INTERNATIONAL Congress

INTERNATIONAL

Congress

Trade Unions International (Energy & Petrochemicals)

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View of Idukki Arch Dam

a l a r e K o t e m o c l e W a land that has to be seen to be believed!

Welcome to Kerala, India's only tropical paradise, located at its southernmost tip.

This is the land where the trumpet of changes is heard A land that remains quite still, Easily accessible, known as God's Own Country.

This is the land that has to be seen to be believed.

International Congress

Trade Unions International (Energy & Petrochemicals)

Thiruvananthapuram, Kerala, India

10th September, 2018

Arrival of International Delegates

11th September, 2018 09:00 AM – 10:00 AM Registration of Delegates in front of Conference Hall in the Hotel 10:00 AM – 10:10 AM Assembly of Delegates in the Conference Hall Inviting Leaders on the Dias 10:10 AM – 10:20 AM Welcome Speech Com. Elamaram Kareem MP

General Secretary, Kerala State Committee of CITU & Chairman, Reception Committee

10:20 AM – 10:35 AM Speech Com. K. Hemalata President CITU & Presidential Council Member, WFTU

10:35 AM – 10:50 AM Presentation of Main Document of the Congress “PLATFORM OF ACTION” Com. Prasanta Nandi Chowdhury

12th September, 2018 10:00 AM – 10:20 AM Address Com. George Mavrikos General Secretary, WFTU 10:20 AM – 11:45 AM Intervention Delegates (8 minutes each) 11:45 AM – 12:00 PM Tea Break 12:00 PM – 12:15 PM Intervention Com. Tapan Sen General Secretary, Centre of Indian Trade Unions (CITU)

12:15 PM – 01:00 PM Election of New Committee (President, General Secretary and other Office Bearers)

Vice President, TUI(Energy)

01:00 PM – 01:15 PM Introduction of the Conclusion/Declaration of the Congress/ New directions – new duties by the Newly Elected General Secretary of the TUI(Chemical & Energy)

10:50 AM – 11:05 AM Power Point Presentation Com. Sandeep Pai, Research Scholar

01:15 PM – 01:25 PM Concluding Speech Com. Swadesh Dev Roye

11:05 AM – 11:20 AM Tea Break

Deputy General Secretary, WFTU & General International Co-ordinator, TUIs

General Secretary, Electricity Employees’ Federation of India (EEFI) &

11:20 AM – 11:35 AM Intervention Com. H. Mahadevan Dy. Gen. Secy. & In-charge APR, WFTU

11:35 AM – 11:50 AM Intervention Com. Ch. Venkatachalam Chairman Finance Control Commission, WFTU

11:50 AM – 01:30 PM Intervention Delegates (8 minutes each) 01:30 PM – 02:30 PM Lunch Break 02:30 PM – 04:45 PM Intervention Delegates (8 minutes each) 04:45 PM – 05:00 PM Tea Break 05:00 PM – 06:30 PM Intervention Delegates (8 minutes each) Adjournment of the Session

01:25 PM – 01:30 PM Vote of Thanks Com. K. Jayaprakash General Convener, Reception Committee

End of the Congress 01:30 PM – 02:30 PM Lunch Break 05:00 PM Public Meeting To be presided Com. Elamaram Kareem President KSEB Workers Association

Speakers Com. George Mavrikos Gen. Secy. WFTU and Com. Tapan Sen, Gen. Secy. CITU and others

13th September, 2018

Departure of International Delegates Hotel Rooms to be vacated by 12:00 PM

Soldiers of Kerala T

he State of Kerala which is one of the bastions of the historic Proletarian and Left Movements in the country is proud to host you all for the 13th Conference of the TUI Energy International. After its founding in 1956, the State of Kerala with its high density of progressive political content has kept alive a tradition of resistance against, the vestigal forces of Feudalism, Casteism & Divisive communalism on one side and the plunder of Neo-Liberal forces acting across national boundaries; on the other side. The Communist Government that was democratically elected in 1956 and the Land & Labour reforms ignited by it; continue to inspire us as glowing milestones in the discovery of viable alternatives for People empowerment which We have advanced all these decades.

We expect that the Conference will strengthen our resolve and might; in furthering this resistance.

The Kerala society is in the midst of a painstaking revival after a severe flood ravaged our social Infrastructure at all levels including houses, schools, hospitals, Industrial plants, transport Infrastructure including roads and thereby every facet of existence & livelihood.

