Ensuring human rights underpin the global energy transition

Abstract

FOCUS | CLIMATE CHANGE & TRADE UNIONS 5 26/4 | International Union Rights | The global transition to a low-carbon economy is pivotal to ensuring the planet remains habitable for future generations. But this transition is at risk if respect for the human rights of workers and communities is not embedded throughout the process. For years, workers have documented and stood up against abuses associated with both the fossil fuel industry and, increasingly, renewable energy operations. A handful of renewable energy companies are beginning to demonstrate their commitment through decent jobs by taking steps such as signing the B Team’s ‘Pledge for a Just Transition to Decent Jobs’1. But workers must continue to play a central role in highlighting corporate practices that may threaten the sustainability of this transition. Renewable energy companies have the potential to set a precedent for a new energy sector that integrates the rights of workers and communities. However, early observations indicate the sector is ill prepared to embrace this leadership role. Between 2010 and June 2019, the Business & Human Rights Resource Centre received 152 allegations of human rights abuses associated with renewable energy projects. Analysis of these allegations reveals a lack of respect for indigenous and affected communities who live on or near project sites, as well as workers’ rights abuses. Workers’ rights are affected at various stages of renewable energy supply chains. From forced and child labour uncovered at the cobalt mines that produce the mineral critical for rechargeable lithiumion batteries,2 to myriad health, safety, and other hazards for workers at the mid- and end-tier production and manufacturing levels. The boom in current and projected demand for more clean energy technology is, in some cases, amplifying harms to workers. In September 2019, a California judge ruled that the electric car manufacturer Tesla – the only major US automaker without a unionised workforce – had repeatedly violated the US National Labor Relations Act. Workers at the company’s Fremont factory had been trying to organise with the United Auto Workers union since 2016, citing concerns over long hours, low wages and worker safety. Workers were interrogated and threatened with dismissals for promoting unionisation – one was dismissed for expressing pro-union opinions – and in May 2018, Tesla CEO Elon Musk himself sent a tweet threatening to penalise unionised workers by taking away their employee stock options3. Renewable energy projects globally also face in some cases delays, funding challenges, or cancellations as a result of companies’ shirking their responsibility to respect the human rights of their workers and the people impacted by their projects. Weak or poorly implemented human rights due diligence policies and practices threaten our collective goal of an urgent transition to a low carbon economy. As companies and consumers further embrace renewable energy, the rights of workers must be upheld – including freedom of association and collective bargaining, right to a living wage, health and safety, and anti-discrimination, among others. Companies should commit to fundamental labour rights and adopt practices that put those commitments into meaningful practice, taking advantage of a range of resources and guidelines4 that have been developed to aid companies. In the Business & Human Rights Resource Centre’s recently released renewable energy and human rights benchmark methodology5 we identified performance proxies that act as a barometer for determining whether a company’s policies make it off the paper or out of the boardroom. These include: disclosing health and safety statistics and adverse trends analysis; paying a living wage and disclosing how that wage is determined, including engaging trade unions or relevant worker bodies; and reporting gender wage gap information and progress against closing it. Additionally, other themes in our benchmark methodology reinforce and build upon key labour standards, such as requiring companies to have a policy of non-retaliation against workers who exercise their rights to freedom of expression, association, peaceful assembly, or protest – whether against the company or not. Because renewable energy supply chains are not linear, many companies play multiple and overlapping roles ranging from project manager to component manufacturer to energy producer. This complexity necessitates that companies adopt policies not only for their own operations but also extend these policies to their supply chains. Workers can provide early warnings highlighting discrepancies...