partnership with the Northern California National Electrical Contractors Association; the United Food and Commercial Workers described their experience with the  Good Food Purchasing Policy as a tool for protecting and enhancing labor standards for workers in the food industry and advancing climate justice; and the International Brotherhood of Locomotive Engineers and Trainmen profiled their successful Green Diesel campaign to win cleaner fuel engines and a visionary strategy called  “Solutionary Rail” ,  profiled in “How we can turn railroads into a climate solution”  in Grist (March 2017) and in “ Electric Trains everywhere – A Solution to crumbling roads and climate crisis”  in  YES Magazine (May 2017).

Participants at the Second Labor Convergence on Climate included over 130 people –  labour union leaders, organizers, and rank and file activists from 17 unions, 3 state federations/central labor councils and 6 labor support organizations,  as well as environmental and economic justice activists.

Just Transition policies lacking in federal and provincial climate policies in Canada

In February, the Adapting Work and Workplaces (ACW) project released three  preliminary working papers in a series  called Evaluating government plans and actions to reduce GHG emissions in Canada . The first report,  Federal progress through June 2016 (July 2016)  and the second,  Provincial and territorial progress through October 2016 (November 2016)    provide specific summaries of climate policies in their respective jurisdictions since November 2015, and in general, they conclude that  “Despite missteps, oversights and political backtracking, Canada’s climate policy has evolved to be relatively comprehensive and broadly supported”.  Significantly, the papers point out that “a large ambition gap remains between governments’ GHG targets and their actual emission reduction policies. …. the emissions-intensive production of oil and gas resources has largely escaped stringent, targeted GHG mitigation measures. Indeed, through direct and indirect subsidies, Canadian governments continue to promote oil and gas expansion despite its incompatibility with those same governments’ climate objectives.”

Just Transition policies is the focus of the third preliminary working paper in the ACW series. It  springs from the idea that just transition policy is a crucial and urgent, but under-developed, aspect of Canadian governments’ climate plans.  It characterizes “just transition” as a concept developed by the labour movement. “It is a social justice framework for facilitating the low-carbon transition in a way that minimizes negative employment impacts and ensures equitable outcomes for worker.” In defining “just transition”, the paper differentiates it from “climate justice”, stating, “A just transition is one of the goals of climate justice advocates, but the two concepts are distinct. Climate justice goes beyond workers, for example, to demand the poor are not disproportionately hurt by policies such as carbon pricing.”

The report reviews the latest climate plans published by the federal, provincial, and territorial governments, discovering and describing:  1. Policies that provide income supports to laid-off workers; 2. Policies that provide skills training and re-training for the low-carbon economy, and 3. Policies that directly create new jobs, especially in the communities and regions adversely affected by climate policies.  The conclusion:  all Canadian jurisdictions “get a failing grade” on all three subjects. The paper calls for improved income support programs, since policy seems to favour training and retraining over income support in the existing federal unemployment insurance program, as well as in provincial climate policies which allow for reinvestment of carbon revenue, such as Alberta and Ontario. Workforce development policies seem to receive the most attention – while still lacking in most provinces. Finally, job creation policy is judged to be “hands-off”, with governments assuming that new investment in clean energy industries will be sufficient.

All three preliminary reports were authored by Hadrian Mertins-Kirkwood,  in association with the Canadian Centre for Policy Alternatives.  A final, consolidated report is anticipated by Spring 2017.

 

 

What can Europe learn from Canadian experience with Just Transition?

A January 12th article by Béla Galgóczi, Senior Researcher at the European Trade Union Institute, argues that Europe is falling behind in ambition and results for its green economy, and identifies new leaders as Canada, and certain States in the United States.  In The Just green Transition: Canada’s proactive approach , the author compares Canada’s carbon tax policies with the European  Emissions Trading Scheme, but focusses mainly on the discussion about  Just Transition.  He observes:  “The rhetoric about green jobs seems to be of a more honest and realistic nature in Canada than in Europe” and “even if trade unions are in a generally weaker position in that country [i.e. Canada]  or in the US than in Europe, their engagement in climate policy is more pronounced. Unions in North America are very active in mobilising for low carbon economy objectives with campaigns and workplace greening policies, and they even have collective bargaining clauses on greening.”  As evidence of union engagement, the article notes the ongoing work of the Adapting Canadian Work and Workplaces to Climate Change (ACW) project , including the database of green collective bargaining clauses.