The Flood mitigation defence action was spearheaded by People collectives; with support from the State Governmental machinery as well as Rescue missions offered by the Central Government. About 12 lakh inhabitants forced out of their households were rescued to more than 10,000 shelter camps all over the state in an adventurous orchestra of People co-ordination, that leveraged on all available resources and methods for immediate survival. Both Coastal & Inland Fishermen communities, played a stellar role in the rescue act by launching not just their transport canoes or fishing boats; but even hurling themselves fearlessly into the turbulent waters if the situation so mandated. The Chief Minister of Kerala has perhaps expressed the

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International Congress Trade Unions International (Energy & Petrochemicals)

Elamaram Kareem MP

General Secretary, Kerala State Committee of CITU & Chairman, Reception Committee

The international community including the Malayali diaspora have also responded generously to the humble request aired by the Government of Kerala for contributions to the Chief Ministr's relef Fund. State Givernment employees have overwhelmingly responded to the Governments request to donate one month of their salaries.

We beleive that all these spontaneous responses are also testimonies to the widespread confidence in the credibility and capability of the Left Democratic Front led Government of Kerala; in ably and responsibly cruising the State forward from the dire straits, We are presently steeped in.

Being in such troubled times; the TUI conference is being organized in a very frugal manner which We expect, will be recognized and empathetically understood by the delegates in this conference.

most befitting acknowledgement to their valiant efforts, by describing them as the 'Soldiers of Kerala'.

Yes, We have survived the devastation wrought by unprecedented rainfall despite the best possible Engineering management of Dam reservoirs in the State and We have survived though with some unfortunate casualities. We have survived with a social resilience and camaraderie that has few parallels in history; But the forthcoming journey to rebuild our lost moorings of livelihood has only just started.

A total of at least 30,000 Crores of Cost in Indian Rupees is expected for complete rehabilitation including compensation & reclamation overheads for the already fragile agricultural Infrastructure in the State. Though We face such a daunting challenge and uphill task in the recovery process, the support pouring in from many sources across the country is proving invaluable for us. And It is heartening to note that a significant part of the contributions are from Worker groups and collectives all over India who have pooled together the pittances they can painstakingly afford. More than the numbers, It is the solidarity offered by them that is precious for us.

I mentioned about the solidarity shown by Worker groups across the country who are already in miserable straits and enmeshed in a fast aggravating Economic crisis as continuation of the Neo-Liberal Globalization agenda being enforced by the Indian Ruling class since 1991; an agenda which the Communist Parties and Left have vociferously opposed and persistently warned against its evolving destructive impact. This destruction has dimensionalized in various degrees and severities during the rule of successive Right Wing governments that have ruled the country since 1991 and the brunt of the destruction is borne by Industrial Workers and Peasants.

A vast majority of 94 % of this 50 Crore strong Indian proleteriat are themselves employed in the unorganized and Informal sector; whereas the Ruling Class continues to erode further whatever little Job & Salary securities they have enjoyed, in the name of the Corporate slogan of 'making Business more easier'. And business and production avenues in the Tiny & Small categories are becoming persistently endangered as a result of anarchic engineering of socalled Financial & Tax reforms instrumented during the last 2 years.

Even the consolidated historical remnants of the Pre-Liberalization

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era, which are manifested as Public Sector Enterprises that provide living and economic stability to vast sections of the society are being sold out to Corporate Capital; without even the usual propogandist and make-believe justifications. The sectors that are subject to such planned divestment include Railways, Telecom, Airlines, Banks, Insurance, Transport and Energy. Thus sector after sector is being opened out to Vulture Capital which will result in a grand reversal of the gains and strides accomplished by the Indian Economy post Independence.

majority of workers in the Un-organized sector and the demand to ensure by legislation at least a bare minimum daily wage of 600 Rupees is yet to be accepted by the Central Government. If this is the plight of labour workers at the bottom of the ladder in the production value chain; the picture is hardly any better for the more educated and skilled worker segments; with a fast dwindling rate of employment generation stemming from Industrial recession and close-downs.

The small-holding Peasants and Agricrultural labourers have already been in severe crisis since the early phases of the Liberalization era; with uncurtailed, uncontrolled Trade agreements eroding the value and viability of both agricultural products and earnings. Two and Half decades of globalization has now almost completely inundated the very fundamental viability of this most employment-generative sector in society. Peasant suicide incidents have now become shockingly more a norm than exceptions.

In 2015 and 2016, the Industrial working class and the Peasant workers had together combined under the auges of national trade unions to organize One Day Work boycott strikes against the NeoLiberal Policies and Corporate friendly ideologies of the Government that have stifled and suffocated the sustenance of both these sections. But the Government policies continue to more perversely debilitate the sustenance of the toiling masses and efforts are on to organize yet The another nationwide agitation by harnessing Government of Kerala the protest and collective anger that have led by the Left Democratic built up in these classes.

Front is a manifestation of

The Privatization experiments in the Energy Sector have their roots in a marked Policy change with respect to the sector, the people aspiration for a The Government of Kerala led by the starting from 2003. The current policy is Left Democratic Front is a manifestation correct & best-possible alternative now targetting the dismantling of the of the people aspiration for a correct & to aggressive Neo-Liberal Public sector structure of State Electricity best-possible alternative to aggressive agenda of Right Wing & Chronic Boards and set the stage for Private Neo-Liberal agenda of Right Wing & Capitalistic ideologies which have Capital intrusion into this sector which is Chronic Capitalistic ideologies which undermined the economic and so vital for the Economy in general. The have undermined the economic and social fabric of the country.

