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In a Clean Energy Future, What Happens to California’s Thousands of Oil Refinery Workers?

By Danielle Riedl and Devashree Saha - World Resources Institute, April 23, 2024

California is often considered the United States’ greenest state — a first-mover on climate policy, renewable energy, electric vehicles and more. But at the same time, the state is still a fossil-fuel production powerhouse.

This is especially true for its petroleum refineries, which turn crude oil into transportation fuels (like gasoline) and feedstocks for making chemicals. Despite declining oil production in the state, California still has the third-largest crude oil refining capacity in the country, just after Texas and Louisiana. About 83% of its refined petroleum is used for transportation, a sector that produces half of the state’s greenhouse gas emissions. California is also the country’s largest consumer of jet fuel and second-largest user of motor gasoline, fuels that are processed and refined at petroleum refineries.

At the same time, California has a legal requirement to cut 85% of its emissions by 2045. Phasing down petroleum refineries, along with petroleum-based transportation fuels, are crucial steps in meeting that goal. Which begs the question: What happens to the thousands of workers, families and communities who rely on the state’s oil refineries for jobs and tax revenues?

While California is developing a detailed roadmap on how it will reduce its emissions, it doesn’t yet include a plan for addressing the impact of refinery closures — specifically, loss of jobs, incomes and the critical tax revenues that support communities’ schools, healthcare systems and more. California therefore has an opportunity to not only lead on phasing down America’s refineries, but to also make the transition a just one.

Big Oil's Dark Money Ad Campaign Exposed

By Staff - Center for Biological Diversity, January 8, 2024

This is an ongoing pillar of the fossil fuel industry’s playbook in California: front groups organized and funded by the oil companies masquerade as “broad coalitions” of concerned citizens and business representatives but are functionally opaque entities with a single mission: furthering the oil and gas industry’s agenda in the state.

Usually organized as 501(c)(4) nonprofits (“social welfare organizations”), such groups are referred to as “dark money” because they’re able to spend money on certain types of campaigns without revealing their donors. Under California law, these types of groups are legally permitted to spend funds on “issue advocacy” campaigns without revealing their donors.

Because these “issue advocacy” campaigns don’t explicitly advocate for or against ballot measures or referenda, millions of dollars can be spent to subtly influence voters without disclosing the true funders behind the messaging campaign. Because of the lack of donor disclosure, we refer to these groups as “dark money groups.”

This report profiles three such groups that have been actively pushing an oil industry ad campaign to promote anti-SB1137 talking points (higher gas prices, losing good jobs, foreign oil); all three track back to the California Independent Petroleum Association (CIPA) and to the Western States Petroleum Association (WSPA), the top lobbyist for the oil industry in the western United States.

Download a copy of this publication here (link).

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

The Transition to Green Energy Must Center Workers and Unions

By Tracy Scott - Newsweek, May 3, 2023

When John Bayer got the call that the Marathon Martinez oil refinery was shutting down, he was sound asleep after his graveyard shift at the facility, where he worked a union job as a health, safety and emergency response resource. For John, the phone call did more than wake him up after a night of hard work. As an employee at the Marathon refinery for nearly two decades and as the sole provider for his wife and two kids, it shook the foundation of his life and career.

John was just one of nearly 350 workers represented by United Steelworkers Local 5, the union I lead, who lost their jobs when the Marathon refinery shut down in October 2020. John's story echoes that of thousands of oil and other workers across the country who are facing an uncertain future amid the changing energy landscape.

To be clear: In California and across the country, working people support addressing climate change and transitioning to renewable energy. But when refineries like the former Marathon facility shut down without a clear plan in place that involves unions from the outset, workers and the community inevitably get left behind.

In order to guarantee that California has an economy that works for everybody, impacted workers must be at the center of planning for the ongoing transition to clean energy, and they must have access to union jobs that guarantee financial security, strong protections, and good benefits.

