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The Search for Trans Mountain’s 15,000 Construction Jobs

By Robyn Allan - DeSmog Canada, August 28, 2017

When Prime Minister Trudeau announced approval of the Trans Mountain project he said the expansion “will create 15,000 new, middle class jobs — the majority of them in the trades.” 

Natural Resources Minister, Jim Carr, repeatedly points to this figure to justify Ottawa’s approval. He says, “the project is expected to create 15,000 new jobs during construction.”

Alberta Premier Notley relies on it too. “Initially we’re looking at about 15,000 jobs…” Former Premier Christy Clark said, “And then there’s Kinder Morgan, 15,000 new jobs…”

When the figure of “15,000” for new construction jobs emerged, I was confused. Kinder Morgan told the National Energy Board (NEB) that construction employment for the project was an average of 2,500 workers a year, for two years. It was laid out in detail in Volume 5B of the proponent’s application. 

Why would elected officials promote a construction jobs figure six times Kinder Morgan’s actual number?

I contacted the Prime Minister’s office. I asked his staff to explain how the figure their boss relies on was developed. They did not do so. I even wrote the Prime Minister directly. I received no reply. Natural Resources Canada said, “The numbers are from the proponent” and “believed” they were based on Conference Board of Canada estimates, while Premier Notley’s office said it came from the industry and directed me to Trans Mountain’s website.

There it was. “During construction, the anticipated workforce will reach the equivalent of 15,000 jobs per year…” Kinder Morgan provided no insight as to how that figure was derived.

I inquired directly and was told, “the figures come from two Conference Board of Canada reports.” Links to those reports were provided. 

I read both reports. Neither included reference to 15,000 construction jobs as Kinder Morgan said they would. What they did provide was a figure of 58,037 person years of project development employment—over seven years beginning in 2012.

I knew the 58,037 figure to be the same as that provided in a Conference Board of Canada report authored in 2013 and filed by Kinder Morgan as part of the discredited NEB hearing. The Conference Board based its estimate on an Input Output model which — because of its many design flaws — delivers highly exaggerated results.

Trade unions in the UK engagement with climate change

By Catherine Hookes - Campaign against Climate Change Trade Union Group, August 15, 2017

Despite being faced with many immediate battles to fight, it is to the credit of many trade unions that they are also addressing the long term wellbeing of their members, and of future generations, by introducing policies to tackle climate change. A new report providing the first ever overview of the climate change policies of 17 major UK trade unions could help raise wider awareness of this important work.

The author, Catherine Hookes, is studying for a masters degree at Lund University, Sweden, and her research drew on a comprehensive web review of policies in these unions, going into more depth for many of the unions, interviewing key figures and activists. The research was facilitated by the Campaign against Climate Change.

For anyone within the trade union movement concerned about climate change (or for campaigners wishing to engage with trade unions on these issues) this report is of practical use in understanding the context, the diversity of different trade unions' approaches, and the progress that has been made in the campaign for a just transition to a low carbon economy.

While every attempt was made to ensure the report is comprehensive, and accurately reflects union positions, there are clearly controversies and different viewpoints over issues such as fracking and aviation. Trade unions with members in carbon intensive industries will always have a challenging task in addressing climate change, but their engagement in this issue is vital. And, of course, this is a rapidly changing field. It is very encouraging that since the report was written, Unison has voted to campaign for pension fund divestment. This is an important step in making local authority pension funds secure from the risk (both financial and moral) of fossil fuel investment.

Anyone attending TUC congress this September is welcome to join us at our fringe meeting, 'Another world is possible: jobs and a safe climate', to take part in the ongoing discussion on the role of trade unions in tackling climate change.

Read the text (PDF).

Rising from the ashes, a Buffalo suburb ends its dependence on coal

By Elizabeth McGowan - Grist, July 11, 2017

Sixteen months ago, the coal-fired Huntley Generating Station, which sits on the banks of the Niagara River, stopped producing power for first time since World War I.

