Green and Decent Jobs: The case for local action - IPPR
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WWW.IPPR.ORG GreenandDecentJobs: Thecaseforlocalaction Anipprscopingpaper JennyBird,KayteLawtonandKandidaPurnell June2010 ©ippr2010 InstituteforPublicPolicyResearch Challengingideas– Changingpolicy
2 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper Contents Aboutippr..................................................................................................................................3 Abouttheproject.......................................................................................................................3 Abouttheauthors......................................................................................................................3 Acknowledgements....................................................................................................................3 Executivesummary.....................................................................................................................4 1.Introduction............................................................................................................................7 2.Whydoweneedgreenjobsandwhatshouldtheydeliver?.................................................8 3.Leadingtheway:casestudiesfromtheUSA.......................................................................14 4.Greenshoots:casestudiesfromtheUK..............................................................................19 5.Fourkeyprinciplesforcreatinggreenanddecentjobs.......................................................26 6.OpportunitiesforfutureactionintheUK...........................................................................28 7.Conclusion............................................................................................................................31 References................................................................................................................................32 Annex1:Ongoingprogrammesofworkwithrelevancetothegreenjobsagenda intheUK..................................................................................................................................34 Annex2:Findingsfromippr’s‘Greenanddecentjobs’survey,2010.....................................42
3 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper Aboutippr TheInstituteforPublicPolicyResearch(ippr)istheUK’sleadingprogressivethinktank, producingcutting-edgeresearchandinnovativepolicyideasforajust,democraticand sustainableworld. Since1988,wehavebeenattheforefrontofprogressivedebateandpolicymakinginthe UK.Throughourindependentresearchandanalysiswedefinenewagendasforchangeand providepracticalsolutionstochallengesacrossthefullrangeofpublicpolicyissues. WithofficesinbothLondonandNewcastle,weensureouroutlookisasbroad-basedas possible,whileourGlobalChangeprogrammeextendsourpartnershipsandinfluence beyondtheUK,givingusatrulyworld-classreputationforhighqualityresearch. ippr,30-32SouthamptonStreet,LondonWC2E7RA.Tel:+44(0)2074706100E:info@ippr.org www.ippr.org.RegisteredCharityNo.800065 ThispaperwasfirstpublishedinJune2010.©ippr2010 Abouttheproject Thisscopingpaperisthefirstoutputfromippr’s‘CommunitiesforGreenandDecentJobs’ project,whichbeganinautumn2009.ThepaperwillformthebasisofourGreenJobs SummitinJune2010.Furtherphasesoftheprojectwillinvolveaseriesofroundtable meetings,alearningtriptotheUSAandademonstrationprojectintheUK. Abouttheauthors JennyBirdisaResearchFellowatippr.Sheworksonippr’sCitizens,SocietyandEconomy programmeandspecialisesinenergyandclimatechangepolicy.Shehasauthoredtwo previousreportson‘green’jobs:GreenJobs:Prospectsforcreatingjobsfromoffshorewind intheUKandTheFuture’sGreen:JobsandtheUKlow-carbontransition. KayteLawtonisaResearchFellowatippr,wheresheworksonemployment,skills,poverty andinequalityandhasledippr’sworkonlowpayandin-workpoverty. KandidaPurnelliscurrentlyaninternworkingonippr’sCitizens,SocietyandEconomy programme.KandidahaspreviouslyworkedforaGreenMEPandcompletedanMAin InternationalRelations. Acknowledgements ThisprojectwasmadepossiblebythegeneroussupportoftheCalousteGulbenkian Foundation.Weareverygratefultothem;thisprojectcouldnothavehappenedwithouttheir support. Wewouldalsoliketothankalltheindividualswhowillinglygaveuptheirtimetotakepartin interviewsforthisprojectandeveryonewhocompletedourscopingsurvey.Wewouldalso liketothankLouisaHooperforprovidingcommentsonanearlierversionofthereport. Finallywearegratefultocolleaguesatipprwhocontributedtothisprojectandcommented ondraftsofthisreport:TonyDolphinandKateStanley,andtoGeorginaKyriacou,who steeredthereporttowardspublication. Noneoftheaboveshouldbeheldresponsiblefortheviewsexpressedinthisreport,which aresolelythoseoftheauthors.
4 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper Executivesummary Greenjobsareoftenheraldedasthesolutiontothetwinchallengesofloweringour greenhousegasemissionsandbringingdownunemployment.However,verylittlehasbeen saidaboutwhatnewgreenjobsmightlooklike–whowillbedoingthem,howmuchmight theypayandwherewilltheybelocated? Unequalaccesstojobs,lowpayandalackofprogressionroutesareendemicproblemsin somepartsoftheUKlabourmarket.Inthispaperwearguethattomaximisethebenefitsof thegreenjobsrevolution,wemustmakesurethatgreenjobsarealsogoodjobs,payinga decentwageandofferingmoreandbetteremploymentopportunitiestoawiderangeof people. Tomakethisareality,wemakethecaseforgreateractionatthelocallevel,andbyagreater rangeofindividualsandorganisations.Weexaminethepotentialfornewpartnerships betweenlotsofdifferentorganisations–basedonexamplesofbestpracticefromtheUSA– tohelpensurethatnewgreenjobsarerightforlocalcommunities. Inthisreportweusetheterm‘greenjobs’initsbroadestpossiblesense–thatis,toinclude environmentalgoodsandservicesaswellaslow-carbonsectors,toincorporatesupplychain jobsandtocount‘greener’versionsofexistingjobstoo. Climatechangeandemploymentchallenges TheUKfaceschallengesonboththeclimatechangeandemploymentagendas– asdetailed below– whichwearguecanbeaddressedbylocalactionongreenanddecentjobs. Challengingclimatechangetargets AfundamentalshiftintheUKeconomyisrequiredfortheUKtoachieveitsambitionsto reducegreenhousegasemissionsby80percentby2050.Thiswillinvolvemassive improvementsinenergyefficiency,decarbonisationofelectricity,restructuringroadtransport andmajorchangestothewayweheatbuildings.Thesechangeswillaffectalmostalljobs, notjustthoseindirectly-affectedsectors,andwewillallneedtoadapttoworkinginalow- carbonworld. Risinglevelsofunemployment Unemploymentcontinuestoriseafterthe2008/09recession,despitetheresumptionof economicgrowth.Lookingahead,thereisariskthattheeconomicrecoverynowunderway couldbeajoblessrecoveryunlessnewareasofjobgrowthareidentifiedandcultivated. Labourmarketexclusion Manypeoplefinditdifficulttofindsuitableemploymentintheirlocalarea,andthisisa particularproblemforpeoplewithlowskills,peoplewithadisability,loneparentsandpeople fromsomeethnicminoritybackgrounds.Evenbeforetherecession,afifthofworking-age adultswereeffectivelyexcludedfromthelabourmarketandclassedas‘economically inactive’–notworkingandnotlookingforwork. Toomanypeopleonlowpay TheUKalsohaspersistentlyhighlevelsoflowpayandin-workpoverty.Whereentry-level jobsfailtoprovidea‘steppingstone’tobetterpaidopportunities,peoplegettrappedin low-paid,dead-endjobs.Thisisaseriousproblemformanypeoplewithlowskillsandin partsofthecountrywheregoodqualityjobsarescarce. ThegreenjobsagendaintheUKhastendedtofocusonthefirsttwooftheseissues– reducinggreenhousegasemissionsandcreatingjobs.Muchlessthoughthasbeengivento thethirdandfourth–howtocreategoodqualityjobsthatareaccessibletothepeoplewho reallyneedthem.
