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A Green Growth Program for Colorado: Climate Stabilization, Good Jobs, and Just Transition

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, and Tyler Hansen - Department of Economics and Political Economy Research Institute (PERI), April 2019

This study examines the prospects for a transformative green growth program for Colorado. The centerpiece of the program is clean energy investments—i.e. investments to raise energy efficiency levels and expand the supply of clean renewable energy sources. These investments should be undertaken in combination by the public and private sectors throughout the state. This program can advance two fundamental goals: 1) promoting global climate stabilization by reducing carbon dioxide (CO2) emissions in Colorado without increasing emissions outside of the state; and 2) expanding good job opportunities throughout the state while the state’s economy continues to grow. The program is specifically designed to reduce Colorado’s CO2 emissions by 50 percent as of 2030 and by 90 percent as of 2050 relative to the state’s 2005 emissions level while the economy grows at an average annual rate of 2.4 percent. The consumption of oil, natural gas and coal to generate energy will need to fall sharply in Colorado, since CO2 emissions result through the combustion of fossil fuels.

We estimate that total investments in energy efficiency and renewable energy will need to average about $14.5 billion per year between 2021 – 2030, equal to about 3.5 percent of Colorado’s average annual GDP over those years. These investments will generate about 100,000 jobs per year in the state. New job opportunities will be created in a wide range of areas, including construction, sales, management, production, engineering and office support. At the same time, the contraction of the state’s fossil fuel related industries will generate about 700 job losses per year, of which about 600 will be non-managerial jobs. We develop a Just Transition program for workers impacted by the contraction of the state’s fossil fuel industries. The program includes: pension guarantees for retired workers who are covered by employer-financed pensions; retraining to assist displaced workers to obtain the skills needed for a new job and 100 percent wage replacement while training; re-employment for displaced workers through an employment guarantee, with 100 percent wage insurance; and relocation support as needed. We also propose a broader set of policies to meet the state’s emissions reduction goals. These include a carbon tax; strengthening the state’s existing energy efficiency and renewable portfolio standards; strengthening existing procurement programs for clean energy public investments; increasing financial subsidies for clean energy investments; expanding the state’s worker training programs for clean energy employment opportunities; and channeling a disproportionate share of new clean energy investments into communities that will be significantly impacted by the contraction of the state’s fossil fuel related industries.

Read the text (PDF).

Labor Unions and Green Transitions in the USA

By Dimitris Stevis - Adapting Canadian Work and Workplaces to Respond to Climate Change, February 27, 2019

“In broad terms there are now two camps amongst US labour unions with respect to climate change and renewables (the two not always related). On one side, are those unions that believe that something needs to be done about climate change and that renewables are a good strategy. On the other side are those that are opposed to meaningful climate policy –even as they claim that climate change is a problem.”

This report outlines the deep cleavages with respect to climate policy but also argues that the views of unions are more complex and contradictory than the opposition-support dichotomy. Additionally, it seeks to understand what explains the variability in union responses to climate change and policy. What can account for the contradictions evident amongst and within unions?

Read the report (PDF).

Why has the Dakota Access Pipeline become a divisive issue for U.S. Labour?

By Elizabeth Perry - Work and Climate Change Report, October 7, 2016

Protests against the Dakota Access Pipeline in North Dakota are continuing, according to Democracy Now on October 7.  On October 5, three U.S. federal judges heard arguments  over whether to stop the construction, but they are not expected to make a ruling for three or four months.  Meanwhile, Jeremy Brecher of the Labor Network for Sustainability released a new post , Dakota Access Pipeline and the Future of American Labor,  which asks “Why has this become a divisive issue within labor, and can it have a silver lining for a troubled labor movement?”  The article discusses the AFL-CIO’s  statement  in support of the pipeline, and points to the growing influence of the North America’s Building Trades Unions’ within the AFL-CIO through their campaign of “stealth disaffiliation”.  It also cites an “ unprecedented decision” by the Labor Coalition for Community Action,  an official constituency group of the AFL-CIO , to issue their own statement in support of the rights of the Standing Rock Sioux Tribe, in direct opposition to the main AFL-CIO position. The Climate Justice Alliance, an environmental justice group of 40 organizations, has also written to the AFL-CIO in an attempt to begin discussions.  Brecher’s article concludes that the allies and activist members of the AFL-CIO are exerting increasing pressure, and asks “Isn’t it time?” for a dialogue which will shift direction and build a new fossil-free infrastructure which  will also create jobs in the U.S.    For unions interested in supporting the protests against the Dakota Access Pipeline, a sample resolution for local unions is available from the Climate Workers website.

