Changing the rules going global: unions and climate change

Last week 3 significant reports from distant parts of the world highlighted the crucial role that workers and their unions can play in fighting climate change.

Each one showed how union members can shape the character of the move away from fossil-fueled energy production and, negotiate a rapid “just transition” that provides secure jobs in renewable energy production and associated environment renewal industries.

In Latin America

In early October representatives from 15 countries throughout the Americas met in San José, Costa Rica, for the Third Regional Conference on Energy, Environment and Work. The meeting was reported by the ever growing Trade Unions for Energy Democracy, and convened by the Trade Union Confederation of the Americas (TUCA-CSA). 24 trade union centres attended along with 7 continental social movements, 4 civil society organizations and 5 universities.

“For three days, the group discussed how to respond to the predatory and repressive actions of mining and drilling companies across the continent.”

The participants developed an agreed affirmative agenda, including:

  • ending energy poverty,
  • de-privatisation,
  • recover people’s sovereignty over common resources and goods
  • reject technological determinism that gives precedence to one technology over another and,
  • de-fossilisation of the energy matrix.

Thus, representing hundreds of thousands of workers, these unions connect poverty and inequality to the impact of climate change driven by transnational corporations’ control over work and social life.

In Spain

We learned that in Spain a group of coal mining unions have negotiated a “Just Transition” agreement. The Agreement  speeds up the closure of declining coal mines and replaces these with a programme of clean energy production and environment renewal.

There seem to be 2 important factors behind this breakthrough. First, the workers and their communities, through their unions, established momentum for their demands through social and industrial action. Also, they were dealing with a government that wanted to develop a “just transition agreement”.

The Just Transition deal “… replaces subsidies to the coal industry with a sustainable development plan. Financially viable mines can remain open, but ten pits and open cast mines are expected to close by the end of the year, with the loss of 1,677 jobs. The deal covers eight companies with 12 production units in four regions of Spain. The biggest employer is state owned mining company HUNOSA, with 1,056 employees.

“The highly detailed agreement has been praised by unions as a model, and provides a package of benefits to miners and their communities.

“About 60 per cent of miners – those age 48 and older, or with 25 years’ service – will be able to take early retirement. Younger miners will receive a redundancy payment of €10,000, as well as 35 days’ pay for every year of service. Miners with asbestosis will receive an additional payment of €26,000. …

“An action plan will be created for each mining community, including plans for developing renewable energy and improving energy efficiency, and investing in and developing new industries.

Obviously, there is still much to learn about any flow-on effects to the “financially viable” mines and the damage they will continue to cause.

In Australia

The Mining and Energy Division of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) released a report on “Just Transition” as it might apply to Australia’s mining industry and the workers threatened by its decline.

Of course “a report” is not the same as a negotiated “just transition agreement”, its still a big deal, for several reasons.

First, it is not straightforward for a union and its members – under pressure from a declining industry base and workforce – to develop a strategy on climate change. Members and their families can now draw on new, rich material to work out their campaigns for the immediate future.

The report says:

“Coal-fired power industry workers and their communities have provided Australia with energy for many decades. For this, they have also suffered from working and living in polluted or dangerous environments. In the absence of sufficient policy-making forethought and attention, they will now also carry the heaviest costs of the new national climate change priorities.

“Those costs would show up as unwelcome early retirements, unemployment, underemployment, insecure employment and work that is lower paid, less safe and less skilled. Overall, these produce reduced incomes and personal assets, both before and after retirement.”

Put in another way, leaving transition to the elusive charms of the “free market” will be a disastrous dead end for workers who have worked their guts out to provide what is taken for granted by the rest of the population.

Not just bread, we’ll take the bakery too?

The common thinking in most of the Australian union movement says that investment (and disinvestment) decisions are a matter for the employer, even when we don’t like it, as we often do.

With some exceptions, climate change has not been union business in the practical sense that it should or can be negotiated. Making sure that unions can represent workers in decisions about disinvestment (“defossilisation”), new job-creating investment based on renewables, and private or public ownership, is quite rare.

