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Power Outrage: Will Heavily Subsidized Battery Factories Generate Substandard Jobs?

By Jacob Whiton and Greg LeRoy - Good Jobs First, July 2023

Under a provision of the Inflation Reduction Act, some factories making batteries for electric vehicles will each receive more than a billion dollars per year from the U.S. government, with no requirement to pay good wages to production workers. Thanks to the Advanced Manufacturing Production Credit, also called 45X for its section in the Internal Revenue Code, battery companies will receive tax credits that they can use, sell, or cash out.

The 45X program alone will cost taxpayers over $200 billion in the next decade, far more than the $31 billion estimated by Congress’s Joint Committee on Taxation. On top of 45X and other federal incentives, factories manufacturing electric vehicles and batteries have also been promised well over $13 billion in state and local economic development incentives in just the past 18 months.

What do local communities get from companies in exchange for public money? The Biden administration says the IRA will create “good-paying union jobs,” but the federal tax credit has no job quality requirements for permanent jobs and doesn’t mandate companies pay market-based wages or benefits.

Good Jobs First did the math for five recently announced battery factories. Here’s what we learned:

  • Total subsidies will range from $2 million to $7 million per job.
  • Average annual wages, as announced, will be below the current national average for production workers in the automotive sector.
  • The 45X credit alone is large enough to cover each facility’s initial capital investment cost and wage bill for the first several years of production.

Download a copy of this publication here (PDF).

Amazon Strikes as a Climate Justice issue; Trade Union briefing

Texas Takes Away WATER BREAKS Amid Record Heat Wave

Cop City is Bad News for Working People

Storytelling on the Road to Socialism: Episode 12: A Switchman Speaks

By Candace Wolf - Storytelling on the Road to Socialism, June 6, 2023

On this episode, a switchman from Harlem tells the story of militant anti-racist and class wars in the U.S. communications industry

Music:

  • The Internationale - Workers Party of Jamaica In-House Reggae Group
  • Get Back, Black, Brown & White - Big Bill Broonzy
  • There is Power in the Union - Utah Phillips
  • The People United Will Never Be Defeated - Ilti Illimani (English version sung by the Cambridge People's Assembly)
  • Solidarity Forever - Pete Seeger
  • Socialism is Better - words & music by Bruce Wolf; performed by Bruce Wolf, Noah Wolf, Gaby Gignoux-Wolfsohn

UAW Unionwide Town Hall on the Big Three Automakers

Storytelling on the Road to Socialism: Episode 11: A Domestic Worker Speaks

By Candace Wolf - Storytelling on the Road to Socialism, May 30, 2023

On this episode, a woman from Bangladesh tells the story of the struggles of domestic workers to demand an end to their servitude.

Music

  • The Internationale: Bengali version
  • Pirate Jenny: Nina Simone
  • Socialism is Better: words & music by Bruce Wolf; performed by Bruce Wolf, Noah Wolf, Gaby Gignoux-Wolfsohn

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)

Solidarity is Not Enough

By Northumbria IWW - Organise!, May 26, 2023

Up to half a million workers in the biggest industrial action in a decade; the number of days lost to strikes biggest since the Thatcher era; largest strike in the history of the health service; worst year for strike action since 1989. Calls for indefinite strikes, hashtag #generalstrike trending. 

There’s an image been going the rounds of left circles for a while – four identical photos of a woman sitting, head down and miserable, by a production line – the captions, “before Brexit, after Brexit, before the election, after the election”. It could as well say, “before the pandemic, after the pandemic” and I’m surprised I haven’t seen someone do that. 

The pandemic gave focus and force to a movement against the intensification of work. The four-day week, the 6-hour day, rising complaints about work-life balance and burnout, demands for hybrid work, all threaten employers’ attempts to recoup the financial cost of Covid. For some there has been a reintensification of work after a period of relative ease working from home. For all of us, realities of life before and after the pandemic have given the lie to the tentative freedoms many of us felt and cautiously explored during the lockdown. The significance of the resistance against work discipline could be seen by the slew of articles in the business and right-wing press in the past year condemning an irresponsible and selfish horde of quietly quitting, millennial serial quitters. After the lockdown, there is a swell of feeling for a deintensification of work. 

