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Political Economy Research Institute (PERI)

Class Struggle Environmentalism, Degrowth, and Ecosocialism

By x344543 - IWW Eco Union Caucus, May 27, 2023

Calling for "DeGrowth" without conditions or even "Ecosocialist DeGrowth" is far too vague and could potentially alienate the working class (and no version of socialism, let alone ecosocialism, can be achieved without support of the working class.

Consider the report that the UC Labor Just Released: Fossil fuel layoff - The economic and employment effects of a refinery closure on workers in the Bay Area. This report de­tails the experience of union refinery workers who have lost their jobs at the Martinez

On October 30, 2020, the Marathon oil refinery in Contra Costa County, California, was perma­nently shut down and 345 unionized workers laid off. 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.

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.

Some caveats:

  • While this report frames the closure as a result of energy transition in its press releases and in the media, they admit that the refinery really closed due to COVID, although the employer is opportunistically retool­ing the refinery for "renewable biodiesel" (a greenwashing scam, mostly);
  • Job losses and retooling happens all the time under capitalism.

This is NOT an example of "DeGrowth" andy more than it is an example of "Decarbonization" or "Energy Transi­tion", because fossil fuel profits are experiencing record and/or near record highs (for a variety of reasons)

What a World Beyond Fossil Fuels Will Mean for Workers, Families, and Communities

Protecting Workers and Communities, From Below Part 2: There Ought to Be a Law

By Jeremy Brecher - Labor Network for Sustainability, April 30, 2023

As key states start reducing their use of coal, oil, and gas, what will happen to the workers who produce, transport, and burn those fossil fuels? The previous Commentary, “Protecting Workers and Communities – From Below: Part 1: On the Ground” described local programs to protect workers and communities from side effects of power plant closings and other climate protection measures. This Commentary portrays state-level programs to guard workers and communities against loss of livelihoods and income from climate protection policies.

While the transition to climate-safe energy will create far more jobs than it will eliminate, that is cold comfort for those whose jobs may be threatened – after all, every job is important if it is your job. So many of those who are advocating for state policies for climate protection are also advocating protections for workers and communities that may be adversely affected by climate measures. And many of the states that are transitioning away from climate-destroying fossil fuels to climate-safe renewable energy are developing policies and programs to protect workers and communities from damaging side effects of that transition. While such provisions are still far from adequate, they provide initial experiments that can lay the groundwork for expanded protections at both state and national levels.

Employment Creation through Green Locomotive Manufacturing at Wabtec’s Erie, Pennsylvania Facility

By Gregor Semieniuk and Robert Pollin - Political Economy Research Institute (PERI), April 2023

This report estimates the prospects for job creation through expanding green locomotive manufacturing at the Westinghouse Air Brake Technologies (Wabtec) Corporation’s Lawrence Park facility in Erie, Pennsylvania. We consider the employment effects of three types of green locomotive manufacturing activities at Wabtec’s Lawrence Park site: 1) Tier 4 diesel-electric locomotives; 2) battery-electric locomotives without onsite battery production and 3) battery electric manufacturing with onsite battery production.

We estimate employment creation under 2 scenarios: an initial Phase 1, in which Wabtec produces 500 green locomotives per year at Lawrence Park and a Phase 2 in which production at Lawrence Park expands to 1,000 green locomotives per year. As of 2008, Wabtec had been producing locomotives at the Phase 2 level of about 1,000 locomotives per year. Phase 2 would therefore just return the Lawrence Plant facility to its earlier level of manufacturing activity.

We estimate that by producing 1,000 green locomotives per year at Lawrence Park, employment creation would range as follows, depending on which specific locomotive production activities are operating at the plant:

  • 3,400 – 5,100 jobs at Lawrence Park itself;
  • 3,060 – 5,100 jobs in Erie County outside of Lawrence Park;
  • 9,860 – 14,960 in the U.S. economy overall.

About 800 people are currently employed at Lawrence Park directly involved in locomotive production. Expanding production to 1,000 locomotives per year would therefore produce a net increase in employment at the facility by between roughly 2,600 – 4,300 workers.

