Business and unions must work together in the race for green jobs

If the late-20th century was dominated by the Space Race and the Arms Race, then one of the defining features of global competition in the early-21st will be the race to electrify, writes three union leaders.

It might seem odd that a technology that revolutionised the world over a hundred years ago should be poised to make such a difference now. But the need to decarbonise almost all aspects of our economy will see the need to produce and distribute vastly more electricity, all produced without fossil fuels. From powering cars, to producing steel, electricity will be one of the currencies of success in the world of the future.

And be in no doubt a worldwide race is under way. Those countries who harness the opportunities can expect great rewards, but those which fail to risk dealing with dislocation on a scale of the deindustrialisations of the 1980s onwards can expect great failure.

Our unions, Prospect and the International Federation of Professional and Technical Engineers (IFPTE), represent tens of thousands of workers in electricity in the UK, USA, and Canada. We can see first-hand the different approaches these governments are taking. We agree though on the basic points needed for success.

Both of our unions recognise the critical need for large scale expansion of nuclear power alongside renewables. This comes from a recognition that we need a base load of proven, always on, reliable electricity that does not stop when wind is not blowing, and the sun is not shining.

Prospect has been instrumental in pushing for the government to invest in a whole generation of new large scale nuclear power stations, including Hinkley Point C, now well under construction and Sizewell C that has just received the go ahead. IFPTE too are pushing hard for the expansion of new nuclear power.

International collaboration

Increasingly we are seeing Western governments realise that they must also collaborate on critical technology to make sure that China cannot use a domination of the international marketplace for political leverage. It is estimated that China produces roughly 75% of the global supply of solar panels and batteries and about 60% of key components for wind turbines. We believe that industrial collaboration between countries like ours will be critical to grow the proportion of the domestic supply chain and maximise the jobs and investment benefits.

In the longer-term our countries are deeply committed to the development of nuclear fusion technology. But this transformative technology is likely to be too big and too difficult to be cracked by researchers working in one country alone. It is something that will only be possible with an open collaborative approach among partner nations, with our best scientists and engineers able to work together to achieve the promise of fusion.

But this is not just about innovation: it is about developing and implementing an industrial strategy, that puts investment and good work at the heart of it. There are promising signs from both the USA and Canada that governments are starting to understand that supporting the workforce will be critical to winning the global electricity race.

In the USA, the Bipartisan Infrastructure Law includes $76 billion in clean energy investments and support for critical clean energy supply chains as well as $22 billion in new funding for a range of Office of Clean Energy Demonstrations projects including advanced nuclear reactors, regional clean hydrogen hubs, electric grid upgrades, carbon capture, and energy storage projects.

Crucially the criteria for these grants prioritise the applicant’s “meaningful, early engagement with stakeholders, including disadvantaged communities, Tribal communities, and unions to address environmental justice and workforce or other economic concerns and opportunities.”

Critical to the approach across the West will be a Just Transition to Net Zero. Unions are clear that the path to Net Zero must make sure that workers and their communities are not abandoned, learning the lessons from previous de-industrialisation.

Just transition

Prospect is pushing for the UK government to invest £1bn a year in a Just Transition fund, paid for with windfall proceeds from offshore wind licences.

In the USA, in August 2022, the $1.7 trillion Inflation Reduction Act (IRA) was signed into law as a budget reconciliation bill that provides $370 billion in tax and other incentives in investments for clean energy. Congress took a critical step to drive these investments into communities that have been economically dependent on fossil fuels. Projects located in an “energy community” will receive an additional 10% tax credit bonus. While the detailed rules are yet to be published IFPTE believe that they represent a real opportunity for new reactors to be built in fossil fuel communities.

Unions, along with the Biden administration, are committed to bringing people from under-represented communities into the workforce.  We don’t just want the opportunity to expand representation; we want to represent the expansion of opportunity.

Explicitly responding to the IRA in the USA, Canada’s March budget recognised the critical role of good jobs alongside Canada’s own investment in clean energy.

As unions working day-in-day out in workplaces we know that the final ingredient is giving workers a voice in this change. Working together, we are determined to secure a race to the top.

It is critical too that employers, workers, and government can come together to discuss the best and fairest way of achieving a Net Zero electrified economy. In the USA AFL-CIO President Liz Shuler proactively pushes to bring these partners together.

Around the world, governments increasingly agree. The G7 countries have just resolved that “We emphasize that freedom of association and the right to collective bargaining play an important role in promoting decent work and wage growth. We are resolved to build an inclusive labour market that ensures decent and good quality jobs for all and leaves no one behind.” At the same time the communique also explicitly recognises the importance of human capital to a just transition.

This plan built on collaboration, investment, good work and a voice for workers, will not be the same in every country. But countries that succeed will have all these ingredients. Countries that fail to act on this now, or even those who slip backwards in future years will be left behind.

As unions together we will be pushing for a future that delivers for workers while it tackles the climate crisis. Promising rhetoric will not be enough, we will judge our leaders on their actions.

• Sue Ferns is Senior Deputy General Secretary of Prospect
• Matthew Biggs is President of the International Federation of Professional & Technical Engineers
• Gay Henson is Secretary-Treasurer of the International Federation of Professional & Technical Engineers

This article was originally published on The Times’ Red Box blog.