Energy Sector is one domain where such social fabric of the country. And We are self -defeating Restructuring exercises are pursuing this peoples aspiration with rigour, being vehemently opposed by Working class vision and innovation by leveraging peoples organizations across the country. The nationwide stir participation & global expertise; for evolving Truly planned by Energy sector workers on December 7th this alternative examples of Governance, Welfare and Economy year is one of the many examples of Popular defence against such management.

Anti-People and Anti-Worker conspiracies, hatched deep into Policy While being still steeped in the turbulent terrain of Financial Design, Enactment and Execution of the present Government. uncertainities wrought by Globalization, lopsided Central-State More than of 3 Crores of Workers in the transport sector nationwide divisions of Power and sometimes even vehemental political agenda joined the Job boycott agitation organized on August 7, 2018 and to checkmate the Peoples Government & Kerala Polity in general; Our effected a practical stand-still of national life against the Policy intend Growth programmes are based on Scientific Planning, Social Justice, to completely privatize the entire Transport sector in the Country.

Empowerment and rational Environmental viability. Apart from keeping our electoral and ideological commitments to the People of There are no social welfare support systems available for the vast

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International Congress Trade Unions International (Energy & Petrochemicals)

Kerala, We are keenly aware that We are also in the national limelight, under the hopeful gaze of a national polity which is keenly anxious for practical alternatives to wreckless neo-liberal capitalism.

The Communist and Proleterian movement emerged as a major political constituent and spirit in Kerala as part of the truly AntiImperialist stream within the Freedom movement. The movement won the hearts of people transcending all caste and religious divisions, thanks to the inspired, exemplary and visionary leaders like EMS, AKG and P Krishna Pillai. Successive Governments with Communist participation have made possible great strides in building a society which is a model to the rest of the country and boasting various human development indices at par with the developed nations. These advances are typified in achievements like a Strong Public Education system, Public Distribution Systems not limited to Statutory Rationing Outlets, Peoples Planning based Local Level development and the succesful drive for 100 % Literacy.

All such accomplishments have engendered a society which now boasts a global diaspora which bring valuable earnings to the State and the Country. And Deep in its veins, the Kerala polity by default, is modernistic and secular; a continuation of the centuries of cultural cross pollination It has enjoyed with various civilizations across the globe from times of antiquity. We have played our part in building a Kerala which is global in outlook and yet not charmed

by the temporal lure of transient and anarchic growth advocated by wreckless Capitalism.

Let me now extend my Warm Welcome to Mr. George Mav Richos , the General Secretary of the World Federation fo Trade Unions to this conference on behalf of all delegates as well as the Kerala Society. We are excited by his presence here and look forward to learn from his global experience in organizing the working classes.

I am also happy to Welcome all foreign delegates who have taken the effort to congrgate here and I hope you find the time you spend in Gods Own Country; endearing to our common goals for an equitable world order across national barriers.

I also welcome delegates from all our sister states in the country and hope this global summit provides an important exercise for intellectual cross ventilation, which is very essential for advancing our struggles and making them more effective.

Last , but not the least, I personally welcome the valiant leaders of the Indian proleteriat, Comrade H Mahadevan of the AITUC, Com. Dr. Hemalatha President of CITU, Comrade Thapan Sen General Secretary of CITU, Comrade Debdroy of WFTU etc. to this conclave and wish you a fruitful session of interaction as part of Conference proceedings.

Welcoming once again, all delegates to this conference, Thanks and Lal Regards

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Express

Our Solidarity 10

International Congress Trade Unions International (Energy & Petrochemicals)

George Mavrikos

WFTU General Secretary

Dear colleagues, brothers and sisters, Ι salute the 3rd Congress of the workers of Energy, Chemicals, Coal, Rubber, Pharmaceutical products and allied industries, taking place in Trivandrum of India, and I wish the best of success to its works.

I express my warm thanks to the host Organization in India CITU, to the President K. Hemalata, to the General Secretary Tapan Sen, to Swadesh Dev Roye, National Secretary and Head of the International Relationships of CITU and members of the WFTU Secretariat, to the Chairman and General Convener of the Congress Organizing Committee of CITU, to AITUC and all other WFTU affiliates in India also all of our leaders and cadres from India for their co-operations in the hosting of this important Congress and for all their efforts so that we can have a successful event. Moreover I specially greet the Comrades of Kerala for the courage and conviction demonstrated by them in holding this Congress confronting the devastation of unprecedented flood fury and untold sufferings of the people of the state in terms of loss of lives and destruction of properties.

