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Wars, Inflation, and Strikes: A Summer of Discontent in Europe?

By Josefina L. Martínez - Left Voice, July 12, 2022

Strikes over wage increases or working conditions are occurring in response to high inflation, aggravated by the aftermath of the war in Ukraine. These labor actions show a change in the mood of the European working class.

Are we heading toward a summer of discontent in Europe? Can we foresee a hot autumn on the Continent? It would be hasty to make such statements, but new strike activity is beginning to unfold among sectors of several countries’ working class. Inflation reached 8.8 percent as a European average in May (with higher rates in countries like the UK and Spain). After years of inflation below 1.5 percent, this is a significant change that is causing a fall in the population’s purchasing power, especially among the working class. Many analysts are already talking about the possibility of stagflation: a combination of recession and inflation.

This is in addition to the political instability of several governments and a widespread dissatisfaction with the traditional parties. The latter was expressed in France in the last elections, with high abstention and the growth of Marine Le Pen’s far-right party and of the center-left coalition grouped around Jean-Luc Mélenchon. Emmanuel Macron lost his absolute majority in the National Assembly and now faces a five-year period of great political uncertainty. Another government in crisis is that of the UK, where Prime Minister Boris Johnson is stepping down.

In this context, recent weeks have seen strikes taking place in key sectors, including transport, steel, ports, and public services, as well as in more precarious sectors. Although there are differences among these countries, the strikes are opening a breach in the climate of “national unity” that governments tried to impose a few months ago, when the war in Ukraine began. In this article we review some of these labor conflicts in the United Kingdom, Germany, France, Italy, Spain, and other countries.

Rural Identity and Anti-Intellectualism

Australia’s Recent Power Market Crisis and the Struggle for Public Ownership

By staff - Trade Unions for Energy Democracy, July 8, 2022

This past June 15th, Australia’s Electricity Market Operator (AEMO) announced the suspension of wholesale electricity spot markets in all regions covered by the country’s National Electricity Market (NEM). The NEM typically provides 80% of Australia’s electricity, mainly in developed coastal areas around the eastern third of the country.

The market suspension came in response to soaring wholesale electricity prices and serious shortages in supply — a combination of factors that, according to AEMO, made it “impossible to continue operating the spot market while ensuring a secure and reliable supply of electricity for consumers” in line with national regulatory requirements.

Key unions in Australia have recognized for years that the NEM does not serve the interests of unions, working people, or the public in general. According to Michael Wright, acting national secretary of the country’s Electrical Trades Union (ETU):

The ETU has been sounding the alarm about the NEM for years. This vindicates our long-held concerns that the market is broken and beyond repair.

The experiment in synthetic markets, trying to deliver essential public services through profit-motivated, tax-avoiding multinational energy corporations, has failed shockingly.

Similarly, Colin Long, Just Transitions Organizer for Australia’s Victorian Trades Hall Council (VTHC), points out that such markets only function when they ensure profits for private owners and investors. As Long states in a background document he has written on the current crisis:

The NEM [like other market-based systems] is designed to deliver electricity in a way that is profitable to generators, mostly privately-owned, not in a way that maximises public or social benefit to Australians.

As Long further explains:

Privatisation was supposed to lead to lower prices for consumers. In fact, the opposite has occurred. Reinstating public ownership would eliminate rentier behaviour by transmission and distribution companies and the need to concede to the profit demands of big overseas investors. It would enable us to plan the energy system transformation, with a clear schedule for closure of fossil fuel generators to give certainty to workers, their communities and electricity grid managers. It would enable us to schedule fossil fuel generation replacement by renewables in a way that guaranteed supply, efficiency and reduced cost – and ensures we meet decarbonisation targets. It would enable us to ensure that workers are guaranteed a just transition to new opportunities and new industries.

Readers who would like a copy of Long’s background document can contact him at clong@vthc.org.au.

Both ETU and VTHC are part of the TUED network, and have played key roles in advancing the project.

21st Century Unionism

42,000 jobs can be created making UK schools safer, greener and more energy efficient

By staff - Trades Union Congress, July 7, 2022

  • Funding already allocated covers just 3% of retrofits needed by schools, as energy bills rise by 93%
  • Unions hit back at government suggestions that existing funding for retrofits will be cut
  • It is “irresponsible” not to use existing technology so that schools will have more money for education and lower emissions, says TUC

Making UK school buildings energy efficient and fit for the future is a win-win, according to a new report published today (Thursday) by the TUC.

The report looks at the current spending on schools through the Public Sector Decarbonisation Scheme (PSDS), and estimates how much more investment is needed.

The Case for Not Flying

By Fabrizio Menardo - Green European Journal, July 7, 2022

Although aviation accounts for 2.8 per cent of global CO2 emissions, its harmful impact rarely rises on the climate action agenda. In a globalised economy with businesses and lifestyles built around air travel, flying can be a hard habit to shake. To Fabrizio Menardo, individuals must make behavioural changes and policymakers must address the socio-economic challenges in the sector to bring travel in line with climate goals.