5 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper Whatcanbedone? Thisscopingstudyhasrevealedsomeinnovativeapproachestostimulatinggreenanddecent jobsintheUS: •ApolloAlliance: Anationalmovementbasedonstate-levelcoalitionsofbusiness,union, environmental,localgovernmentandcommunityleaders.Thecoalitionsworkto stimulatethetransitiontoacleanenergyeconomywhilecreatinggood-qualityjob opportunitiesforthemostdisadvantagedAmericans. •WE²: Acoalitionofunions,environmentalgroups,stateandlocalauthoritiesoperating inWisconsin,theWE² programmeseekstoimproveenergyefficiencyinresidentialand publicbuildingsinordertocreatejobsforlocalunemployedpeople.Keytothe programmehasbeentheestablishmentofminimumlabourstandardsandrequirements tohirelocally. • BlueGreenAlliance:BGAisapartnershipbetweentheUnitedSteelworkerstradeunion andtheSierraClub,thelargestenvironmentalorganisationintheUS.BGAuses advocacy,campaigningandtrainingtodisseminateknowledgeaboutthegreenjobs agendaandlobbyforimprovedworkers’rightsinenvironmentalprogrammes. •GreenForAll:GreenForAllisacharitycampaigningforaninclusivelow-carbon economythattacklespovertyaswellasprovidingcleanenergy.Itsworkfocuseson developingpolicyandhelpingtobringtogetherdifferentpartnerstobuildeffective coalitionsinstatesandcitiesacrosstheUS. Theseprogrammesdemonstratehowitispossibletocombineenvironmentalandsocial justiceconcerns.Itisstrikingthatalloftheseinitiativeshaveinvolvedlocal-level(stateand city)action;thatobjectivesonjobaccessibilityandqualitywerecoretotheirmissions;and thattheyallinvolvedcoalitionsbetweenorganisationsthathavenotalwaysworkedtogether inthepast,includingunionsandenvironmentalorganisations. Onthisfront,theUSisaheadoftheUK.However,wehavealsoidentifiedsomepioneering projectsintheUK: •BirminghamGreenNewDeal:AprojectledbyBirminghamCityCouncilinpartnership witharangeoflocalorganisations,includinganengineeringfirm,asocialenterprise,a communityenvironmentalgroupandahousingassociation.Theprogrammeisdesigned toimproveenergyefficiencyinbuildingsacrossthecity,providingnewemployment opportunitiesforlocalpeople. •PeckhamPower: Acommunityorganisationworkinginpartnershipwithlocal communitycouncilsandenvironmentalorganisationstopromoteenergyefficiencyin thePeckhamareaofSouthLondon.Theprojectiscurrentlyrollingoutfreesmart meterstolocalpeopleanddevelopingaseriesof‘townhallmeetings’tostimulatelocal debateandactiononenergyefficiency. •CapacityGlobal’sTENproject: Developedtoaddresstheunder-representationof peoplefromlow-incomeorethnicminoritybackgrounds,andpeoplewithdisabilities,in environmentalorganisationsandthegreenjobsmovement.TheLondon-basedproject workswithemployersandlocalcharitiestoprovideapackageoftrainingandwork experiencetohelpindividualsgainafootholdintheenvironmentalsector. TheseUKcasestudiesarenotaswellestablishedastheonesintheUS,butthey demonstratetheinventivethinkingthatisalreadystartingtoblossominthegreenjobs arena.LiketheirAmericancounterparts,theyillustratetheadvantagesofalocally-based, partnershipapproachtocreatinggreenjobs.