International Trade Union Confederation unveils a Just Transition Centre at COP22

By Elizabeth Perry - Work and Climate Change Report, November 16, 2016

The 22nd meeting of the United Nations Conference of the Parties (COP22) in Marrakesh Morrocco concluded on November 18, having made dogged progress despite the looming spectre of President Donald Trump . (see “7 things you missed at COP22 while Trump hogged the headlines“). 150 trade union members from 50 countries comprised a delegation led by the International Trade Union Confederation (ITUC). On November 18, the ITUC released their assessment of COP22: “ Marrakech Climate Conference: Real Progress on economic diversification, transformation and just transition, but more ambition and more finance needed”.

The three “top line” ITUC demands going in to the meetings can be summed up as: greater ambition and urgency for action; commitments on climate finance, especially for vulnerable countries, and commitment to just transition for workers and communities. The summary of demands is reproduced at the Trade Unions for Energy Democracy website and described in detail in the ITUC Frontlines Briefing: Climate Justice COP 22 Special Edition. (Note that one of the case studies in the Special Edition highlights the president of Unifor Local 707A in Fort McMurray, Alberta, who describes the union’s efforts to lobby government, to bargain for just transition provisions, and to sponsor job fairs for displaced workers.) The union demands are consistent with the issues raised in Setting the Path Toward 1.5 C – A Civil Society Equity Review of Pre-2020 Ambition. The ITUC is a signatory to the Setting the Path document – along with dozens of other civil society groups, including Canada Action Network, David Suzuki Foundation, and Friends of the Earth Canada.

The ITUC Special Edition statement announced “…the ITUC and its partners are establishing a Just Transition Centre . The Centre will facilitate government, business, trade unions, communities, investors and civil society groups to collaborate in the national, industrial, workplace and community planning, agreements, technologies, investments and the necessary public policies.” The “partners” mentioned include the United Nations Environment Programme (UNEP), the B Team , an international network of business executives who believe that “the purpose of business is to become a driving force for social, environmental and economic benefit” and We Mean Business, a coalition of business, NGO and government policy organizations promoting the transition to a low-carbon economy.

As an aside: The CEO of We Mean Business wrote A Just Transition to defeat the populist politicians (Nov. 5), summing up the business point of view about Just Transition. See excerpts here.

The European Trade Union Congress, a member of ITUC, promoted five demands in its own Position Statement , adopted by the Executive Committee on the 26-27 October. The ETUC demands largely mirror those of ITUC but also call for concrete action to move the issue of Just Transition from the Preamble of the Paris Agreement, ( where it landed by compromise ) . “The COP 22 must now urge Parties to integrate just transition elements into their national contributions, notably by mandating the Subsidiary Bodies Implementation (SBI) and for Scientific and Technological Advice (SBSTA), for they define the terms of this integration.” The ETUC urges that the ILO Principles for a just transition to environmentally sustainable economies and societies for all provide an internationally recognized reference for governments and social partners concerning just transition.

The Canadian Labour Congress, Confederation des Syndicats Nationaux and Centrale des Syndicats Democratiques in Canada, and the American Federation of Labor (AFL-CIO) are ITUC affiliates. Details, pictures, videos are posted on Twitter at #unions4climate.

