You are here

mine workers

Managed Decline: A Just Clean Energy Transition and Lessons from Canada’s Cod Fishing Industry

By Adam Scott and Matt Maiorana - Oil Change International, September 12, 2016

There’s a clear logic to the global challenge of addressing climate change: when you’re in a hole, stop digging. If we’re serious about tackling the global climate crisis, we need to stop exploring for, developing, and ultimately producing and consuming fossil fuels. This inevitably leads to the decline of the oil, gas, and coal industries.

This leaves us with two clear options. Either we carefully manage the decline of the fossil fuel industry to ensure a smooth and just transition, or we let the chips fall where they may and risk decimating communities that are reliant on the fossil fuel economy. The path we choose will make all the difference to those communities as the decline of fossil fuels becomes inevitable.

A textbook example of how NOT to manage the decline can be found in the painful history of the Newfoundland cod fishery.

One of eastern Canada’s premier industries, the cod fishery defined the economy and the culture of coastline communities for centuries. Commercial fishing off the Grand Banks of Newfoundland dates back as far as 1500, but it wasn’t until factory trawlers were introduced around 1950 that catches became increasingly unsustainable. At its peak in 1968, the catch of northern cod in the Atlantic reached 1.9 million tons. However, the impact of overfishing soon became apparent.

In the 1980s, Canada’s Department of Fisheries and Oceans received increasingly dire warnings about the rapidly diminishing fish stock from fishermen and scientists, but these were largely ignored. Much like climate science models today, these marine science models were often ignored when setting quotas and planning for future catches. These plans weren’t set by the scientific models, but instead by politicians. Despite mounting evidence, the Department of Fisheries and Oceans continued to boost catch quotas without regard to the impacts of their actions. A 1992 Canadian Department of Fisheries and Oceans audit found that the science regarding the health and management of cod stocks “was gruesomely mangled and corrupted to meet political ends.” As a result, fish stocks continued to plummet.

'Payday loans of the mining industry' download risk to workers in one of world's most dangerous jobs

By Sharry Taylor - Rabble.Ca, September 26, 2016

Goldcorp founder Rob McEwen has called them "the payday loans of the mining industry" and they're introducing a new, intense pressure on an industry already reviled for Indigenous land theft, dangerous working conditions and environmental infractions.

"Streaming" is a form of speculative futures in the gold mining industry where instead of charging interest, financiers provide loans secured by a mine's assets in exchange for a future cut of production. As gold has become more difficult to find and access, higher production costs have left many mines unable to finance production through debt and equity. Since 2004, streaming has emerged to fill this void.

Mining companies agree to sell a percentage of their future gold to the streaming company at a deep discount. When the gold has been mined, streaming companies sell their cut at the spot price, collecting the difference as profit.

Once a mine is producing gold, the streaming deal becomes active with the mine first repaying its debt to the streaming financier. Yet since streaming deals promise a share of production over the life of the mine, even once this debt is paid off the mine must continue to pay. At one non-unionized mine in northern Ontario, the streaming deal in place will yield the streaming company a predicted $18 million in profit from the mine over its estimated life of six years; more than a 50 per cent return on their original loan to the mine.

Streaming represents a new emergent layer in capitalism that is more acutely derivative and parasitic. This layer overlies the productive economy and its workers in technically creative ways, expropriating maximum surplus value while avoiding messy risks. Streaming takes a cut of production while leaving political and operations-related risks to be borne by mining companies.

This means that "risk minimization" for streaming company investors is really "risk displacement" onto people affected by mining operations. When profit margins are squeezed by streaming deals, other parts of the mining operation must compensate in order for it to be profitable. This could manifest in a myriad of ways, from union-busting to toxic waste dumping. It is becoming evident that part of this risk is shifted onto miners, whose work is intensified by the pressures from streaming's relentless skim.

Sources at one streamed Ontario mine say that management holds quarterly meetings with the miners, reporting figures that point out the relationship between costs, gold production and mine viability. How much rock has been removed from the mine, the gold recovery rate from it, total ounces of gold recovered, and its average selling price; these are aggregated along with life- of-mine costs into an important figure called the "all-in sustaining cost," or AISC.

