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USW Local 5

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.”

California unions endorse a plan for Green Recovery and fossil fuel phase-out

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.

Labor-Backed Report on Path to Equitable Green California

By Staff - Sunflower Alliance, June 10, 2021

Nineteen labor organizations—including unions representing refinery workers in Northern and Southern California and the Alameda Labor Council— have endorsed a detailed plan for an equitable transition to a clean-energy economy in California.

This major new report, A Program for Economic Recovery and Clean Energy Transition in California, details programs for meeting California’s 2030 climate goal (40 percent economy-wide reduction in greenhouse gas emissions from the state’s 1990 level) by creating roughly 418,000 jobs. It argues that state policy should ensure that the jobs created are good-paying jobs with full labor rights and access by historically excluded people.

The same strategies, the report says, could be continued to meet California’s longer-term goal of being carbon-neutral by 2045.

The report was commissioned by the American Federation of State, County and Municipal Employees Local 3299, the California Federation of Teachers, and the United Steelworkers Local 675. Its authors are faculty members of the University of Massachusetts at Amherst, including Robert Pollin, a leading expert on just transition.

The report provides detailed calculations for strategies outlined in an earlier report, Putting California on the High Road, from the UC Labor Center. Both reports emphasize the need for measures to protect fossil fuel industry workers including:

  • Pension guarantee for all workers.
  • Re-employment and income-level guarantees for all displaced workers.
  • Retraining and relocation support as needed.
  • “Glide-path income support” for workers 60 – 64.

The report comes as the Newsom administration is developing a report on Just Transition in California.

Just Transition in California: Robert Pollin in Conversation with Robert Kuttner

Labor Unions Rally Behind California’s Zero-Emissions Climate Plan

Robert Pollin interviewed by C.J. Polychroniou - Truthout, June 10, 2021

Robert Pollin, distinguished professor of economics and co-director of the Political Economy Research Institute (PERI) at the University of Massachusetts at Amherst, has been spearheading national and international efforts to tackle the climate crisis for more than a decade. Over the past few years, he and a group of his colleagues at PERI have produced green economy transition programs for numerous states. The latest such program is for California, and it is being released today.

The massive study — nearly 200 pages long — shows how California can become a zero emissions economy by 2045 while expanding good job opportunities throughout the state. Nineteen unions have already endorsed the green transition plan, making clear that they reject frameworks that falsely pit labor priorities and the environment against each other, and more are expected to do so in the days and weeks ahead.

In this interview for Truthout, Pollin, co-author with Noam Chomsky of Climate Crisis and the Global Green New Deal: The Political Economy of Saving the Planet (Verso 2020), talks about the climate stabilization project for California and the national implications of union support for a green economy transition.

C.J. Polychroniou: California has been at the forefront of the climate fight for years now, but the truth of the matter is that its efforts have fallen short. Now, you and some colleagues of yours at PERI have just completed a commissioned climate stabilization project for California. How does the project envision the clean energy transition to take place in a manner consistent with the emission targets set out by the UN Intergovernmental Panel on Climate Change (IPCC) in 2018, and how will it be financed?

Robert Pollin: This study presents a recovery program for California that will also build a durable foundation for an economically robust and ecologically sustainable longer-term growth trajectory. California has long been a national and global leader in implementing robust climate stabilization policies. This includes the 2018 Executive Order B-55-18 by then Gov. Jerry Brown. This measure committed the state to cut CO2 emissions by 50 percent as of 2030, to become carbon neutral no later than 2045, and to produce net negative emissions thereafter. These goals are somewhat more ambitious than those set out by the IPCC in 2018. Our study outlines a program through which the state can achieve its own established goals.

