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Economic Development Policies to Enable Fairness for Workers and Communities in Transition

By Daniel Raimi, Wesley Look, Molly Robertson, and Jake Higdon - Resources for the Future, August 11, 2020

Communities that are heavily dependent on fossil fuel–related economic activity—including the production of coal, oil, and natural gas and the transformation and consumption of these fuels—would experience substantial effects of a societal shift away from such fuels. This report reviews a range of federal economic development policies and programs that may help affected workers and communities thrive in a low-emissions future. Future reports in this series will examine other tools (e.g., workforce development policy, energy and environmental policy, infrastructure policy) that can play a role in supporting affected workers and communities.

Here, we focus on programs and policies that explicitly seek to support local economic development. In particular, we examine programs led by the Appalachian Regional Commission, the Department of Agriculture’s Rural Development, the Department of Interior’s Secure Rural Schools, the Department of Commerce’s Economic Development Administration, the Department of Defense’s Office of Economic Adjustment, and the Small Business Administration, plus emerging efforts in Colorado and New Mexico.

For ease of analysis, we group economic development programs into two broad categories: those that target local or regional economies historically driven by natural resource development (e.g., coal, agriculture, timber) and programs with a broader geographic and/or economic scope.

We identify three major mechanisms through which the federal government delivers support:

  • Capacity building involves programs that provide technical assistance, planning, or research to support local economic development efforts. Such programs can be effective tools to reduce knowledge gaps and increase human capital and productivity. In a concise summary, Wharton (1958) describes this approach as “helping people help themselves.”
  • Financial support to public and community organizations helps public or quasi-public organizations deliver local economic development programming. This support may be direct (e.g., grants or loans) or indirect (e.g., loan guarantees) and can enhance the human and physical capital stock (including infrastructure) in a community.
  • Financial support to private, for-profit firms may similarly be direct or indirect; the federal government may also offer tax credits, which are not applicable to public entities because they do not pay taxes. These programs are often intended to support small businesses that may struggle to access affordable borrowing, or to jump-start local businesses in sectors that policymakers believe hold promise for future prosperity.

Read the text (PDF).

Labor, Environmental Groups Urge Emergency Action to Protect Frontline Workers From COVID-19

By Various - Center for Biological Diversity, et. al., August 11, 2020

Legal Filing Demands Trump Administration Use Defense Production Act to Provide PPE, Prevent More Deaths, Illness

WASHINGTON— Labor unions representing health care workers, teachers, transit operators and millions of other frontline workers joined with environmental groups today to demand that the Trump administration take emergency action to provide adequate masks, gloves and other personal protective equipment to these essential workers.

The legal petition demands that Health and Human Services Secretary Alex Azar and Homeland Security Secretary Chad Wolf act immediately to ensure the manufacture and distribution of adequate personal protective equipment (PPE). The Trump administration has refused to properly manage PPE production and distribution, leaving states and industry to compete and frontline workers short of supplies.

“It’s terrifying to risk your life every day just by going to work. It brings a lot of things into perspective,” said Rick Lucas, a registered nurse at the Ohio State University Wexner Medical Center and president of the Ohio State University Nurses Organization local of the Ohio Nurses Association. “I’m not going to give up on protecting my patients, even though it’s clear the federal government has basically given up on protecting us. More than 100 of my coworkers have tested positive for the coronavirus, and many of those positive tests were due to occupational exposure because of lack of PPE. This is inexcusable.”

Today’s petition was submitted by some of the nation’s largest labor unions — representing essential workers in healthcare, education, transportation and service sectors — including the AFL-CIO, Service Employees International Union, National Nurses United, American Federation of Teachers and Amalgamated Transit Union. The groups collectively represent more than 15 million workers in frontline industries that have suffered thousands of deaths and hundreds of thousands of illnesses from COVID-19.

“The Trump administration is AWOL on safety and refuses to help the front-line workers who are still in desperate need of more PPE,” said AFL-CIO President Richard Trumka. “It is unconscionable, it is costing lives and in this petition America's essential workers are demanding answers, and most of all, action.”

In March President Donald Trump issued a series of executive orders declaring a national emergency due to COVID-19 and delegating broad powers to Azar and Wolf under the Defense Production Act. The act is designed to ensure the provision of essential materials and goods during public health emergencies. The secretaries have failed to fully utilize their authority, leading to a shortage of PPE.

Self-Help in the Coronavirus Depression

By Jeremy Brecher - Labor Network for Sustainability, August 11, 2020

The second in a series of Mass Action in the Coronavirus Depression, LNS Research and Policy Director offers this: "Self-Help in the Coronavirus Depression." In the early years of the Great Depression of the 1930s, unemployed and impoverished workers turned to dramatic forms of self-help to survive. Anti-eviction “riots” led by organizations of the unemployed made it possible to protect hundreds of thousands of families from being evicted from their homes and ultimately forced government in many cities to halt evictions. And the unemployed in hundreds of communities formed mutual aid organizations through which they exchanged food, services, and labor outside the cash economy. These efforts are described in the commentary “Fighting the Great Depression – From Below. This commentary tells how those affected by today’s Coronavirus Depression are using self-help techniques like rent strikes and mutual aid exchange to survive depression conditions.