The Australian Manufacturing Workers Union has been an exception. In 2008, the Union released a ground breaking report that formed the basis of its ongoing negotiations with the then Labor government, especially in reference to its industry development policy.

Of course, the broken rules of Australia’s Fair Work Act 2009 prohibit investment decisions from being the subject matter of negotiations for the purposes of making an agreement. This prohibition must be removed and replaced with workers’ rights, including through their unions, to make claims and negotiate arrangements that protect and advance their interests during transition away from fossil fuel dependency.

As the CFMMEU report says:

Currently, law, policy and practice allow owners of coal-fired power stations to make all decisions regarding closures: when and how it suits them. The clear inference is that those decisions should be left only to the owners’ commercial considerations. This was evident in the South Australian cases but also, in 2017, for the Hazelwood plant in Victoria. Further, those owners have no social responsibilities to workers or host communities beyond the scarce regulatory requirements.

The “Concrete Proposals” in the report (page 15) are, potentially, a big step forward to ensure a strong role for unions and their workers in setting the pace of transition and, also, to ensure that workers and their communities will not be victims of it. The emphasis on tripartite processes is quite European and is understandable. Tripartite industry processes were not a gross failure, despite inadequacies, during the 1980’s.

Changing the workplace and industrial laws to strengthen workers’ rights – including the right to strike – will change the rules about “just transition” to reverse climate change, not just reversing inequality on the wages front.

“New rules” campaigns come together for the elections

Rapid action on climate and “changing the rules” in Australia’s grossly unfair workplace and industrial laws will be 2 of the major threshold issues for the next national election. (See this, for example.) The National Conference of the Australian Labor Party (ALP) coming up in December will also also have to deal with them.

The “Changing the Rules” theme is catching on. There are so many sets of broken rules, as I have commented on before. And most of them do interact with each other in various ways.

And we have this 15 year old’s insight all the way from Helsinki, Finland

…  Greta Thunberg urged marchers to fight for the major systemic changes that experts have said are necessary to limit greenhouse gas emissions and avert a looming climate catastrophe.

“Today we use 100 million barrels of oil every day. There are no politics to change that. There are no rules to keep that oil in the ground, so we can’t save the world by playing by the rules because the rules have to change. Everything needs to change and it has to start today,” declared the Swedish teenager, who traveled to the capital city of her nation’s Nordic neighbor for Saturday’s massive march.

Nails it.

Australia’s Penal Powers for the 21st Century

White Australia was born as a penal colony. And throughout its history since there have been plenty of laws that fine, impose financial damages and lock up both the original inhabitants of the land and the working people of all nations who came here to make a living. Those laws swing into play whenever landowners and employers needed a government instrument to protect their profit making and wealth accumulation from the collective action of aboriginal communities and their supporters, and also combinations of workers whether members of unions or not.  (For more on this read Jack Hutson’s From Penal Colony to Penal Powers.)

This story (click here) describes how Labor’s Fair Work Act of 2009 replicates that history so that it systematically prevents workers from exercising their collective power in the twenty first century.

Some of us who have been around for a long time know very well that there is NO END to the hypocrisy of employers when it comes to the exercise of their power. Employers like Bluescope Steel, in their own right and through their associations like the AIGroup, AMMA, and the Business Council of Australia, constantly whinge about the role of outside third parties in industrial relations.For them, “outside third party interference”means unions, especially those that coordinate effective worker action across industries, and a Fair Work Commission with genuine democratic powers to ensure that workers human rights to organize and take collective action are protected.

But, they made sure, when they negotiated the Fair Work Act to replace Howard’s Workchoices in 2008-9, they kept and re-energized that extra third party power that would punish workers for exercising the only power they have – collective industrial action. And, what is more, new ALP negotiators and certain (not all) union leaders let them have it.

What we see here, as we have seen in other disputes, is the PENAL PROVISIONS OF THE TWENTY FIRST CENTURY.

The penal provisions of the 20th century were neutralized in big disputes through the 1960’s that culminated with the national strike when Tramway Union official Clarrie O’Shea was jailed for refusing to pay fines imposed by the courts because union members were taking industrial action in defiance of the so-called “bans clauses” of the day.

The industrial strategy that led to that great union and democratic victory was ten years in the making.