Fossil fuel layoff: The economic and employment effects of a refinery closure on workers in the Bay Area

By Virginia Parks, PhD and Ian Baran - UC Labor Center, April 26, 2023

On October 30, 2020, the Marathon oil refinery in Contra Costa County, California, was permanently shut down and 345 unionized workers laid off. We surveyed (n=140) and interviewed (n=21) these refinery workers to document their post-layoff employment experiences. The findings in this report focus on these workers’ post-layoff job search, employment status, wages, and financial security. 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. The utility sector (electrical power, natural gas, wastewater management) was the second most common sector of re-employment. Workers reported that utility jobs were a good fit for their skills, reputed as “good jobs,” and highly sought after. The median hourly utility wage was $41. The third most common re-employment sector was chemical treatment. Less than half (43%) of all post-layoff jobs were unionized.

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.

Workers had difficulty finding jobs that matched their skills when searching for work. They emphasized two primary frustrations: 1) employers’ lack of knowledge about refinery work and refinery workers’ skills and 2) workers’ inability to prove their skill or experience through certifications or a verification process.

Nearly all workers (91%) would consider job training. Approximately half (49%) said they would enroll in a job training program, 42% responded “maybe,” and 9% said they would not. Workers aged 40 to 49 reported the greatest willingness to enroll in training followed by workers aged 30 to 39. Hesitation was highest among workers over the age of 50. Workers’ most prevalent concerns about training were cost, needing to earn while training, and training program length. Many workers were apprehensive about the efficacy of training. Workers were uniformly uninterested in going back to school to earn degrees.

Workers reported increasing financial insecurity after the layoff. A full third of all workers described that they were “falling behind financially” a year following the layoff compared to only 3% before the layoff. Nearly one-third of all workers took early withdrawals from their retirement accounts to make ends meet following layoff. Most re-employed workers did not move to find jobs, likely associated with the high rate of home ownership among Marathon workers (81%). Many expressed deep anxieties about their long-term ability to make mortgage payments.

Laid-off workers are highly motivated to put their skills and experience to use in new jobs, in new sectors. They require coordinated assistance to transition successfully into new jobs and for the region to retain them. Our research findings identify four critical types of assistance that workers need most. First, third-party skill certification would facilitate more efficient and accurate skill matching between jobs and workers in the labor market. Certification would help workers communicate, and verify, their skills to new employers. Certification would aid employers who are unfamiliar with the refinery sector make better decisions about assessing their workforce needs in relation to the skills of former refinery workers.

Second, workers require targeted job search assistance that focuses on a broad scope of strategies, including effective job search techniques, resume and online profile preparation, and career counseling. Both workers and job counselors require an up-to-date and nuanced assessment of jobs and industries to which refinery skills transfer.

Third, a fair and equitable transition for workers out of the fossil fuel sector depends upon a robust economic development strategy that generates new jobs comparable in quality to the jobs these workers are leaving behind. Successful transition requires both transition assistance and high-road job growth. One without the other will leave workers, and the region, behind.

Lastly, regional economic development strategies aimed at reducing fossil fuel dependency must account for the adverse financial impact these strategies will have on workers and their families. Loss of income will invariably result. A just transition for working Californians needs to include financial support, in the form of cash assistance or wage replacement, to cover losses in wage income.

Download a copy of this publication here (PDF).

The Green Revolution Will Not Be Painless

By Annie Lowrey - The Atlantic, April 26, 2023

In 2006, James Feldermann got hired as a trainee at a refinery in Martinez, California, in the Bay Area. It was hard work, with 12-hour-minimum shifts, but Feldermann came to excel at it. He learned how to isolate pipes and vessels, load railcars with molten sulfur and ammonia, and helm an industrial control panel. In time, he rose to the position of head operator at the Marathon Petroleum site. The job paid well, and he enjoyed it. He expected to stay until retirement.

On a Friday afternoon in July 2020, Feldermann was abruptly summoned to an all-hands Zoom meeting. While some of his colleagues struggled to get the audio to work, Feldermann received a phone call from his union representative. “I didn’t actually hear management tell us that they were laying us off,” he told me. The plant was being shut down, as the rise of work-from-home and the spread of electric vehicles depressed Californians’ demand for gasoline. Feldermann and his co-workers would be out of a job in 90 days.

