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Preserving Coal Country: Keeping America’s coal miners, families and communities whole in an era of global energy transition

By staff - United Mineworkers of America, April 20, 2021

At the end of 2011, nearly 92,000 people worked in the American coal industry, the most since 1997. Coal production in the United States topped a billion tons for the 21st consecutive year. Both thermal and metallurgical coal were selling at premium prices, and companies were making record profits.

Then the bottom fell out. The global economy slowed, putting pressure on steelmaking and metallurgical coal production. Foreign competition from China, Australia, India and elsewhere cut into met coal production.

Domestically, huge increases in production from newly-tapped natural gas fields, primarily as a result of hydraulic fracturing of deep shale formations, caused the price of gas to drop below that of coal for the first time in years. As a result, utilities began switching the fuel used to generate electricity from coal to gas. An enlarging suite of environmental regulations also adversely impacted coal usage, production and employment.

By 2016, just 51,800 people were working in the coal industryii. 40,000 jobs had been
lost.

Companies went bankrupt. Retirees’ hard-won retiree health care and pensions were threatened. Active union miners saw their collective bargaining agreements – including provisions that had been negotiated over decades -- thrown out by federal bankruptcy courts. Nonunion miners had no recourse in bankruptcy courts and were forced to accept whatever scraps their employers chose to throw their way.

Since 2012, more than 60 coal companies have filed either for Chapter 11 reorganization bankruptcy or Chapter 7 liquidation. Almost no company has been immune.

In 2017 and again in 2019, the United Mine Workers of America (UMWA) and its bipartisan allies in Congress, led by Sen. Joe Manchin (D-W.Va.), Sen. Shelley Moore Capito (R-W.Va.) and Rep. David McKinley (R-W.Va.), successfully preserved the retiree health care and pensions that the government had promised and tens of thousands of miners had earned in sweat and blood.

The UMWA was successful in preserving union recognition, our members’ jobs and reasonable levels of pay and benefits at every company as they emerged from bankruptcy, but in no case has the contract that came out of bankruptcy been the same as the one our members enjoyed when a company went into bankruptcy

Read the text (PDF).

Fixing Abandoned Oil and Gas Wells Could Provide Jobs in Central Appalachia

By Climate Nexus - EcoWatch, April 19, 2021

Plugging and capping abandoned and orphaned oil and gas wells in Central Appalachia could generate thousands of jobs for the workers and region who stand to lose the most from the industry's inexorable decline.

According to a new report from the Ohio River Valley Institute, just four states (Ohio, West Virginia, Pennsylvania, and Kentucky) account for at least 538,000 unplugged abandoned oil and gas wells, though that number is almost certainly low.

The first oil well in the U.S. was drilled in Pennsylvania before the Civil War and the timeline of the region's oil and gas production contributes to its disproportionate number of orphaned wells.

Among other toxic pollution released from orphaned wells, Central Appalachian wells dumped 71,000 metric tons of methane — an extremely potent heat trapping gas — into the atmosphere every year.

The report comes as the Biden administration works to allay worries in a region still tied to the fossil fuel industry.

President Biden's infrastructure plan includes $16 billion for plugging and remediating orphaned oil and gas wells and abandoned mines.

Equitable energy transition will require more than funding and job training, researchers say

By Emma Penrod - Utility Dive, April 19, 2021

Dive Brief:

  • To achieve social and economic equity goals, organizations should focus on tightening policies around qualifications and livable wages for employees and contractors, according to a new guide from Inclusive Economics and the Bloomberg Philanthropies American Cities Climate Challenge.

  • Previous attempts to invest in education and workforce education actually backfired, driving down wages and trapping workers in dead-end jobs, according to according to Betony Jones, founder of research and consulting firm Inclusive Economics.

  • Governments and utilities that want to increase economic equity must find ways to make jobs more selective, which spurs income creation, without causing those jobs to become exclusionary toward disadvantaged populations, Jones said.

Climate Movement Applauds Coal Miners' Demand for Just Transition, Green Jobs

By Kenny Stancil - Common Dreams, April 19, 2021

The largest union of coal miners in the U.S. announced Monday that it would accept a transition from fossil fuels to renewable energy as long as the federal government takes care of coal workers through the provision of green jobs and income support for those who become unemployed.

