deindustrialization

By staff - Labor Network for Sustainability, September 30, 2023

The federal government is launching a series of Rapid Response Teams (RRT) to help communities impacted by recent or impending closing of fossil fuel facilities.

RRTs are intended to work with energy communities who have experienced a recent or approaching fossil fuel facility closure to address worker and community needs using existing federal resources. RRT members work with community members to identify economic transformation and revitalization goals, figure out ways to pursue those goals, and make the connections between programs across the federal family and up and down levels of government. RRTs aim to understand the needs of communities and work to make sure barriers to meeting those needs are smoothed over.

The RRT program was initiated by the Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization. There are four existing RRTs in Wyoming, the Four Corners, the Illinois Basin and Eastern Kentucky. “Each region has a unique set of challenges the RRTs aim to address, including workforce training, economic diversification, reclamation of legacy energy assets, broadband access, infrastructure improvements and more.” So far RRT locations have been chosen by identifying the regions with the highest loss of coal assets and with inadequate financial and local community resources to address those losses. 

If your community or region is interested in being considered for an RRT, contact contact@energycommunities.gov.

For more: https://energycommunities.gov/technical-assistance/rapid-response-teams/

By Claire Kovach, Stephen Herzenberg, Amanda Woodrum, and Ted Boettner - ReImagine Institute, Keystone Research Center, Ohio River Valley Institute, July 25, 2023

The Appalachian region has long suffered from not having enough good paying jobs. Even when the unemployment rate is low, too many Appalachians are disconnected from the workforce entirely due to a myriad of factors. The result has been a long-term structural unemployment problem that has persisted for decades, with too many Appalachian adults out of the workforce entirely and unable to secure a decent paying job where they live.

A federal job subsidy program that is targeted at breaking down barriers to employment – such as improving the skills and experience of potential workers to meet current employer demands in their local labor market – and connecting them with a job could not only boost incomes and improve the livelihood of thousands of Appalachians but also give people self-esteem, a source of identity, and feel more connected to their community.

This report examines the economic conditions of Appalachia with a particular focus on the Appalachian counties of four states—Kentucky, Ohio, Pennsylvania, and West Virginia—that comprise the footprint of ReImagine Appalachia and the Ohio River Valley Institute. This includes describing how Appalachia has been a “region apart” from the rest of America, including its history of resource extraction and exploitation, the collapse of the steel industry, and now coal, that has led to large employment losses in the area, and how the region’s uneven development has led to chronically low rates of employment, disenfranchisement from the labor market and even loss of hope underpinning the opioid epidemic from which the Appalachian region was particularly hard hit.

Download a copy of this publication here (PDF).

By Virginia Parks, Robert Zardeneta, Norman Rogers, and Tracy Scott - The Climate Center, May 24, 2023

By Tracy Scott - Newsweek, May 3, 2023

When John Bayer got the call that the Marathon Martinez oil refinery was shutting down, he was sound asleep after his graveyard shift at the facility, where he worked a union job as a health, safety and emergency response resource. For John, the phone call did more than wake him up after a night of hard work. As an employee at the Marathon refinery for nearly two decades and as the sole provider for his wife and two kids, it shook the foundation of his life and career.

John was just one of nearly 350 workers represented by United Steelworkers Local 5, the union I lead, who lost their jobs when the Marathon refinery shut down in October 2020. John's story echoes that of thousands of oil and other workers across the country who are facing an uncertain future amid the changing energy landscape.

To be clear: In California and across the country, working people support addressing climate change and transitioning to renewable energy. But when refineries like the former Marathon facility shut down without a clear plan in place that involves unions from the outset, workers and the community inevitably get left behind.

In order to guarantee that California has an economy that works for everybody, impacted workers must be at the center of planning for the ongoing transition to clean energy, and they must have access to union jobs that guarantee financial security, strong protections, and good benefits.