6 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper Keyprinciples DrawingonourAmericanandBritishcasestudies,wehavedevelopedfourkeyprinciples thatmayproveausefulstartingpointforanyoneinterestedincreatingdecentgreenjobsin theirlocalarea: 1.Keepitlocal: Localknowledgeisvital–itisimpossibleforcentralpolicymakerstoknow whichgreenjobsaremostviablewhere,whatthelocalbarrierstoimplementationare, whattheneedsofthelocalworkforceareandwhatthelocalskillsbaselookslike. 2.Joinforces: Thebenefitsofpartnershipworkingareclear–itisunrealistictoexpectany oneorganisationtobeabletoidentifynewopportunities,providetrainingfacilities, accesscommunitynetworksandprovideemploymentopportunities.Partnership workingisvitalforachievingtheholisticapproachnecessarytocreategoodquality greenjobs. 3.Notjustjobs: Itisessentialtoensurethatobjectivesabouttacklingpovertyand supportingdisadvantagedcommunitiesareattheheartofgreenjobsprogrammesfrom theverystart.Addingthematalaterstageislikelytomeantheyareoverlooked. 4.Buildatraining-to-work‘pipeline’: trainingprogrammesandwelfare-to-workschemes needtobeproperlyintegratedwiththelocallabourmarket.Thiscanhelpensurethere isaviablejourneyfromunemploymentintogreenworkandthatlocalpeoplehavethe skillstotakeonnewjobs. OpportunitiesforfutureactionintheUK Ourscopingworkalsoincludedasurveyofover450organisationsfromacrosstheUK workingonemployment,poverty,skills,housingandtheenvironment.Wefoundthatovera thirdwereinterestedinprincipleinjoiningsomekindofcoalitionforgreenjobs.This includedcharities,socialenterprises,housingassociations,localauthorities,tradeunionsand privatecompanies.Therewasalsoanappetiteforundertakingarangeofactivitiestohelp createdecentandgreenjobs,includingdevelopingpolicyproposals,sharinginformation, campaigningandrunningpracticalprojects.Therespondentsdemonstratedthattheycould bringarangeofdifferentskillsandknowledgetosuchcoalitions. DrawingontheseresultsandourcasestudiesofsuccessfulprojectsintheUKandUS,we arguethatcoalitionsforgreenanddecentjobswouldneedtocarryoutarangeofactivities, includinghigh-levellobbyingonpolicy,identifyingtargetgroupsinthelocalcommunity, developingappropriatetrainingpackagesandworkingwithlocalgreenemployerstocreate viablejobopportunities. Inordertomaximisethebenefitsofthelow-carbontransition,localgreenjobsprojectsand coalitionswillneedtoaddressthefourkeychallengessetoutabove:meetingtheUK’s climatechangetargets;tacklinghighlevelsofunemployment;providingjobsforpeoplewho arecurrentlyeconomicallyinactiveorwhofaceahighriskofunemployment;andhelpingto reducetheUK’sdependenceonlow-wagework. Thetransitiontoalow-carboneconomyisnotoptionalandnational-levelpolicywillbe requiredtomakethishappen,butthismustbepairedwithlocal-levelactivityifthe economicopportunitiesthetransitionoffersaretobefullyrealised.Ourintentionisthatthis scopingpaperwillmarkthestartofanewwaveofactionintheUKwithgrassrootsand local-levelorganisationsbeginningtotakeactiononmakinggreenanddecentjobsareality intheirareas.
7 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper 1.Introduction Greenjobsareoftenheraldedasthesolutiontothetwinchallengesofloweringour greenhousegasemissionsandbringingdownunemployment.However,verylittlehasbeen saidaboutwhatnewgreenjobsmightlooklike–whowillbedoingthem,howmuchwill theypayandwherewilltheybe? Unequalaccesstojobs,lowpayandalackofprogressionroutesareendemicproblemsin somepartsoftheUKlabourmarket.Inthispaperwearguethattomaximisethebenefitsof thegreenjobsrevolution,wemustmakesurethatgreenjobsarealsogoodjobs,payinga decentwageandofferingmoreandbetteremploymentopportunitiestoawiderangeof people. Tomakethisareality,wemakethecaseforgreateractionatthelocallevel,andbyagreater rangeofindividualsandorganisations.Weexaminethepotentialfornewpartnerships betweenorganisationsthatmaynotbeworkingwitheachotheratthemoment,drawingon theevidencefrompioneeringprojectsintheUSAandUK.Wealsoanalysetheresultsofa newsurveyof450organisationsworkingacrosstheUKtounderstandtheappetiteformore partnershipworkingatthelocallevelonthisagenda. TheintentionistoprovidebothausefulsummaryofinitiativescurrentlyunderwayintheUK tohelpcreategreenjobsandtooffersomenewideasandperhapseveninspirationfor anyonewhoisinterestedintakingforwardthegreenjobsagendaintheirlocalarea. Whataregreenjobs? Thereisalotofdebateaboutwhatshouldcountasa‘green’job–whetherthisincludes onlylow-carbonjobs,orwhethertheenvironmentalgoodsandservicessectorisincluded too;whethersupplychainjobsarealsoincluded(forexampleshouldajobinabearings factorythatsupplieswindturbinemanufacturersamongothercustomersbethoughtofas green?);andif‘greener’versionsofexistingjobsshouldcount(forexample,acement manufacturerthatusesamoreenergyefficientfactory). Inourpreviousworkonthissubject,wehavefocusedonlyonjobsrelatingtothelow- carbonsector(seeBirdandLawton2009).However,forthepurposesofthisscopingpaper weareusingtheterm‘green’initsbroadestsense–thatis,toincludeenvironmentalgoods andservicesaswellaslow-carbonsectors,toincludesupplychainjobsandtocount ‘greener’versionsofexistingjobstoo. Structureofthereport Chapter2setsoutthecontextinwhichthegreenjobsagendaisbeingdevelopedinthe UK.Thisincludesourenvironmentalcommitmentsaswellasproblemsofunemployment, workforceinequalityandpoorqualityemployment.Chapters3and4setoutsome interestingcasestudiesfromtheUSAandUKofinitiativestoprovidedecentgreenjobs. WethenidentifysomekeylessonsthatcanbedrawnfromtheseexamplesinChapter5. InChapter6wepresentsomeofthefindingsofourscopingsurvey,showingthe potentialfordevelopingnew‘bottomup’approachestogreenjobscreation,before concludinginChapter7.