Erie County lost its largest air and water polluter. But the town of Tonawanda, a working class Buffalo suburb 13 miles downstream of America’s most storied waterfalls, also lost its biggest taxpayer.

The impact of Huntley’s decade-long slowdown — and finally shutdown — hit this upstate New York community like a punch to the gut.

In just five years, between 2008 and 2012, Huntley’s pre-tax earnings tumbled by $113 million as it operated far below capacity, translating into a combined revenue hit of at least $6.2 million to the town, county, and local school district. That precipitous decline came when state education funds were also shrinking. Belt-tightening wasn’t enough; 140 teachers lost their jobs. Three elementary schools and one middle school closed their doors.

Rebecca Newberry, a 35-year-old former bartender and LGBT-rights activist, saw her home town facing the same fate that has befallen so many other Rust Belt communities that fell on hard times following an industrial exodus. She was determined not to let it happen to the place where she grew up. And she was fortunate enough to find a diverse group of allies who were willing to fight for their survival.

By combining the resources of her nonprofit, the Clean Air Coalition of Western New York, with area labor unions and other community groups, Newberry helped to hatch a plan for Tonawanda’s next chapter — and provide an inclusive, equitable template for other blue-collar towns facing the loss of dirty energy jobs and other polluting industries. (The jargony term for this in advocacy circles is “just transitions.”)

read more...

The Fortress World of Capitalism vs. the Beautiful Possibilities of Cooperation

By Cynthia Kaufman - Common Dreams, July 7, 2017

Our beloved world is entering an increasingly unstable period, full of dangers and also full of possibilities. In many countries, old political parties are crumbling faster and anyone thought imaginable. Old geopolitical alliances have come unglued as the US comes to exercise its role as world hegemon in new and unpredictable ways. The development of the internet, of mobile phones and of apps has led to incredible disruption of many aspects of many societies: from how we pay for and listen to music, to how we consume and propagate information and news, to how we shop for almost anything. All that is solid is melting into air.

At this crossroads it is possible that the global community will move in the direction that the dominant social forces seem to be pushing us towards. That possibility has been called “fortress world.” It is a world where we continue to burn fossil fuels and destroy the atmosphere; where climate refugees desperate to leave Africa are forced by military means to stay in a continent with a decreasing ability to produce food; where finance capital fashions a “market” that continue to squeeze working class people to into extreme poverty; where xenophobia rises in the wealthier countries and keeps masses of people voting for politicians who serve the masters of an extractive and unequal economy. That fortress world is a real possibility and the election of Donald Trump is certainly a sign that this worse future may be on the way.

But it is also possible to build a future where fossil fuels are phased out very quickly, where the political forces that oppose the domination of finance capital come to win elections, and where we work hard to create an economy where no one needs to work very hard.

The technical solutions to the climate crisis are already well at hand. Renewable energy is now economically competitive with fossil fuels, and alternatives to dirty technologies have emerged in virtually every sector of production. The problem of poverty and wealth is also an easy one to solve on a technical level. The world produces enough food to feed everyone, and our technology has developed to the point where we can meet our needs with very little work.

To give one simple illustration of how within reach a better life for all is: take the total personal income in the United States. Divide it by the number of people, and multiply by four. It turns out that the average family of four could have $220,000 per year to live on if we had income equality.  Imagine raising minimum wages, taxing the wealthy, and providing a guaranteed minimum income as ways of distributing that income. Imagine reducing work hours so that, as productivity when up, work time could go down, and work could be shared among those who needed an income. One of the main arguments against this approach is that without the profit incentive our technology would not develop. Imagine worker owner cooperatives developing better ways of doing things and sharing the wealth that comes from those developments with the people who work on them.

A new wave of automation is about to hit the world’s economies so hard that millions of service jobs will be lost in the coming period. People are starting to talk about the need for a guaranteed minimum income to deal with that displacement. If that wave hits the US with the current political consensus in place, it will mean another giant step toward the fortress world, as some people profit enormously while others have no access of the means to survive.