International action on Just Transition: what’s been accomplished, and proposals for the future

By Elizabeth Perry - Work and Climate Change Report, September 27, 2017

Just Transition – Where are we now and what’s next? A Guide to National Policies and International Climate Governance  was released on September 19 by the International Trade Union Confederation, summarizing what has been done to date by the ITUC and through  international agencies such as the  ILO, UNFCCC, and the  Paris Agreement.  It also provides short summaries of some transition situations, including the Ruhr Valley in Germany, Hazelwood workers in the LaTrobe Valley, Australia, U.S. Appalachian coal miners and the coal mining pension plan, Argentinian construction workers, and Chinese coal workers.  Finally, the report calls for concrete steps to advance Just Transition and workers’ interests.

The report defines Just Transition on a national or regional scale, as  “an economy-wide process that produces the plans, policies and investments that lead to a future where all jobs are green and decent, emissions are at net zero, poverty is eradicated, and communities are thriving and resilient.” But the report also argues that Just Transition is important for companies, with social dialogue and collective bargaining as key tools to manage the necessary industrial transformation at the organizational level.  To that end, the ITUC is launching “A Workers Right To Know” as an ITUC campaign priority for 2018, stating, “Workers have a right to know what their governments are planning to meet the climate challenge and what the Just Transition measures are. Equally, workers have a right to know what their employers are planning, what the impact of the transition is and what the Just Transition guarantees will be. And workers have a right to know where their pension funds are invested with the demand that they are not funding climate or job destruction.”

The ITUC report makes new proposals. It calls on the ILO to take a more ambitious role and to negotiate a Standard for Just Transition by 2021, carrying on from the Guidelines for a just transition towards environmentally sustainable economies and societies forAll  (2015).   The ITUC also states “expectations” of how Just Transition should be given greater priority in the international negotiation process of the United Nations Framework Convention on Climate Change (UNFCC), so that:  Just Transition commitments are incorporated into the Nationally Determined Contributions (NDCs) of countries; Just Transition for workers becomes a permanent theme within the forum on response measures under the Paris Agreement, and Just Transition is included in the 2018 UNFCCC Facilitative Dialogue. It also calls for the launch of a “Katowice initiative for a Just Transition” at the COP23 meetings to take place in Katowice, Poland in 2018, “to provide a high-level political space”.  Finally, the ITUC calls for expansion of the eligibility criteria of the Green Climate Fund to allow  the funding of Just Transition projects.

Just Transition – Where are we now and what’s next? is a Climate Justice Frontline Briefing from the International Trade Union Confederation, with support from the Friedrich Ebert Stiftung and is based upon Strengthening Just Transition Policies in International Climate Governance by Anabella Rosemberg, published as a Policy Analysis Brief by the Stanley Foundation in 2017.

California’s progressive policies yield better job growth and wage growth than Republican comparators

By Elizabeth Perry - Work and Climate Change Report, January 15, 2018

A November 2017 report from the Labor Center at University of California Berkeley  examined the “California Policy Model” –  defined as a collection of 51 pieces of legislation and policy implementations enacted in California between 2011 and 2016 – and found that with progressive policies such as minimum wage increases, increased access to health insurance, reduction of carbon emissions and higher taxes on the wealthy, the state showed  superior economic  performance  in comparison to Republican-controlled states and to a simulated version of California without such policies.  According to  “California is Working: The Effects of California’s Public Policy on Jobs and the Economy since 2011,  the suite of progressive policies resulted in superior total employment growth , superior private sector employment growth, and higher wage growth for low-wage workers from 2014 to 2016. All the while, keeping the state on track to meet its 2020 GHG emissions targets.  The  environmental policies included in the analysis were: starting in 2006, AB 32, which committed the state to lowering its greenhouse gas emissions to 1990 levels by 2020;  regulations under AB 32 in 2012 and 2013, which introduced the state cap and trade program;  SB 350 in 2015 and 2016,  committing the state to greater use of renewable energy and further improvements in energy efficiency ; and SB 32, which raised the emissions reduction goal to 40 percent below 1990 levels by 2030.  The report warns that  enforcement of labour standards and a lack of affordable housing remain as challenges facing the state, and also admits to possible weakness  regarding the second of its two methods of analysis, the synthetic control statistical method.