8 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper 2.Whydoweneedgreenjobsandwhatshouldtheydeliver? Thegreenjobsagendahasthepotentialtodelivermorethanjustnewjobsandreductionsin greenhousegasemissions.Itcouldalsohaveavitalroleintacklinginequalitybyimproving theemploymentprospectsofpeoplewhooftenloseoutinthelabourmarket.Inthis chapter,wesetoutthechallengesthattheUKfaces,onbothclimatechangeand employment,andexplainwhyitisessentialthatnewgreenjobsarealsogoodjobs. Climatechangeandemploymentchallenges WestartbylookingatchallengesfacedbytheUKintwokeyareas:climatechangeand employment. Transitiontoalow-carboneconomy Politicalleaders,prominentscientistsandmajorenvironmentalgroupshaveallacknowledged thatclimatechangeisthebiggestthreatfacingtheworldtoday.Asaresult,theUKhas pledgedtodoitsfairshareoftheworkneededtoreduceglobalemissionsofgreenhouse gases.TheClimateChangeAct2008,whichreceivedcross-partysupportinParliament,sets outtoughemissionreductiontargetsfortheUKof34percentcutsby2020andan80per centreductionby2050(ona1990baseline). Figure2.1showstheprogressthatweneedtomakeinreducingcarbonemissionsinorderto achievethe2050target.Althoughthechartshowsthatwehavemadegoodprogressto date,thishaslargelybeenachievedthrough‘quickwins’andtoreachthe2050target,much moreradicalactionwillberequired.Thiswillinvolve: •Arapiddecarbonisationoftheelectricitysectorthroughtheexpansionofrenewable energyandthedevelopmentofcarboncaptureandstorage(CCS)technology •Amajorrestructuringinroadtransportaspetrolanddieseluseisphasedoutand replacedwithalternativeslikebiofuelsorelectricvehiclesandanincreaseinthe provisionofpublictransport. •Significantchangesinthewayweheatbuildings,movingtowardsmoreefficient heatingtechnologies(suchasdistributedheatnetworks)andalternativestonaturalgas asafuel(suchasbiogas). Figure2.1.UKGreenhousegasemissionssince1990andemissionsreductiontargetsfor2020and2050 Source:DECC2010 Actual Emissions Target 900 800 700 Million tonnes of CO2 equivalent 600 500 400 300 200 100 0 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050 Year
9 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper Ineacharea,massiveincreasesinenergyefficiencywillalsobenecessarytohelpbringdown emissions.Thesechangeswillaffectalmostalljobs,notjustthoseinthedirectly-affected sectors,andwewillallneedtoadapttoworkinginalow-carbonworld. TheUKisalsocommittedtocontributingtotheEuropeanUnion’s20-20-20targetson greenhousegasreductions,renewableenergyandenergyefficiency.TheUK’sallocated contributiontowardstherenewableenergytargetistotake15percentofourenergy requirementsfromrenewablesourcesby2020.Thisisanextremelychallengingtargetforthe UKsincein2008renewableenergyonlymadeup2.25percentofourenergymix(HM Government2009c).However,ifwearesuccessfulinmeetingthetarget,wecanexpectto seealargeincreaseinrenewableenergyfacilitiesacrosstheUKoverthenextdecade. ItisclearthatmeetingtheUK’sclimatechangecommitmentswillbeverychallenging.Itwill requirecontinuedsupportfrompoliticiansacrossthepoliticalspectrumtoensurethatpolicy decisionsmadeoverthenextdecadestimulatethetechnologicalandbehaviouralchanges necessarytoachieveourlow-carbonambitions.Atthesametime,itisalsoclearthatthe transitiontoalow-carboneconomyhasthepotentialtobringnewopportunitieswithit,in developingnew,low-carbontechnologiesandservices.Ifsupportedcorrectly,these emergingsectorscouldeventuallyplayasignificantroleinthefutureUKeconomy. Thetransitionwillrequireacompletetransformationofoureconomy–notjustintermsof expandingnewlow-carbonindustries,suchastherenewableenergysector,butalsoin ‘greening’existingsectorssothattheycancontinuetooperateinalow-carbonworld. Risingunemployment TheglobalfinancialcrisistriggeredarecessionintheUKthatbeganinthesecondquarterof 2008andlasteduntilthethirdquarterof2009–thelongestrecessioninmoderntimes. Althoughtheeconomystartedtogrowagaininthefinalquarterof2009,thelevelof growthwasveryweakatjust0.4percentinthefourthquarterof2009and0.3percentin thefirstquarterof2010(OfficeforNationalStatistics2010). Figure2.2showstheeffectoftherecessiononunemployment.Unemployment(ameasure ofpeoplewithoutworkwhoareactivelyseekingemployment)increasedfrom5.2percentin thefirstquarterof2008to8.0percentinthefirstquarterof2010,bringingthetotal numberofunemployedadultsto2.51million.Unemploymenttendstolagbehindchanges inGDPanditisexpectedthatitwillcontinuetorise,despitetherecessionhavingendedin GDPtermsattheendof2009. Thefinancialcrisisandrecessionhavebroughtwiththemanendtojobgrowthinmanyof thesectorstheUKhaspreviouslyreliedontoprovideemployment,includingfinancial servicesandconstruction.TheconsensusoncuttingtheUK’sfiscaldeficitalsomeansthat Figure2.2. 9 Unemployment Unemployment rate (%) 8 intheUK, 7 2004–2010 6 Source:Labour 5 ForceSurvey 4 Note: 3 Unemployment 2 referstopeopleover 16whoarenot 1 workingbutare 0 activelyseekingand 20 Q1 20 Q3 20 Q1 20 Q3 20 Q1 20 Q3 20 Q1 20 Q3 20 Q1 20 Q3 20 Q1 20 Q3 Q1 availableforwork. 04 04 05 05 06 06 07 07 08 08 09 09 10 20