The AISC represents the overall cost per ounce of producing gold at the mine at a particular moment in time. If the AISC is continually above the price of gold, the mine ceases to be profitable. Miners get a sense from these meetings how close to this point they are. Since streaming costs are factored into the AISC for each quarter, streaming agreements have a direct impact on the goals that are set for miners and the production pace to which they must aspire in order to be "profitable." Sources at the streamed Ontario mine say that towards the end of the quarter, miners are encouraged and incentivized to work faster, which puts their safety at risk.

At their most recent quarterly meeting in August 2016, mine management focused heavily on safety, since reportable injuries went up in 2015 and a miner was seriously injured by falling rocks in June. Yet miners were also told that they are "behind" in gold production for the year-to-date. When a crew recently identified a serious safety issue that resulted in part of the mine's permanent closure, management praised the team for identifying the issue, but also mentioned that it cost the company $1.2 million. These mixed messages essentially transfer corporate financial decisions onto miners as they consider matters of safety.

Streaming deals mean that part of the miners' future work is already promised away. This future loss weighs heavily upon the present, increasing a mine's AISC and therefore the urgency for present production while gold prices are high enough to support the costs. This directly pits the concept of being jobless against that of safety for miners, while streaming companies sit back and wait for their returns.

Streaming's exploitative terms mean that miners must work at maximal speed and efficiency in order for a mine to remain viable. With priorities shifted by this knowledge, streaming has the potential to influence miners' decisionmaking in ways that could well turn out to be deadly.

Carbon Bubble News #122

Coal miner retirees demand pension and health coverage

By Marg Ogolini - Socialist Action, September 10, 2016

Thousands of retired miners and supporters converged on Washington, D.C., on Sept. 8 to demand government action to shore up retiree pension and health care benefits. These benefits have been under a constant barrage of attacks from coal companies, which are determined to shed themselves of responsibility for the health and security of both union and non-union miners and retirees.

Retirees and their dependents also want assurance that existing health benefits and pensions will remain in place. The United Mineworkers of America (UMWA) says the health and future of 120,000 retired miners and their families are at stake.

UMWA reports that their members traveled in more than 120 buses to the protest—from Alabama, Georgia, Illinois, Indiana, Kentucky, Ohio, Pennsylvania, Virginia and West Virginia.

Under the impact of the coal company assault over many years, gains in retiree health care and pensions that were won in past union battles have been eroding. Current laws under attack by coal companies provide some guarantees for lifetime care for mine workers. These were largely won in 1946 from militant strikes that involved over 400,000 union miners.

During 1945 and 1946, a strike wave that spread throughout the country also involved other industries—including railroad, auto, and steel. President Truman assisted the coal companies’ strike-breaking strategy by attempting to force arbitration, and eventually by threatening the UMWA with a $3.5 million fine. However, the eventual settlement included some gains for the miners, including safer working conditions and a “promise” of health benefits and retirement pension “from cradle to grave.”

One D.C. protester was Bill Musgrave, a retired miner from Boonville, Ind., and UMWA Local 1196. Musgrave, who has been diagnosed with cancer, told the Evansville Courier: “It took me a while to [find out you have to] fight as hard to keep something as you did to get it initially. … Unfortunately the government has decided to back out of the obligation they made to the mineworkers in 1946. … Seems like the government, they have the money to bail out the bankers and the corporations, and we’re not even asking for a bailout.”

A married couple attending the protest described the need for additional medical coverage given out of pocket family medical costs of over $13,000 per month. Cindy Scherzinger told the Courier: “You go to union meetings, and it looks like a retirement home. Everyone there has their own set of problems.”

Coal companies, especially those with union-organized mines, have been declaring bankruptcies, and pressing courts to allow them to evade pension and health-care obligations to their workers. One of most recent examples was Patriot Coal, a subsidiary of Peabody Energy that closed down via bankruptcy last year.

The attack on retirees is part of a broader attack against all union miners. According to the Bureau of Labor Statistics, since 2014 nearly 191,000 coal-mining jobs have been lost. Many mines that have not closed down suffer large-scale layoffs and dismissals. Workers are being thrown out on the street, and those who remain face ever increasing forced overtime hours, and steadily degrading and unsafe working conditions.

This trend will likely continue as capitalist owners are always finding new ways to expand their profits, and as they have demonstrated, will close mines in a heartbeat as they see new and greater opportunities for profit elsewhere.