The Prospects for Revolutionary Green Union Led Transformation

By x344543 - IWW Environmental Unionism Caucus, August 8, 2020

The evidence becomes more and more clear with each passing day: in order to avoid climate catastrophe and the irreparable destruction of our planet's biosphere, we need nothing less than a revolutionary green transformation of our civilization from stem to stern. These are sobering truths. The reassuring news is that the number of people that realize this, and are prepared to act, is growing day-by- day, throughout our world, in spite of the threats of resurgent fascism, capitalism's perpetual melt downs, and pandemics caused by the likes COVID-19.

The evidence can be seen by the following:

  • A growing number of people willing to take direct action to protect the earth from ecological destruction, climate catastrophe, and capitalist extractivist projects;
  • Increased awareness of the inseparability of ecocidal capitalism, colonialism, racism, and misogyny; this has corresponded with the growth of intersectionality.
  • The decline of climate change denialism;
  • The cancellation of numerous pipeline and other fossil fuel mega projects;
  • Persistently high levels of support for transformative frameworks, like the Green New Deal, limited and reformist though it may ultimately prove to be;
  • And, notable among these trends are growing levels of class consciousness among the climate justice and ecological movements, as shown by the rapid growth and widespread calls for just transition for workers affected by the transitions and transformations the current crises demand.

These developments are welcome, and they point to both the broadening and deepening of an anti-capitalist green transformational movement. However, no transformation can occur without the active support of the working class, and such support is but the beginning of what is needed to motivate the transformation. No revolutionary green transformation can occur without the participation of workers organized at the points of production and/or destruction, because it is precisely there where the capitalist class maintains its economic stranglehold of power over our civilization.

Is achieving such organized power even remotely possible?

The good news is the answer is "yes"; the not so good news is that getting to "yes" will be challenging.

Equitable Access to Clean Energy Resilience

By various - The Climate Center, August 5, 2020

Featuring Janea Scott, California Energy Commission; Genevieve Shiroma, California Public Utilities Commission; Carmen Ramirez, Mayor Pro Tem of Oxnard; Ellie Cohen, The Climate Center and others about policies to support climate justice and community energy resilience in lower-income communities who suffer disproportionately from pollution and power outages.

This summit gave overview of what California is doing now for clean energy resilience and what new policies are needed to provide access to clean and reliable power for all. Mari Rose Taruc, Reclaim Our Power Utility Justice Campaign; Gabriela Orantes, North Bay Organizing Project; and Nayamin Martinez, Central California Environmental Justice Network discussed the issue of equitable access from an Environmental Justice perspective.

Mark Kyle, former Director of Government Affairs & Public Relations, Operating Engineers Local 3 and currently a North Bay attorney representing labor unions, nonprofits, and individuals; Jennifer Kropke, Workforce and Environmental Engagement for International Brotherhood of Electrical Workers, Local Union 11, and Vivian Price, CSU Dominguez Hills & Labor Network for Sustainability talked about the Labor perspective.

Carolyn Glanton, Sonoma Clean Power; Sage Lang, Monterey Bay Community Power; Stephanie Chen, Senior Policy Counsel, MCE, and JP Ross, East Bay Community Energy discussed the work that Community Choice Agencies are doing to bring more energy resilience to lower-income communities.

Letter from USW Local 675 on Orphan Wells

By Philip Baker and David Campbell - United Steelworkers Local 675, August 5, 2020

We write to support an important economic recovery opportunity that will create jobs, provide tremendous health and environmental benefits to frontline communities, and advance a just transition away from fossil fuels: the accelerated remediation of oil and gas wells in California.

California law already requires that oil and gas operators fully fund the cost of oil and gas well remediation in California.

The job creation from this work is substantial. A recent national study estimated a total of 15.9 total jobs (direct, indirect, and induced) per million dollars spent.

Remediation of Oil and Gas Wells Must be Accelerated in Tandem with a Halt on Permitting New Wells and a Managed Phaseout of Oil and Gas Extraction.

Read the text (PDF).

There May Be No Choice but to Nationalize Oil and Gas—and Renewables, Too

By Sean Sweeney - New Labor Forum, August 2020

Once on the margin of the margins, calls for the nationalization of U.S. fossil fuel interests arebgrowing. Before the Covid-19 pandemic, the basic argument was this: nationalization could expedite the phasing out fossil fuels in order to reach climate targets while ensuring a “just transition” for workers in coal, oil, and gas. Nationalization would also remove the toxic political influence of “Big Oil” and other large fossil fuel corporations. The legal architecture for nationalization exists—principally via “eminent domain”—and should be used.