10 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper publicsectoremployment,whichhasrisensignificantlyoverthelastdecade,islikelytosee fallsintheshorttomediumterm.Thisleavesagreatdealofuncertaintyaboutwherenew jobswillcomefromastheeconomycontinuestorecover,withtheriskofajoblessrecovery remainingveryreal.However,growthsectorslikelow-carbonandenvironmentalgoodsand serviceshavethepotentialtodrivethenewjobcreationneededtohelpreturntheUK labourmarkettopre-recessionlevelsofunemployment. Itisverydifficulttosayexactlyhowmanynewjobswemightseeinthesesectorsand attemptstoputafigureonthenumberofjobsatstakehavevariedwildly(seeBirdand Lawton2009foramoredetaileddiscussionoftheseestimates).However,ifweputinplace themeasuresthatareneededtokeepontrackwithourclimatechangecommitments,then alargeandrapidexpansioninthelow-carbonsectorwillberequired. Labourmarketexclusion Unemploymentandeconomicinactivity(whereworking-agepeoplearenotworkingandnot seekingwork)arenotevenlydistributed–somepeoplearemuchmorelikelytobeoutof workthanothers.Figure2.3showsthatloneparents,peoplewithlow-levelskills,people withadisabilityandolderpeoplehaveasubstantiallygreaterriskofworklessnessthanthe overallpopulation.Forexample,lessthanhalfofworking-ageadultswithlow-levelskillsora disabilitywereinemploymentatthebeginningof2009. Figure2.3. Employment ratesof Lowest qualified disadvantaged Disabled groupsinGreat Lone parents Britain,Q12009 Source:DWP/ Ethnic minority GEO/EHRC2009 Over 50s Deprived areas UKaverage All 0 10 20 30 40 50 60 70 80 Employment rate (%) Formanypeople,inactivityisamuchbiggerproblemthanunemployment.Justoverafifth ofworking-ageadultsareeconomicallyinactive–8millionpeople–andthisfigurehas remainedremarkablystableoverthelasttwodecades.Thesefiguresincludepeopleinfull- timeeducationbutalsocoverover5millionpeopleinreceiptofout-of-workbenefits, includingIncapacityBenefitandIncomeSupport.Manyeconomicallyinactivepeoplehave beenoutofworkformanymonthsoryearsandhavelimitedopportunitiestofindsuitable, goodqualityemploymentintheirlocalarea. Thereissomeevidencethattheseinequalitiesarealsoproblemswithintheenvironmental andlow-carbonsectors,althoughtherehasnotbeenagreatdealofresearchonthis particularquestion.IntheirrecentreportHardtoReach?DiversityandEnvironmentMaria AdebowaleandChrisChurcharguethathistorically,manypeoplehavebeeneffectively excludedfromworkingintheenvironmentalsector,includingpeoplewithdisabilitiesand peoplefromminorityethnicbackgrounds(AdebowaleandChurch2009). ippr’sownanalysissuggeststhatwomenmayalsofacelimitedopportunitiesinthegrowing low-carbonandenvironmentalsectors.Thisisparticularlytrueinconstructionand
11 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper manufacturingjobs,wherewomenhavetraditionallyrepresentedaverysmallproportionof theworkforce(BirdandLawton2009). Toomanypeopleonlowwages MovingintoworkdoesnotnecessarilymeanmovingoutofpovertyandtheUKhas persistentlyhighnumbersofpeopleonlowpayandhighlevelsofin-workpoverty.In2006, 5.3millionpeoplewerelowpaid,withthethresholdforlowpaysetat60percentofmedian full-timeearnings.Thisrepresentsamuchhigherproportionoftheworkforcethanisseenin otherEuropeancountries:22percentofworkersarelowpaidintheUKcomparedwith18 percentintheNetherlands,13percentinFranceandjust9percentinDenmark(Lawton 2009).IntheUK,lowpayisaparticularprobleminthehotelandrestaurantsector,retailand personalservices,andforpeopleworkinginsalesandcustomerservices,andelementary- leveljobs. Althoughlow-paid,entry-leveljobscansometimesofferarouteintowork–particularlyfor thosewithlowlevelsofskillsorpatchyworkrecords–thereisalsoariskthatifthesejobs donotprovideasteppingstonetobetterpaidopportunities,peoplewillremaintrappedin low-paidwork.ippr’sownanalysissuggeststhatmanypeopleintheUKarestuckinlow- paidanddead-endjobs:overhalfoflow-paidemployeesexperiencednosignificant improvementintheirincomebetween2002and2005(Lawton2009).Figure2.4showsthat theprobabilityofmovingoutoflow-paidworkvariesacrosstheoccupationalsectors,with elementaryoccupationsshowingthegreatestpropensitytoretainpeopleinlow-paidwork. Figure2.4. Probabilityof 15 Admin & secretarial movingoutof 10 lowpaybetween Sales & Plant & 2000/01and 5 Personal customer machine Skilled services 2005/06in trades services operatives Elementary 0 selected industries, -5 comparedto managerial -10 occupations -15 Source:Lawton 2009 -20 Wearenotawareofanyanalysisthathaslookedattheratesoflowpayandwork progressionwithintheexistinglow-carbonandenvironmentalsectors,althoughwehave comeacrosssomeanecdotalevidencethatthesefactorscouldbeproblematicforjobs relatedtotheconservationofgreenspaces,andpotentiallyforjobsinstallingloftinsulation. Ourownanalysisofthepotentialfuturegrowthareaswithinthelow-carbonsectorsuggests thatgrowthislikelytooccurinoccupationsthatarenotgenerallyassociatedwithlowpay, withtheexceptionoftheretailsector(seeBirdandLawton2009foramoredetailed discussion).Thismeansthatlow-carbonindustriesprovidegoodprospectsforthecreationof decentjobs,makinganevenstrongercaseforactiontomaximisetheemployment opportunitiesassociatedwiththelow-carbontransition. Whatisbeingdone? Theprevioussectionoutlinedthefourchallengeswhenitcomestoclimatechangeand employment– theneedsto: 1.Tackleclimatechange 2.Bringdownunemployment
