COVID-19

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).

By Annie Lowrey - The Atlantic, April 26, 2023

In 2006, James Feldermann got hired as a trainee at a refinery in Martinez, California, in the Bay Area. It was hard work, with 12-hour-minimum shifts, but Feldermann came to excel at it. He learned how to isolate pipes and vessels, load railcars with molten sulfur and ammonia, and helm an industrial control panel. In time, he rose to the position of head operator at the Marathon Petroleum site. The job paid well, and he enjoyed it. He expected to stay until retirement.

On a Friday afternoon in July 2020, Feldermann was abruptly summoned to an all-hands Zoom meeting. While some of his colleagues struggled to get the audio to work, Feldermann received a phone call from his union representative. “I didn’t actually hear management tell us that they were laying us off,” he told me. The plant was being shut down, as the rise of work-from-home and the spread of electric vehicles depressed Californians’ demand for gasoline. Feldermann and his co-workers would be out of a job in 90 days.

The United States is embarking on an epochal transition from fossil fuels to green energy. That shift is necessary to avert the worst outcomes of climate change. It also stands to put hundreds of thousands, perhaps millions, of people like Feldermann out of work. The result could be not only economic pain for individual families, but also the devastation of communities that rely on fossil-fuel extraction and a powerful political backlash against green-energy policies.

A pathbreaking new study shows just how real the damage could be, absent policies to soften the economic blow. Virginia Parks, a professor at UC Irvine, and Ian Baran, a doctoral student, tracked the consequences of the Marathon shutdown in near-real time, getting more than 40 percent of the workers to return surveys and a smaller group to sit for interviews. They found that, more than a year after the shutdown, one in five Marathon workers was unemployed. Their earnings had declined sharply, with the median hourly wage of employed workers plunging from $50 to $38. Some workers were earning as little as $14 an hour. And those new gigs came with more dangerous working conditions.

To prevent other workers from experiencing the same, the Biden White House has promised to pursue a “just transition,” employing policies to ensure “new, good-paying jobs for American workers and health and economic benefits for communities.” But the green-energy transition is already underway. And it is not clear that it will be just.

By staff - International Trade Union Confederation (ITUC), April 24, 2023

On International Workers’ Memorial Day, 28 April, trade unions are promoting the role that organising plays in making workplaces safer and healthier as we remember all working people who have lost their lives to workplace accidents and disease.

Workers’ unions are planning to use the new ILO fundamental right to a safe and healthy working environment to tackle the shocking death toll of three million workers who die each year because of their work, with tens of millions more suffering life-changing injuries and ill health.

Trade unions will use organising to ensure that the new fundamental right is put into practice and makes a positive difference to the daily lives of working people. The two ILO Conventions (155 and 187) provide backing for union organising, through the creation of workplace safety committees with worker representation, and worker safety representatives in workplaces.

This organising can improve the working environment through the right to refuse dangerous work and consultation rights over risk assessments, occupational health services and the provision of personal protective equipment. Convention 187 also requires the creation of national tripartite health and safety bodies with representation for government, workers and employers.

Combatting toxic workplaces

Around the world, unions will use 28 April to fight risks like asbestos and toxic chemicals, and hazards like long hours and stress in the workplace, as well as demanding an increase in the number of countries ratifying and implementing all ILO health and safety Conventions.

ITUC Deputy General Secretary Owen Tudor said: “Every working person has the right to expect to return home at the end their day’s work. No one should die just to make a living.”

Trade unions make work safer, and they have already saved lives in these areas:

Silicosis

Companies are continuing to expose millions of workers to excessive levels of silica dust, which can cause deadly cancers and lung diseases. Australian unions won new restrictions on products containing silica and cut in half the exposure limit to silica for workers, which could see cases of deadly silicosis drop to one-sixth of the current level.

Seafarers

In 2022, a Dutch court handed an important victory to the ITF, FNV Havens and Nautilus NL who had brought a legal case against Marlow Cyprus, Marlow Netherlands and Expert Shipping. The court ruled that ship managers, ship owners and charterers must honour the non-seafarer’s work clause that only professional dockers do demanding, skilful lashing work when they are available, rather than seafarers. The decision means greater safety for seafarers and secures jobs for dockers.

Nursing homes

In 2020/21, 75,000 nursing home residents in the USA died from the SARS-CoV-2 virus with more than one million nursing home workers testing positive. Unionised nursing homes reported Covid-19 mortality rates of residents 10.8% lower and an infection rate of workers 6.8% lower.

By Mel Buer and Paul Lindsey - The Real News Network, April 11, 2023

By Patrick Bond and Steve Zeltser - Labor Video Projecte, March 19, 2023

By various - Safe Landing, March 15, 2023

By Clifford Krauss - New York Times, February 27, 2023

Solar, wind, geothermal, battery and other alternative-energy businesses are adding workers from fossil fuel companies, where employment has fallen.

Emma McConville was thrilled when she landed a job as a geologist at Exxon Mobil in 2017. She was assigned to work on one of the company’s most exciting and lucrative projects, a giant oil field off Guyana.

But after oil prices collapsed during the pandemic, she was laid off on a video call at the end of 2020. “I probably blacked out halfway,” Ms. McConville recalled.

Her shock was short-lived. Just four months later, she landed a job with Fervo, a young Houston company that aims to tap geothermal energy under the Earth’s surface. Today she manages the design of two Fervo projects in Nevada and Utah, and earns more than she did at Exxon.

“Covid allowed me to pivot,” she said. “Covid was an impetus for renewables, not just for me but for many of my colleagues.”

Oil and gas companies laid off roughly 160,000 workers in 2020, and they maintained tight budgets and hired cautiously over the last two years. But many renewable businesses expanded rapidly after the early shock of the pandemic faded, snapping up geologists, engineers and other workers from the likes of Exxon and Chevron. Half of Fervo’s 38 employees come from fossil fuel companies, including BP, Hess and Chesapeake Energy.

Executives and workers in energy hubs in Houston, Dallas and other places say steady streams of people are moving from fossil fuel to renewable energy jobs. It’s hard to track such movements in employment statistics, but the overall numbers suggest such career moves are becoming more common. Oil, gas and coal employment has not recovered to its prepandemic levels. But the number of jobs in renewable energy, including solar, wind, geothermal and battery businesses, is rising.

By Maristella Svampa, Trusha Reddy, Ashish Kothari, and Liliana Buitrago - Alan Fisher, February 14, 2023

By staff - People and Nature, February 13, 2023

“Clean energy transitions” by rich countries of the global north are producing “a new phase of environmental despoliation of the Global South”, states a manifesto published last week by an alliance of social and environmental organisations.

“This decarbonisation of the rich, which is market-based and export-oriented, depends on a new phase of environmental despoliation of the Global South, which affects the lives of millions of women, men and children, not to mention non-human life”, the Manifesto for an Ecosocial Energy Transition says.

Women, especially from agrarian societies, are among the most impacted. In this way, “the Global South has once again become a zone of sacrifice, a basket of purportedly inexhaustible resources for the countries of the North.”

As the rich countries secure supply chains for these “clean” transitions, the web of debt and trade agreements in which countries outside the rich world are caught is tightened.

I hope that social movements and the labour movement in the rich countries will not only sign the manifesto (which you can do here), but also – probably more to the point – think about and discuss what it means for us.