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Permanent trust funds: Funding economic change with fracking revenues

By Devashree Saha and Mark Muro - Brookings, April 19, 2016

The recent boom and bust of unconventional oil and gas development, or “fracking,” has reopened serious questions about resource management in many U.S. states. While the oil and gas boom generated revenue, jobs, and economic development, the recent bust has adversely impacted state budgets due to declining industry investments in exploration and production and job cuts.

The boom-bust cycle of unconventional oil and gas development highlights the need for strategic management by state governments of fracking-related revenues, not only to minimize the less desirable aspects of the boom-bust cycle but also to enhance long-term prosperity. States can address these challenges by imposing a reasonable severance (extraction) tax on their oil and gas industry and channeling a portion of the revenue into permanent trust funds. In doing so, states can convert volatile near-term revenues from unconventional oil and gas development into a longer-term and continuous source of investment funds for building sustainable and dynamic economies.

To that end, this report advances five elements of good fund governance and management that states should consider in the design and implementation of permanent trust funds:

  • Establish an effective governance framework
  • Define the fund’s revenue source, deposit, and withdrawal rules
  • Design the investment strategy
  • Seize the opportunity to invest fund earnings to economic transformation
  • Formulate explicit disclosure and transparency standards

Read the text (Link).

Delivering Community Power: How Canada Post can be the hub of our Next Economy

By various - CUPW, Leap Manifesto, et. al., March 2016

Many think of Canada Post as a place to mail a care package, buy stamps or pick up the latest commemorative coin.

Some consider the post office past its prime: the last decade has seen efforts to cut, devalue and undermine this quintessentially public service. These moves have been fiercely resisted by people across the country.

What if our cherished national institution, with its vast physical infrastructure and millions of daily human interactions, could offer us something completely different? What if the post office could play a central role in building our next economy — an economy that is more stable, more equal, and less polluting?

Just Imagine...

  • Charging stations for electric vehicles at post offices
  • a renewable-powered postal fleet that connects farms to dinner tables
  • Door-to-door mail carriers checking in on seniors and people with mobility issues as well as delivering locally-produced food and other services
  • Post offices as community hubs for social innovation, connecting climate-friendly businesses to customers
  • Postal banking services that provide small towns and Indigenous communities with inclusive financial services – like loans to families underserved by commercial banks
  • Public-interest financial services that fuel the green energy transition in urban, rural and Indigenous communities We want a 100% renewable economy that addresses inequality, puts power in our hands and improves our lives.

Our post office can deliver it.

Read the report (PDF).

Retraining Investment for U.S. Transition from Coal to Solar Photovoltaic Employment

Edward P. Louie and Joshua M. Pearce - Energy Economics, 2016

Although coal remains the largest source of electricity in the U.S., a combination of factors is driving a decrease in profitability and employment in the coal-sector. Meanwhile, the solar photovoltaic (PV) industry is growing rapidly in the U.S. and generating many jobs that represent employment opportunities for laid off coal workers. In order to determine the viability of a smooth transition from coal to PV-related employment, this paper provides an analysis of the cost to retrain current coal workers for solar photovoltaic industry employment in the U.S. The current coal industry positions are determined, the skill set evaluated and the salaries tabulated. For each type of coal position, the closest equivalent PV position is determined and then the re-training time and investment are quantified. These values are applied on a state-by-state basis for coal producing states employing the bulk of coal workers as a function of time using a reverse seniority retirement program for the current American fleet of coal-powered plants. The results show that a relatively minor investment in retraining would allow the vast majority of coal workers to switch to PV-related positions even in the event of the elimination of the coal industry.

Read the report (PDF).

Beyond Coal: Scaling Up Clean Energy to Fight Global Poverty

By lmi Granoff, et. al. - Overseas Development Institute, 2016

Eradicating global poverty is within reach, but under threat from a changing climate. Left unchecked, climate change will put at risk our ability to lift people out of extreme poverty permanently by 2030, the first target of the Sustainable Development Goals. Coal is the world’s number one source of CO2 emissions. Most historic emissions came from the coal industry in the developed world in the last century, with China joining the biggest emitters at the beginning of this one. It is widely accepted that a rapid and just response to climate change will require the urgent replacement of coal with low-carbon energy sources in rich economies.