12 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper 3.Reducelabourmarketexclusion 4.Reducethenumberofpeoplewhoarelowpaid. Belowwebrieflysetouthowwellthesefourelementsarecurrentlybeingaddressedinthe UKinthecontextofthegreenjobsagenda.Annex1providesamorecomprehensiveoutline oftheactionbeingtakenongreenjobsbygovernment,thethirdsector,tradeunionsand theprivatesector. Tacklingclimatechange ThelastLabourgovernmenttookanincreasinglyactiveapproachtostimulating‘greenjobs’ duringitslastfewyearsinoffice,spurredonbytheeffectsofthe2008/09recession.Aswell asadoptingtheheadlinetargetsdescribedabove,thegovernmentdevelopedaLowCarbon IndustrialStrategytohelpstimulatethenewgreenindustriesthatwillbeneededtomake thetransitiontoalow-carboneconomy(HMGovernment2009a),andbeganaprogramme ofdesignatingLowCarbonEconomicAreasthataimstoacceleratethegrowthofspecific low-carbonindustriesindifferentregions.Investmentintheinfrastructurenecessaryto attractnewgreenindustriestotheUK,suchasportfacilitiesforoffshorewind,wasalso steppedup. Itisnotyetclearwhetherthenewcoalitiongovernmentwillcontinuethisactiveapproachto stimulatinggreenindustries.TheQueen’sSpeechinMay2010announcedplansforan EnergySecurityandGreenEconomyBillwhichwilltakeforwardboththeConservatives’and LiberalDemocrats’manifestopledgesforloanstobemadeavailabletohomeownersfor domesticinsulationmeasures.TheBillisalsodesignedtodelivergreaterlevelsoflow-carbon energygenerationandtheCoalitionhassaiditwillseektoincreasetheUK’stargetfor energygenerationfromrenewablesourcesundertheEU’s20-20-20targets(HM Government2010a).TheGovernmentwillalsosetupaGreenInvestmentBanktosupport investmentinlow-carbonprojects.However,theofficialinformationontheBillavailableto datemakesnomentionofthepredictedordesiredeffectsonemployment. Manythirdsectororganisationshavebeenveryactiveincampaigningontheneedtotackle climatechangeandtheopportunitiesthismightprovideintermsofjobcreation.Trades unionshavealsopushedhardfortougherpoliciesonrenewableenergytostimulatethe sector.PrivatesectororganisationsliketheCBI(ConfederationofBritishIndustry)andthe CorporateLeadersGrouphavecalledfortoughactiononclimatechangetoo. Bringingdownunemployment ThemostprominentprogrammeinthisareaistheFutureJobsFund,whichwaslaunchedby theLabourgovernmentin2009totacklerisingyouthunemploymentcreatedbythe recession.Itwasashort-termprogrammedesignedtorespondtotherecessionbyenabling localcouncilsandtheirpartnerstobidformoneyfromtheFundtocreatesix-monthjobs paidattheminimumwageorabove. Theoriginalaimwastocreate200,000newjobsfor18to25yearoldswhohadbeenoutof workforatleastsixmonths,withanaspirationthat10,000ofthesenewjobsshouldbe ‘green’.However,theFutureJobsFundwasclosedtonewapplicationsinMay2010bythe newcoalitiongovernment.TheFundhadcreatedaround120,000jobsbythispoint. Thepreviousgovernmentwasalsoexplicitabouttheintendedemploymentoutcomesofits LowCarbonIndustrialStrategy,althoughmaximisingjobcreationwasnotalwaysattheheart oftheStrategy. Reducinglabourmarketexclusion Tothebestofourknowledge,thereisverylittleworkbeingdoneatthemomentintheUK tospecificallyimproveemploymentopportunitiesinemerging‘green’sectorsforpeoplewho tendtofacedisadvantageinthelabourmarket.Theonlyexamplesweareawareofarethe FutureJobsFund,whichtargetedyoungpeople,andCapacityGlobal’sTENproject,which wedescribeinmoredetailinChapter4.
13 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper Tacklinglowpay Thisisanotherareathathasreceivedverylittleattentioninthegreenjobsdebatesofar. Therearesomepocketsofgoodpractice–forexample,theTUC’sworkontheconceptofa ‘JustTransition’andBirminghamCityCouncil’sGreenNewDealproject,whichensuresthat energyefficiencycontractorsarerecruitingfromdeprivedareasofthecity–butquestions aboutwhether‘green’jobsarealso‘decent’jobsarenotaconsistentpartofthedebate. Conclusion Currentdebatesaroundgreenjobsarefailingtorecognisehowthegreenjobsagendacould playitspartintacklinginequalityandimprovingthejobprospectsofpeoplewhooftendo badlyinthelabourmarket.Thefocusistoooftenonthenumberofjobscreatedandthe amountofgreenhousegasessavedalone.Thesearevitalissues,butthegreenjobs movementcouldachievesomuchmoreifwegavemoreattentiontothekindsofjobsbeing createdandtheopportunitiestheyprovidetodifferentkindsofpeople. Wehavefoundthatthegreenjobsagendahasbeendriventoalargeextentby environmentalorganisations,whileorganisationsthataimtopromotesocialjusticeand equalityortacklepovertyhavebeenlessvocalinthedebatesofar.Thismayexplainwhy someofthemorenuancedaspectsofgreenjobshavehadlessattention. Therestofthisreportaimstoprovidesomeexamplesofgoodpracticeandtoputforward somesuggestionsofhowamorebalancedapproachtogreenjobscouldbetakenintheUK: onethatensuresthatfuturejobswillbeboth‘green’and‘decent’.