Just Transition for the coal industry is expensive – but cheaper than failure to address the needs

By Elizabeth Perry - Work and Climate Change Report, September 5, 2017

July 2017 saw the release of  Lessons from Previous Coal Transitions:  High-level Summary for Decision-makers , a synthesis report of case studies of past coal mining transitions in Spain, U.K., the Netherlands, Poland, U.S., and the Czech Republic – some as far back as the 1970’s.  Some key take-aways from the report:  “Because of the large scale and complexity of the challenges to be addressed, the earlier that actors (i.e. workers, companies and regions) anticipated, accepted and began to implement steps to prepare and cushion the shock of the transition, the better the results”; “the aggregate social costs to the state of a failure to invest in the transition of workers and regions are often much higher that the costs of not investing from an overall societal perspective.” While the level of cost details varies in the case studies, it is clear that costs are significant.  For example, the case study of Limburg, Netherlands states that the national government spent approximately 11.6 billion Euros (in today’s prices) on national subsidies to support coal prices and regional reconversion, in addition to  several 100 million per year in EU funds. “One estimate also suggested that in the Dutch case, all told, regional reinvestment in new economic activities also cost about 300 to 400 000€/per long-term job created.”  Limburg is also cited as “remarkable for the relatively consensual nature of the transition between unions, company and government.”  (see page 10).

The Synthesis report and individual case study reports of the six countries are available here . These are the work of the Research and Dialogue on Coal Transitions project, a large-scale research project led by Climate Strategies and the Institute for Sustainable Development and International Relations (IDDRI) , which also sponsors the Deep Decarbonization Pathways Project.  Future reports scheduled for 2018: a Global report, and a Round Table on the Future of Coal.

A New Horizon: Innovative Reclamation for a Just Transition

By various - Reclaiming Appalachia Coalition, 2019

The certainty of an Appalachian transition has become self-evident. The questions that remain are “What shape will that transition take?” and “Will our region seize the opportunity to establish just and sustainable economic models that invest in our strengths and set the region up for meaningful and healthy participation in the new economy?” Foundational to our coalition’s work is the understanding that specific, targeted intervention is necessary to ensure that an equitable vision becomes reality.

Appalachia is at the threshold of a paradigm shift into the new economy, ushered in by communities that are taking their futures into their own hands like never before and implementing innovative ways to address long-standing economic issues with degraded lands. The table on page 6 shows funded projects illustrating this shift that have been supported by our coalition, ranging from ecotourism, renewable energy, arts and culture, and creative waste recycling.

This report highlights the successes achieved in 2019 from previously submitted projects and showcases a brand new round of innovative projects. We’re very excited about both the successes that have already been funded and implemented, as well as the new opportunities that are currently being considered for Abandoned Mine Lands (AML) Pilot funding.

Read the report (Link).

Pope’s encyclical sets the tone for June 29th Trade Union Climate Summit in New York

By Sean Sweeney - Trade Unions for Energy Democracy, June 17, 2015

Just 11 days after Pope Francis released his encyclical on the environment, New York will host a major gathering of 40 unions from 14 countries. With resistance to ‘extreme extraction,’ austerity and inequality all rising, unions see opportunities to begin to build a united global movement for fundamental change.  The Pope’s radical critique of the existing system is sure to resonate with the 100-person gathering.

More than 40 unions from 14 countries will participate in a one-day Trade Union Climate Summit in New York City on June 29th, 2015.  Hosted by 32BJ SEIU, approximately 25 unions from the US will be present, representing workers in energy, nursing and health care, public transport, food and retail, building services, as well as new organizing efforts among precarious workers in the New York City area. Roughly 30 allied organizations will also participate, including the Climate Justice Alliance, 350.org, and the Emerald Cities Collaborative. A full list of registered participants is here.

Why a summit?

