Political Economy Research Institute (PERI)

By Jesse Bedayn - Cal Matters, February 17, 2022

A leading environmental lawmaker has proposed a bill that would create a state fund to support and retrain thousands of oil industry workers as California tries to phase out fossil fuel production.

The idea of guiding California’s 112,000 oil industry workers out of their current field and into other careers is often referred to as “just transition,” and is considered by policy researchers a necessary step to counter job losses as the state strives to reduce greenhouse gas emissions. 

But even with a Democratic supermajority in the state Legislature, such a proposal faces an uphill battle because it’s pitting unions against unions.

Community and environmental groups say the state should start moving half the industry’s workforce out of oil fields, refineries and plants now in order to meet California’s goal of cutting 40% greenhouse gas emission by 2030. But a union that represents a portion of these workers has opposed efforts in the past. 

The State Building and Construction Trades Council of California – known as the Trades – which represents labor groups that include Ironworkers, electrical workers and Teamsters, worry about losing good-paying jobs. Last year, The Trades opposed a bill that would have prevented oil drilling near schools and communities, citing job losses. 

This time, however, the Trades is being countered by another group of unions including steelworkers, municipal workers and teachers. Although the current bill doesn’t specify an amount, those unions hope the state will dedicate $470 million annually for wage subsidies and training to help workers move into the growing green energy sector. 

Trades leaders say that beginning to dismantle the industry now will only push workers into lower-paid jobs. Instead, Trades officials say, the state should invest in big-ticket infrastructure projects such as high-speed rail and offshore wind projects that will create comparable jobs to what workers have been doing for decades.

Assemblymember Al Muratsuchi’s bill exposes a rift among labor unions on how the state should address the transition to a green economy at a time of growing income inequality and fewer well-paying jobs for middle-class workers. 

It also puts labor’s main organizing body, California Labor Federation, in an uncomfortable position after Steelworkers requested that the organization convene “labor to labor” talks on the subject. Both sides say talks haven’t happened yet.

By Marisol Cantu, et. al. - Richmond Progressive Alliance - February 14, 2022

By Anne C Mulkern - Energy Wire, January 31, 2022

California officials are brainstorming how to help oil industry workers as the state moves to phase out fossil fuels and replace gasoline-powered vehicles with electric cars.

Democratic Gov. Gavin Newsom’s office and legislators are talking to unions representing industry workers, and a new state Assembly document outlines potential solutions. But it’s a complex quandary, raising questions about whether to guarantee workers their current salaries and benefits as their jobs disappear.

“One of the major hurdles in transitioning existing fossil fuels activities to clean energy ones has been the potentially negative economic consequences to workers and communities,” according to a document from the Assembly Office of Policy and Research obtained by E&E News. “As the state implements its ambitious climate goals, there is an opportunity to assist workers impacted by the transition to a green economy.”

Nearly 112,000 people work in 14 fossil fuel and ancillary industries in California as of 2018, according to a report last year from the Political Economy Research Institute (PERI) at University of Massachusetts, Amherst. The total includes oil and gas extraction operations, and support activities, and sectors such as fossil-fuel-based power generation.

What California decides to do about oil industry workers has the potential to ripple beyond the nation’s most populous state, said Catherine Houston, legislative, political and rapid response coordinator with United Steelworkers District 12.That union represents many oil industry workers.

“California typically takes the lead in a lot of these types of things, and we become an example for other states across the nation,” Houston said. “So whatever we do can potentially serve as a federal model.”

By Norman Rogers - United Steelworkers Local 675, October 23, 2021

Just days after the latest oil spill off the Huntington Beach coast, Gov. Gavin Newsom came to Orange County. In response to renewed calls to ban offshore drilling after about 25,000 gallons of crude oil poured into the Pacific Ocean, the governor commented, “Banning new drilling is not complicated. The deeper question is how do you transition and still protect the workforce?”

I belong to the workforce Newsom speaks of. I’ve worked at a Los Angeles oil refinery for over 22 years as a member of United Steelworkers Local 675. USW represents thousands of workers across Los Angeles, Kern and Contra Costa counties who run refineries, oil wells, pipelines and terminals. Over the last 100-plus years, our workers have shown up and labored without fail through earthquakes, riots, world wars, fires and most recently the pandemic. We supply fuel for plane trips, backup generators for hospitals and materials for syringes that have been crucial as we contain the coronavirus crisis.