We express our solidarity and our support with the workers and the people of Kerala who have been seriously affected by the disastrous floods of the last months, which have left few hundred of people dead, damages and hundreds of thousands of homeless workers. The workers and the poor people are those who

always pay with their lives and those who see their heard earned very meager belongings and the existing infrastructures getting lost by natural disasters and by accidents.

In the 21st century, with the immense progress of technology and science, the absence of the appropriate protection, particularly for toiling people, against these disasters is shocking, whereas all over the world the necessary infrastructures and the respective manpower are being systematically undervalued. This happens because they prioritize giving the funds for investments that will increase the profits of the businessmen and of the monopoly groups.

The

We express our solidarity and our support with the workers and the people of Kerala who have been seriously affected by the disastrous floods of the last months, which have left few hundred of people dead, damages and hundreds of thousands of homeless workers.

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make shift relief camps for hundreds of protection of the people from such The role of the Sectoral thousands of people. From this platform of disasters is a long-standing demand of Organizations of WFTU is very our TUI Congress we greet the Left Front the world class-oriented trade union Government and the people of Kerala. movement and WFTU. Our demand is important. We want the Sectoral modern scientific technological measurers Organizations to be at the The 3rd Congress of TUI Energy, with the to forewarn and protect people from natural forefront, to be the positive participation of more than 100 international disasters like earthquake, flood etc., providing delegates from 40 countries from all over the protagonists inside the high quality housing, immediate measures for world, is of great value and importance, as it ranks of WFTU. the rescue and effective people oriented handling brings together pioneer trade unionists who work of the natural calamities. As workers, we have to point at the sector that literally makes the Earth go round, out these issues, to claim our rights and to organize in practice giving fuel for the movement of all the productive activities of our militant solidarity to the victims of the disasters. the planet, for the transportations and for the covering of the basic needs of the people for water supply, heating and electricity. Also, the I have been told by the WFTU cadres in India that the Left Front petrochemical products, the rubber, the plastics and the medicines Government at Kerala and specially the people of the state in general are principal goods for the covering of the daily needs, necessary for have performed in an examplary manner in rescuing the people ensuring workers' health and prosperity. trapped by flood water and effectively running the thousands of

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International Congress Trade Unions International (Energy & Petrochemicals)

However, today, instead of providing all these goods mentioned above for the covering of the people's needs, these goods have been converted to one of the biggest sources of profitability for the monopolies. Giant companies, such as Exon Mobil, TOTAL, BP, ENI, PETROBRAS, BAYER, TATA Petrodyne or UPL here in India, exploit the wealthproducing resources of the countries in order to make huge profits, while the workers of these companies suffer from the immense exploitation and while the peoples generally live in energy poverty.

Even worse, we observe that the imperialist rivalries and the wars take place exactly for the control of the wealth-producing resources of various countries and of the routes of their transfer, for the oil, for the gas, for the management of water resources with typical examples the wars in Syria, in Libya, in Iraq, the economical blockade of USA against Iran, Qatar, the alliances that are formed with the state of Saudi Arabia which has been massacring the people of Yemen for three years.

We notice the huge ecological disaster, like the one at the bay of Mexico and we realize that the sector of energy is ravaged by the activity of the monopoly groups which is everything but friendly towards its own workers and towards the peoples.

Dear friends, The role of the Sectoral Organizations of WFTU is very important. We want the Sectoral Organizations to be at the forefront, to be the positive protagonists inside the ranks of WFTU. Through the TUIs, we come directly in contact with the basis, with the workers at the workplaces.

Though the TUIs we can instill the class-oriented, the militant line in the consciences of the factory and industrial proletariat. Our aim is the TUIs to be the heart of WFTU. It needs effort in order to achieve it.

So that the WFTU TUIs be democratic, open and modern bee-hives that neither will be inactive nor neutral in the face of the developments. TUIs that will unite all workers irrespective of religion, color, race and political beliefs. They will unite everybody on the basis of our class-oriented interests.

They will have belief in the role and the strategic goal of the working class, they will act upon developments, they will be schools for the workers and they will teach them that the life proceeds only through the struggles. Only through the struggles we will reach the workers' emancipation and the abolition of the capitalist exploitation.

Colleagues, I am optimistic for the new course that starts from this Congress for the TUI which covers the sectors of oil, chemicals, water, rubber, pharmaceutical products which are of strategic importance.

The new Head-office of the TUI, its renewed leadership and the contemporary, militant documents that you have in your hands will give new dynamics and will open new ways. Along this new course, the leadership of WFTU will be at your side.

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Energy Transition and the Future of Energy Workers

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International Congress Trade Unions International (Energy & Petrochemicals)

Sandeep Pai

Energy Researcher Author and Award-winning Journalist

E

nergy is indispensable to human existence. It has played and will play a crucial role in shaping our society. In the pre-industrial era, biomass was the dominant energy source. However, its share in the energy mix fell after James Watt invented the coaldriven steam engine in 1769. The first widespread use of this efficient steam engine was to pump water out of coal mines, making coal seams easier to access, enabling expansion of coal extraction and use.