Expanding green locomotive manufacturing production at Wabtec’s Lawrence Park facility will produce major gains in employment conditions in Erie County. This will be true both through the increase in the number of job opportunities relative to the 126,000 people that currently comprise the area’s labor market, and through the relatively high compensation levels associated with jobs at the Lawrence Park facility itself.

Download a copy of this publication here (PDF).

Fossil Fuel Industry Phase-Out: Three Critical Worker Guarantees for a Just Transition

Real Climate Solutions are No Mystery

Liberal States Like California Are Also Failing to Make Progress on Climate

By C.J. Polychroniou - Truthout, August 23, 2022

California has a well-established reputation as a national and global climate leader, but despite its remarkable successes in cutting emissions between 2006 and 2016, it has recently begun showing signs of having lost its way.

California is increasingly falling behind on its emissions reduction targets, and its existing policies have now been deemed insufficient to hit its 2030 target of reducing carbon emissions 40 percent below 1990 levels by 2030, according to new modeling from the climate policy think tank Energy Innovation.

“Compared to historical trends, California will need to more than triple the pace of emissions reductions to hit its 2030 target of reducing greenhouse gas (GHG) emissions 40 percent below 1990 levels by 2030,” the Energy Innovation report states.

The report is disappointing news, representing a weakening of the climate action that began with California’s passage of AB 32 in 2006. Otherwise known as the Global Warming Solutions Act, AB 32 was a landmark program in the struggle to reduce greenhouse gas emissions. Up until 2006, the United States was the largest emitter of carbon dioxide emissions in the world, and California was the second highest state in terms of total greenhouse gas emissions.

9 Million Jobs from Climate Action: The Inflation Reduction Act

By staff - Blue Green Alliance, August 2022

A new analysis commissioned by the BlueGreen Alliance from the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst finds that the more than 100 climate, energy, and environmental investments in the Inflation Reduction Act will create more than 9 million good jobs over the next decade—an average of nearly 1 million jobs each year.1,2 That includes more than 6 million jobs created over the next 10 years by grants, loans, and tax credits and nearly 3 million jobs stimulated by new loan guarantee authority for the U.S. Department of Energy. The bill’s broad investments will also help sustain the millions of existing jobs in the clean economy. 

Few pieces of legislation this century have come close to such sweeping potential for good job creation. With robust application of the bill’s strong labor standards, many of these jobs in growing sectors like clean energy, clean manufacturing, and efficient buildings will offer workers good wages and benefits. To advance economic and racial justice, registered apprenticeship programs, targeted investments, and equitable hiring practices should be used to prioritize job access for low-income workers, workers of color, and workers in environmental justice, deindustrialized, and energy transition communities. 

In short, the bill’s unprecedented investments offer an unparalleled opportunity for workers and communities to capture the economic gains of the growing clean economy. Below is a synopsis of some of the jobs that the Inflation Reduction Act will create.

The Climate Change Scoping Plan Must Directly Address the Concerns of Labor

By various - Labor Rise for Climate, Jobs, Justice, and Peace, July 14, 2022

We are writing to you as rank-and-file California trade unionists to request revision of the 2022 Draft Scoping Plan to incorporate the California Climate Jobs Plan based on “A Program for Economic Recovery and Clean Energy Transition in California.” 

While making frequent references to equity, the Draft Scoping Plan fails to present a credible roadmap for the massive economic and social transformation that will be required to protect and promote the interests of workers and communities as California confronts the climate crisis and emerges from the fossil fuel era.

Four years ago, United Nations scientists reported that it would take “rapid, far-reaching and unprecedented changes in all aspects of society” to limit increasingly catastrophic changes to the global climate. Among these rapid and far-reaching changes, the redesign of our economy requires an honest accounting and plan for the tens of millions of California workers whose lives will be changed dramatically in this decade and beyond. If there is to be a plan for transformation, it must center the aspirations and possibilities for working people. 

In this aspect, the Draft Scoping Plan falls short. Labor is treated as an externality. The draft lacks any discussion of public funding to create green jobs or protect workers and communities who depend on fossil fuel industries for their livelihood. The only union mentioned in the 228-page draft is the European Union. The draft’s abstract commitments to a job-rich future are based on crude economic modeling rather than concrete planning. We need more than vague assurances that economic growth guided by corporate interests will provide for the common good.

Multiplying Labor's Power

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