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nationalization

What Union Pacific and the media aren’t telling you about the Baker, CA, train derailment

Defying U.S., Mexico's "second nationalisation" of electricity moves forward

By staff - Trade Unions for Energy Democracy, April 8, 2023

On Tuesday, the Mexican Government signed an agreement to purchase 13 power generation plants from the Spanish multinational Iberdrola. Purchase turns the State Company into a majority owner in electric energy generation in Mexico.

Three weeks after hundreds of thousands mobilised to mark 85 years since the expropriation of oil by former Mexican President Lazaro Cardenas, the federal government announced it is purchasing 13 electric energy generation plants owned by the Iberdrola for nearly USD $6 billion. The 13 plants represent 8,539 MW of installed capacity, with 8,436 MW corresponding to combined cycle gas and 103 MW to wind. Altogether, the purchase represents 77% of Iberdrola’s installed capacity in the country, although the Spain-based multinational would remain the main private generator of renewable energy in Mexico.

While many details are yet to be made public around the financing structure, according to the finance ministry, a new trust fund managed by Mexico Infrastructure Partners (MIP) will own the power plants, with a majority of its capital sourced primarily by Fonadin, the public infrastructure fund of Mexico. The federal power utility, Comisión Federal de Electricidad (CFE), will operate the plants.

"This means, without exaggerating (...), the rescue of the CFE and is a new nationalisation of the electricity industry. Most important of all, in this way, we guarantee that electricity prices will not increase for consumers, as has been the case in the last four years,” said President Andrés Manuel López Obrador (AMLO). “In other words, the CFE becomes the majority company. If we add to this that final plants are being built, hydroelectric plants are being rehabilitated with new turbines, all under the CFE, we can affirm that the Mexican state will maintain around 65 per cent of all energy generation at the end of the six-year term,” added AMLO in Tuesday’s televised announcement.

“The CFE is the only company with permission to commercialise electricity. The CFE had to buy electricity from these 13 Iberdrola plants in order to sell it. Today, we will no longer need this intermediation,” said Rocío Nahle, Secretary of the Energy Ministry (Sener). “The Mexican people are therefore favoured because we are able to sustain affordable electricity costs. In Mexico, we are the country with the lowest energy rates in the OECD because we have an energy policy that the President reviews daily, and with PEMEX, CFE, it allows us to have rates below inflation,” she said.

Derailment Spree Proves Railway Regulations Urgently Needed, Say Union Members

By Kenny Stancil - Common Dreams, April 3, 2023

"These companies siphon billions into share buybacks, dividends, and bonuses rather than into the vital maintenance and infrastructure growth we need to build a safe, modern, and thriving rail industry," said one worker.

After at least six major freight train derailments occurred across the United States over the past week, the need for stronger rail safety rules couldn't be clearer, an interunion alliance of rail workers said Monday.

"The recent uptick in derailments across the U.S. highlights the dire need for stricter regulations on the length and weight of trains, as well as a focus on preventing unsafe operational practices such as precision scheduled railroading (PSR) which prioritizes short-term financial gains for Wall Street over the safety of communities and railroad workers," Jason Doering, a locomotive engineer and general secretary of Railroad Workers United (RWU), said in a statement.

The past week "was not a good one" for the nation's Class 1 rail carriers, RWU observed.

On Sunday, March 26, a Canadian Pacific train carrying hazardous materials careened off the tracks outside Wyndmere, North Dakota, spilling liquid asphalt and ethylene glycol and releasing propylene vapor.

Last Monday, a Union Pacific iron ore train reached 118 miles per hour as it ran away down Cima Hill in the Mojave Desert before wrecking on a curve, destroying two locomotives and 55 cars in San Bernardino County, California.

On Wednesday, a Canadian National iron ore train derailed in Butler County, Pennsylvania.

On Thursday, a BNSF train carrying ethanol and corn syrup crashed near Raymond, Minnesota, causing a fire that forced local residents to flee.

On Friday, a Norfolk Southern train went off the tracks in Irondale, Alabama.

One day ago, a train operated by the Class 2 regional Montana Rail Link—soon to be owned by BNSF—derailed on the banks of the Clark Fork River in Paradise, Montana.

National Lithium Strategy, yes, but with the workers of Chile

By Roberto Lobos and Horacio Fuentes - Constramet, April 2023

President Gabriel Boric presented his National Lithium Strategy, the great absentee in his speech were the workers of Chile, and we can not fail to point out our concern about it. This is why we want to express our opinion on the national chain and express some of the ideas of the workers' world.

In the more than twenty minutes that the President's speech lasted, several questions remained for the world of labour. The decision to move forward with the creation of a National Lithium Company, a campaign promise cast into doubt less than a week ago by the same government team, was welcomed. Yesterday's position, much more in line with the sentiments of the workers, is weighted for its positive value. It is clearly a decision that will have to be defended against the more neoliberal positions, which will oppose the strengthening of the state, which for us still needs to be delimited and clarified in greater depth.

