refinery workers

By Danielle Riedl and Devashree Saha - World Resources Institute, April 23, 2024

California is often considered the United States’ greenest state — a first-mover on climate policy, renewable energy, electric vehicles and more. But at the same time, the state is still a fossil-fuel production powerhouse.

This is especially true for its petroleum refineries, which turn crude oil into transportation fuels (like gasoline) and feedstocks for making chemicals. Despite declining oil production in the state, California still has the third-largest crude oil refining capacity in the country, just after Texas and Louisiana. About 83% of its refined petroleum is used for transportation, a sector that produces half of the state’s greenhouse gas emissions. California is also the country’s largest consumer of jet fuel and second-largest user of motor gasoline, fuels that are processed and refined at petroleum refineries.

At the same time, California has a legal requirement to cut 85% of its emissions by 2045. Phasing down petroleum refineries, along with petroleum-based transportation fuels, are crucial steps in meeting that goal. Which begs the question: What happens to the thousands of workers, families and communities who rely on the state’s oil refineries for jobs and tax revenues?

While California is developing a detailed roadmap on how it will reduce its emissions, it doesn’t yet include a plan for addressing the impact of refinery closures — specifically, loss of jobs, incomes and the critical tax revenues that support communities’ schools, healthcare systems and more. California therefore has an opportunity to not only lead on phasing down America’s refineries, but to also make the transition a just one.

By staff - Safe Landing, April 16, 2024

Safe Landing recently attended the “Keep Grangemouth Working” event organised by Unite the Union at the Scottish Trade Union Congress (STUC) conference in Dundee, Scotland. Grangemouth refinery is a classic case of an ‘unjust’ transition where poor industrial planning for the shift to low-carbon operations has led to major impacts for the livelihoods of workers and communities in the area. 

There are definitely lessons to be learned for the aviation industry – particularly as a sustainable future for the fuels sector is so intertwined with sustainable aviation!

Grangemouth Refinery: Scotland’s only refinery facing imminent closure

Grangemouth Refinery is one of the six remaining refineries in the UK and the only refinery in Scotland. It produces jet fuel which supplies airports at Edinburgh, Glasgow, Aberdeen and Newcastle. It also produces a significant proportion of Scotland’s petrol and diesel. It’s estimated to account for approximately 8% of Scotland’s manufacturing base. 

In November 2023, the refinery owners, Petroineos, announced that the refinery could cease operations as soon as 2025 following an 18 month process to convert the facility to a fuel import/export terminal only. This could mean up to 500 jobs are lost at the site. 

This event was focused on the fight to maintain those jobs. 

This is a real life example of potential job losses from high-carbon infrastructure as the low-carbon transition (e.g. from petrol/diesel to electric vehicles) takes place. This could equally occur at an airport or aviation production facility unless transition plans are developed early, and future-proof investments are made. As Grangemouth produces jet fuel, there’s also an obvious overlap with the necessary transition required in aviation.

By staff - Just Transition Partnership, April 4, 2024

Briefing for the debate in Scottish Parliament on 7 March on Site-specific Just Transition for Mossmorran

Since the publication of A Meaningfully Just Transition for Mossmorran in Summer 2022, progress appears to have stalled. As far as we know, none of its recommendations have been implemented. Neither national nor local government has publicly stated a commitment to lead the production of a Just Transition Plan for Mossmorran, and meanwhile the Scottish Government has repeatedly delayed its Climate Change Plan, the Energy Strategy and the sectoral Just Transition Plans.

The urgent need for regional just transition plans now appears increasingly important after the announcement by PetroIneos of its intention to close its refinery at Grangemouth which employs approximately 500 workers.

As the report pointed out “Mossmorran natural gas liquids processing plants face an uncertain future, with significant vulnerabilities due to the climate and environmental emergency”. This understanding (which applies to the Grangemouth plants as well) underlines the need to plan well in advance for a just transition which protects workers and communities and builds new green industries. Just Transition Planning should lead the process of transforming our economy, rather than being a response to crisis.

Instead of relying on market-based policies, the public sector must now lead the implementation of public policy. This requires the parallel development of coherent plans and sufficient investment. The top line responsibility lies with Government, in partnership with unions, businesses and communities, to produce transformed a vision for a better economy, in line with Climate Change targets; and clear timelines for changes in each sector. These must guide the transition.

By Norman Rogers - Jacobin, March 18, 2024

This article is adapted from Power Lines: Building a Labor-Climate Justice Movement, edited by Jeff Ordower and Lindsay Zafir (The New Press, 2024).

I have a dream. I have a nightmare.

The dream is that working people find careers with good pay, good benefits, and a platform for addressing grievances with their employers. In other words, I dream that everyone gets what I got over twenty-plus years as a unionized worker in the oil industry.

The nightmare is that people who had jobs with good pay and power in the workplace watch those gains erode as the oil industry follows the lead of steel, auto, and coal mining to close plants and lay off workers. It is a nightmare rooted in witnessing the cruelties suffered by our siblings in these industries — all of whom had good-paying jobs with benefits and the apparatus to process grievances when their jobs went away.

Workers, their families, and their communities were destroyed when the manufacturing plants and coal mines shut down, with effects that linger to this day. Without worker input, I fear that communities dependent on the fossil fuel industry face a similar fate.

This nightmare is becoming a reality as refineries in Wyoming, Texas, Louisiana, California, and New Mexico have closed or have announced pending closures. Some facilities are doing the environmentally conscious thing and moving to renewable fuels. Laudable as that transition is, a much smaller workforce is needed for these processes. For many oil workers, the choice is to keep working, emissions be damned, or to save the planet and starve.

United Steelworkers (USW) Local 675 — a four-thousand-member local in Southern California, of which I am the second vice president — is helping to chart a different course, one in which our rank-and-file membership embraces a just transition and in which we take the urgent steps needed to protect both workers and the planet. Along with other California USW locals, we are fighting to ensure that the dream — not the nightmare — is the future for fossil fuel workers as we transition to renewable energy.

By Union Jake, David Story, and Adam Keller - Valley Labor Report, December 5, 2023

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).