Our study shows how these 2030 and 2045 emissions reduction targets can be accomplished in California through phasing out the consumption of oil, coal and natural gas to generate energy in the state, since burning fossil fuels to produce energy is, by far, the primary source of CO2 emissions, and thereby, the single greatest factor causing climate change. The project we propose is to build a clean energy infrastructure to replace the existing fossil fuel-dominant infrastructure. The clean energy infrastructure will require large-scale investments to, first, dramatically raise energy efficiency standards in the state and, second, to equally dramatically expand the supply of clean renewable energy supplies, including solar and wind primarily, with supplemental supplies from low-emissions bioenergy, geothermal and small-scale hydro power. We show how this climate stabilization program for California can also serve as a major new engine of job creation and economic well-being throughout the state, both in the short- and longer run.

A Program for Economic Recovery and Clean Energy Transition in California

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty,Caitlin Kline, and Gregor Semieniuk - Department of Economics and Political Economy Research Institute (PERI); University of Massachusetts-Amherst, June 10, 2021

This study presents a robust climate stabilization project for California. It demonstrates that achieving the state’s official CO2 emissions reduction targets—a 50 percent emissions cut by 2030 and reaching zero emissions by 2045—is a realistic prospect. This climate stabilization project can also serve as a major engine of economic recovery and expanding economic opportunities throughout the state. This includes an increase of over 1 million jobs in the state through investment programs in energy efficiency, clean renewable energy, public infrastructure, land restoration and agriculture. The study also develops a detailed just transition program for workers and communities in California that are currently dependent on the state’s fossil fuel industries for their livelihoods. In particular, we focus here on condi­tions in Kern, Contra Costa, and Los Angeles counties.

The study is divided into nine sections:

  1. Pandemic, Economic Collapse, and Conditions for Recovery
  2. California’s Clean Energy Transition Project
  3. Clean Energy Investments and Job Creation
  4. Investment Programs for Manufacturing, Infrastructure, Land Restoration and Agri­culture
  5. Total Job Creation in California through Combined Investment Programs
  6. Contraction of California’s Fossil Fuel Industries and Just Transition for Fossil Fuel Workers
  7. County-level Job Creation, Job Displacement, and Just Transition
  8. Achieving a Zero Emissions California Economy by 2045
  9. Financing California’s Recovery and Sustainable Transition Programs

Nineteen labor unions throughout California have endorsed this study and its findings.

Read the text (PDF).

The Chevron Way: Big Oil’s Vacation From East Bay Politics Won’t Last Long

By Steve Early - CounterPunch, November 22, 2016

In the two election cycles prior to 2016, the global energy giant Chevron spent more than $4 million on city council or mayoral races in Richmond, CA. Big Oil’s independent expenditures were so large two years ago that they drew widespread condemnation as a particularly egregious example of the unrestricted corporate spending unleashed by the Supreme Court’s Citizen’s United decision.

In our Chevron refinery town of 110,000, rent control was on the ballot this year. That’s not an issue that Chevron cares anything about. So, as company spokesman Leah Casey explained to the Richmond Confidential last month, her employer “decided not to participate in the 2016 local Richmond election,” preferring to remain “focused on keeping the refinery running safely and partnering with the city and the community on our modernization project.” (As a nearby neighbor, I found Chevron’s new “focus” particularly reassuring.)

This fall, the California Apartment Association replaced the oil company as our biggest local spender. According to Kathleen Pender in the SF Chronicle, the CAA and its allies raised $2.5 million to defeat rent control in multiple Bay Area communities on Nov. 8. In Richmond, the CAA pumped nearly $200,000 into its losing effort here (three times more than rent control advocates raised). By a 65 to 35 percent margin, Richmond voters approved a new system of rent regulation, a rent rollback to July, 2015 levels, and the legal requirement that landlords have “just cause” for evicting tenants.

Once again, Richmond progressives were celebrating a singular local triumph over “big money in politics” on election night. The strongest pro-rent control candidates in the 2016 council race, both RPA members, finished first and second in a field of nine. In similar fashion two years ago, three members of the Richmond Progressive Alliance running for re-election to the city council won an upset victory–despite Chevron’s record-breaking spending against them.