Threats to the value of shareholder returns must be dealt with so in response to these sentiments, we have a manufactured crisis – the Bank raised interest rates to trigger an artificial recession to reimpose work discipline via the cost-of-living. This has sparked widespread anger, and the traditional organs of the Left have mobilised to take the reins. The fightback against austerity has been union-led. Public sympathy for the strikes has been strong, but moral support, coins in collection buckets or posts on social media won’t address the wider issue, and nor will marches and rallies. Last summer, an RMT comrade from Bristol AFed commented, If passengers, staff and all workers across the country come together … but despite those early, heady days of chatting to fellow workers on picket lines, there is a vanishingly small chance of this now. The government’s anti-strikes bill is likely to keep future union demands – and action – modest.

The hashtag #generalstrike is over-optimistic and workers’ self-management is not on the table. The current wave of strikes is not about how the economy is run, but about workers having some say in how the proceeds of the economy are distributed. Union bureaucracies will settle for a few gains, retain authority over their members and then want to see this wave of solidarity and militancy fade into the background routine. Meanwhile, pay rises can be absorbed by productivity deals and changes to conditions so that returns to shareholders are maintained. Away from the workplace, pay rises can be absorbed by inflation until the anti-work wave is deemed to have dispersed, discipline has been reimposed and we’ve been put back in our box – and then the recession will magically go away. 

Hot Take: Urgent Heat Crisis For Workers

By Juley Fulcher - Public Citizen, May 25, 2023

Key Findings

  • Heat exposure is responsible for as many as 2,000 worker fatalities in the U.S. each year.
  • Up to 170,000 workers in the U.S. are injured in heat stress related accidents annually. There is a 1% increase in workplace injuries for every increase of 1° Celsius.
  • The failure of employers to implement simple heat safety measures costs the U.S. economy nearly $100 billion every year.
  • The dangers of heat stress are overwhelmingly borne by low-income workers. The lowest-paid 20% of workers suffer five times as many heat-related injuries as the highest-paid 20%.
  • Worker heat stress tragedies disproportionately strike workers who are low-income, Black or Brown.
  • At least 50,000 injuries and illnesses could be avoided in the U.S. each year with an effective OSHA heat standard.
  • Employers pay a substantial price for failing to mitigate workplace heat stress including the costs of absenteeism, turnover and overtime due to worker illness or injury, reduced worker productivity, damage to machinery and property from workplace accidents, increased workers’ comp premiums, law suits, and loss of public trust and customers.
  • The physical and mental capacity of workers to function drops significantly as heat and humidity increase. Productivity of workers declines approximately 2.6% per degree Celsius above a Wet Bulb Globe Temperature (WBGT) of 24°C (75.2°F). The WBGT is a measure that combines temperature, relative humidity, radiant heat sources (like direct sunlight or heat-generating machinery) and wind speed.
  • There are many simple ways employers can mitigate heat stress in the workplace, like access to cool drinking water and adequate “cool down” breaks in a shaded or air-conditioned space.
  • It is essential that OSHA issue an interim rule to immediately prevent heat-related illness, injury and death in indoor and outdoor workers, both to protect workers and to reduce the clear burden on the economy.

The right to a safe workplace is a basic human right. Exposure to excessive heat is one of the most dangerous problems facing workers today. Tens of thousands of workers suffer heat illnesses, injuries and fatalities every year in the U.S. This is a toll disproportionately borne by Black and Brown workers, and low-income workers with limited options for safer employment. This is most clearly demonstrated by the plight of farmworkers, who have the highest rate of heat-related worker deaths, and are overwhelmingly immigrant workers with little power to demand workplace reforms from their employers.

Download a copy of this publication here (PDF).

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