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Employment Impacts of New U.S. Clean Energy, Manufacturing, and Infrastructure Laws

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, Gregor Semieniuk, and Chirag Lala - Political Economic Research Institute, September 18, 2023

The report Employment Impacts of New U.S. Clean Energy, Manufacturing, and Infrastructure Laws by PERI researchers Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, Gregor Semieniuk and Chirag Lala estimates job creation, job quality, and demographic distribution measures for the three major domestic policy initiatives enacted under the Biden Administion—the Inflation Reduction Act (IRA), Bipartisan Infrastructure Legislation (BIL), and the CHIPS Act. Pollin et al. find that, in combination, total spending for these measures will amount to about $300 billion per year. This will generate an average of 2.9 million new jobs within the U.S. economy as long as spending for these programs continues at this level. The newly created jobs will be spread across all sectors of the U.S. economy, with 45% in a range of services, 16% in construction, and 12% in manufacturing. Critically, the study finds that roughly 70% of the jobs created will be for workers without four-year college degrees, a significantly higher share than for the overall U.S. labor market. As such, these measures expand job opportunities especially for working class people who have been hard hit for decades under the long-dominant neoliberal economic policy framework.

Download a copy of this publication here (PDF).

Battle Over Electric Vehicles Is Central to Auto Strike

By staff - DNYUZ, September 16, 2023

A battle between Detroit carmakers and the United Auto Workers union, which escalated on Friday with targeted strikes in three locations, is unfolding amid a once-in-a-century technological upheaval that poses huge risks for both the companies and the union.

The strike has come as the traditional automakers invest billions to develop electric vehicles while still making most of their money from gasoline-driven cars. The negotiations will determine the balance of power between workers and management, possibly for years to come. That makes the strike as much a struggle for the industry’s future as it is about wages, benefits and working conditions.

The established carmakers — General Motors, Ford Motor and Stellantis, which owns Chrysler, Jeep and Ram — are trying to defend their profits and their place in the market in the face of stiff competition from Tesla and foreign automakers. Some executives and analysts have characterized what is happening in the industry as the biggest technological transformation since Henry Ford’s moving assembly line started up at the beginning of the 20th century.

Nearly 13,000 U.A.W. workers walked off the job at three plants in Ohio, Michigan and Missouri on Friday after talks between the unions and the companies in three separate negotiations failed to result in agreements before a Thursday deadline. Pay is one of the biggest sticking points: The union is demanding a 40 percent pay increase over four years but the automakers have offered roughly half as much.

But the talks are about more than pay. Workers are trying to defend jobs as manufacturing shifts from internal combustion engines to batteries. Because they have fewer parts, electric cars can be made with fewer workers than gasoline vehicles. A favorable outcome for the U.A.W. would also give the union a strong calling card if, as some expect, it then tries to organize employees at Tesla and other nonunion carmakers like Hyundai, which is planning to manufacture electric vehicles at a massive new factory in Georgia.

Auto Workers Strike Plants at All Three of the Big 3

By Luis Feliz Leon and Jane Slaughter - Labor Notes, September 15, 2023

Tick, tock. At midnight the clock ran out, and auto workers massed on picket lines.

The first-ever simultaneous strike at the Big 3 automakers—General Motors, Ford, Stellantis—started September 15 with 13,000 workers walking out of three assembly plants in Michigan, Ohio, and Missouri. There are 146,000 Auto Workers (UAW) members at the Big 3.

The UAW is calling its strategy the “stand-up strike,” a nod to the Flint sit-down strike of 1936-1937 that helped establish the union.

The shot across the bow came two hours shy of midnight via a very short Facebook Live video where UAW President Shawn Fain shared the strike targets: Stellantis’s Toledo Assembly Complex in Ohio; GM’s Wentzville Assembly Center, near St. Louis; and the final assembly and paint departments at Ford’s Michigan Assembly Plant, west of Detroit. These plants make highly profitable full-sized SUVS and trucks, including the Jeep Wrangler, Chevy Colorado, and Ford Bronco.

Fain laid out the union’s escalation strategy on Wednesday. The union will target a few plants at first, letting the Big 3 know the union is willing to inflict financial pain.

The idea is to keep the companies guessing. If they don’t move on the union’s demands, more pain will be applied—but the companies won’t be able to predict where.

“An all-out strike is still a possibility,” Fain said.

Why THIS UAW MEMBER IS READY TO STRIKE

Green Groups Stand With UAW in Fight to Protect Autoworkers During EV Transition

By Julia Conley - Common Dreams, September 13, 2023

On the eve of the expiration of the United Auto Workers union's contract and a potential strike Wednesday, climate action groups were among more than 100 civil society organizations on Wednesday calling on the "Big Three" automakers to ensure that a new contract protects workers as the U.S. transitions toward making electric vehicles.

Groups including the Center for Biological Diversity, Public Citizen, Sierra Club, and Earthjustice were among those expressing solidarity with nearly 150,000 union autoworkers who are demanding that employees of electric vehicle battery plants being developed by Stellantis, Ford, and General Motors are paid fairly—reflecting the record profits the automakers have reported in recent years.