By Virginia Parks, PhD and Ian Baran - UC Labor Center, April 26, 2023

On October 30, 2020, the Marathon oil refinery in Contra Costa County, California, was permanently shut down and 345 unionized workers laid off. We surveyed (n=140) and interviewed (n=21) these refinery workers to document their post-layoff employment experiences. The findings in this report focus on these workers’ post-layoff job search, employment status, wages, and financial security. The Marathon refinery’s closure sheds light on the employment and economic impacts of climate change policies and a shrinking fossil fuel industry on fossil fuel workers in the region and more broadly.

In the aftermath of the refinery shutdown, workers were relatively successful in gaining post-layoff employment but at the cost of lower wages and worse working conditions. At the time of the survey, 74% of former Marathon workers (excluding retirees) had found new jobs. Nearly one in five (19%) were not employed but actively searching for work; 4% were not employed but not looking for a job; and the remaining 2% were temporarily laid off from their current job. Using standard labor statistics measures, the post-layoff unemployment rate among Marathon workers was 22.5% and the employment rate was 77.5%. If workers who have stopped actively searching for work were included, the post-layoff unemployment rate was higher at 26%.

Former Marathon workers find themselves in jobs that pay $12 per hour less than their Marathon jobs, a 24% cut in pay. The median hourly wage at Marathon was $50, compared to a post-layoff median of $38. A striking level of wage inequality defines the post-layoff wages of former refinery workers. At Marathon, hourly pay ranged between $30 to $68. The current range extends as low as $14 per hour to a high of $69. Workers reported benefits packages comparable to their pre-layoff Marathon benefits.

Workers found jobs in a range of sectors. The single most common sector of re-employment was oil and gas, where 28% of former Marathon workers found post-layoff jobs but at wages 26% lower than at Marathon. These lower rates of pay stem from loss of seniority and non-union employment. The utility sector (electrical power, natural gas, wastewater management) was the second most common sector of re-employment. Workers reported that utility jobs were a good fit for their skills, reputed as “good jobs,” and highly sought after. The median hourly utility wage was $41. The third most common re-employment sector was chemical treatment. Less than half (43%) of all post-layoff jobs were unionized.

Overall, workers reported worse working conditions at their post-layoff jobs, even in higher wage jobs. Workers described hazardous worksites, heavy workloads, work speed-up, increased job responsibilities, and few opportunities for advancement. Above all, workers cited poor safety practices and increased worksite hazards as the most significant and alarming characteristics of degraded working conditions.

Workers had difficulty finding jobs that matched their skills when searching for work. They emphasized two primary frustrations: 1) employers’ lack of knowledge about refinery work and refinery workers’ skills and 2) workers’ inability to prove their skill or experience through certifications or a verification process.

Nearly all workers (91%) would consider job training. Approximately half (49%) said they would enroll in a job training program, 42% responded “maybe,” and 9% said they would not. Workers aged 40 to 49 reported the greatest willingness to enroll in training followed by workers aged 30 to 39. Hesitation was highest among workers over the age of 50. Workers’ most prevalent concerns about training were cost, needing to earn while training, and training program length. Many workers were apprehensive about the efficacy of training. Workers were uniformly uninterested in going back to school to earn degrees.

Workers reported increasing financial insecurity after the layoff. A full third of all workers described that they were “falling behind financially” a year following the layoff compared to only 3% before the layoff. Nearly one-third of all workers took early withdrawals from their retirement accounts to make ends meet following layoff. Most re-employed workers did not move to find jobs, likely associated with the high rate of home ownership among Marathon workers (81%). Many expressed deep anxieties about their long-term ability to make mortgage payments.

Laid-off workers are highly motivated to put their skills and experience to use in new jobs, in new sectors. They require coordinated assistance to transition successfully into new jobs and for the region to retain them. Our research findings identify four critical types of assistance that workers need most. First, third-party skill certification would facilitate more efficient and accurate skill matching between jobs and workers in the labor market. Certification would help workers communicate, and verify, their skills to new employers. Certification would aid employers who are unfamiliar with the refinery sector make better decisions about assessing their workforce needs in relation to the skills of former refinery workers.

Second, workers require targeted job search assistance that focuses on a broad scope of strategies, including effective job search techniques, resume and online profile preparation, and career counseling. Both workers and job counselors require an up-to-date and nuanced assessment of jobs and industries to which refinery skills transfer.