The decision to transform Chile into the "main Lithium producer in the world" is an important bet; accompanying the energy transition process together with Green Hydrogen is part of the strategic development plan that CONSTRAMET and Plebeya have been working on, together with the need to discuss the current situation of copper in Chile in terms of the new energy matrix of the contemporary world-system. We highlight the decision to participate through the State in the entire production process by means of a national company, which is the only possible way towards redistributive economic growth.

With regard to exploration, exploitation and value addition from a "virtuous public-private partnership", there are several questions that plague us. Starting with the content of the link itself. Any process of dialogue between the state and the private sector must include the participation of workers. The greater the participation of the social world in sovereign decision-making in our country, the greater the strength of the public world in the negotiation process, the same for Codelco, today weakened to carry out the plan presented.

TUED interview with trade unionist Cristian Cuevas Responding to the announcement on the National Lithium Strategy

By Cuevas Zambrano and Staff - Trade Unions for Energy Democracy, April 2023

Cristián Cuevas Zambrano is a trade union leader and activist of the Chilean left. He is currently director of the Federation of Mining Workers Fetramin and Spokesperson of the National Coordination Committee of Codelco's contractor workers. Previously he was one of the founders of the Confederation of Copper Workers CTC and was its first President for six years. In addition, he was a leader of the Executive Board of the Central Unitaria de Trabajadores CUT Chile.

TUED: Some analysts have taken issue with the characterisation of a "nationalisation" of lithium with historical parallels to the nationalisation of copper. They say it is NOT a classic expropriation but a public-private partnership in which the state-owned company collaborates with the capital. Could you clarify this characterisation for us?

Cristian Cuevas (CC): Nationalisation is a concept that is commonly used to define a process of rescue or expropriation of productive activities in the hands of national or international private capital. This occurred with Law 17.450, promoted by President Salvador Allende, which expressly stated that "the state has absolute, exclusive, inalienable and imprescriptible control of all mines, meadows, metalliferous sands, salt flats, coal and hydrocarbon deposits and other fossil substances, with the exception of surface clays.

The spirit of Allende’s law was aimed at advancing our sovereignty and economic independence, which was completely disregarded during Pinochet's Civil-Military Dictatorship with the enactment of a Constitutional Organic Law that allowed mining concessions to private companies.

However, the Pinochet government issued a supreme decree decreeing lithium as a non-concessionary product given its strategic character in defence (base material that allows the creation of nuclear fusion). Therefore, the Boric administration’s announcements regarding the creation of the national lithium company are intended to allow the State to reclaim the sector and enter into the process of production and development of products made from this raw material.

TUED: In his announcement, Boric stated that the National Lithium Company will articulate public-private partnerships. What are the expected consequences of such a public-private partnership arrangement? What role should trade unions play in developing an alternative?

CC: President Gabriel Boric's announcement reflects the Government's inability to confront the national and foreign business sectors that seek to profit from this important mineral resource, the consequence of which is that the State will not capture for itself 100% of the value generated by lithium, handing the private sector a very good deal. Moreover, this government's surrender is reflected in the declarations of the Minister of Finance Mario Marcel, who only a couple of days ago pointed out as feasible the possibility that some salt flats could be fully exploited by the private sector.

The role that some trade unions have played through public statements, they have come out to reject this public-private partnership because it harms the interests of the State of Chile. However, the weakness of the Chilean trade union movement and the obsession with the CUT is a major constraint for the mobilisation of workers and society in defence of lithium and our common goods.

LNS Supports Railroad Workers United’s Demand to Nationalize the Railroads

By staff - Labor Network for Sustainability, March 31, 2023

There is a through-line between the denial of sick days to railroad workers and residents of East Palestine fleeing their homes in the aftermath of a derailed freight train poisoning their town. The through-line is the rail industry’s drive for profit costing workers and communities their health and safety. The through-line is workers sounding the alarm, to no avail.

For decades, the railroad industry has been increasing profits by raising prices and cutting labor costs, resulting in degraded safety standards and short-staffing. This, and the pursuit of short-term profit, are at the heart of why 45,000 rail workers have lost their jobs since 2015, why rail industry lobbyists have spent millions to undermine safety regulations, why the industry has delayed the electrification of railroads, and why a “100% preventable” rail disaster in East Palestine has caused residents to flee, animals to die, and at least 1.1 million gallons of water and 15,000 pounds of soil to become contaminated. To those who own the railroads, all of this has been a great success: CEOs at five of the largest railroad conglomerates have made $200 million over the last 3 years. After all, the point of private industry is profit.

Private interests must be prevented from dictating the future of rail– critical infrastructure that serves as a backbone for the economy, communities, and a climate-safe future. To that end, the Labor Network for Sustainability supports Railroad Workers United’s demand to nationalize the railroads.

Alongside necessary public investments, public ownership of rail will allow us to transform our rail system into one that truly serves the common good. Untethered from the market, we can electrify and expand rail, institute fairer working conditions, and engage communities throughout the process so that equity, sustainability, and justice are at the forefront.

The latest Synthesis Report from the Intergovernmental Panel on Climate Change (IPCC) clearly stated that the choices we make in the next decade will impact us now and for the next thousand years. Now is the time for bold decisions. Without public and democratic ownership of rail, many of those crucial decisions will not be made by us– they will be made by a wealthy few.