14 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper 3.Leadingtheway:casestudiesfromtheUSA ThedebateintheUSAongreenanddecentjobsismuchmoreadvancedthanitisinthe UK.Inthischapterweprovidesomecasestudiesofthekindsofinitiativesthatare underwayacrossthecountry.Manyoftheschemesweaddresshaveamuchmoreexplicit focusonjobqualityandonworkingatthegrassrootslevelthantheUK-basedinitiatives describedearlierinthisreport. TheApolloAlliance TheApolloAllianceisacoalitionofbusiness,union,environmentalandcommunityleaders thataimstostimulatethetransitiontoacleanenergyeconomywhileatthesametime creatinggood-qualityjobopportunitiesforthemostdisadvantagedAmericans. TheAllianceworksatboththenationalandlocallevel.Thenationalaspectofthe organisationisfocusedoncampaigningforgreaterinvestmentfromthefederalgovernment tostimulatenewgreenjobs.Therearealso14programmesoperatingatthestateorcity level,whichworktoformgrassroots-levelcoalitionsthatcanhelptostimulatethecreation ofappropriatejobswithinthelocalcontext. Eachlocal-levelAllianceismadeupofacoalitionoflocally-basedgroupsthathavean interestincreatingdecentgreenjobsinthelocalarea.Theseinclude: •Environmentalcampaigngroups: includingconservationcampaigngroupsandclimate changeadvocacy,educationandorganisinggroups. • Jobandemploymentcampaigngroups: includingcharitiesworkingtocreateliving- wagejobsindeprivedareas,organisationspromotingjobopportunitiesforyoung people,andorganisationspromotingjobsforwomenintraditionallymale-dominated sectorslikeconstruction. •Community-basedanti-povertyandsocialjusticeorganisations:charitiesworkingto tacklepovertyandracism,charitiesworkingtopromoteenvironmentaljusticewith working-classethnicminoritycommunities,andorganisationsworkingtoempower migrantcommunities. •Tradeunions: inconstruction,electricalwork,steelwork,teachingandcarpentery. •Educationalorganisations:includingcommunitycolleges,universities,secondary schoolsandtechnicalcolleges. •Greenbusinesses: includingcompaniesworkinginsolarenergy,housingretrofit/energy efficiencyandalternativefuels. •Localgovernment:includingconsortiaandtaskforcesledbylocalgovernors. •Policy/researchorganisations: includingthinktanks,researchinstitutesanduniversity centres. Itisuptoeachlocal-levelAlliancetodevelopitsownsetofobjectivesandactionplanand theactivitiesofthevariousdifferentgroupswillnecessarilybedifferentinordertotake accountofthelocalcontext.However,thenational-levelAlliancehasidentifiedageneric four-stepprogrammetocreategreenjobsatthelocallevel: 1.Identifyenvironmentaleconomicgoalsandassesslocalandregional opportunitiesforachievingthosegoals. 2.Enactpoliciesandprogrammestodriveinvestmentintotargetedgreeneconomic activityandincreasedemandforlocalgreenworkers. 3.Preparetheworkforcebybuildinggreen-collarjobtrainingpartnershipsto identifyandmeetworkforcetrainingneeds,andbycreatinggreenpathwaysout
15 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper ofpovertythatfocusonrecruitment,jobreadiness,jobtraining,andjob placementforlow-incomeresidents. 4.Leverageyourprogramme’ssuccesstobuildpoliticalsupportfornewandbolder policiesandinitiatives. AlthoughthereisasharedoverarchingpurposeforallApolloAlliancegroups,theapproaches takentoachievingthisvisionhaveallbeendevelopedandledatthelocallevel.Asaresult,a rangeofdifferentactivitiesandapproacheshavebeentakenbythedifferentcity/state-level groups.Theserangefromawarenessraisingandlocal-levelorganisingrightuptoproviding fully-developedtrainingprogrammes.Someexamplesofthedifferenttypesofactivities include: Alliance-building •TheNewYorkStateApolloAllianceconvenedaroundtablepanelofexpertstodiscuss emergingcoaltechnologiesandtheirpotentialapplications.Theyhavealsoworked withacoalitionofunions,renewableenergy,environmentandbusinessgroupsto supportlegislationtoencouragethegrowthoftherenewableenergyindustry. •TheBostonApolloAllianceorganisesacommitteeofatleast30communitygroups, environmentalorganisations,unions,consumeradvocacygroups,interfaith organisationsandworkforcedevelopmentandtraininginstitutions. Awareness-raising •TheWashingtonApolloAllianceheldaGreenJobsExpoandaGoodGreenJobs conferenceincollaborationwiththeBlue-GreenAlliance. •TheHawaiiApolloAllianceheldaforumonwhattheHawaiiCleanEnergyInitiative meansforKaua’iCounty,whichattractedanaudienceofover120people. Research •TheSanDiegoApolloAlliancepreparedaneconomicimpactresearchbrieffocusingon theelectricitysupplyinSanDiegoCounty.ItisnowworkingwithSanDiegoState Universityonaprojecttostudytheregion’scompetitiveadvantageintermsofgreen industries. •TheBostonApolloAllianceisworkingonareport,GreenJobswithJustice,thatsets outlocalopportunitiesandrecommendationsfortheemerginggreeneconomy. Developingpolicyproposals •TheWashingtonApolloAlliancebroughttogetherarangeofstakeholders(including environmental,business,labourandcommunityorganisations)towritea‘climateaction andgreenjobs’policyframework.Thissubsequentlypassedintostatelaw. •TheSanDiegoApolloAlliancehasdraftedlabour,communityandenvironmental standardsforrenewableenergyprojects. Campaigning,lobbyingandadvocacy •TheWashingtonApolloAlliancecampaignedsuccessfullyfortheintroductionofa RenewableEnergyStandard(anincentivesimilartotheUK’sRenewablesObligation,or RO,tostimulaterenewableenergy),theRenewableFuelStandard(similartotheUK’s RenewableTransportFuelObligation[RTFO])andenhancedtaxcreditsforgreen businessinWashingtonState. •TheCaliforniaApolloAllianceco-sponsoredthreebills,whichhavenowpassedinto statelaw.TheseincludedabilltoestablishGreenTechnologyPartnershipAcademies,a billtoestablishaGreen-CollarJobsCouncilandabilltoextendpropertytaxexemption tosolarequipment.