The advent of coal and the steam engine also led to the expansion of the iron, cotton, and steel industries. This transition from biomass to coal has happened across the world at different times, although a large number of people, especially in Asia and Africa, still rely on biomass as their main energy source. So, what happened when the use of biomass contracted? Did new, coal-based energy systems and infrastructure change anything else? Did this change in energy system lead to other societal changes?

The answer is a clear yes. As coal became the dominant energy source in the late 19th century, and industrialization spread, many people left agriculture and other occupations and migrated to cities to become factory workers. This occupational shift was widespread. New factory workers’ wages were much higher than their previous earnings as farmers, which led to an increase in consumption, resulting in higher demand for goods and services and further supporting industrial growth. Similarly, when hydrocarbons such as oil and gas began to dominate the global energy mix in the 20th century (although coal continues to remain an important energy source), they propped up new centers of global power and created new world politics.

Harnessing and producing energy using coal, oil and gas not only brought new infrastructure but also shaped our geopolitics and society.

Over the last four decades, societal demand has grown for countries to replace fossil fuel-based energy with renewable energy. This time,

the shift is not being driven by some new technological innovation leading to a better energy source. It is being driven by climate change science, which makes it clear that burning fossil fuels is causing dangerous global warming. In addition to climate change concerns, huge investments in renewable energy technologies by national governments and increasing health and environmental concerns are helping propel the shift away from fossil fuels.

Given the deep-rooted linkage between energy production, infrastructure, society, and politics, possible future declines in any fossil fuel industry (or industries), will likely change society yet again.

Will the change in energy systems make workers’ conditions better or worse? What role can trade unions play in ensuring protection of workers’ rights? This paper will discuss some of these issues, and provide recommendations for TUI Energy Unions to consider, both to make sure that workers’ rights are protected in the new energy world, and also for the unions to stay relevant in the event of these massive energy sector changes.

Global Energy Situation In December 2015, world leaders from nearly 200 nations met at the United Nations Framework Convention on Climate Change (UNFCCC) conference in Paris and collectively agreed to end the fossil fuel era and facilitate an energy transition to renewable energy to save the world from climate change impacts. The UNFCCC called the agreement a collective response to combat the climate change crisis by reducing global greenhouse gas emissions, with the aim to keep the global temperature below 1.5 degrees Celsius above preindustrial levels. During the Paris talks, individual nations pledged that in the long run they would reduce their energy dependence on fossil fuel sources such as coal and oil, and increase the use of renewable energy, particularly solar and wind.

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Climate Change & its Impacts

Fig. 1: Total Primary Energy by Source

Source: International Energy Agency, 2017

Today, more than 80% of the world’s energy is derived from fossil fuel sources such as coal, oil and natural gas. However, almost 200 countries around the world are now embracing and investing in renewable energy sources such as solar and wind. Coal-dependent countries such as China, India and the United States (US), and oil exporting nations such as Saudi Arabia, Norway and the United Arab Emirates, are all investing heavily in renewable energy sources.

Between the year 2000 and 2012, renewable energy production grew at an average annual rate of 2.6% per year. Among different renewables, solar and wind power grew at an average of 46.2% and 24.3% respectively. This has mainly been driven by the growth of these renewables in Organisation for Economic Co-operation and Development (OECD) countries, China, and India. Currently, renewable sources such as bio fuels and waste, modern renewables such as solar and wind, and hydro electricity together contribute to over10% of the global primary energy supply, which is almost double of what the figure was in 1973 (see Fig. 1, below). The share of coal and oil in the primary energy supply has contracted, while the share of natural gas has increased. Apart from these fossil fuels, the share of all other forms of energy has increased.

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The impacts of climate change have been and will be felt around the world, especially by poor and marginalised people in developing countries in Africa and Asia. This is why unions must acknowledge the seriousness of climate change, and be at the forefront of climate action. World temperature rose 0.85 degrees Celsius over the period 1880–2012 – and the world is already seeing impacts like accelerated global sea level rise, increases in large-scale forest fires in North America, increases in heavy precipitation events in countries like Bangladesh and India, and more intense, prolonged droughts in many areas of Africa. In 2014, an Intergovernmental Panel on Climate Change (IPCC) report warned that no one is safe from the impacts of climate change. According to a United Nations report, “Observed impacts of climate change have already affected agriculture, human health, ecosystems on land and in the oceans, water supplies, and some people’s livelihoods. The striking feature of observed impacts is that they are occurring from the tropics to the poles, from small islands to large continents, and from the wealthiest countries to the poorest.”