Third, a fair and equitable transition for workers out of the fossil fuel sector depends upon a robust economic development strategy that generates new jobs comparable in quality to the jobs these workers are leaving behind. Successful transition requires both transition assistance and high-road job growth. One without the other will leave workers, and the region, behind.

Lastly, regional economic development strategies aimed at reducing fossil fuel dependency must account for the adverse financial impact these strategies will have on workers and their families. Loss of income will invariably result. A just transition for working Californians needs to include financial support, in the form of cash assistance or wage replacement, to cover losses in wage income.

Download a copy of this publication here (PDF).

By Annie Lowrey - The Atlantic, April 26, 2023

In 2006, James Feldermann got hired as a trainee at a refinery in Martinez, California, in the Bay Area. It was hard work, with 12-hour-minimum shifts, but Feldermann came to excel at it. He learned how to isolate pipes and vessels, load railcars with molten sulfur and ammonia, and helm an industrial control panel. In time, he rose to the position of head operator at the Marathon Petroleum site. The job paid well, and he enjoyed it. He expected to stay until retirement.

On a Friday afternoon in July 2020, Feldermann was abruptly summoned to an all-hands Zoom meeting. While some of his colleagues struggled to get the audio to work, Feldermann received a phone call from his union representative. “I didn’t actually hear management tell us that they were laying us off,” he told me. The plant was being shut down, as the rise of work-from-home and the spread of electric vehicles depressed Californians’ demand for gasoline. Feldermann and his co-workers would be out of a job in 90 days.

The United States is embarking on an epochal transition from fossil fuels to green energy. That shift is necessary to avert the worst outcomes of climate change. It also stands to put hundreds of thousands, perhaps millions, of people like Feldermann out of work. The result could be not only economic pain for individual families, but also the devastation of communities that rely on fossil-fuel extraction and a powerful political backlash against green-energy policies.

A pathbreaking new study shows just how real the damage could be, absent policies to soften the economic blow. Virginia Parks, a professor at UC Irvine, and Ian Baran, a doctoral student, tracked the consequences of the Marathon shutdown in near-real time, getting more than 40 percent of the workers to return surveys and a smaller group to sit for interviews. They found that, more than a year after the shutdown, one in five Marathon workers was unemployed. Their earnings had declined sharply, with the median hourly wage of employed workers plunging from $50 to $38. Some workers were earning as little as $14 an hour. And those new gigs came with more dangerous working conditions.

To prevent other workers from experiencing the same, the Biden White House has promised to pursue a “just transition,” employing policies to ensure “new, good-paying jobs for American workers and health and economic benefits for communities.” But the green-energy transition is already underway. And it is not clear that it will be just.

By Pablo John, GMB for a Green New Deal - Greener Jobs Alliance, October 16, 2022

Recently, the GMB’s General Secretary caused outcry by declaring support for fracking and calling Green New Deal activists bourgeois. For those outside of GMB this statement may seem surprising but to understand where such statements come from you need to look at GMB’s history.

GMB has been around for a long time and it has seen every form of de-industrialisation and modernisation under the sun. For a lot of GMB members “modernisation” means a loss of work, a loss of conditions and anti-union policy. So naturally, the union is suspicious of change when it is couched in these terms.

Its roots in the legacy fossil fuel industry run deep. So for a lot of people in GMB, the promises of good quality jobs in renewables seem too good to be true; they’ve been promised similar things before.

So what can we do in the climate movement to win over GMB members? Well, there are two prongs: reassurance of current GMB members and recruitment of new, young renewables workers into GMB.

For workers, the benefits of the green new deal are massive. A full transition from fossil fuels to fully renewable energy sources could create more than three times as many jobs in these sectors than in oil and gas. By current estimates, the growth of jobs in wind energy exceeds the number of oil jobs affected by a transition to renewables. 

There is also a division of age, as a 23-year-old who works in renewables, most GMB members don’t look like me. Whilst a lot of legacy energy jobs are in fossil fuels, most new energy jobs are in renewables. This means many of my friends in the renewable industry aren’t unionised, because they don’t feel GMB represents us.