"There needs to be a tremendous investment here," said Cecil E. Roberts, president of the United Mine Workers of America (UMWA) International. "We always end up dealing with climate change, closing down coal mines. We never get to the second piece of it."

Ahead of a press conference outlining the UMWA's approach to addressing the climate emergency in a way that improves rather than diminishes the well-being of workers in the dirty energy sector, Roberts said in a statement that "energy transition and labor policies must be based on more than just promises down the road. We want to discuss how miners, their families, and their communities can come out of this transition period and be certain that they will be in as good or better shape than they are today."

"Much of the coal-producing areas of Appalachia and elsewhere are already in bad economic shape," said Roberts. "Washington has taken little action to address it over the past decade. That must change."

"As we confront a next wave of energy transition," he added, "we must take steps now to ensure that things do not get worse for coal miners, their families, and communities, but in fact get better."

Sunrise Responds to Decision by United Mine Workers Association, Commits to Fighting Alongside Them and Demands Manchin Supports 'Tremendous Investment'

By Ellen Sciales - Common Dreams, April 19, 2021

Today, in response to the news that the United Mine Workers Association, the main and essential union for coal miners, and Senator Joe Manchin are supporting the transition to renewable energy, Evan Weber, Political Director of Sunrise Movement, released the following statement:

“For generations, coal communities have sacrificed to keep the lights on for all of us, while they’ve been abandoned by executives and politicians in DC. Sunrise Movement stands with and celebrates the United Mine Workers Association announcement today as they lean in to the transition towards a renewable energy economy, and we renew our commitment to fight alongside them to ensure the government leads in ensuring coal communities are whole and not left behind. We fully support their calls for job training, investments and prioritization of coal communities to receive economic development, and guaranteeing wages and benefits for workers impacted by the urgent and necessary transition towards a carbon-free economy.

“The radical truth is that at the end of the day, most of us want the same thing — a good, reliable job with a stable wage and a sense of comfort and security. And the brutal reality of the climate crisis is that it has threatened our jobs, our homes and the lifestyles that some of us have known for centuries. We agree wholeheartedly with Cecil E. Roberts, president of the United Mine Workers of America’s warning that there must be ‘tremendous investment’ as this transformation takes place. From the climate crisis, to technological shifts, to global pandemics, the 21st century promises more disruption — but our government can and must take care of its people along the way. In addition to what the mineworkers have outlined, we support a federal job guarantee to ensure every American has the right to a good job as our society faces more disruption, and see a fully funded Civilian Climate Corps employing millions of Americans in jobs tackling the crisis and revitalizing our communities as a step in that direction.

“Whether or not America has noticed, there has been a movement in West Virginia and across the United States growing around these basic ideas — and towards our vision for a Green New Deal. And today, the labor movement and young activists have proven they can be more powerful than the executives who have delayed action for years. While we may not agree on all of the specifics of how we get there, we are more aligned on the destination than those who seek to divide us would like you to think.

“At Sunrise, we say we have no permanent friends and no permanent enemies, and when we see stances that reflect our values, we’ll celebrate those. With Senator Manchin’s support on the PRO Act and for a just transition for coal workers, it is our hope that today marks a turning point for Senator Manchin. If he is truly committed to protecting this community and West Virginians, he will support the ‘tremendous investment’ the Mineworkers call for, starting with $10 trillion over the next decade, or $1 trillion per year, in order to ensure we can truly transition in a way that leaves no one behind. He’ll also stop pretending that this is an agenda that the Republican Party, which has long abandoned its desire to productively deliver for the American people, will come along with, and urge passage of this important agenda for Mineworkers and West Virginians through a simple majority by abolishing the filibuster.” 