After the 2009 Copenhagen Climate Change Conference, world leaders accepted that any temperature increase beyond two degrees Celsius would be dangerous and would make many parts of the planet uninhabitable. Poor and marginalised countries, which have less resources to cope with climate change impacts, will be the worst affected. According to a report by German watch, a Germany-based think-tank, countries such as “Haiti, Zimbabwe as well as Fiji were the most affected countries in 2016 followed by Sri Lanka, Vietnam and India.”Nonetheless, climate change will also affect countries of the Global North such as the United States, Germany, France and the UK, which are considered “medium risk” countries.

The exact pace of current energy transitions is hard to predict, as it will depend on current and future national level policies and their implementation. However, even the most pro-fossil fuel friendly forecasters and research scholars are predicting that the share of fossil fuel sources in the energy mix will contract further by at least 10% by 2040, with the biggest possible declines in the coal industry.

Of course, pro-climate and environment friendly policies may result in a much larger decline in fossil fuel industries.

It is now a universally accepted fact that burning fossil fuels (such as coal, oil and natural gas) is the most significant contributor to climate change. In 1988, the IPCC was established by the United Nations Environment Programme (UNEP) and the World Meteorological Organization, with the aim to improve scientific understanding of the current state of climate change and its impacts. The IPCC Fifth Assessment Report states, “Emissions of CO2 from fossil fuel combustion (coal, oil and natural gas) and industrial processes contributed about 78% of the total GHG [greenhouse gas] emissions increase from 1970 to 2010, with a similar percentage contribution for the increase during the period 2000 to 2010.” Burning fossil fuels also emits other harmful greenhouse gases, like methane.

Before explaining the impacts of the current energy transition on workers and their communities, it is pertinent to understand climate change and its impacts, as it is the most important driving force behind the current energy transition.

Other human activities, like land use change from clearing land for agriculture, also contribute smaller, but still significant, amounts of greenhouse gases, including CO2, but the bottom line is that burning fossil fuels is the main factor causing global warming. How exactly do

International Congress Trade Unions International (Energy & Petrochemicals)

green house gases cause climate change? Imagine Earth is covered by a blanket that keeps it at a liveable temperature. By burning fossil fuels and through other processes, humans have started adding extra blankets (greenhouse gases such as CO2). Due to these extra blankets, things are starting to really heat up and parts of the earth are becoming uninhabitable. Since the industrial revolution, human activities have resulted in an increase in atmospheric CO2 levels from 280 parts per million (ppm) to 400 ppm.

Fig. 2: World Crude Production since 1990

Fossil Fuel Decline - Trends Due to the global push towards renewables to protect the Earth from climate change impacts, fossil fuels will likely contract. It is clear from the discussion above that the share of coal and oil in the primary energy mix is already declining, but in terms of absolute numbers their share has remained intact or has rather increased in the past decades (see Fig. 2 and Fig. 3, below). However, projections show that in the future the coal and oil sectors might decline in absolute numbers as well. Among fossil fuel sources, it is widely acknowledged that coal will be the first target. In fact, since 2013, global coal production has declined by 10% in terms of absolute numbers, while crude oil production has plateaued. The future of the natural gas sector is more secure at the moment, but likely will not remain so forever.

In fact, a recent Bloomberg New Energy Finance report states that the use of coal will see a serious decline after 2026. Almost every international agency is predicting the beginning of a serious decline around the same time. Today, coal is primarily used for electricity production and other industrial purposes. The projections show

Source: Energy Data, 2017 Fig. 3: World Coal Production since 1990

Source: Energy Data, 2017

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that coal, which currently fuels 37% of global electricity, will be replaced by natural gas and renewables like solar and wind. This is already happening. Coal consumption and production are in serious decline in North America and Europe, and have plateaued in China, the country that produces and consumes close to half of all the coal in the world. The only places where coal use is increasing are countries such as India, and a few other South Asian countries. This is because millions of people in these developing countries do not have electricity access, or they receive intermittent electricity. Hence, the governments in these countries are embracing all sources of electricity including coal. Today, renewable energy is the second largest source of global electricity production. It accounts for over 23% of all global electricity. It is only second to coal. On the other hand, natural gas-based electricity has now slipped to third place, just behind renewables.

While the growth of renewable energy is remarkable in the electricity sector, fossil fuel sources such as oil and natural gas still dominate the transportation sector and industrial production. Today, 60% of the total global oil produced is used for transportation. However, increasing investments and adoption of electric vehicles (vehicles run by electricity) and improvements in storage technology are threatening the long-term existence of oil. Natural gas, on the other hand, is considered a transition fuel—to be used until renewable energy based transportation is fully developed.

Overall, compared to other fossil fuel sources, natural gas is considered to be the cleanest fuel because it emits the least CO2.Since natural gas is a cleaner fossil fuel than coal or oil, in many countries it is being embraced as a transition fuel in the electricity, transportation and industrial sectors. For this reason, natural gas will likely be the last fossil fuel to decline.