The summit is being organized nine months after the massive People’s Climate March on September 21, 2014, and just 5 months before the ‘last chance’ UN climate negotiations (COP 21) in Paris in early December 2015. Unions and close allies will come together in New York determined to find ways to help better connect the rising climate movement with the growing global struggle against austerity and inequality.  Unions have been playing an important role in both movements, but in most instances fighting for climate protection (read: people protection) and building opposition to austerity, low pay and precarious work remain separate struggles. But the potential for building a new and tranformational ‘climate and class movement’ appears to be growing.

This potential seems particularly visible in Southern Europe where the left has won impressive electoral victories in recent months. Importantly, this is a left for which atmospheric and ecological degradation is not an afterthought, but a central question that reveals a basic truth: we live in a political economy that takes but does not give back. Both nature and labor are inseparable, and both are treated as a ‘resource’ from which value is extracted as needed and then dumped.

The June 29 summit in New York will hear from unions from Greece (Thessaloniki water workers) and Spain (Comisiones Obreras) as well as from Italy (CGIL) where the traditional political parties are also losing support. With an eye on the Paris climate talks, the summit will hear from two representatives from the main French trade union federation (CGT) regarding the preparations for the events around COP21.  The UN climate meetings have been the scene of large mobilizations in recent years, particularly Copenhagen in late 2009 and Durban in late 2011.

The Ruhr or Appalachia: Deciding the Future of Australia’s Coal Power Workers and Communities

By Peter Sheldon, Raja Junankar, and Anthony De Rosa Pontello - CFMMEU Mining and Energy, December 3, 2018

Australia’s coal-fired power stations will all close in the next two or three decades. We know this because the companies that operate the 23 power stations currently operating nation-wide have told us so.

Despite the empty rhetoric of some, it is unlikely that the economic case for investing in new coal-fired power stations in Australia will stack up. Those who currently own and operate coal power stations have no plans to build new ones.

The bad news is that the transition in how we produce power will bring great change to the workers and communities we have relied on to provide Australian homes and industry with reliable energy over many decades.

The good news is that we have the lead time to make smart decisions about what that change looks like—or at least, we now have the lead time after being caught unprepared by earlier closures, including Hazelwood in 2017.We have the choice to manage this structural economic change so that individuals, families and regions aren’t abandoned to unemployment, low-value jobs, poverty and associated health and social decline. Even better, we have the evidence about what works to deliver just transitions for coal power workers and communities, with skills, jobs, opportunities and hope for the future.

Communities grow around power stations and the mines that supply them. They are unique communities bonded in many cases by history, geography, difficult and dangerous working conditions and good unionised jobs. They are also uniquely vulnerable in their heavy dependence on the coal power industry.

This analysis of transitions in resource economies internationally and here in Australia provides valuable insights into the ingredients of success and the wide scope of outcomes.The Appalachian region in the United States is a heart-breaking story of industry transition characterised by short-term, reactive and fragmented responses to closures of coal mines, resulting in entrenched, intergenerational poverty and social dysfunction.

Compare this with the transition away from a heavy reliance on coal mining in Germany’s Ruhr region, where forward planning, investment in industry diversification, staggering of mine closures and a comprehensive package of just transition measures delivered a major reshaping of the regional economy with no forced job losses.

Central to these vastly different outcomes is the presence of a national, coordinated response. To this end, a major recommendation of this report is the establishment of a national, independent statutory authority to plan, coordinate and manage the transition.

In the energy debate to date, the impact of the transition on workers and communities has been almost completely ignored. This is an omission we can’t afford. After all, the costs of investing in a Just Transition need to be balanced against the costs of doing nothing and abandoning whole communities to a bleak future.

While global trends suggest that Australian export coal for steelmaking and energy production will be in demand for decades to come, coal-fired power generation in Australia is winding down. On the information available, there are no excuses for not taking action to protect the best interests of those affected.</p.

I thank Peter Sheldon and the team at UNSW Sydney’s Industrial Relations Research Centre for this important piece of work. I call on all power industry stakeholders to engage with its findings and consider how we can work together to deliver a Just Transition for coal power workers and communities.

Read the report (PDF).

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