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.”