Sierra Club green recovery plan calls for “ironclad labor and equity standards”

By Elizabeth Perry - Work and Climate Change Report, April 19, 2021

The Sierra Club U.S. report How to Build Back Better: A 10-year Plan for Economic Renewal is a blueprint for economic renewal – in which the environmental advocacy group continues to demonstrate clear support for the needs of workers. Released in March, this report includes a call for public investments which “must come with ironclad labor and equity standards to curb racial, economic, and gender inequity instead of reinforcing the unjust status quo.” To support the job quality theme, the Sierra Club also released a 1-pager titled Cross-cutting environmental, labor and equity standards and a 3-page summary titled Why Standards Matter, an overview of job quality issues .

Briefly, the Sierra Club recommends a pandemic recovery plan which would create over 15 million good jobs, based on public investment of $1 trillion per year for ten years. Investments would go to many sectors including infrastructure and clean manufacturing, but also the care sector and the public sector. In addition to job creation, the plan addresses systemic racism, supports public health, and cuts climate pollution nearly in half by 2030. The economic renewal plan is based on the THRIVE Agenda, which is itself based on job projections and modelling by academics at the Political Economy Research Institute (PERI), led by Robert Pollin. Their latest analysis was published by PERI as Employment Impacts of Proposed U.S. Economic Stimulus Programs (March 2021). Sierra Club released a 3-page summary of job projections; an interactive Jobs Calculator ; and Fact Sheets for each of the sectors considered: regenerative agriculture, clean energy, care and public sector, transportation, manufacturing, buildings, and clean water for all, and pollution-free communities. All these accompanying documents, along with the full report, are available here.

THRIVE stands for “Transform, Heal, and Renew by Investing in a Vibrant Economy” and is summarized in the Sierra Club press release of March 25. The coalition has grown out of the Green New Deal Network, itself a coalition of 15 U.S. organizations that are focused on combating social inequity and environmental destruction through political action. 

Biden’s Climate Pitch Could Hit Turbulence From Some Fossil Fuel-Friendly Unions

By Reid Frazer - Allegheny Front, April 16, 2021

President Biden is selling the climate-friendly aspects of his $2 trillion infrastructure plan as a chance to create good-paying union jobs. But at a local branch of one of the country’s oldest unions, there are doubts that dealing with climate change will be good for workers here, in the oil-and-gas state of Pennsylvania. 

Boilermakers Local 154 in Pittsburgh builds and maintains coal, natural gas, and nuclear power plants. During a recent training session, a handful of members practiced welding behind a thick blue safety curtain, part of preparations to repair and rebuild the boiler in a coal-fired power plant.

“That boiler is 100-some feet high,” said Shawn Steffee, the local’s business agent. “And they go up, way up in that boiler, perform that weld, and then come back down.”

It’s highly skilled work that can pay well, sometimes six figures — the “pinnacle” of blue-collar craftwork, Steffee said. And it’s exactly the kind of job he worries will disappear if Biden’s climate policies speed up the decline of fossil fuels in favor of renewable energy.

If he were to go work in the solar industry, for example, Steffee said he’d be essentially starting over in a new trade and risk losing some of his pension and other benefits.

“I’m going to throw everything away to go over here, and maybe start as an electrician?” he said. “I don’t know nothing about electrical. I know how to weld. I know how to build power plants.”

For a decade, Pennsylvania and other states have seen jobs in coal disappear as utilities have turned to cheaper natural gas. Now some in these states worry that ambitious climate goals — and cheaper wind and solar — mean oil and gas jobs will be the next to go. 

Labor Principles for Transportation Electrification

By Staff - Transportation Trades Department, AFL-CIO, April 16, 2021

The Labor movement stands united in our support for good, middle-class jobs, policies that address climate change, and safe transportation that brings equitable benefits to communities across the country. As our infrastructure evolves and adapts to new challenges, new technologies, processes, and business models meant to face these challenges must advance these goals. Today, our nation is grappling with the challenge of transitioning to zero-emission transportation vehicles and infrastructure over the next few decades.

We cannot let the Wall Street and multinational corporations alone decide how to move forward on these issues. While we will all continue to advocate for modal and union specific concerns, the undersigned unions have come together to adopt the following principles that will guide our policy advocacy, collective bargaining, and organizing efforts as we all work to reduce greenhouse gas emissions in our industries and advance racial and environmental justice.

Read the text (Link).