Coal companies are also under pressure as the economy shifts away from fossil fuels, an absolute necessity to address the urgent problem of global warming. And it has long been well known that generating energy with fossil fuels is also devastating to the health of mine workers, who for years have been victims of black lung disease, and other chronic illnesses specific to work in mines.

Carbon Bubble News #121

Compiled by x344543 - IWW Environmental Unionism Caucus, September 13, 2016

A supplement to Eco Unionist News:

Lead Stories:

Carbon Market Watch:

Other Carbon Bubble News:

Utility Death Spiral News:

For more green news, please visit our news feeds section on ecology.iww.org; Twitter #IWWEUC; Hashtags: #greenunionism #greensyndicalism #IWW. Please send suggested news items to include in this series to euc [at] iww.org.

The Economics of Just Transition: a Framework for Supporting Fossil Fuel-Dependent Workers and Communities in the United States

By Robert Pollin and Brian Callaci - Department of Economics and Political Economy Research Institute (PERI), University of Massachusetts-Amherst, September 9, 2016

ABSTRACT: We develop a Just Transition framework for U.S. workers and communities that are currently dependent on domestic fossil fuel production. Our rough high-end estimate for such a program is a relatively modest $600 million per year. This level of funding would pay for

  • 1) income, retraining and relocation support for workers facing retrenchments;
  • 2) guaranteeing the pensions for workers in the affected industries; and
  • 3) mounting effective transition programs for what are now fossil- fuel dependent communities.

The paper first summarizes the evidence on how much the U.S. fossil fuel industry will need to contract to achieve CO2 emissions reduction targets consistent with the global targets established by the Intergovernmental Panel on Climate Change (IPCC). We then consider the impact of fossil fuel cutbacks on five ancillary U.S. industries, including support activities for coal and oil/gas as well as oil refining, electric power generation, and natural gas distribution.

Section 3 presents estimates on job cuts that will occur in the fossil fuel and ancillary industries due to U.S. fossil fuel production cutbacks. Combining all fossil fuel and ancillary industries, we show that fully 83% of the job losses can be covered through attrition-by-retirement. To address the remaining 17% of job losses through fossil fuel industry cutbacks, we propose reemployment guarantees in the growing clean energy industries for displaced workers. As part of this job guarantee program, we estimate the costs of three provisions for the displaced workers: 100 percent compensation insurance for five years; retraining; and relocation support.

Section 4 reviews the status of pension programs in the fossil fuel and ancillary industries and propose measures to maintain these pension programs at full funding int o the future.

Section 5 examines measures to support communities that are presently heavily dependent on the U.S. fossil fuel industry.

The concluding Section 6 brings together our cost estimates for the three components of our Just Transition program.

Carbon Bubble News #120

Compiled by x344543 - IWW Environmental Unionism Caucus, September 7, 2016

A supplement to Eco Unionist News:

Lead Stories:

Carbon Market Watch:

Other Carbon Bubble News:

Utility Death Spiral News:

For more green news, please visit our news feeds section on ecology.iww.org; Twitter #IWWEUC; Hashtags: #greenunionism #greensyndicalism #IWW. Please send suggested news items to include in this series to euc [at] iww.org.

(Preliminary) Workers' Climate Plan

By Lliam Hildebrand, et. al. - Iron and Earth, September 2016

Iron & Earth, a Canadian non-profit organization led by skilled trades workers with experience in Canada’s oil industry, is developing a Workers’ Climate Plan. This preliminary report describes how Canadacan become a leader in renewable energy, and a net exporter of renewable energy products, services and technology, by harnessing the industrial trade skills of current energy sector workers. A growing number of oil and gas trades people support a transition to renewable energy so long as it provides a just transition for current energy sector workers. By utilising Canada’s existing energy sector workforce, organizations and infrastructure, Canada can accelerate the transition to renewable energy, decrease the cost, and make Canada’s renewable energy sector globally competitive.

Throughout September and October, Iron & Earth will continue to reach out to energy sector workers over the phone and in person to speak about the Workers’ Climate Plan in more detail. Iron & Earth is consulting with a range of energy sectors take holders in partner ship with the Alberta-based EnergyFutures Lab in order to devise a set of recommendations based on worker demands. This will informan expanded Workers’ Climate Plan which we will release in November 2016 ahead of The 22nd session of the Conference of the Parties (COP 22). In this preliminary, abridged version of the Workers' Climate Plan, we share insights from current energy sector workers for the consideration of the Working Group on Clean Technology, Innovation and Jobs, as they compile their reports for the ministerial tables in September 2016.