Now the coal industry claims that expanding coal use is critical to fighting extreme poverty and improving energy access for billions of people in developing countries. In fact, the opposite is true. The global commitment to eradicate extreme poverty and energy poverty by 2030 does not require such an expansion and it is incompatible with stabilising the earth’s climate. The evidence is clear: a lasting solution to poverty requires the world’s wealthiest economies to renounce coal, and we can and must end extreme poverty without the precipitous expansion of new coal power in developing ones.

This paper explores the role of energy in fighting poverty, arguing that:

  • More coal will not end energy poverty
  • Coal is given too much credit for the reduction of extreme poverty
  • Better energy options exist to lift people out of income poverty
  • More coal will entrench poverty.

Read the report (EN PDF) | (JA PDF) | (ZH PDF).

Employment After Coal: Creating new jobs in eastern Kentucky

By Frank Ackerman, PhD and Tyler Comings - MACED, December 30, 2015

The steep, ongoing decline of coal mining has caused the loss of 30,000 coal jobs in eastern Kentucky in the last 30 years. Trends in energy markets and public policy make it clear that a coal‐based economy is not coming back. A successful response to this crisis, replacing the lost kingdom of coal with a sustainable, community‐controlled economy, is crucial to the hopes for forward‐looking economic development in the region.

The issue reverberates far beyond the coalfields, as the national search for clean energy alternatives confronts impassioned claims about the need to protect coal mining jobs. In Kentucky and in the nation, a common but misleading frame on the debate suggests that there is no alternative, that “real” jobs can only be created by traditional industries, even if they are environmentally damaging.

In fact, the narrow, coal‐centered vision of “real” jobs is fading away, and discussion of newer, cleaner alternatives is already underway. Community organizations such as the Mountain Association for Community Economic Development (MACED) and Kentuckians for the Commonwealth (KFTC) have sponsored grassroots job creation initiatives, and have identified key sectors where employment growth should be possible. Both MACED and KFTC advocate for a Just Transition, a bigger picture that combines existing initiatives into a single vision of a working economy, mapping the sustainable occupations and industries that will fill the void left by coal.

Our analysis describes a new pattern of employment that Appalachian Kentucky could aspire to reach by 2030. It is a more challenging and longer‐term goal than is usually found in immediate grass‐roots campaigns. At the same time, it is more limited, detailed and practical than a grand statement of ultimate objectives. It occupies an intermediate level of abstraction, a mid‐range strategic vision of what the regional economy could look like in ten to twenty years.

Read the text (PDF).

Maryland's Clean Energy Future

By various - Labor Network for Sustainability and Synapse, October 14, 2015

This report presents a Clean Energy Future (CEF) plan that reduces Maryland’s net emissions of greenhouse gases (GHGs) 80 percent below the 2006 level by 2050 – while adding more than ten thousand jobs per year. With a state strategy to encourage and expand the growing industries of the future, Maryland’s employment gains could be considerably greater.

Maryland has often been told that doing its share to save the earth’s climate will threaten its workers’ jobs. “Maryland’s Clean Energy Future: Climate goals and employment benefits” refutes that claim. This report lays out a climate protection strategy that will produce an estimated 10,000 more jobs per year over business as usual projections through 2050. Almost two-thirds of the jobs created will be in the high-wage construction and manufacturing sectors.

The report also indicates that Maryland can use the burgeoning state and national demand for clean energy to create good, stable jobs in a growing climate protection sector: manufacturing jobs, jobs for those who have been marginalized in the current labor market, and jobs for skilled union workers in the construction trades. Maryland needs a robust job creation and clean industry development strategy to realize that potential.

Read the report (PDF).

What the Industry Doesn’t Want You to Know About Fracking

By Josh Fox and Lee Ziesche - EcoWatch, September 12, 2015

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

TRAILER FOR GASWORK THE FIGHT FOR CJ's Law A NEW SHORT FILM BY JOSH FOX from JFOX on Vimeo.

When we hear politicians and gas companies extoll the virtues of fracking, jobs created by drilling is usually high on their list of talking points. But the jobs created by fracking are not the kind of quality jobs American workers deserve.

They are not the kind of jobs American laborers have fought and died for throughout our country’s history.

