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.