The United States is embarking on an epochal transition from fossil fuels to green energy. That shift is necessary to avert the worst outcomes of climate change. It also stands to put hundreds of thousands, perhaps millions, of people like Feldermann out of work. The result could be not only economic pain for individual families, but also the devastation of communities that rely on fossil-fuel extraction and a powerful political backlash against green-energy policies.

A pathbreaking new study shows just how real the damage could be, absent policies to soften the economic blow. Virginia Parks, a professor at UC Irvine, and Ian Baran, a doctoral student, tracked the consequences of the Marathon shutdown in near-real time, getting more than 40 percent of the workers to return surveys and a smaller group to sit for interviews. They found that, more than a year after the shutdown, one in five Marathon workers was unemployed. Their earnings had declined sharply, with the median hourly wage of employed workers plunging from $50 to $38. Some workers were earning as little as $14 an hour. And those new gigs came with more dangerous working conditions.

To prevent other workers from experiencing the same, the Biden White House has promised to pursue a “just transition,” employing policies to ensure “new, good-paying jobs for American workers and health and economic benefits for communities.” But the green-energy transition is already underway. And it is not clear that it will be just.

Richmond Progressive Alliance Listening Project, Episode 8: Union Proud

Chevron refinery workers rally as contract expiration nears

By Joel Britton - The Militant, February 14, 2022

RICHMOND, Calif. — “Power in solidarity” read one of the signs carried by the more than 100 members of United Steelworkers Local 5 outside the main gate of the Chevron oil refinery here Jan. 27. The maintenance workers and process operators mobilized to press the union’s demand for a “significant” wage increase in the national oil bargaining negotiations with industry representative Marathon Petroleum. This is crucial to help workers meet the effects of rising prices.

And they were putting the company on notice that they’re ready to strike over working conditions and other local issues at Chevron, issues that are negotiated refinery by refinery after wages and other industrywide issues are settled.

On Jan. 31 the union rejected the company’s latest proposal — a 3% wage raise for each of next three years — and offered to keep working as long as further negotiations are fruitful.

“The corporations are making profits galore,” BK White told the Militant. White, an operator for 28 years and Local 5 vice president, highlighted how Chevron has taken advantage of the COVID-19 pandemic to cut back on preventative maintenance. “The public will pay for these decisions,” pointing to the history of serious fires and explosions at the refinery.

Short staffing and lots of forced overtime, increasing burden of the costs of medical care, tightened disciplinary measures, and the soaring cost of living were among the issues the unionists discussed on the picket line with worker-correspondents for the Militant.

On Jan. 28 Steelworkers union negotiators rejected Marathon’s offer of a pay hike of only 1.3% for each of three years of new agreements for the 30,000 refinery and chemical-plant workers represented by the union. The current contract, which expires at midnight Jan. 31, had included 3.5% wage increases for the first two years and 4% in the final year.

Marathon’s “wage proposals to date are paltry,” the union said in a public statement. “In light of their earnings and dividends to shareholders, they are offensive.”

12 Guilty Fogeys: Big Oil’s $86 billion offshore tax bonanza

By staff - Friends of the Earth, Bailout Watch, and Oxfam, September 2021

Few letter-soup acronyms in Washington bureaucratese are so aptly pronounced as GILTI and FOGEI, two esoteric provisions in the tax code worth tens of billions of dollars to Big Oil’s multinational majors.

Under the Trump Administration’s radical 2017 tax law, companies that extract oil and gas overseas enjoy special exemptions within the Global Intangible Low-Tax (GILTI) regime covering Foreign Oil and Gas Extraction Income (FOGEI).

It is a fitting accident of nomenclature: FOGEI’s GILTI carveout helps prop up the fossil firms most culpable for the climate crisis — to the tune of $84 billion. An additional international tax loophole enjoyed by Big Oil is worth at least another $1.4 billion, for a grand total of over $86 billion in offshore tax giveaways.

Read the text (PDF).

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