To outcompete Big Oil, the clean energy industry needs to unionize.
Dirty energy pays more than clean energy. Thatâs a problem. California has big climate ambitions. In 2018, the state committed to a goal of switching to [100 percent renewable energy by 2045](, and the Los Angeles City Council [voted]( last week to ban new oil and gas drilling and phase out existing wells in the region, which has one of the largest urban oilfields in the country. But closing all those wells will leave [thousands]( of oil and gas workers without jobs, and the state is beginning to grapple with a reality that is true for the country at large: Clean energy jobs, for the most part, donât pay as well as fossil fuel work. According to an [E&E News report]( from earlier this week, the California State Assembly is worried the clean energy transition may lead to âpotentially negative consequences to workers and communities,â in particular due to poorer salaries and benefits. A [2021 study]( from the Political Economy Research Institute at the University of Massachusetts Amherst lays out the salary gap in stark detail: The average compensation for a clean energy worker in California is about $86,000. For a fossil fuel worker? About $130,000. The reason, experts say, comes down to one thing: unions. âFossil fuel workers are unionized,â Carol Zabin, director of the UC Berkeley Labor Centerâs Green Economy program, told Recode. âMost clean energy workers are not.â Historically, those unions have guaranteed fossil fuel workers things like job security, higher wages, health care coverage, and pensions â protections that were won through years of bargaining and negotiations. âIn this economy, in 2022, blue-collar jobs, unless theyâre public sector or union jobs, are very low-wage jobs,â Zabin said. Clean energy companies, because theyâre so new, usually do not have unionized workforces â and they have a history of opposing the idea of their workers unionizing. Elon Musk, the CEO of the electric vehicle manufacturer and clean energy company Tesla, [broke US labor laws]( with anti-union tweets in 2019. And when solar installers at Bright Power, a real estate energy and water management company, attempted to unionize that same year, the company [fired them all and replaced them with subcontractors](. âTheyâre disrupting a social contract,â Zabin said in reference to clean energy companies in general. âThey donât want to pay their workers middle-class wages because they donât have to. They have a green, mission-driven cloak that they wear, but theyâre profit-driven and they can be terrible employers.â Unlike most European countries, where unions [organize workers by sector]( rather than company, green energy startups are free to hire whomever they like at whatever wage they wish â which is exactly what happened in Oregon two years ago. Most of the local workers who had the skills necessary to build wind turbines already belonged to unions and expected union salaries, so a number of wind farm projects [brought in]( non-unionized workers from outside the state to build their turbines instead, which allowed them to pay lower non-union wages. âThere's a lot of anxiety,â said Mark Brenner, co-director of the University of Oregonâs Labor Education and Research Center. âHow do we make sure that there's a just transition for those workers who are in carbon-intensive industries?â Part of the answer may come from oil and gas companies that are investing in clean energy themselves, said Tom Kochan, a faculty member of the MIT Institute for Work and Employment Research. âThey know better than anyone else what different kinds of skills are needed,â Kochan told Recode. Labor unions already tend to have training and apprenticeships built into their structure, Kochan said, and by working with those companies to invest in retraining workers with fossil fuel expertise, they can become what he calls the âeducation and training providers of choiceâ for green energy companies, providing them with highly skilled workers who do not need additional training to build clean energy infrastructure. In 2020, the energy company Ãrsted, which was previously the Danish Oil and Natural Gas company and is now the largest offshore wind developer in the world, took a step in that direction by [partnering]( with North Americaâs Building Trade Unions (NABTU) to develop an offshore wind project, with trainings and apprenticeships built in to help NABTUâs members transition to green energy. But, as Ella Nilsen [wrote]( for Vox last year, the most important step would come through policy. Unions and labor laws are both weaker now than they were in the past, Zabin said, and states and the federal government need to ensure that future clean energy projects, especially those that are subsidized with public funds, include strong labor protections. In the short term, this will mean oil and gas workers who transition to clean energy will be able to maintain the lives theyâve built â though Zabin points out that some of their skills might be better suited for work in other industries altogether. Making sure future clean energy jobs treat workers as well as or better than fossil fuel jobs will also ease the overall transition to clean energy, which is essential for the well-being of the planet. Jobs are an essential bargaining chip in American politics, and policymakers have an unprecedented opportunity to shape the clean energy industry while it is still nascent to set ambitious climate goals that donât come at the expense of workers. President Joe Biden seems to be thinking about this already, saying he wants to ensure clean energy jobs created by his administration will be "[good-paying union jobs](.â That was the route labor unions took in Oregon, pushing state lawmakers to bake labor standards into large-scale renewable projects â an endeavor that [succeeded]( with House Bill 2021, which passed last year. âIt was a really great example of using a climate initiative to achieve other public policy objectives,â Brenner said. âWeâre promoting clean energy, and at the same time weâre making sure folks are getting valuable skills and experience so that they can have long, strong careers.â âNeel Dhanesha, science and Recode fellow [A worker atop a cherry-picker arm reaches out to one of the projecting panels at the top of a huge cellular tower.]( George Frey/AFP via Getty Images [3G must die so 5G can live]( [Wireless providers will shut down 3G throughout the year, leaving an unknown number of devices without service.]( [Woman working in an RV on her laptop.]( Getty Images [Remote work isnât the problem. 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