Why Union Workers and Environmentalists Need to Work Together with Smart Protests

By Les Leopold - Alternet, June 21, 2017

As Trump slashes and burns his way through environmental regulations, including the Paris Accord, he continues to bet that political polarization will work in his favor. Not only are his anti-scientific, anti-environmentalist positions firing up some within his base, but those positions are driving a deep wedge within organized labor.  And unbeknownst to many environmental activists, they are being counted on to help drive that wedge even deeper.

Trump already has in his pocket most of the construction trades union leaders whose members are likely to benefit from infrastructure projects – whether fossil fuel pipelines or new airports or ...... paving over the Atlantic. His ballyhooed support of coal extraction  has considerable support from miners and many utility workers as well.

But the real coup will come if Trump can tear apart alliances between the more progressive unions and the environmental community. Trump hopes to neutralize the larger Democratic-leaning unions, including those representing oil refinery workers and other industrial workers.  That includes the United Steelworkers, a union that has supported environmental policies like the federal Clean Air Act and California’s Global Warming Solutions Act, and has a long history of fighting with the oil industry – not just over wages and benefits but also over health, safety and the environment.  

To get from here to there, Trump is hoping that environmental activists will play their part -- that they will become so frustrated by his Neanderthal policies, that activists will stage more and more protests at fossil fuel-related facilities, demanding that they be shut down in order to halt global climate crisis.  

Oil refineries present a target-rich arena for protest. On the West Coast they are near progressive enclaves and big media markets in California and Washington.  Yet many who live in fence line communities would like the refineries gone, fearing for their own health and safety. Most importantly, they are gigantic symbols of the oil plutocracy that has profiteered at the expense of people all over the world.

But from Trump's point of view, nothing could be finer than for thousands of environmentalists to clash at the plant gates with highly paid refinery workers. Such demonstrations, even if peaceful and respectful, set a dangerous trap for environmental progress. Here's why: 

Why Union Workers and Environmentalists Need to Work Together with Smart Protests

By Les Leopold - Alternet, June 21, 2017

As Trump slashes and burns his way through environmental regulations, including the Paris Accord, he continues to bet that political polarization will work in his favor. Not only are his anti-scientific, anti-environmentalist positions firing up some within his base, but those positions are driving a deep wedge within organized labor.  And unbeknownst to many environmental activists, they are being counted on to help drive that wedge even deeper.

Trump already has in his pocket most of the construction trades union leaders whose members are likely to benefit from infrastructure projects – whether fossil fuel pipelines or new airports or ...... paving over the Atlantic. His ballyhooed support of coal extraction  has considerable support from miners and many utility workers as well.

But the real coup will come if Trump can tear apart alliances between the more progressive unions and the environmental community. Trump hopes to neutralize the larger Democratic-leaning unions, including those representing oil refinery workers and other industrial workers.  That includes the United Steelworkers, a union that has supported environmental policies like the federal Clean Air Act and California’s Global Warming Solutions Act, and has a long history of fighting with the oil industry – not just over wages and benefits but also over health, safety and the environment.  

To get from here to there, Trump is hoping that environmental activists will play their part -- that they will become so frustrated by his Neanderthal policies, that activists will stage more and more protests at fossil fuel-related facilities, demanding that they be shut down in order to halt global climate crisis.  

Oil refineries present a target-rich arena for protest. On the West Coast they are near progressive enclaves and big media markets in California and Washington.  Yet many who live in fence line communities would like the refineries gone, fearing for their own health and safety. Most importantly, they are gigantic symbols of the oil plutocracy that has profiteered at the expense of people all over the world.

