What If Green Jobs Don't Pay?
Salaries at solar and wind companies are lower than you think.
The Obama administration is putting a lot of stock in the concept of "green jobs." In late February, Vice President Joe Biden threw his weight behind the green movement and the $20 billion in the stimulus package devoted to green investment. Biden claimed that people who earn $20 per hour prior to green job training can make as much as $50 per hour afterward.
Sounds great, right? But that scenario could be way off base. At least that's what a recent report from Good Jobs First says could happen if the creation of green jobs isn't backed by strong government regulation and oversight. GJF's report notes that it's not uncommon for workers in the green field to earn as little as $8.25 an hour. Wages at a number of wind and solar manufacturers are far lower than those at their more traditional counterparts—falling well below the income levels needed to support a single adult with one child.
Those numbers carry particular weight in considering how the green jobs movement is going to spur the U.S. economy, as a job that pays $18 an hour is reported to create twice the economic stimulus of a job that pays $9 an hour. Although Biden is proud to claim that a worker earning 20 bucks an hour can more than double his or her wage with some "green" training, he doesn't take into consideration those making far less.
The U.S. Bureau of Labor Statistics says the average wage rate for production workers on manufacturing payrolls in durable goods industries is $18.88 an hour. But GJF's report shows that a majority of wind and solar companies it surveyed pay far less than that amount. Take United Solar Ovonic as an example. After receiving generous government subsidies amounting to $277,000 for every new job created, the company refused to meet the prevailing wage rule in Battle Creek, Mich., and pay $16 an hour. The company quickly started threatening to move its operations elsewhere. The city eventually backed down and allowed the company to pay its workers $14 an hour—70 percent of what it takes to sustain a family of four. It's also well below the $18.88 an hour average wage for production workers in the durable goods industry.
The green jobs initiative gets even stickier when it comes to unions—a major supporter of the Obama administration and his fellow Democrats. GJF's report noted that very few workers at wind and solar jobs were backed by collective bargaining agreements. And in at least two cases, the company leaders were found to have run aggressive anti-union campaigns, aided by union-busting consultants.
Unions have been in the spotlight recently, most notably for their contribution—as their critics like to point out—to the demise of Detroit's Big Three. As lawmakers and business leaders across the country battle over the Employee Free Choice Act (which would make it easier to unionize workplaces), that fight is likely to get quite heated. But as money from the stimulus plans starts to make its way to the coffers of green companies, the importance of the union in the nation's manufacturing heartland will flare up once again.
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Energy Independence
I believe too many people are focusing on the political side of green and using that as a way to show that the administration will fail at bailing out the economy through "green." Whether "green jobs" can bail out the economy or not, the need to move the agenda of creating jobs that solve climate change is imperative. Energy independence which is tied to national security should also be the reason for green technologies to be subsidized and/or backed by the investment community. If we tie the economic recovery directly to the issues of green jobs and try to solve the entire problem with one agenda then I think we are missing the point. My point is: these are separate issues that should be addressed independent of one another as a pass or fail issue. If these issues converge positively where one can help solve the other then that is great, but if green is set up to save the economy and it can't do it fast enough then people may bail on the concept of green and we are already decades behind on what we could have been doing to foster alternative energy solutions since the Carter administration. No one said green would be easy and certainly the recovery won't be, both are just necessary and they cannot necessarily be contingent on one another. I hope that there will be many green opportunities in the future for all and I believe that will be the future of our economic growth but I don't know if it is our bail out solution but long-term thinking that should drive the concept of green careers. www.CareerEco.com
Make the Clean Energy Revolution in America
This argument is great fodder for why we need a green domestic manufacturing plan. The $110 billion plus in stimulus money for clean technology and other policies under consideration by the Obama administration and Congress – including a renewable energy standard and a carbon pricing program - will create unprecedented new demand for clean energy systems, which means jobs. For example, requiring 25 percent of America’s energy to come from renewable sources could generate one million new manufacturing jobs and an additional 2.5 million jobs in related industries. The big question is where will those manufacturing jobs be? Only 50 percent of America’s existing wind turbines were manufactured domestically, and while the solar cell was invented in the U.S., four countries outpace American production of solar components. The country has a tremendous opportunity to rebuild U.S. manufacturing capacity to meet the clean energy needs of the future. Today, the Apollo Alliance is launching the Apollo Green Manufacturing Action Plan (GreenMAP), a comprehensive roadmap that lays out aggressive steps to ramp up domestic manufacturing of clean energy equipment and components while making factories more energy efficient. http://apolloalliance.org/wp-content/uploads/2009/03/greenmap_proposal03... Our proposal would benefit tens of thousands of U.S. firms capable of making the equipment and components of the clean energy economy, the majority of which are located in the 20 states hardest hit by manufacturing job losses. We are also planning to air an ad in key states in order to build support for rebuilding our manufacturing sector and keeping jobs in the U.S. http://www.youtube.com/watch?v=E3P-5ge65q0
Joe's wrong
Don't get me wrong, I am all for green jobs. I'm a geologist at a green energy firm. I've been working in the environmental field for 3 years now (following a 2-year masters program). I assure you, I definitely don't make anywhere NEAR $50 an hour, in fact, I make closer to the starting salary quoted by Joe. I agree that green collar jobs are the way of the future, but don't expect to be living large installing solar panels. I hope we've all learned by now there is no get-rich-quick scheme. At least not for the entire country.