Even before the renewed calls to halt drilling, we have felt like our jobs are threatened. When we watch football, we see repeated ads for hybrid and electric cars and now electric trucks like the Ford F-150 Lightning. In California, every new car sold after 2035 is to be an electric vehicle.

The writing is on the wall. As California pursues our goal of cutting emissions 40% by 2030, the resulting closure of the oil and gas industry means about 37,000 fossil fuel workers will need reemployment, while an additional 20,000 workers or so will voluntarily retire in the next nine years.

My father always said, “Failing to plan is planning to fail.” Though the energy transition is inevitable, a just version is not. Workers know what happens when whole industries go away: Companies maneuver behind our backs, squeeze every last drop of work out of a dying auto plant, steel mill or coal mine and shutter it overnight, devastating communities and stiffing workers out of jobs, pensions and healthcare. The fear is real of jobs lost with no plan for when operations begin to phase out.

We’re also concerned for our communities: The loss in tax revenue will cripple county and city budgets, hampering our schools, libraries and other services. The loss of our good-paying jobs will have a serious ripple effect, especially in Kern and Contra Costa counties.

Many speak of a “just transition,” but we’ve never seen one. No worker or community member will ever believe that an equitable transition is possible until we see detailed, fully funded state safety net and job creation programs.

To offer these safety nets, California needs to establish an Equitable Transition Fund for fossil fuel workers covering wage replacement, income and pension guarantees, healthcare benefits, relocation and peer counseling for professional and personal support. It should also provide access to education and training for existing and future jobs that are safe and healthy. California also needs to account for the funding gaps communities face when their tax bases shrink, so schools and libraries can stay open.

Longer term, transitioning the workforce should mean creating stable jobs with good pay and benefits. Right now, we earn well over minimum wage, meaning we can support our families. Many of us can own homes with fossil fuel jobs, and some of us earn six figures. If we start new work, we want to be able to continue supporting our loved ones.

We can create good new jobs for fossil fuel workers and others by investing in California’s climate goals. USW Local 675 was one of 20 unions, including three fossil fuel unions, that endorsed the California Climate Jobs Plan, a study published in June and led by economist Robert Pollin.

With money from California’s budget, federal funds, bonds and new revenue sources, the plan outlines $70 billion of public investments annually in safety net programs as well as renewable energy and energy efficiency projects, infrastructure upgrades and ecological agriculture. 

The goal is to reduce emissions and create 1 million new jobs in California by 2030. This will create opportunities for electricians, carpenters, bus drivers, teachers, engineers, planners and maintenance workers — including workers affected by the pandemic.

The best way to guarantee that these are good jobs and reduce disparity is to make sure they’re union jobs. Data showthat union representation means higher wages, better benefits and working conditions, and a better life for workers and the communities they support.

With a fully funded equitable transition plan — meeting the immediate need for a safety net for workers and communities, and offering a bold vision to restructure our economy — we can jump-start recovery and move California’s workers, communities and the planet toward a more secure future.

Norman Rogers is the second vice president of United Steelworkers Local 675.

By Michael Sainato - The Guardian, September 20, 2021

In the beginning of this summer, the US state of Connecticut passed legislation to guarantee prevailing wage and benefits are provided to workers on clean energy projects.

The law was a product of labor unions and environmental groups working together to educate workers about the climate crisis and develop solutions, with a focus on creating good-paying, unionized jobs and opportunities to combat economic inequities.

Through organizing led in part by the Climate Jobs National Resource Center and the Workers Institute at Cornell University, this strategy has been adopted in other states around the US, such as New York, Connecticut, Rhode Island, Illinois and Texas. For the labor movement and environmentalists it seems a win-win: tackle the ever more urgent climate crisis while at the same time address inequality by strengthening America’s labor movement.

Aziz Dehkan, executive director of the Connecticut Roundtable on Climate and Jobs, a coalition of local labor unions and environmental groups, explained the legislation in the state was built on efforts to ensure that a large solar project in East Windsor employed local, union workers rather than out of state or low-wage workers. The project also provided opportunities for individuals to enter apprenticeship programs and access jobs created through renewable energy projects.

“It came naturally to us that for every renewables project, we can’t keep going after individual projects,” said Dehkan. “If we don’t do it this way, we’re not going to be able to meet the standards in Connecticut to get close to zero carbon emissions by at least 2030.”