The Australian workers of the twenty first century need a strategy that defeats the penal powers of the twenty first century. It is all about a deeper meaning of democracy than the very limited form that too many of us are sort of comfortable with these days.

Electing a genuine reforming Labor government backed up by the Greens and genuine pro worker and democratic independents to get rid of these undemocratic industrial laws will make a difference.But this was never on the radar in recent Federal elections.

So, that will not happen unless it is part of a conscious strategy that creates a massive and independent movement of workers that makes it impossible for Labor and Green politicians to dodge their responsibilities.

Where does a diesel mechanic, including field service, a fitter, an electrician, a driver, a yardie, a trade assistant sit in the Australian income leagues tables?

Don Sutherland 27/3/16

I decided to take a close look because early last week the Australian Tax Office (ATO) released to the general public the latest stats on the incomes and income tax paid of Australians. (Click here , and look for Tables 14 and 16)

For example, we learned just how little tax was being paid by some of Australia’s highest income earners.  For example, click here.

Remember, we are talking about “incomes”, not wealth. (We know that some people can report very low incomes but somehow or other be very wealthy.)

The incomes information is in a very big table that divides income levels into 100 “percentiles” – that is, the bottom 1% of income earners, then those between the 1-2%, all the way through, percent by percent, to those earning at the very top, between 99-100%.

And, the ATO tells us how many individuals, both men and women, there are for each percentile, and where particular occupations sit. From this it’s possible to work out reasonably well what the average income is and what the median – the middle point – is in the income league table.

I have been guided by the work of Greg Jericho, a journalist who writes for The Guardian (the Australian on line edition) and the ABC program, The Drum. If you are interested, click here to take a look at Greg’s latest work. Or, follow this link: http://www.theguardian.com/business/grogonomics/2016/mar/24/the-budget-is-coming-so-standby-for-talk-of-ordinary-australians-who-are-these-people

Jericho shows the increase in incomes across all 100 percentiles compared to the previous report.

Among other things, Jericho supports the idea that since the 2007 global economic crisis the rich are paying themselves (earning?) a lot more than they are paying those who they employ. For example, he says:

“But the average income of those in the 90th is 34.9% more than in the 80th; and the average income of the 100th percentile is a jaw dropping 481% larger at $698,574

My go at Greg’s work starts here and then goes on to look at the typical engineering service / metal worker  occupations. It is interesting, also, to see how any individuals there are at each percentile, but that is not the purpose of this commentary.

Avge Tax Income Oz 040416a

So, what about the typical engineering services / metal worker?

Here in this graph is my go at a snapshot for some of the typical occupations in the industry.

EnginServs workers avge taxable income 040416

Remember!  The numbers 30, 40, 50 etc are selected  percentiles only, and each is the average at that percentile for both men and women.

Also, these are the stats for 2013-14, at the beginning of the fall in incomes associated with the fall in mine site production. These numbers also reflect very long working hours for the blue collar jobs. The current numbers (ie early 2016) would tend to be somewhat less, especially for fitters and diesel mechanics.

Anyone can compare their own actual annual income with the graph. I suspect some would be higher than the number for their occupation, and some probably less.

It is worth reflecting on the gender pay gap that prevails in the industry.

Just in case you are interested, you can also see the average taxable income of the senior executives of the type that “manage” engineering service work from their corporate boxes.

We do not know at this time what this means for the members of company Boards and owners. Secret squirrels’ business?

 

 

 

Building Our Navy Ships in Australia: navy uniforms and patriotism

Yesterday, I joined with a bunch of metalworkers who work in Australia’s shipbuilding industry to hand out leaflets about building the next fleet of Australia’s navy ships in Australia, instead of spending taxpayers dollars to import from other countries.
Its pretty simple, you would have thought: Australia is an island nation and we have the capability to do the job. We have been campaigning for the past 9 months to get the federal government to commit to building the next fleet of 48 ships worth about $250b. over 25 years, and we are continuing our campaign just as vigorously with the new conservative government. (For more info CLICK HERE Continue reading “Building Our Navy Ships in Australia: navy uniforms and patriotism”