A recent example of  union initiative appears in  Green Jobs for Tomorrow: Submission by the  Canadian Labour Congress to the Working Group on Clean Technology,  Innovation and Jobs,  one of four Federal-Provincial working groups mandated by the Vancouver Declaration in 2015 to investigate national climate change policy issues. In its submission, the CLC makes 10 recommendations for climate change policy, and states: : “We believe the lynchpin of meaningful sustained climate action is retraining, re-employment and relocation for affected workers.”  The CLC  lays out the elements of a Just Transition policy, including:  increased investment to create green jobs, improved access to Employment Insurance training programs, and increased Employment Insurance benefits for displaced workers, as well as  improved labour market information systems. To support these goals, the CLC calls for the government to create a National Workplace Training Fund, and, using the model of the industry  Sector Councils abolished by the Harper government in 2012, a national Labour Market Partners Council to facilitate ongoing dialogue and collaboration between key stakeholders: governments, unions, employers, and educators.

A Workers Plan to Transition to Renewable Energy Jobs, based on workers’ views

A Workers Climate Plan, submitted to the federal government its climate change consultations in September, was more publicly launched on November 1  at a solar panel installation training facility in Edmonton, Alberta.  The report by Iron and Earth  is much more than a publicity stunt: it offers serious policy suggestions, and also “gives voice to the workers” by reporting the results of a survey of opinions of Alberta’s energy sector workers.

The Plan is based on  four months of consultation with workers and stakeholder groups in the West, and on the analysis of the more than one thousand responses to an opinion survey conducted online from June to August 2016. These survey responses challenge the stereotype of the oil sands worker: for example, 59% of energy sector workers are actually willing to take some kind of pay cut to transition to renewable energy; 63 % of respondents  said they could shift to renewable projects “directly with some training” and another 16 % said they could shift without any need for retraining; 69% of energy sector workers agree or strongly agree that Canada should make a 100% transition to renewable energy by 2050; 71% believe climate change is the biggest threat facing the global community.

On the policy side, the Workers’ Climate Plan  focuses on the need for upskilling for the energy sector workforce; more manufacturing capacity for renewable energy in Canada; support for contractors and unions that want to transition to renewables; and the integration of renewable technologies into existing energy projects.  As well, the Plan states: “as  we advocate for a just transition of workers into the renewable energy sector, we must also uphold our obligations to First Nations by aligning our campaigns at Iron & Earth with the calls to action outlined in the Truth and Reconciliation Commission.”

The Plan says this about the role of unions:”At Iron & Earth we think it is vital that existing energy sector unions are positioned within Canada’s developing renewable energy sector, and take a leading role in the design and implementation of Canada’s transition to renewable energy. The views of unions and associations such as IBEW, IBB, UA, Unifor, USWA, CLC, CUPE, and CAW, among others, on a wide range of issues, including sector regulations, training and employment legislation, will be key in developing a viable strategy to position existing energy sector workers in renewable energy.”

Iron and Earth  was founded in 2015 as a platform for oil sands workers to engage in renewable energy development issues, especially retraining.  From their website: “Our intention is not to shut down the oilsands, but to see they are managed more sustainably while developing our renewable energy resources more ambitiously. ” The  membership includes  workers from a variety of industrial trades, including boilermakers, electricians, pipe fitters, ironworkers, and labourers, and has spread beyond Alberta to include an East Coast chapter in Newfoundland.

Oil workers in Newfoundland training for wind and solar energy jobs

Iron and Earth, the worker-led group which helps oil and gas industry workers transition to clean energy jobs, announced  a Memorandum of Understanding with Beothuk wind-farm-311837_1280Energy   in mid-July 2016.  Beothuk, headquartered in St. John’s, Newfoundland, is proposing to build six offshore wind farms in Atlantic Canada with a combined capacity of  4000+ MW of energy, and estimates that it will create 10 jobs for each MW produced. The MOU is not available online, but is reported to encourage apprenticeships and retraining in wind energy.

On August 8, the Newfoundland and Labrador chapter of Iron and Earth began to crowdfund  for a demonstration greenhouse project: to build a greenhouse incorporating solar and one other site-specific technology (micro-hydro, wind or geothermal) to power, heat and light a greenhouse year-round.  Concurrently, the project will demonstrate a solution to food security issues by powering LED grow lights even in the winter months, and will offer a solar energy course to  increase the region’s renewable energy skill set. Iron and Earth states that Newfoundland has no training programs for renewable energy, and a goal of this project is to retrain oil and gas workers. Bullfrog Power, the leading Canadian green energy provider, has pledged to  match any donations made to the  Greenhouse crowdfunder until the goal is reached; click here for details or to donate.