Among that year’s winners was a persistent nemesis of Big Oil, former mayor Gayle McLaughlin, the California Green who sought to increase Chevron’s local taxes and county property tax bill to raise more revenue for cash-starved city services.

News: Air District Commits to Studying Refinery Pollution Caps

By Shoshana Wechsler - Sunflower Alliance, June 18, 2016

The community-worker coalition that’s been fighting for years to limit pollution from Bay Area refineries won a significant victory June 15. The Air District board told the staff to evaluate our proposal for immediate, numerical caps on refinery emissions, along with three other proposals. This move came despite strong opposition from Air District staff, who argued that numerical caps on greenhouse gases are pointless and that numerical limits on all forms of pollution are legally questionable.

The next challenge for the coalition will be getting the Air District to move fast enough to prevent the refineries from bringing in a major influx of extra-polluting crude oil from Canadian tar sands.

In the June 15 board meeting of the Bay Area Air Quality Management District, staff presented four proposals for controlling refinery emissions:

  • Analyze each refinery’s total energy efficiency as a way of reducing greenhouse gases
  • Continue the current program of making rules for reducing greenhouse gas and toxic emissions by separately analyzing each process in the refinery.
  • Place an immediate overall cap on greenhouse gas and toxic emissions from each refinery
  • Develop a Bay-Area-wide program for reducing emissions of methane (a powerful greenhouse gas)

The staff recommended that the board authorize further analysis of three of these proposals. It recommended dropping the community-worker proposal, using the same arguments offered before: that emissions caps may not be legally defensible and could conflict with the state’s cap-and-trade process for greenhouse gas emissions.

After strong arguments from the community-worker coalition and allies on the board, however, the board directed the staff to prepare an official Environmental Impact Review of each of the proposals. In more than two years since the coalition has been advocating these caps, the staff has failed to produce a detailed analysis of this proposal, despite numerous board requests. So this clear board direction represents a major advance for the environmental, community, and labor groups.

Board members John Avalos of San Francisco, Rebecca Kaplan of Oakland, and John Gioia, the Contra Costa County supervisor whose district includes four oil refineries, joined the community-worker coalition in insisting on a full review of all four proposals.

It should be possible to produce the Environmental Impact Reviews, provide a period for the public to comment, and produce revised reviews before the BAAQMD’s next board meeting in September. But given the slow pace of work on refinery emissions rules in the past, the community-worker coalition intends to keep pushing for a September report, so it will be possible to adopt final rules before the end of the year.

There’s also the question of what topics the Environmental Impact Review will include. In the June 15 meeting, Board member Kaplan insisted that the EIR must include an estimate of the health impacts of the emissions increases that would occur if caps are not adopted.

Background

The Bay Area Air Quality Management District (BAAQMD) has been discussing methods for limiting refinery pollution for more than three years. More than two years ago the community-worker coalition submitted its proposal: Tell refineries they’re not allowed to increase the levels of pollution they emit, starting now.

In addition to limiting harm to health and the climate, this proposal is critical for stopping Bay Area refineries from bringing in large amounts of crude oil from Canadian tar sands. Because tar sands oil takes so much energy to process, and because it spews out such large amounts of pollution that’s harmful to health, a cap on refinery emissions would effectively prevent an increase in tar sands refining. Scientists have stated that to prevent runaway climate disaster, the tar sands oil has to stay in the ground.

Bay Area refineries are turning to tar sands crude because their traditional sources of crude oil – in California and Alaska – are drying up. Tar sands oil producers, for their part, are increasingly looking to the Bay Area as an outlet for their product, since the Keystone XL pipeline was defeated, and Canadian First Nations are strongly resisting the shipment of tar sands oil through their territories. And Bay Area refineries, already equipped to handle “heavy” crude oil, are closer to being ready to refine tar sands than most others.

The Western States Petroleum Association, representing the oil companies, has been fighting regulation every step of the way. Recently they’ve sent mailers opposing regulation to residents in the districts of selected BAAQMD board members. It is reported that they are hoping to get a California legislator to introduce a bill banning local caps on greenhouse gas emissions.