A lot of these new renewable start-ups are not union-friendly and it will take a lot of work to get inside these sites. But if we don’t we’ll be replacing one set of BP and Shell billionaires with another set of renewables billionaires. We need rapid transit away from fossil fuels in the next 10 years, we need to make that change or it will be done to us for the benefit of the billionaires.

So climate activists need to meet trade unionists where they are, but above all, we need to ensure any transition is worker-led. We can’t have a top-down transition of giant companies sacking workers and rehiring non-unionised workers in their wind farms. It needs to be a bottom-up movement, with politicians, workers and the climate movement hand in hand.

My union, GMB, needs to follow the examples of the TSSA and FBU in wholeheartedly supporting a Green New Deal. While everyone has a stake in the transition to renewables, who better than the workers of GMB to design, implement and power the green new deal?

By Jeffrey Howard - Shareable, June 23, 2022

In the foothills of western North Carolina, the small town of Morganton is home to a growing co-op movement that’s reinvigorating the region’s once-struggling textile and furniture manufacturing industries, and refashioning them around egalitarianism and localism. 

This expanding collective of frontline workers and artists is changing the way people there view industry and the nature of work. 

From sharing to solidarity

The birthplace of bluegrass and home to the oldest mountain range east of the Mississippi River, Southern Appalachia is not only fertile soil for the sharing economy, but a co-op-driven movement known as the solidarity economy. 

Aimed at generating locally rooted wealth and ensuring its equitable distribution, the solidarity economy is fiercely democratic. 

For Sara Chester, co-executive director and founder of The Industrial Commons (TIC), a 501(c)3 organization that fosters employee ownership, in a solidarity economy “workers are appreciated not just for their labor but their ideas, insights, and innovations. Workers are not just a piece of the business, they are the reason the business exists.”

Sometimes referred to as the co-op model, this approach is about creating prosperous and resilient communities by emphasizing worker agency and ownership, environmental sustainability, and the value of place. 

By Josh Saul - Bloomberg, September 30, 2021

After part of the Philadelphia Energy Solutions refinery exploded into flames one night in 2019, its owners filed for bankruptcy and put the 1,300-acre site up for sale. Hilco Global, a company with a track record of transforming fossil-fuel infrastructure like coal-fired power plants, bought the South Philadelphia facility out of bankruptcy with a grand new vision that includes logistics facilities and research labs.

But first the company has a daunting task: safely dismantling over 100 buildings, 3,000 tanks and 950 miles of dirty pipeline.

The Problem

Oil refining has taken place on the banks of the Schuylkill River since just after the Civil War. By the time the explosion scattered debris across the site and even over the river, the PES Oil Refinery was turning 330,000 barrels of crude day into gasoline, diesel and other petroleum products such as heating oil and jet fuel.

Right now, some parts of the PES Oil Refinery have the feel of a ghost town. Weeds sprout head-high among the pipelines, Canada geese strut down empty roads and small herds of deer bound past a silent railyard. But other parts are bustling with workers and big, yellow excavators as Hilco enters the second year of taking apart equipment and preparing the site for construction. The first tenants are supposed to move into the site in 2023.

By Yelter Bollen, Tycho Van Hauwaert, and Olivier Beys - European Trade Union Institute, August 2021

Europe’s industrial base needs to undergo a swift and persistent transformation towards carbon neutrality and circularity, but this transition must happen in a fair and socially just manner. In this working paper, we evaluate the support mechanisms for heavy industry which have been put in place over the past 20 years, comparing the state of play in the Netherlands, Germany and Belgium.

We also compare recent developments in the industrial policy frameworks of these countries, considering European as well as domestic policy levers. We conclude that policy frameworks have largely been ‘defensive’, have lacked foresight, and have had negative distributional effects. Recent shifts in policy have opened up avenues for progress, but the level of ambition remains insufficient and uneven. Major economic incentives and support measures should cohere with a just transition, at the (sub-)national as well as the EU level.

Read the text (Link).