16 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper Providingadvice •MembersoftheWashingtonApolloAlliancehaveparticipatedintheSeattle/King CountyWorkforceDevelopmentCouncilonGreenConstruction,theWashington2008 ClimateActionTeamaswellastechnicaladvisorycommitteesforthreecommunity colleges. Runningpracticalprogrammes •TheLosAngelesApolloAlliancehasworkedinpartnershiptosetuptheLosAngeles GreenCareersTrainingInitiative(GCTI),whichprovidestrainingtolow-incomeinner- cityresidentstopreparethemforliving-wagegreenjobsinconstruction,thepublic sector,publicandprivatepowercompaniesandemergingenergyindustries.TheGCTI wasestablishedinconjunctionwithacitywideprogrammetoimprovetheenergy efficiencyofpublicbuildings,especiallythoseinlow-incomeareas. •TheOaklandApolloAlliancehaslaunchedaprogrammecalledOaklandGreenJobs Corps,whichprovidestraininginconstruction,includingsolarpanelinstallation,energy efficiencyandgreenconstruction,foryoungadultswhofacebarrierstoemployment. Thetrainingisdeliveredbyapartnershipoforganisationsincludingacommunity college,aconstructiontrainingprogrammeandaworkforceintermediary.Attheendof theprogramme,jobswillbeprovidedbyapartnershipoflocalgreenbusinessesand not-for-profitorganisationswhohaveagreedtoprovidepaidworkexperienceandjobs forgraduatesoftheprogramme. WisconsinEnergyEfficiency(WE²) TheWisconsinEnergyEfficiencyproject,knownasWE²,isrunbytheCenteronWisconsin Strategy(COWS),athink-and-do-tankbasedattheUniversityofWisconsin,andisdesigned tostimulatealarge-scalebuildingretrofitprogrammeandcreategreenskillstraining opportunitiesanddecentgreenjobsforlocalpeople. WE²hasbeendevelopedinpartnershipwithWisconsinstateandlocalauthorities,trade unions,environmentalandcommunityorganisationsandtheWisconsinRegionalTraining Partnership(WRTP)–anumbrellaorganisationoperatingacrossthestatetoconnectthe unemployedwiththeskillstheyneedinordertogaindecentwork. WE²currentlyoperatesinthreeflagshipcities:Milwaukee,MadisonandRacine.Thereare twoaspectstothescheme:oneistohelpstimulateamassivescalingupofbuilding retrofittingactivityacrossthethreecities,andtheotheristoensurethatthejobscreatedin thisprocesspayadecentwageandbenefitlocalcommunities. Retrofittingwork WE²aimstostimulatedemandtoretrofitcommercial,industrialandresidentialbuildings throughasimpleschemewherebythelocalgovernmentpaystheupfrontcostofenergy efficiencymeasuresandthebuildingoccupantsthenpaythecostsbackovertimethrough thesavingsontheirenergybills.Theideaisthattherepaymentcostswillalwaysbelessthan thesavingsmadethroughtheimprovementsthemselvessothattheoccupantwillbebetter offoverall. ChangeswereneededtoWisconsinlegislaturetoallowlocalgovernmentstobillforthis schemeinthewaythattheybillforotherservices(suchassidewalkrepairs,whicharetiedto propertytaxintheUS).ThelegalchangeswereapprovedinMay2009,preparingtheway fortheintroductionofWE²in2010. Theschemeisfinancedthroughbothcentralandlocalgovernmentfunds,includingtheUS DepartmentofEnergy’sRetrofitRampUpfund,theCityofMilwaukee’sEnergyEfficiency ConservationBlockGrantandtheCityofRacine’sEnergyEfficiencyConservationBlock Grant.Eventuallyallpublicmoneywillbepaidbackthroughthebillrepaymentsoutlined
17 ippr|GreenandDecentJobs:Thecaseforlocalaction– Anipprscopingpaper above,creatinganongoingsourceoffunding.Publicfundsarealsorequiredtobematched fivetoonebyprivateinvestment(intheformofalowinterestloan),bringingtotal investmentintheprojectto$120million. Greenjobs Itisenvisagedthatsuchalargeexpansioninretrofittingworkacrossthethreecitieswill createalargedemandforworkersatarangeoflevels–fromlow-skilledpositions(suchas loftinsulationinstaller)tohighlyskilledjobs(suchasventilationsafetyofficer). Theimportanceofensuringthesejobsarelocalanddecenthasbeenfundamentaltothe developmentoftheWE²project.Asaresult,severalmeasureshavebeenputinplaceto ensurethatthejobscreatedthroughtheretrofittingschemealsohelptotacklesomeofthe labourmarketinequalitiesthatexistlocally. InRacine,thecityauthorities,unionsandemployersagreedtoputinplaceaCommunity WorkforceAgreement,whichplacesobligationsoncontractorsdeliveringretrofitting measuresundertheWE²scheme.TheAgreementrequiresthatcontractorsarebasedwithin 20milesofthecityandthattheypaytheirworkersaminimumof$12perhour(the minimumwageinWisconsiniscurrently$7.25perhour).Withinthefundingobtainedfrom thefederalRetrofitRampUpFundthereisaspecificbudgetfortrainingprovisionthrough whichtocultivategreenskillsandprovidecareerdevelopmentoptionsforworkers. Blue-GreenAlliance TheBlueGreenAlliance(BGA)describesitselfas‘anational,strategicpartnershipbetween laborunionsandenvironmentalorganizationsdedicatedtoexpandingthenumberand qualityofjobsinthegreeneconomy’(BGA2010:1). FormedinpartnershipbytheUnitedSteelworkersandtheSierraClub(theoldestandlargest environmentalorganisationintheUS)in1996,theaimsoftheBGAareto: •Supportthepassageofcomprehensivecleanenergyandclimatechangelegislation •Improveworkers’rights •Establisha21stcenturytradepolicywithembeddedlabour,environmentalandhuman rightsstandards. BGAworkstoachieveitsaimsthroughcampaigningandadvocacyworkandtrainingand educationprogrammes. Campaigningandadvocacy BGAiscurrentlyrunninganumberofcampaigns.Thesecallfor: •AUS-widecapandtradesysteminthestyleoftheEUEmissionsTradingScheme (ETS). •ThepassageoftheEmployeesFreeChoiceAct,whichwouldimproveworkers’access totradeunions. •Increasedinvestmentintofreightrail,high-speedrailandotherinfrastructureprojects asameanstocreatenewgreenjobs. Trainingandeducation BGAcurrentlyoffersnumeroustrainingschemesforworkingpeople,environmentalistsand tradeunions.Thesearedesignedtoeducateindividualsandorganisationsonthe developmentofthegreenjobsagendaandofferpracticaladviceonrelationshipbuilding, campaignplanningandmediaoutreach. Localactivities BGAhasanumberofstate-levelchaptersandisactiveinWisconsin,NewJersey,Kansas,
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