Read the report (PDF).

The Sky’s Limit: Why the Paris Climate Goals Require a Managed Decline of Fossil Fuel Production

By Greg Muttitt, et. al. - Oil Change International, et. al., September 2016

In December 2015, world governments agreed to limit global average temperature rise to well below 2°C, and to strive to limit it to 1.5°C. This report examines, for the first time, the implications of these climate boundaries for energy production and use. Our key findings are:

  • The potential carbon emissions from the oil, gas, and coal in the world’s currently operating fields and mines would take us beyond 2°C of warming
  • The reserves in currently operating oil and gas fields alone, even with no coal, would take the world beyond 1.5°C
  • With the necessary decline in production over the coming decades to meet climate goals, clean energy can be scaled up at a corresponding pace, expanding the total number of energy jobs.

One of the most powerful climate policy levers is also the simplest: stop digging for more fossil fuels. We therefore recommend:

  • No new fossil fuel extraction or transportation infrastructure should be built, and governments should grant no new permits for them
  • Some fields and mines –primarily in rich countries –should be closed before fully exploiting their resources, and financial support should be provided for non-carbon development in poorer countries
  • This does not mean stopping using all fossil fuels overnight. Governments and companies should conduct a managed decline of the fossil fuel industry and ensure a just transition for the workers and communities that depend on it.

In August 2015, just months before the Paris climate talks, President Anote Tong of the Pacific island nation of Kiribati called for an end to construction of new coal mines and coal mine expansions. This report expands his call to all fossil fuels.

Read the report (PDF).

Breathing in the benefits: How an accelerated coal phase-out can reduce health impacts and costs for Albertans

By Benjamin Israël, Kim Perrotta, Joe Vipond, Leigh Allard, and Vanessa Foran - Pembina Institute, September 2016

With the phase-out of coal power announced by the provincein November 2015, Albertans stand to avoid significant health impacts caused by coal pollution. By extension, afurtheraccelerated phase out of coal power facilities would both hastenand amplify those avoided health impacts.The health benefits and costs savings in avoided health outcomes would be significant, and should be consideredin the government’s planning of the coal phase-out from now to 2030.

While the provincial government has announced a coal phase-out, they have not yet released a transition schedule. This analysis assesses the relative benefits of an accelerated stepwise transition away from coal, as proposed by the Pembina Institute,versus the back-loaded phase-out that otheranalyses haveposited.

In 2012, when the federal government finalized its coal regulations that —in effect —reduce electricity generation from coal plants, Environment Canada(as it was called at that time)estimated considerable health impacts would be avoided, usinghighly regarded modelling techniques. Logically, thesesignificantbenefits from reducing coal necessarily mean that the use of coal for power generation causesconsiderablehealth impacts in the first place.

By extrapolating the health benefit results from Environment Canada’s analysis, this report highlights the full impact of coal-fired generation in Albertaand indicates attainable benefits associated with the province’s coal phase- out.When the federal government weakened its proposed coal regulations back in 2012 in response to lobbying from some coal generators, allowing coal plants to continue unabated longer than first proposed,it left health savings on the table. Alberta can now grasp these savings byaccelerating our transition away from coal-fired electricity.

Read the report (PDF).

Pages

The Fine Print I:

Disclaimer: The views expressed on this site are not the official position of the IWW (or even the IWW’s EUC) unless otherwise indicated and do not necessarily represent the views of anyone but the author’s, nor should it be assumed that any of these authors automatically support the IWW or endorse any of its positions.

Further: the inclusion of a link on our site (other than the link to the main IWW site) does not imply endorsement by or an alliance with the IWW. These sites have been chosen by our members due to their perceived relevance to the IWW EUC and are included here for informational purposes only. If you have any suggestions or comments on any of the links included (or not included) above, please contact us.

The Fine Print II:

Fair Use Notice: The material on this site is provided for educational and informational purposes. It may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. It is being made available in an effort to advance the understanding of scientific, environmental, economic, social justice and human rights issues etc.

It is believed that this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have an interest in using the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. The information on this site does not constitute legal or technical advice.