The coalition is also working on carbon-free schools and public transit equity campaigns.

Robert Pollin interviewed by Paul Jay - The Analysis News, August 4, 2021

By Alameda and Contra Costa AFL-CIO Central Labor Councils - Labor Network for Sustainability, July 30, 2021

By Delger Erdenesanaa - Inside Climate News, July 27, 2021

President Biden’s push for “good, union jobs” in clean energy has increased hope that organizing solar and wind workers can close the pay gap between them and fossil fuel workers.

President Biden’s push for “good, union jobs” in clean energy has increased hope that organizing solar and wind workers can close the pay gap between them and fossil fuel workers.

Two years ago, Skip Bailey noticed a lot of trucks from a company called Solar Holler driving around Huntington, West Virginia. A union organizer with the International Brotherhood of Electrical Workers, Bailey saw an opportunity.

“We want to get in on the solar business,” he said, predicting the industry will grow in his home region, which includes historic coal communities in West Virginia, Kentucky and Ohio.

Bailey talked to Solar Holler about unionizing its employees who install photovoltaic panels on homes. IBEW showed the company its local training facility for electricians, and explained the health insurance and pension plans it offers. 

“It wasn’t a hard sell in either direction,” said the company’s founder and CEO, Dan Conant. He was already interested in securing union protections for his employees when Bailey contacted him, he said. The move fit with Solar Holler’s dedication to West Virginia’s legacy of energy production and strong union membership.

“It was not just good business, but it just really spoke to our history as a state,” he said.

Conant and Bailey’s efforts paid off in March 2020, when IBEW Local 317 and Solar Holler signed a contract. It’s just a start—Solar Holler only has about 20 unionized employees—but the agreement is an early example of the future Joe Biden is promising. The president frequently pledges to create millions of jobs while transitioning the U.S. to clean energy. Every time he does, he’s quick to add that these will be “good, union jobs that expand the middle class.”

“It’s a great talking point,” said Joe Uehlein, president of the Maryland-based Labor Network for Sustainability, an advocacy group pushing to unionize green jobs. But he added that Biden faces a difficult balancing act to achieve his pledge. 

By Elizabeth Perry - Work and Climate Change Report, July 21, 2021

A Program for Economic Recovery and Clean Energy Transition in California, released in June, is the ninth in a series of reports titled Green Economy Transition Programs for U.S. States, published by the Political Economy Research Institute (PERI), and written by researchers led by Robert Pollin. In this latest report, the authors address the challenge of economic recovery from the Covid-19 pandemic, and contend that it is possible to achieve California’s official CO2 emissions reduction targets—a 50 percent emissions cut by 2030 and zero emissions by 2045— and at the same time create over 1 million jobs. The investment programs they propose are based on the proposed national THRIVE Agenda, (introduced into the U.S. Congress in February 2021), and rely on private and public investment to energy efficiency, clean renewable energy, public infrastructure, land restoration and agriculture. The report discusses these sectors, as well as the manufacturing sector, and also includes a detailed just transition program for workers and communities in the fossil fuel industry.

In Chapter 6, “Contraction of California’s Fossil Fuel Industries and Just Transition for Fossil Fuel Workers”, the authors note that only 0.6% of California’s workforce was employed in fossil fuel-based industries in 2019 – approx.112,000 workers. They model two patterns for the industry contraction between 2021-2030: steady contraction, in which employment losses proceed evenly, by about 5,800 jobs per year; and episodic contraction, in which 12,500 job losses occur in just three separate years, 2021, 2026, and 2030. After developing transition programs for both scenarios, they estimate that the average annual costs of episodic contraction would be 80% higher ($830 million per year) than the costs of steady contraction ($470 million per year). As with previous PERI reports, the authors emphasize the importance of the quality of jobs to which workers relocate: “It is critical that all of these workers receive pension guarantees, health care coverage, re-employment guarantees along with wage subsidies to insure they will not experience income losses, along with retraining and relocation support, as needed. Enacting a generous just transition program for the displaced fossil fuel-based industry workers is especially important. At present, average compensation for these workers is around $130,000. This pay level is well above the roughly $85,000 received by workers in California’s current clean energy sectors.” Relief Programs for Displaced Oil & Gas Workers Elements of an Equitable Transition for California’s Fossil Fuel Workers is a 2-page Fact Sheet summarizing the chapter.