To our partners and allies who value democracy, workers rights, and climate justice– join us in demanding that rail becomes a public good!

What If WE Owned The Tracks?

By Jason Clifford - CleanTechnica, March 22, 2023

When it comes to energy efficient transportation in America, no transportation option is better than the railroads. They have been the freight transportation backbone of America for nearly 200 years, which is why all the recent news about train derailments and union strikes deserves our attention. While more profitable then they have ever been for investors, the railroads are moving less freight and employing fewer workers now then they did in 2006. After underinvesting in their labor force, rolling stock, and tracks for decades, are America’s railroads entering a state of decline, and if so, should we start discussing the pitfalls and possibilities of public rail ownership?

A Brief History Of Railroads & Railroad Ownership In The US

For some context, it will be good to have a brief history lesson. Starting with the birth of America in the late 1700s and early 1800s, bulk goods were moved by waterways, as the only other option was horse-drawn carriage. In the early days of the country, cities were built around the navigable waterways to transfer goods and services. However, as the nation grew westward, it was harder and took longer to ship goods and services by waterway. Baltimore, wanting to retain its importance as a major shipping port, looked to Europe’s emerging train technology as an opportunity to more quickly deliver goods and people to inland areas of the country. Hence, starting in 1828, the Baltimore and Ohio railroad was built as the first major railroad in the US. The Baltimore and Ohio Railroad company was founded to build the tracks and run the trains, with significant investments from the State of Maryland and other private investors.

Beginning in the 1830s and 1840s, railroads were built across the young nation, bringing people westward, reducing travel times and shipping costs. Investors like Cornelius Vanderbilt, with money from their waterway shipping enterprises, started investing in the railroads and profiting from the new technology frontier.

The United States government, wanting to rapidly expand from the Atlantic to the Pacific, was not satisfied with the gradual growth of the railroads. Conversely, private investors were not interested in investing a large amount of money to build track in sparsely populated areas that may not give them a return for decades. Considering these factors Congress passes and President Abraham Lincoln signs the 1862 Pacific Rail Act which grants the railroad companies land and government bonds to build the tracks. In total, the legislation created four transcontinental railroads and gave away 174 million acres of public lands to rail companies. Union Pacific was founded during this time and took advantage of the legislation to build out the railroads and establish itself as a dominant player in the western United States.

Hence, the railroad companies have always been a private enterprise but with serious public backing from the state and federal governments.

Corporate Greed Is a Root Cause of Rail Disasters Around the World

By Justin Mikulka - DeSmog, March 21, 2023

On February 25, Greece experienced its deadliest rail disaster ever when a freight train ran headlong into a passenger train coming towards it on the same track, killing 57 people. This tragic accident, near the city of Larissa, occurred just weeks after the East Palestine, Ohio rail disaster, and while the outcomes are different, the root cause is the same: corporate greed and deregulation. 

While two trains colliding on the same tracks might seem unfathomable to Americans, it shouldn’t be. A similar accident occurred in Texas in 2016, a year after the U.S. rail industry refused to meet a Congressionally mandated deadline for installing a safety system called positive train control, which would have prevented the accident.

Threatened with a rail shutdown, Congress buckled and gave the industry an extra three years to install the safety system, with the option for an extension until the end of 2020. On December 29, 2020, the Federal Railroad Administration announced that positive train control was finally installed on all of the required rail lines. 

As DeSmog has reported, the U.S. rail industry has lobbied against the requirement to install positive train control since 1970. In fact, one rail lobbyist received an award for being “part of a successful push for a congressional agreement to extend a deadline for automated trains on most of the nation’s railways.” The National Transportation Safety Board first recommended positive train control in 1970 after two Penn Central commuter trains collided head-on near Darien, Connecticut, the previous year. Four people were killed and 43 were injured.

Off the Rails: Chemicals, Communities, and ‘Bomb Trains’

Rank-and-File Railworkers Are Calling for Public Ownership of the Railroads

By Ross Grooters and Nick French - Jacobin, March 15, 2023

Fed up with rail companies putting profits before workers and surrounding communities, the rank-and-file group Railroad Workers United is launching a campaign for railroad nationalization. We spoke with one of their leaders about the proposal.

Just months after a high-profile contract fight between rail unions and railroads ended with Congress imposing a contract on workers, a Norfolk Southern freight train carrying hazardous chemicals derailed in East Palestine, Ohio. The environmental and health disaster — exacerbated by the federal government’s lackadaisical response — has laid bare the safety practices of rail carriers.

Railroad Workers United (RWU), a caucus of rank-and-file workers spanning all thirteen national rail unions, has responded to the East Palestine derailment by calling for public ownership of the railroads. According to RWU, the railways cannot be run safely or efficiently so long as they are operated in the pursuit of profit at all costs.

Jacobin spoke with one of the cochairs of RWU, Ross Grooters, about why the group is pushing for railroad nationalization and their efforts to organize with other workers along the supply chain.

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