While coal use in the electricity sector is beginning to decline significantly, in the long-term first oil and then natural gas may also see a decline. Almost all the projections made by international organisations and academics agree that post 2040, these sectors will also see a serious decline. The European Union, China and the United States are investing billions of dollars to develop alternate transportation and industrial production technologies, with the aim to replace oil and subsequently natural gas completely.

Impact of this Transition on the Working Class According to very conservative estimates, around 13 million people are directly employed by the fossil fuel industry globally, and many more millions are indirectly supported by the industry. The exact number of jobs supported by the fossil fuel industry is not available due to lack of research on this topic. Direct jobs in the fossil fuel industry often have a multiplier effect, generating other jobs in

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International Congress Trade Unions International (Energy & Petrochemicals)

Fig. 4: Number of Worker Employed in the Coal Industry (in thousands) in UK

Source: UK Department for Business, Energy and Industrial Strategy, Š Statista 2018

industries such as food services and retail, among others. This makes it especially hard to fully estimate the number of jobs linked to the fossil fuel industry. Moreover, revenues and royalties paid by fossil fuel industry extraction are used by local governments to invest in health care and other social welfare schemes. Overall, this makes the fossil fuel industry very important not only because it currently provides energy to people, but also because of the fact that the fossil fuel industry is a major employer.

Historical evidence shows that decline in fossil fuel industries has been devastating for workers and their families. In the United Kingdom, where the largest historical coal mining decline occurred, coal miners who lost high paying mining jobs faced a number of barriers accessing work, even in their neighbouring cities. Barriers included the fact that most of them are older and less skilled compared to younger workers (See Fig. 4 below). The result was that miners across Wales and northern England remained unemployed and slowly fell to drug use and delinquency when mines started to close in the 1980s.

With the loss of the jobs, the tight local culture based on shared endeavour also disappeared. As coal mines closed down, the National Union of Mineworkers (NUM) lost its membership. Although it once was a mighty union with almost 1 million members, it now has just 100 active members left.

Although many recent studies have claimed that new renewable jobs will offset fossil fuel job losses, it is not clear if these new jobs will go to fossil fuel workers or to other workers. The International Labour Organization (ILO) estimates that by 2030, around 24 million green jobs can be created worldwide if governments act to limit global warming by 2 degrees Celsius. The ILO claims that the number of new green jobs, including new renewable energy jobs, will be sufficient to offset the 6 million jobs that might be lost in the fossil fuel industry.

However, current trends show that renewable energy related jobs are

going to new or different workers, and not present fossil fuel workers.

There are also important unanswered questions about the nature of renewable energy jobs, and working conditions in these new industries. While fossil fuel jobs in many countries are permanent jobs and provide decent income to workers, it is unclear whether future renewable energy jobs would provide the same type of work.

For instance, coal-mining jobs in India are primarily in public sector companies, where trade unions are active, and play a big role in ensuring workers’ rights are protected. Although these permanent jobs are slowly being replaced by contractor-led private sector jobs, trade union struggles have led to positive results in the form of higher wages for workers, and basic social security. However, compared to the fossil fuel industries, anecdotal evidence suggests that most renewable jobs are currently private sector jobs, and the majority of these jobs are temporary part-time jobs.

stay relevant. Without this type of clear vision and concerted effort on the ground, unions might completely lose their relevance.

There are already some encouraging examples of this kind of visionary leadership being shown by affiliate unions of the World Federation of Trade Unions. The National Union of Metalworkers of South Africa (NMUSA) has been hailed for their “Democratic Ecosocialism” that ensures “…society turns away from the destructive rationalities of capitalism, such as growth, endless accumulation and

In a recent study, researchers from University of Coimbra, Portugal analysed various renewable energy job sand concluded that there is “…a wide variety in the quality and transparency of studies related to renewable energy and employment.” They claimed that there is complete lack of understanding and inconsistent information about renewable energy jobs.

The Future Role of Trade Unions Job losses in the fossil fuel industry, spurred by global transition away from fossil fuels, could be devastating for workers, their families, and the unions who organise them. Whether renewable jobs will be able to replace fossil fuel jobs is currently uncertain. In the context of these potential changes in the global energy sector, it is important that all stakeholders led by trade unions help fossil fuel workers make an employment transition. Trade unions have a particularly important role in putting pressure on national governments to make sure that no worker is left behind in the global shift to renewable energy.

Trade unions should also focus on mobilizing workers in the growing renewable energy sector, and make sure that they are not oppressed by their employers.