Low Carbon Economy Future for Alberta

A new report from Greenpeace Canada projects that  “Alberta has the potential to create over one hundred and  forty-five thousand new jobs — 46,780 jobs in renewable energy, 68,400 jobs in energy efficiency, and 30,000-40,000 jobs in mass transit.”  100,000+ Jobs: Getting Albertans back to Work by building a Low-Carbon Future   (April 22), aims to “spark a creative conversation” by providing very specific examples of job creation opportunities by sector and across sectors, and calls for policy changes and actions to diversify the economy. The Alberta Green Economy Network and Gridworks Energy Group also cooperated on the report.    A poll taken by the Alberta Green Economy Network   shows that  58% of Albertans  want the carbon revenues announced in the recent budget to be directed toward green projects (28% want the money to be invested in research to reduce emissions from fossil fuel companies).

On the ground, a group of  oil sands workers have banded together as “Iron and Earth”,  to help laid-off workers transition to the renewable energy sector.    Their website  states  :  “ Together we can encourage more sustainable carbon-based extraction and build the renewable energy infrastructure we need to both meet the demands of consumers and diversify our energy economy so it isn’t so reliant on the boom and bust associated to a single resource.”  Its first project is a “Solar Skills” campaign to retrain 1,000 laid-off electricians from Alberta’s oil industry, to help build 100 solar installations on public buildings throughout the province.   The group, mostly in Alberta but also including members from Atlantic Canada,  states that it is non-partisan; it seeks supporters, donations, and possible partnerships with unions, including the International Brotherhood of Boilermakers and the International Brotherhood of Electrical Workers, as well as corporations.   See “Amid Price Plunge, North American Oil and Gas Workers Seek Transition to Renewable Sector”  from Truthout;  Iron and Earth and the dilemma of Alberta’s energy economy are presented in “Does National Unity Have to be a Casualty of Canada’s Energy Debate?” at DeSmog Blog (April 4).

Labour Should Lead with a Worker-Friendly Climate Plan

Drawing on American economic and labour policy during World War II, authors Jeremy Brecher, Ron Blackwell and Joe Uehlein envision what climate policy could look like with labour in the lead, in an article in the September 2014 issue of New Labor Forum.

The authors acknowledge that unions are caught between the immediate interests of their members, many of whom work in industries vulnerable to new climate regulations, and long-term social, economic, and ecological wellbeing. As a result, labour has at times remained “aloof” to the climate movement, but the authors advocate that the labour movement should take the initiative to develop its own government-led climate plan – one that bridges the divide between work and environment, reverses austerity, raises wages, and offers full employment, job security, and transition training.

As during wartime, the authors contend, climate change demands ramped up production and expansion in innovative sectors. The government should take the lead in financing the low-carbon transition during its initial, more expensive stages, thereby encouraging private investment by creating stable green markets. Citizens should be supported during the transformation through the establishment of a welfare state that diverts carbon tax revenues to workers and the unemployed, provides education and training, and recruits and distributes workers to where they are most needed.

LINKS:

“If Not Now, When? A Labor Movement Plan to Address Climate Change” in New Labor Forum (v.23, #3) is at: http://nlf.sagepub.com/content/23/3/40.full.pdf+html

A Zero Waste Economy Benefits the Environment and the Economy

Closing-the-loopA report released on March 28 calls for a move to a zero waste economy in British Columbia, estimating that more aggressive reduction and recycling of consumer goods could reduce greenhouse gas emissions by almost 5 million tonnes by 2020 and 6.2 million tonnes by 2040. A “closed loop system”, in which products like appliances would be repaired and reused for as long as possible, and finally recycled or reused in new products, would also benefit local economies by creating decent green jobs in repair, servicing and maintenance, waste management in sophisticated collection and sorting systems, as well as re-manufacturing and recycling activities. Based on research carried out in the US, UK and Europe, the authors estimate that “100% recycling of B.C.’s waste, with all sourcing and processing done locally, would support 12,300 direct jobs. With an existing provincial diversion rate of 43%, this would mean about 7,000 new direct jobs. In addition to these, there are also potential jobs gains in the more labour-intensive repair and refurbishment of products.”

“Because there may be job losses from reduced resource extraction and landfilling and incineration practices, “just transition” programs will be needed that facilitate new skills development. On balance, it is anticipated that job creation impacts would be larger than losses, but policy should actively seek to create those jobs by developing the sectors cited above. Promoting and supporting unionized workforces would push green jobs to ensure decent wages and working conditions.”

LINK
Closing the Loop: Reducing Greenhouse Gas Emissions and Creating Green Jobs through Zero Waste in B.C. by Marc Lee, Sue Maxwell, Ruth Legg, and William Rees is available at the Climate Justice Project of the Canadian Centre for Policy Alternatives (B.C. Office) at: http://www.policyalternatives.ca/sites/default/files/uploads/publications/BC%20Office/2013/03/CCPA-BC-Zero-Waste.pdf