In 2015, under the famed Paris Agreement, almost every country on Earth pledged to limit the global temperature rise to well below 2 degrees Celsius compared to pre-industrial levels and “pursue efforts” to keep warming to 1.5 degrees Celsius. The latest report of the Intergovernmental Panel on Climate Change (IPCC) shows that greenhouse gas emissions from human activities have already caused around 1.1 degrees of warming, leading to an increase in extreme weather and climate events such as heatwaves, heavy precipitation, and droughts. Many of these impacts will last for centuries, and their magnitude will grow in line with cumulative future emissions. The IPCC estimates that, in order to achieve a 67 per cent probability of staying below 1.5 degrees Celsius, our cumulative CO2 emissions from the beginning of 2020 must remain below 400 billion tonnes. Current annual CO2 emissions stand at around 35 billion tonnes

Workers’ rights and the fight for climate justice

By D'Arcy Briggs - Spring, July 7, 2022

Low-wage workers have been hit hardest by the pandemic, they were the first to lose their jobs and most likely to get COVID. A new survey shows that workers in the most precarious jobs, who are disproportionately racialized, are directly dealing with the impacts of the worsening climate crisis. Spring Magazine spoke with Jen Kostuchuk of Worker Solidarity Network about the links between climate justice and workers’ rights.

Can you tell us a little bit about yourself and the Worker Solidarity Network

I’m a settler from Treaty 1 territory, currently working on Lekwungen territory. My experience as a worker in the hospitality industry motivated me to engage with and advocate alongside workers in food service. I’m currently filling the Worker Solidarity Network’s (WSN) climate and labour project coordinator position. WSN is a community-centered organization that fights for worker justice. Through organizing, mutual aid, and legal advocacy, our goal is to support workers through labour injustices and build worker power. 

Given the dual pandemics of Covid-19 and climate change, how have workers been affected?

Between being overworked and understaffed, lay-offs, and termination, workers have been affected in ways that lead to deep vulnerability. But disproportionately, COVID-19 and climate change have hurt essential, low-wage workers in highly gendered and racialized sectors. Many workers in industries like hospitality, retail, and food service, bear the brunt of stolen wages, normalized discrimination, sexual harassment, and harsh working conditions like cooks standing in front of hot grills during heatwaves. 

At the height of the pandemic, I heard from folks whose employers told them to ignore COVID protocols if a customer “wanted it a certain way.” I also heard from food and beverage servers who were asked to remove their masks before customers entered a tip. So in some cases, it’s clear that workers were risking their own health and safety to avoid jeopardizing their income. 

The pandemic fostered an environment where we saw first hand that low-wage workers were deemed essential yet not treated that way. At the same time, we know that the pandemic provided an opportunity to build momentum to expose our most broken systems through mobilizing together for racial, gender, and environmental justice. 

Solidarity with the workers of the food company Sudaphi (Morocco): ECVC

By Federico Pacheco - La Via Campesina, July 6, 2022

European Coordination Via Campesina calls for solidarity with the workers of the company Sudaphi, part of the Premium Foods Solutions group, located in the province of Inezgane Ait Melloul in Souss Massa, Morocco. Sudaphi specializes in the processing and export of tomato-based products. It produces the Sud’n’Sol and Sunblush Tomatoes brands and sells its products to supermarkets and food processors in Europe.

In December 2021, Sudaphi unilaterally announced that it was subjecting all of its incumbent staff to a new written contract that threatens workers’ job security and their transfer to production sites far from their homes, without consulting the company’s employees or their elected representatives. Workers under the new Sudaphi contract have been protesting these changes outside the company’s gates since May 26.

A staff delegate affiliated with the National Federation of the Agricultural Sector (FNSA-UMT) was dismissed by Sudaphi on 27 May 2022. Two other delegates were sanctioned with 8-day layoffs and 3 members were forced to change positions. Sudaphi’s abusive practices represent a violation of the right to free association and collective bargaining. The delegate has organized a sit-in in front of Sudaphi’s offices in Inezgane Ait Melloul since his dismissal over a month ago. The FNSA demands respect for trade union rights and a serious and responsible dialogue with its regional authorities for a settlement of this collective dispute.

Gas price burden on rural mail carriers; also harms environment

By Gabriela Calugay-Casuga - Rabble, July 4, 2022

The Canadian Union of Postal Workers (CUPW) claims that Canada Post is placing an undue burden on Rural and Suburban Mail Carriers (RSMCs) that is also harming the environment. As Canadians from coast to coast are feeling the pinch at the pumps, RSMCs are paying out of their own pockets to do their delivery routes. RSMC vehicles are left out of Canada Post’s plan to move their fleet to electric, which means that there is no end in sight. 