"Within the next few years—the span of this next contract—lies humanity's last chance to navigate a transition away from fossil fuels, including away from combustion engines," wrote the groups in an open letter. "With that shift comes an opportunity for workers in the United States to benefit from a revival of new manufacturing, including electric vehicles (EVs) and collective transportation like buses and trains, as a part of the renewable energy revolution."

"This transition must center workers and communities, especially those who have powered our economy through the fossil fuel era, and be a vehicle for economic and racial justice," they added. "We are putting you on notice: Corporate greed and shareholder profits must never again be put before safe, good-paying union jobs, clean air and water, and a livable future."

Progressive Groups Unveil 'Rural New Deal' to 'Reverse Decades of Economic Decline'

By Jessica Corbett - Common Dreams, September 13, 2023

"A Rural New Deal is urgently needed to build and rebuild local economies across rural America, reverse 40 years of wealth and corporate concentration, restore degraded lands, reclaim land and ownership opportunities for those whose land was taken by force or deceit, and ensure that communities and the nation can and do meet the basic needs of its people."

That's the opening line of a report released Tuesday by Progressive Democrats of America (PDA) and the Rural Urban Bridge Initiative (RUBI), which recognizes that "for too long, we've neglected, dismissed and underinvested" in rural U.S. communities, and offers "a broad policy blueprint to help steer progressive priorities" in such regions.

"Addressing the problems and concerns of rural America, isn't just the right thing to do, it is essential for the health of our nation. Progressives have ignored rural for too long," said PDA executive director Alan Minsky in a statement. "The Rural New Deal will change that."

Jacobin Writer: These Negotiations Are About The Future of the Industry

Automakers Hand Billions To Shareholders While Stiffing Workers

By Matthew Cunningham-Cook and Lucy Dean Stockton - The Lever, September 12, 2023

Roughly 150,000 auto workers are preparing to launch what may be the biggest strike in decades this Thursday over their employers’ refusal to provide adequate pay and job security. Meanwhile, in the past twelve months, the Big Three automakers — General Motors, Ford, and Stellantis — have authorized $5 billion in stock buybacks, effectively giving billions of dollars to shareholders that could have gone to auto workers.

On top of the stock buybacks, the Big Three have reported $21 billion in profits in just the first six months of 2023. Despite the enormous gains, the companies have cried poverty in response to union demands for wage increases to make up for decades of pay stagnation.

In a statement released last month, General Motors (GM) claimed that the United Auto Workers’ (UAW) demands “would threaten our ability to do what’s right for the long-term benefit of the team.”

As part of its efforts to force the auto companies to spend more on their workers, the UAW has taken aim at the corporations’ stock buyback approach, in which companies repurchase their shares to drive up their short-term value. In their negotiations over a new contract, which expires on Thursday, the union proposed automatic payments to workers when the companies authorize buybacks or expand dividends. 

‘The Cost of Doing Nothing Is Much Higher’: Big Three Auto Workers Prepare to Strike

By Luis Feliz Leon - Labor Notes, September 12, 2023

Two days before their contract expires at midnight Thursday, the Auto Workers (UAW) are poised to strike the Big 3 automakers—General Motors, Ford, and Stellantis—to recoup concessions made over the past two decades, end tiers, boost wages, and fight for a shorter workweek and other quality-of-life demands.

The auto companies are preparing for a strike, given the UAW’s new fighting spirit, on display in rallies and on the shop floor.

UAW President Shawn Fain was elected in March on a slate backed by the reform movement Unite All Workers for Democracy (UAWD), on a platform of “no corruption, no concessions, no tiers,” ending nearly 80 years of one-party rule in the union.

The reform slate won every seat it contested and came into office with a mandate to take the union in a more militant direction, similar to the leadership shakeup in the Teamsters in 2021.

A Rural New Deal

By Anthony Flaccavento, Alan Minsky, and Dave Alba - Progressive Democrats of AMerica and Rural Urban Bridge Institute, September 12, 2023

A Rural New Deal is urgently needed to build and rebuild local economies across rural America, reverse forty years of wealth and corporate concentration, restore degraded lands, reclaim land and ownership opportunities for those whose land was taken by force or deceit, and ensure that communities and the nation can and do meet the basic needs of its people. This document proposes ten pillars essential to a Rural New Deal, each with a modest amount of detail about specific policies in order to understand what implementation of the pillar might look like.

At the heart of a RND is the recognition that rural places are fundamentally different from urban and suburban areas, not only culturally and politically, but physically. They are “rural” because they are expansive and land-based. This does not mean that all efforts to rebuild rural economies and communities should revolve around farming or other land-based sectors. However, it does mean that land-based (also including rivers, lakes and oceans) enterprises must still play a central role in rural development, even as internet access, virtual work and the tech sector grow in importance.

While rural and urban places are fundamentally different, they are also deeply intertwined. Many farmers, fishers, foresters and other rural businesses have come to rely on urban markets and in some cases, capital to sustain them. On the other hand, towns and cities need healthy, functioning rural communities for their food, fiber, energy and clean water, indeed for their very survival. Yet for too long, we’ve neglected, dismissed and underinvested in the people that provide these essential goods along with critical ecological services. This has caused great harm to rural communities and it has undermined our collective health and resilience as a nation. Rebuilding and renewing supportive social and economic connections across rural and urban lines, empowering rural people and communities, moving away from extractive relationships of the past, is the course we must chart together.

Download a copy of this publication here (PDF).

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