But from Trump's point of view, nothing could be finer than for thousands of environmentalists to clash at the plant gates with highly paid refinery workers. Such demonstrations, even if peaceful and respectful, set a dangerous trap for environmental progress. Here's why: 

Reversing Inequality, Combatting Climate Change: A Climate Jobs Program for New York State

By J. Muin Cha, Ph.D. and Lara Skinner, Ph.D.- The Worker Institute - June 2017

Economic inequality in New York is rising. Currently, the state has the second highest level of economic inequality in the country. Unequal job growth across the state and stagnant wages in several sectors are two of the main contributors to rising inequality. While the state overall has seen several years of employment growth, there are stronger employment gains in New York City than in other parts of the state still suffering from job losses and stagnant employment levels. Additionally, in many sectors, such as construction and manufacturing, wages are not increasing at the same pace as inflation, leaving many workers with paychecks that fail to cover basic household costs.

At the same time, New York is falling far short of its necessary greenhouse gas pollution reductions. To stop catastrophic climate change, global greenhouse gas emissions must be reduced at least 80 percent below 1990 levels by 2050, which would require four times the current annual emissions reduction rate. By 2050, New York State’s emissions must be only a fraction of what they are now to meet the United Nations’ Intergovernmental Panel on Climate Change’s targets set to prevent irreversible damage. We are far from that target. In the transportation sector, emissions are actually increasing and energy sector emissions may also be increasing given likely underestimation of methane emissions from natural gas.

New York State can take action now to protect New Yorkers from the worst effects of climate change, and do our part in reducing global emissions, while also fighting against growing economic inequality. Extreme weather, such as Hurricanes Irene and Sandy, is predicted to become more the norm, not the exception. These recent extreme weather events highlighted New York’s deep inequality: some could afford to leave the city or move into hotels when their residences flooded while others were left stranded.

Adopting a bold and aggressive plan to invest in climate-addressing infrastructure can be an important step towards simultaneously addressing the crises of inequality and climate change head on and position New York as a national leader in charting the path to a low-carbon, equitable economy. The recommendations presented below aim to create good, high-road jobs that provide familysustaining wages and benefits for communities across the state. These proposals could also result in meaningful emissions reductions and put New York on the path to building an equitable clean-energy economy that can work for all New Yorkers. The authors hope this report helps spark additional research and policy development on how to simultaneously reduce greenhouse gas emissions and reverse inequality by protecting workers and creating good, family-sustaining jobs in new lowcarbon sectors. Future research, in particular, could perform a detailed analysis of the cost of job creation strategies in low-carbon sectors, how to finance these strategies, and a cost-benefit analysis that includes the cost of potential job loss and reduced economic activity in high-carbon sectors.

Read the Report (Link).

Gutting Climate Protections Won’t Bring Back Coal Jobs

By Jill Richardson - CounterPunch, March 30, 2017

When Barack Obama announced the Clean Power Plan, Scientific American used his own words to criticize it for not going far enough.

“There is such a thing as being too late when it comes to climate change,” Obama said. “The science tells us we have to do more.”

Scientific American analyzed the Clean Power Plan and agreed, concluding that Obama’s plan didn’t go far enough, and would fail to prevent catastrophic climate change.

Now, Trump is dismantling even that. Obama’s insufficient effort to address climate change is gone with a stroke of Trump’s pen.

The plan was to go into effect in 2022, reducing pollution in three ways. First, by improving the efficiency of coal-fired power plants. Second, by swapping coal for cleaner natural gas. And third, by replacing fossil fuel energy with clean, renewable energy sources like solar and wind.

Trump claims the plan puts coal miners out of work. But it hadn’t even been implemented yet. In reality, cheap natural gas and the use of machines instead of people to mine coal are responsible for putting far more miners out of work.

In other words, Trump is using sympathetic out-of-work miners as a cover for what is really just a handout to dirty industry.

Meanwhile, Trump is cutting job training programs for coal country. Given that, it’s hard to believe he cares at all about jobs for coal miners.

And, with a surge in cases of fatal black lung disease among miners in Appalachia, anyone who truly cared about miners would preserve the Affordable Care Act (Obamacare), which helps coal miners get black lung benefits.