But the case for nationalization has gotten stronger in recent months. The share values of large fossil fuel companies have tanked, so this is a good time for the federal government to buy. In April 2020, one source estimated that a 100 percent government buyout of the entire sector would cost $700 billion, and a 51 percent stake in each of the major companies would, of course, be considerably less. However, in May 2020 stock prices rose by a third or so based on expectations of a fairly rapid restoration of demand.

But fears of a fresh wave of Covid-19 outbreaks sent shares tumbling downward in June. Nationalizing oil and gas would be a radical step, but this alone would not be enough to deliver a comprehensive energy transition that can meet climate goals as well as the social objectives of the Green New Deal. Such a massive task will require full public ownership of refineries, investor-owned utilities (IOUs), and nuclear and renewable energy interests.

Progressives may feel it’s unnecessary to go that far; why not focus on the “bad guys” in fossil fuels and leave the “good guys” in wind, solar, and “clean tech” alone? But this is not an option. The neoliberal “energy for profit” model is facing a full-spectrum breakdown, and the energy revolution that’s required to reach climate targets poses a series of formidable economic and technical challenges that will require careful energy planning and be anchored in a “public goods” approach. If we want a low carbon energy system, full public ownership is absolutely essential.

ReImagine Appalachia: a (Green) New Deal That Works for Us

By staff - ReImagine Appalachia, August 2020

Appalachians have a long history of hard work, resilience, and coming together to face enormous challenges. Our region is a place of ingenuity. A place where families and neighbors look out for one another.

Now is the time to put our ingenuity to use and imagine a 21st century economy that works for the people in the Ohio River Valley of Appalachia. An economy that is good for working people, communities, our health and the health of our neighbors. One that is grounded in the land and centered on creating wealth locally. One that relies on working people, already skilled in service, industry, trades and farming. One that offers hope to the next generation’s workers—regardless of the color of their skin, ethnicity or gender. And one that does our region’s part to meet the nation’s climate challenge, just as we met the call to provide coal energy to fuel a growing nation a century ago.

Right now, our nation is in crisis. We face the COVID epidemic, a deep economic downturn, extreme inequality, racism, police brutality, and the consequences of a changing climate such as severe storms and flooding. These crises demand from us real, lasting and structural change. It is not a matter of if, but when. When the nation rises to the occasion, people in Appalachia need to be at the table and helping to lead the charge. Together, we can build a vision for the Appalachia we want to live in.

Read the text (PDF).

Forward Together: A Good Jobs and Climate Action Budget

By staff - Canadian Labour Congress, August 2020

The Canadian Labour Congress (CLC) believes that saving lives, protecting public health, and containing the coronavirus outbreak must remain the federal government’s overriding priority. In the near term, this includes continued income support for individuals unable to work due to COVID-19, as well as proper personal protective equipment, workplace health and safety precautions, and training for workers.

As public health measures permit, fiscal policy measures responding to the recession and unemployment crisis will need to prioritize helping Canadians return to decent jobs. The economic crisis has disproportionately affected low-paid, vulnerable workers in precarious employment, especially women, young workers, newcomers, workers of colour, and workers with disabilities. Accordingly, the plan for economic recovery must be gendered, inclusive, inequality-reducing, and sustainable.

Read the report (PDF).

Draft Colorado Just Transition Plan

By Dennis Dougherty, Ray Beck, et, al. - Colorado Just Transition Advisory Committee, August 1, 2020

Coal has played an important role in Colorado’s economy since before statehood, from heating homes and powering industry to fueling railroads and generating electricity. Today, coal is mostly used for electricity in Colorado.

Increasing price competition from natural gas and renewables, along with environmental concerns, has led to a significant decline in the use of coal over the last dozen years. In 2019, Colorado set aggressive goals for reducing greenhouse gas emissions that will require major changes in how we fuel our cars, heat our homes, and generate electricity. As a result of these combined factors, the era of coal appears to be coming to an end in Colorado.

The decline of coal has serious implications for the Coloradans who work in the coal industry (mostly in mines and power plants) and the communities where they do this work. Approximately 2,000 coal workers stand to lose their mostly high-paying jobs by 2030, and many communities will lose significant percentages of their local job base and of property tax revenues when mines and power plants close.

Colorado has the opportunity to lead the nation in achieving more constructive outcomes. In 2019, the Colorado General Assembly passed and the Governor signed House Bill 19-1314, which makes a “moral commitment” to a “just transition” for these workers and communities. It established the nation’s first state Office of Just Transition (OJT), and it created a Just Transition Advisory Committee (JTAC) to develop a draft plan for how the state will fulfill this commitment.

Read the text (PDF).

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