Bree Halverson: Minnesota’s clean economy should power good-paying, safe jobs

Gov. Walz signed the 2040 clean energy standard into law during a ceremony at the St. Paul Labor Center in February 2023. (Minneapolis Labor Review photo)

Minnesota has a new law that puts us on a path to 100% clean energy by 2040. That’s indisputably good for the environment. Thanks to the strong labor standards and equity provisions in the bill, it will also be great for all workers in our state, specifically union workers.

Our nation has been struggling with economic inequality for decades, and it has only worsened over the years. The U.S. Census Bureau reported that income inequality in 2018 – the gap between the wealthiest Americans and the average worker – had reached the highest level recorded since the bureau started tracking the gap. According to the Economic Policy Institute, CEOs in 2020 were paid over 350 times more than the typical worker.

This is also a problem facing Minnesotans. The income gap here is significant, particularly for people of color, who are 300% more likely to be in poverty than white people. Unionization is a key pathway to fixing this growing problem facing our state.

There is a major reason why the 100% clean energy bill had such strong support from unions and why it was signed by Gov. Tim Walz at the St. Paul Labor Center. The measure rightfully tied specific labor and equity standards to the implementation of the bill.

For example, there is an emphasis on creating local, high-quality jobs in Minnesota. The bill encourages new energy generating facilities to be sited in communities where fossil-fuel generating plants have been retired or are scheduled for retirement. It also says that emissions reductions that clean up our air should also make the air cleaner for communities that are facing environmental injustice, and that all workers and communities should see the benefits of this law.

Perhaps the most important provision is a requirement to recognize the rights of workers to organize.

Kevin Pranis of LIUNA Minnesota spoke during the bill signing ceremony.

Unions matter. There is a direct correlation between the increase in income inequality and the decrease of worker power, as the share of workers in a union has fallen from 24% in 1979 to under 11% now. Unions also make job sites safer. Unionized workers are better trained and better protected to blow the whistle if they see something dangerous going on, without fear for retribution from management because the union has their back. Finally, unions can help overcome long-standing inequities for people of color in our state.

Clean energy has been great for our economy. Workers around the state are making buildings more energy efficient, constructing wind turbines and more. There are an estimated 57,000 jobs in clean energy, energy efficiency, advanced transportation and other clean sectors in our state. Now, as we grow those jobs, more and more of them will be good-paying, safe, union jobs.

Our environment also matters. Climate change is already here and impacting us all. The action we take now will determine the future of our state. We should be fixing what was broken and leaving future generations a cleaner environment than the one we inherited from previous generations. This bill will reduce the emissions driving climate change. That’s a good thing for everyone.

The future is bright for workers and our climate. The federal investments in the Inflation Reduction Act and the bipartisan infrastructure law, coupled with Minnesota’s own investments and policies like 100% Clean Energy, will ensure we are installing utility-scale solar with well-trained, local labor. We will expand the number of local wind jobs, keep workers safe on the job and build the technology of the future – like geothermal – here in Minnesota with union labor.

Thank you to the House and Senate DFL majorities and Gov. Walz for delivering this victory for workers and the environment.

– Bree Halverson is the Midwest States Director for the BlueGreen Alliance, a national partnership of labor unions and environmental organizations.

Dems’ climate measure ties tax credits to prevailing wage, apprenticeship

Matt Campanario, executive director of the Carpenters Training Institute, leads Sen. Tina Smith on a tour of the LJ Shosten Training Center in St. Paul, which houses the union’s pile driver and millwright apprenticeship programs.

The Inflation Reduction Act, signed into law by President Joe Biden in August, promises the most aggressive action to combat climate change in U.S. history, a $369 billion investment that aims to reduce carbon emissions by 40% this decade.

But what most excites some union leaders about the IRA are long-sought provisions that will ensure the transition to a cleaner-energy economy creates and sustains union jobs – and taps into the job-training capacity of unions’ registered apprenticeship programs.

In a win for Building Trades unions, businesses looking to claim tax credits available under the IRA must commit to paying prevailing wages and employing a minimum number of registered apprentices on their jobsites.

The requirements apply to most tax credits that were greatly expanded by the historic legislation, which Democratic majorities spent months shepherding through Congress.

The tax credits will spark private-sector construction of energy-efficient commercial buildings, housing and electric vehicle charging stations, as well as investments in energy sources outside of fossil fuels.

An analysis released by the University of Massachusetts at Amherst projects the IRA’s climate and energy investments will create 9 million jobs over the next decade.

By insisting on strong labor provisions, said Adam Duininck, director of government affairs for the North Central States Regional Council of Carpenters, Biden and other lawmakers ensured those investments will create good-paying jobs for skilled American workers.

“The expanded tax credits included in the Inflation Reduction Act will benefit businesses that pay prevailing wages and hire our apprentices,” Duininck said. “Paying workers prevailing wages will further support our communities where workers live and spend their money. This will give local businesses and our public services like education, public safety and well-maintained infrastructure the financial backing they should be receiving from hard working, middle-class workers.

“Our communities miss out on billions of tax dollars by unethical business practices of dishonest contractors. It is great to see support for those who conduct business in a manner that benefits people rather than lining the pockets of only a few individuals.”

Carpenters apprentice Amanda Heiser tells Smith recently passed infrastructure and climate bills “definitely provide a more stable future” for apprentices like her.

The IRA also includes penalties for firms that pledge to pay prevailing wages but don’t follow through, requiring them to make workers whole – plus interest.

Meanwhile, industrial unions hailed domestic content requirements included in the IRA, which will encourage the use of American-made batteries, solar and wind components and other technologies on clean energy projects.

The requirements will stimulate job growth in the U.S. manufacturing sector, said Jason Walsh, director of the BlueGreen Alliance, which brings together unions and environmental groups.

“Few pieces of legislation this century have come close to such sweeping job creation potential,” Walsh said. “This bill’s investments offer an opportunity to support and create good union jobs and for workers and communities to reap the economic gains of the clean economy.”

For the Biden administration, the IRA delivers – again – on a campaign promise to make union jobs the focus of its economic policy.

A $1 trillion infrastructure law, which Biden signed in November 2021, is already creating work for union tradespeople in Minnesota. Over 100 projects statewide have tapped into $1.4 billion in federal funding available through the bill so far, including a $22 million project at Minneapolis-St. Paul International Airport.

Prevailing-wage rates are set by the federal government and vary by location. The rates reflect the average wage paid to similarly employed workers in a specific occupation in that area.