US Steelworkers Union Embraces Clean Energy for Job Growth
The United Steelworkers (USW) union views the clean energy sector as a new area for job growth to balance job losses in the oil refining and petrochemical industries. Representing approximately 30,000 workers in North America, the union sees expansion potential through initiatives supported by the Inflation Reduction Act, despite concerns about political challenges related to the legislation.
USW District 13 Director Larry Burchfield expressed his optimism at a regional meeting held in Louisiana last Friday. He highlighted the potential for 17,000 new union jobs from projects backed by the Inflation Reduction Act. Burchfield's confidence remains unshaken, even with the possibility of Donald Trump winning the presidential election on November 5 and promising to dismantle the Biden administration's climate law. The director emphasized the bipartisan nature of the Inflation Reduction Act and the difficulty of reversing such legislation without Congressional approval.
USW has faced challenges in increasing its membership; it has not been able to achieve union victories in emerging gas processing or wind projects and experienced 1,400 job losses due to refinery closures. The trend of job losses is expected to continue; Lyondell Basell Industries plans to halt operations at its Houston refinery in early 2025, resulting in the loss of 300 USW jobs. Additionally, Phillips 66 (NYSE:PSX) plans to close its Los Angeles refinery complex by the end of 2025, which will impact up to 900 jobs, most of which belong to USW members. Over the past four years, at least five U.S. oil refineries have shut down, citing rising costs and declining fuel demand projections.
In an effort to strengthen union membership, U.S.-supported companies are committing to neutrality in union campaigns and allowing workers to sign cards to approve union representation through card-check agreements. Burchfield noted that 30 companies have agreed to remain neutral, with two approving card-check campaigns. Among these companies is a solar panel manufacturing facility in Texas announced by Canadian Solar (NASDAQ:CSIQ).
The USW's strategy reflects a broader shift towards embracing the growing clean energy sector while traditional industries face economic pressures and workforce transitions.