In short, Trump’s killing of the Clean Power Plan is a handout to dirty industry with no regard for the well-being of coal miners. And it’s putting us even further behind in our efforts to leave the next generation a habitable planet.

A better leader would find a way to promote clean forms of energy while simultaneously creating good jobs for Americans. Of course, that’s exactly what Obama’s one-time “green jobs” czar Van Jones called for, and the Republicans hated him.

But the fact of the matter is that climate-smart policies create jobs. They create jobs retrofitting buildings, manufacturing solar panels and wind turbines, innovating to create more efficient batteries, and discovering the best way to upgrade our power grid.

It seems that, if we installed a wind turbine near the White House, Trump could single handedly provide the nation with clean energy from all of the bluster coming out of his mouth.

In the meantime, catastrophic climate change is as much of a crisis as ever, and the clock is ticking.

The Wrong Way to Debunk Trump’s Pipeline Jobs Claims

By Kate Aronoff - In These Times, March 29, 2017

There’s a right and a wrong way to debunk the right-wing myth about jobs and the environment. As a refresher, here are the basics of that myth: Jobs in the extractive industry are an invaluable engine of job creation and a key driver of economic growth. People concerned about the environment want to kill projects, like the Keystone XL and Dakota Access pipelines, that would provide jobs and help stimulate the economy.

If you’re reading this, you probably already know that argument is wrong. Jobs in the U.S. clean energy industry—itself a very small sector—outnumber jobs in the fossil fuel industry 5 to 1, according to a recent report from the Department of Energy. What’s more, renewable energy has the potential to create millions of jobs in the future, which would make that type of employment dwarf even the bloated jobs figures the White House cites in defense of fossil fuels.

But here’s how not to dispel fossil fuel industry talking points: noting the disparity between part-time and full-time construction jobs. Since the Keystone XL’s permit was approved by the State Department last Friday, a number of outlets—including those with a specifically environmentalist bent—re-upped a statistic that made the rounds before the project was squashed back in 2015, stating that the project will create just 35 permanent jobs. The State Department estimates that the Keystone XL pipeline will create some 42,000 direct and indirect jobs, 50 of which will be permanent. Fifteen of the 50 jobs are temporary contracts, leaving just 35 people with ongoing jobs maintaining the pipeline. This line of argument contends the fact that so few of these positions are permanent means that Trump’s jobs argument is an elaborate rouse.

Here’s the problem: All construction jobs are temporary. When you construct something, it is eventually built. Workers in the building trades might work on several projects in a given year, and part of what building trades unions do is set up the people they represent with projects.

Talking points about permanent versus temporary jobs aren’t just bad because they stand to make the people spouting them sound grossly out of touch with working people. Jobs building wind turbines and sea walls and installing solar panels are also often temporary jobs. And that’s okay!

Making sure they’re good ones is another matter. Because of long-standing and union-negotiated norms in the building trades, the unionized workers who build pipelines tend to bring home good money and benefits, sometimes making as much as six figures in a year. Building trades and their workers, then, aren’t being somehow duped by Trump about these figures. The pipeline will create new jobs for their members, who, by and large, will be happy to work them.

But as Bryce Covert points out in The Nation, mining, manufacturing and construction jobs together account for less than 13 percent of jobs in the United States. More than 80 percent of workers are housed in the service sector. The clean energy sector is creating jobs at a remarkable rate, and there’s plenty of other work that is just as low carbon—and happens to be in some of the fastest growing parts of the economy. Teachers and nurses don’t emit massive amounts of carbon into the atmosphere. Their professions are (relatively) heavily unionized, but wages in other, non-unionized parts of the service sector remain pitifully low—an industry standard being fought tooth and nail by the Fight for $15 campaign.

So don’t fact-check the Keystone jobs line on the basis that the jobs aren’t permanent. Ask why Trump isn’t fueling high-paying, union job growth in the sectors where most Americans work and that are already creating jobs.

Can Coal Make a Comeback?