As the thousands of RSMCs continue to shoulder the burden of gas, they struggle to serve the more than 8,000 routes they cover. In 2021, over six million Canadian residents, or 17.8 per cent of the population, lived in rural areas, according to Statistics Canada. Including relief employees, there are more than 11,000 RSMCs who cover 8,129 routes, according to CUPW National President Jan Simpson. 

Amidst rising gas prices, CUPW members launched a petition urging the government to act on the high gas prices. 

“The members who initiated the petition tell us that the additional cost for gas cuts into their earnings, and that some of them have to consider changing jobs because they can’t afford to keep delivering the mail,” Simpson said in an email to rabble.ca. “It’s an extra burden on top of the costs of maintenance and insurance to keep their own vehicles on the road for work.” 

According to a press release by CUPW, RSMCs are currently compensated for their mileage up to the CRA cap for non-taxable automobile allowances for 2022, which is 61 cents per kilometer up to 5000 kilometers. The release says that this cap was set in December 2021, which means it is based on 2021 inflation figures. 

The tax-exempt per-kilometer allowance limit is reviewed annually against inflation to ensure that it continues to roughly reflect the average costs involved in business driving. Any changes to cost components that arise during a year will typically be reflected in the limit that applies in the following year.

Simpson said that RSMCs collectively drive more than four million kilometers daily. She calculated that at an average consumption of 13 liters per 100km, that would be more than 62,000 liters of fuel used daily.

“This burden does not belong on the individual worker,” Simpson said. 

The large amount of fuel used by RSMCs falls under Canada Post’s Scope 3 emissions, which means they are not considered direct emissions caused by Canada Post. Scope 3 is supposed to be for emissions by contractors and suppliers that Canada Post does not have control over. Simpson said, Canada Post makes the routes, and tracks the distances for compensation. 

CUPW said in their press release that RSMC emissions should be included in Scope 1 which encompasses emissions that Canada Post is directly responsible for. 

Due to the classification of RSMC vehicle emissions, the more than 11,000 RSMCs are left out of Canada Post’s plan to move to electric vehicles. This means Canada Post RSMCs will continue to use tens of thousands of liters of fuel daily. This not only maintains the cost burden on workers, it also means that Canada Post will not truly have net zero greenhouse gas emissions by 2050. 

Simpson said that the burden of responsibility should shift from the worker to the corporation. 

“If Canada Post Corporation were responsible for equipping RSMCs with vehicles and fuel, then the workers wouldn’t have to worry about the cost of the gas they need to do their job,” Simpson said. “It would also bring the RSMCs’ emissions into CPC’s scope 1 emissions, which would increase their incentive to electrify more of the delivery fleet. Or there may be other solutions we could find to make Canada Post responsible for rising fuel costs, which would also increase their incentive to improve fuel economy and emissions.”

Portugal's Climate Justice Movement Takes on Oil and Gas Company Galp

By Leonor Canadas - Common Dreams, July 3, 2022

Amidst the threat of nuclear war posed by the Russian invasion of Ukraine, which explicitly exposed Europe's dependence on oil and gas from Russia, one could expect that the smart solution would be to get away from fossil fuels and make massive investments in renewable infrastructure and production.

The war should have accelerated the transition to an economy moved fully by renewable energies. Yet, quite the contrary has happened. The European Commission proposes that investments in fossil, gas, and nuclear power are labeled "sustainable investments," understanding them as "transitional" energy sources.

At the same time, European countries, in order to condemn Russia, are looking for fossil fuels elsewhere, shifting dependence to other countries, where gas and oil exploitation perpetuate colonial exploitation or support authoritarian regimes. Shifting from one authoritarian regime to another is not the solution, and neither is shifting from one kind of fossil fuel to another by using gas as a "transitional" energy source, nor by going back to coal.

In Europe's westernmost country, Portugal, the government sees this war and crisis as an opportunity, claiming that it "has the unique conditions to be a supply platform for Europe," talking about how the Port in Sines could be an entry point to supply Germany with the gas it needs. Particularly, gas from the USA and Nigeria could arrive in Sines and then be transported to other places in Europe. This would require the expansion of the LNG terminal in Sines and the construction of new gas pipelines in Portugal and Spain, to overcome the Pirenees. This is obviously a megalomaniacal plan, which doesn't mean it will not get the green light.

Fossil infrastructure is exactly why we are trapped in this crisis, and why capitalism will never be able to avoid climate collapse. If we take climate science seriously, no project that leads to an emissions increase could go forward. We need to cut 50% of global greenhouse gas emissions by 2030 compared to the 2010 emissions levels. Consequently, there can be absolutely no option on the table when it comes to new fossil projects and infrastructure. On the contrary, we need plans for just and fast transitions and the shutdown of existing infrastructure. That is not the plan in Portugal, in the EU or in the richest countries in the world, by a long stretch.

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