Crude Awakening: A new air district rule might prevent increased Canadian tar sands production at Bay Area refineries

By Will Parrish - North Bay Bohemian, June 8, 2016

In recent years, oil corporations have intensified their push to make the San Francisco Bay Area and other areas of the West Coast into international hubs for refining and shipping of one of the world's most carbon-intensive and polluting fuel sources: the Canadian tar sands.

In April, that long-standing effort spilled into Santa Rosa mailboxes. Constituents of 3rd District supervisor Shirlee Zane received a letter, addressed to Zane herself, from a group called Bay Area Refinery Workers.

"As a member of the Bay Area Air Quality Management District," the letter read, "you'll soon vote on a proposal that will impact our jobs, our refineries and the important work we do refining the cleanest gasoline in the world."

It asked that Zane "please remember that the Bay Area refineries provide more good-paying union jobs than any private sector employer in the region."

Twelve refinery employees provided signatures, but the letter was produced and mailed by an organization called the Committee for Industrial Safety, which is bankrolled by the oil giants Chevron, Shell, Tesoro and Phillips 66. According to state and federal records, each corporation annually provides the group between $100,000 and $200,000 to advocate on their behalf.

The letter's apparent aim was to influence Zane's upcoming vote on a little-known but potentially far-reaching Bay Area Air Quality Management District (BAAQMD) regulation called Refinery Rule 12-16 that's aimed at reducing greenhouse gas (GHG) emmissions. If enacted, the measure would make the BAAQMD the nation's first regional air district to go beyond state and federal mandates in regulating refinery GHG emissions, the pollutants that fuel global climate change.

Zane is one of the BAAQMD's 24 directors, along with elected officials from nine Bay Area counties extending from Santa Clara in the South Bay to Sonoma and Napa. They will determine the measure's fate at a yet-to-be-scheduled meeting later this year.

Staff members at BAAQMD have proposed four alternative forms of Refinery Rule 12-16. But only one has the support of a coalition of environmental groups and the unions that represent refinery employees: a quantitative limit, or cap, on GHGs.

Processing the tar sands would dramatically increase greenhouse gas pollution at the refineries under the BAAQMD's jurisdiction, and advocates from groups like Oakland's Communities for a Better Environment (CBE), an environmental justice organization, say an emissions cap would turn back what they call the "tar sands invasion" from the San Francisco Bay Area.

Critics warn that without the cap, the oil industry will continue pursuing new tar sands infrastructure on the West Coast at a frenetic pace. "We've seen them come at us at a 10 times faster rate in the last few years," says CBE senior scientist and refinery expert Greg Karras. "Up and down the refinery belt, refineries are retooling for the tar sands and creating infrastructure for export of refined tar sands products overseas."

Experts have warned of the effects of a significantly expanded production of the tar sands—a sticky mixture of sand, clay and bitumen trapped deep beneath Canada's boreal forest. It would lock in dramatic increases in global temperatures and result in devastating impacts to ecosystems and human societies throughout the globe. A 2015 report in the journal Nature found that trillions of dollars' worth of known and extractable coal, oil and gas reserves (including nearly all remaining tar sands and all Arctic oil and gas) should remain in the ground if global temperatures are to be kept under the safety threshold of 2 degrees centigrade that's been agreed to by the world's nations at the Paris climate summit last year.

In an ecologically minded region like the Bay Area, an emissions cap to stop a dramatic increase in regional tar sands production (and tar sands exports from local ports) might seem like a political no-brainer. But staff and some members of BAAQMD say they are concerned that GHG emissions averted in the Bay Area would simply occur somewhere else, since the oil industry would increase production elsewhere. Doing so would render Refinery Rule 12-16 ineffectual in curbing climate pollution because other regions might not be so attentive.

Karras and other advocates believe the opposite is true. The cap offers local elected officials a rare opportunity, they say, to make a significant contribution to heading off the catastrophic impacts of global warming.

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