By Trevor Houser, Jason Bordoff, and Peter Marsters - Columbia Center on Global Energy Policy, School of International and Public Affairs, and the Rhodium Group, April 2017

From the introduction: Six years ago, the US coal industry was thriving, with demand recovering from the Great Recession, and global coal prices at record highs along with the stock prices of US coal companies. By the end of 2015, however, the industry had collapsed, with three of the four largest US miners filing for bankruptcy along with many other smaller companies. While coal mining employment has been on the decline for decades – from a peak of more than 800,000 in the 1920s to 130,000 in 2011 – the pace of job loss over the past six years has been particularly dramatic. After campaigning on a promise to end what he called his predecessor’s “War on Coal,” President Donald Trump signed an Executive Order in March 2017 ordering agencies to review or rescind a raft of Obama-era environmental regulations, telling coal miners they would be “going back to work.”

This paper offers an empirical diagnosis of what caused the coal collapse, and then examines the prospects for a recovery of US coal production and employment by modeling the impact of President Trump’s executive order and assessing the global coal market outlook. In short, the paper finds:

  • US electricity demand contracted in the wake of the Great Recession, and has yet to recover due to energy efficiency improvements in buildings, lighting and appliances. A surge in US natural gas production due to the shale revolution has driven down prices and made coal increasingly uncompetitive in US electricity markets. Coal has also faced growing competition from renewable energy, with solar costs falling 85 percent between 2008 and 2016 and wind costs falling 36 percent.
  • Increased competition from cheap natural gas is responsible for 49 percent of the decline in domestic US coal consumption. Lower-than-expected demand is responsible for 26 percent, and the growth in renewable energy is responsible for 18 percent. Environmental regulations have played a role in the switch from coal to natural gas and renewables in US electricity supply by accelerating coal plant retirements, but were a significantly smaller factor than recent natural gas and renewable energy cost reductions.
  • Changes in the global coal market have played a far greater role in the collapse of the US coal industry than is generally understood. A slow-down in Chinese coal demand, especially for metallurgical coal, depressed coal prices around the world and reduced the market for US exports. More than half of the decline in US coal company revenue between 2011 and 2015 was due to international factors.
  • Implementing all the actions in President Trump’s executive order to roll back Obama-era environmental regulations could stem the recent decline in US coal consumption, but only if natural gas prices increase going forward. If natural gas prices remain at or near current levels or renewable costs fall more quickly than expected, US coal consumption will continue its decline despite Trump’s aggressive rollback of Obama-era regulations.
  • While global coal markets have recovered slightly over the past few months due to supply restrictions in China and flooding in Australia, we expect this rally to be short-lived. Slower economic growth and structural adjustment in China will continue to put downward pressure on global coal prices and limit the market opportunities for US exports. Indian coal demand will likely grow in the years ahead, but not enough to make up for the slow-down in China. The same is true for other emerging economies, many of whom are negatively impacted by decelerating Chinese commodities demand themselves.
  • Under the best case scenario for US coal producers, our modeling projects a modest recovery to 2013 levels of just under 1 billion tons a year. Under the worst case scenario, output falls to 600 million tons a year. A plausible range of US coal mining employment in these scenarios ranges from 70,000 to 90,000 in 2020, and 64,000 to 94,000 in 2025 and 2030 -- lower than anything the US experienced before 2015.

These findings indicate that President Trump’s efforts to roll back environmental regulations will not materially improve economic conditions in America’s coal communities. As such, the paper concludes with recommendations for steps that the federal government can take to safeguard the pension and health security of current and retired miners and dependents and support economic diversification. Attracting new sources of economic activity and job creation will not be easy, and even at its most successful will not return coal country to peak levels of past prosperity.

But responsible policymakers should be honest about what’s going on in the US coal sector—including the causes of coal’s decline and unlikeliness of its resurgence—rather than offer false hope that the glory days can be revived. And then support those in America’s coal communities working hard to build a new economic future.

Read the text (PDF).

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