They are extremely dangerous, exposing workers to chemicals whose long-term impacts on human health are yet unknown. In fact, the fatality rate of oil field jobs is seven times greater than the national average.

In our new short film, GASWORK: The Fight for C.J.’s Law, we conduct an investigation into worker safety and chemical risk. We follow Charlotte Bevins as she fights for CJ’s law—a bill to protect workers named for her brother CJ Bevins, who died at an unsafe drilling site.

We interview many workers who have been asked to clean drill sites, transport radioactive and carcinogenic chemicals, steam-clean the inside of condensate tanks which contain harmful volatile organic compounds, polycyclic aromatic hydrocarbons and other chemicals, and have been told to do so with no safety equipment.

Global Climate Jobs

By various - Global Climate Jobs Network, September 2015

We have to stop climate change, and we have to do it quickly. To do it, we will need 120 million new jobs globally for at least twenty years.

There are now campaigns in several countries fighting for mass government programs for climate jobs. Most of them started with union support, and all of them are trying to build an alliance of unions, environmentalists, NGOs, and faith groups.This booklet has been produced by several of these campaigns, because we want people in other countries to do the same.

The first half of this booklet explains the idea of climate jobs in broad strokes. But each country is different, so the second half of this booklet sketches what climate jobs would mean in South Africa, Norway, Canada, New York State, and Britain.

Read the report (English PDF) | (French PDF) | (Spanish PDF).

Back to the future for work

By Andrew Curry - The Next Wave, August 20, 2015

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Most discussion of the future of work assumes that the work, or the lack of it, is our coming problem. But what if we’ve got the question the wrong way around? What if we’re slowly, or not so slowly, giving up on the idea of work? After all, we all know that most work is dull. And even the interesting stuff is exploitative, somewhere along the line.

The thought struck me while reading Dan Hancox’ book The Village Against The World, about the anarcho-syndicalist village of Marinaleda, in Andalusia. After 20 years of intense political struggle, the village won some land for itself, and later added some food processing plants. Unemployment there is five or six per cent, a fraction of the level in other parts of Andalusia. But the young people, generally, are less willing to work in either. Work in the fields is hard; work in the processing plants is boring. And this is, pretty much, a universal truth.

In The Village Against The World, a young woman called Christina who lives part-time in the village and part time in the larger town of Estapa explains it to Hancox this way:

“A thousand euros a month is fine – 1,200 euros a month is pretty good.” We were talking about the mileuristas, her generation, so called because they had learned to get by on a one thousand euros a month. Christina was living with her mother in Marinaleda while also renting a room in a flat in Estapa, where she works as a teacher some of the week.

A thousand euros a month is about £750 or $1,400; not a lot, in other words. Spain, of course, has an acute version of this problem. But even if it an outlier, it is not unusual. The labour contract with capitalism is breaking down.

Jobs in Scotland’s New Economy

By Mika Minio-Paluello - Scottish Green MSPs, August 2015

The North Sea oil industry says jobs are threatened by falling oil prices. But a better future for Scotland is possible. More and better jobs. A safer and more stable economy. Stronger communities. A long-term future as an energy exporter. Moving from energy colonialism to energy democracy.

This better future won't come with tax cuts for oil corporations and trying to extract every last barrel. It means changing direction – towards arapidtransition away from fossil fuels.

This will require a wholescale change of UK economic policy away from austerity and toward investmentin the new economy.

This report shows that sustainable sectors in the new economy can employ significantly more people than currently work in fossil fuel industries. Scotland can create stable jobs for those who need them, wipe out fuel poverty, do its bit to stem climate change and re-localise economies.

We researched and analysed existing and potential employment in offshore wind and marine energy, forestry and sustainable biomass, retrofitting buildings, decommissioning the North Sea, synthetic gas, and training and research.

Projections were built on conservative estimatesof the jobs required for a rapid andambitious energy transition.We didn't include new jobs in public transport, solar, waste, renewing the electricity grid, energy storage or climate adaptation.

Our calculations show that there are 156,000 workers employed in fossil fuel extraction in Scotland, of which one third are export-oriented jobs. The new economy could in comparison employ more than 200,000in 2035.

Read the report (PDF).

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