72% of surveyed oil and gas workers in Canada want career transition, with many willing to accept wage reduction

By Elizabeth Perry - Work and Climate Change Report, April 12, 2021

A survey of over 2,000 respondents from across Canada who had previously worked in the oil and gas industry found that 72% indicated that their career priority was to make a career transition. Of that 72%, “35% indicated their desired employment situation was in a different role or industry; 14% were seeking a different work arrangement such as self-employment; and 12% planned to seek employment after additional training.” The survey results are summarized in two blogs on March 30, Untapped Talent: Opportunity to Transition, and Untapped Talent, Transitioning Opportunity , from Canada’s oil and gas labour market organization, PetroLMI. The survey was conducted from October 2019 to December 2020.

While a resistance to lower wages is frequently cited as a barrier to Just Transition, the PetroLMI survey showed that: “the wage expectations of respondents were not out of line given their education, experience and skills. When asked about their salary expectations, 61% indicated a salary of less than $100,000, and 28% were willing to take a reduction in their salary for stable employment. In Alberta more than 35% of respondents said they were willing to take a salary reduction.” 42% of respondents were over the age of 55; 77% had over 15 years of experience; 86% had post-secondary education – in Alberta, most held a university, while in the rest of Canada, trade certification was most cited.

From the industry point of view: “While layoffs rarely have a silver lining, these workforce reductions mean there is a robust pool of talent available for hire.” “The layoffs that occurred among respondents were broad and impacted a wide range of job families and occupations from trades, truck drivers, technologists and technicians to geoscientists, engineers and information technologists. The talent pool also included occupations that tended to be transferable across industries including finance, accounting, human resources, health and safety, sales, marketing and business development. They also included field operations and drilling workers with transferable skills such as working in safety-sensitive workplaces, critical thinking and problem-solving. As a result, construction and renewable energy companies have begun hiring from this talent pool.”

Canada’s Petroleum Labour Market Institute (PetroLMI- formerly the Petroleum Human Resources Council of Canada) produces ongoing labour market analysis, recently stating: “The cumulative impacts of a six-year economic downturn, lower demand due to COVID-19 health restrictions, and structural shifts in the oil and gas industry, mean there is a smaller oil and gas workforce in Canada – down 26%, or 58,700 jobs from its peak in 2014.” Their latest detailed labour market data, sourced from Statistics Canada, is here. Analytical reports are compiled here, including a four-part series titled “The Impact of COVID-19 on Canada’s Energy Workforce: A four-part series on work practices, productivity and opportunities”. On that topic, Norwegian consultancy Rystad Energy ranks Canada, U.S. and Australia as hardest hit in “Covid-19 job toll: Top O&G employer China resilient, US takes larger hit than European peers” , a March 9 newsletter. (The Canadian Energy Research Institute also published Economic Recovery Pathways for Canada’s Energy Industry: Part 2 – Canadian Crude Oil and Natural Gas in September 2020, modelling employment and economic impacts).

An Energy State No More: As coal vanishes from the grid, so might West Virginia’s status as an energy state

By Sean O'Leary - Ohio River Valley Institute, April 9, 2021

In 10 years, unless West Virginia leapfrogs from its coal-dominated energy system to one driven by clean renewable resources, it will cease to be an energy state:

West Virginia’s status as an energy state — one that produces more energy than it consumes – will almost certainly come to an abrupt end within the next ten years and possibly sooner. That’s because market forces, even more than political ones, are inexorably eradicating coal from the nation’s electricity system.

West Virginia, which generates nearly twice as much electricity as it consumes, relies on coal for 91% of its output. So, as coal goes, so does West Virginia’s status as an energy state, which for many West Virginians is as much an issue of identity as it is of economics. But the economics are the driving force and they are irresistible.

In February, the investment house, Morgan Stanley, concluded that coal will disappear from the nation’s energy grid by the year 2033. Market trends bear that out. As recently as 2008, nearly half of America’s electricity came from coal. But, by 2019, only 12 states continued to generate even 40% of their electricity from coal. And, in those states, average residential monthly bills rose at twice the rate of the nation as a whole.

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