Progressive trade unions have so far focused on organising workers politically to ensure improved wages and working conditions. So far, the convergence of environmental and union politics has been mainly around health and safety issues. However, given the realities of possible restructuring of the energy sector, energy sector unions will have to evolve, create long-term plans, and engagein intensive struggles to make sure that workers in the fossil fuel industry are able to make an employment transition to new industries. Energy unions must also expand their membership and find ways to organise new workers in the renewable energy industries. This is important both to ensure that workers’ futures are secured, and for energy unions to

competition. At the same time, this requires a new labour politics, beyond productivism, that promotes ways to sustain life and society.”

NUMSA has embraced climate justice politics, and has developed policies that advance climate justice. Over the years, NUMSA has “campaigned around energy efficiency and electricity price increases, influenced and monitored the roll out of solar water geysers and has advanced a position on socially owned renewable energy.”

The current global energy transition presents a big challenge for energy workers and trade unions. However, the worldwide shift away from fossil fuels also presents a huge opportunity for unions to expand their presence beyond the incumbent fossil fuel industries in the new renewable energy industries. Energy-transition led societal restructuring has the potential to lessen humanity’s negative impact on the world and make society a better place for workers. Unions can and must play a key role in making this happen.

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Working Class on Struggle Path across the World

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K Hemalata President, CITU

T

he working class across the world is on struggle path against the attacks of neoliberalism on its jobs and working and living conditions. Big struggles have been taking place all over the world including in the advanced capitalist countries in Europe against the attempts by the ruling classes to destroy the hard won rights, wages and benefits of the workers, in the name of austerity measures.

No respite for workers despite growth in ‘full swing’ International financial institutions like the IMF and World Bank are trying hard to paint a rosy picture of the world economy. The IMF made an optimistic estimate for the global GDP growth but at the same says that ‘risks continue to be tilted to the downside’. According to the World Bank, growth is at its ‘full swing’ for the first time since the crisis started but warns that the upswing would be short term without prospects for improving the living standards of the people or reducing poverty.

Thousands of workers and employees in several countries in Europe, in Latin America, Asia, Africa – in all continents, joined struggles including huge strikes against the so called labour law ‘reforms’, flexibilisation of labour, privatisation and In the US and many European countries, despite In view austerity measures that attack their basic and hard the recovery and job growth, wages remained of the increasing won rights. Auto workers, civil servants, teachers, stagnant. The increase in employment has not nurses, retirement home workers, rail and attacks on the working led to the slow down or reversal of the decline road transport workers, water and sanitation class across the world in the share of wages in the national income. workers, in large numbers participated in it is necessary to develop Common people do not have adequate these struggles. strong worldwide resistance purchasing power to absorb the output. The to these attacks and ensure concentration of income in the hands of the Growing discontent among the that international unity few through profits and high CEO wages does working class and solidarity of the not ensure stable growth of the economy.

These struggles by the working class, across the working class are Several eminent economists have expressed globe, are a reflection of the growing discontent apprehensions about another crisis looming ahead. strengthened. and anger among the workers against the mounting attacks on their working and living conditions by Inequalities increase further neoliberalism. The capitalist system has been trying to come The following figures will exemplify the extent of widening inequalities out of the global crisis that started in 2008 by increasing the attacks and concentration of wealth in fewer hands: on the wages, benefits and working conditions of the workers, curtailing their trade union rights as well as the democratic rights of • 42 richest persons owned the same wealth as that owned by the the vast majority of the people. poorest 3.7 billion of world’s population in 2017. In 2016, the figure was 61

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• 82% of the global wealth generated in 2017 went to the richest 1% • The 3 riches persons in the USA own the same wealth as the bottom 16 million people in that country Ironically the super rich have amassed such wealth in the aftermath of the global crisis, a period in which the working and living conditions of most of the workers across the world have worsened.

• At the height of the 2008 crisis, the top 1% owned 42.5% of total global wealth • In 2017, within a decade of the onset of the crisis, their share in global wealth increased to 50.1% • On the other hand, 70% of the world’s working age population own just 2.7% of the global wealth.

How is this super wealth built up? inheritance, monopoly, crony connections, tax evasion We are supposed to believe that they have earned this wealth through their hard work, unmatched talents and creative abilities alone.

But, there is growing evidence to show that this is not so. It is estimated that two thirds of billionaire wealth is the product of inheritance,

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monopoly and cronyism.

• Inheritance: It is estimated that over the next 20 years, 500 of the world’s richest people will pass on over $2.4 lakh crores – more than the GDP of India with its 130 crore population, to their heirs.

• Cronyism: Big corporates and monopolies utilise their closeness to those in power to manipulate government policies in their favour and get further strengthened. They enrich themselves at the expense of the people and the exchequer mainly through privatisation deals, by snatching away public properties at dirt cheap prices, grabbing natural resources displacing common people, peasants and adivasis, getting tax exemptions in the name of incentives and using loopholes in laws etc.

• Evasion of taxes: Another means often adopted by the super rich and big corporations to boost their wealth is by evasion of taxes.

The Panama and Paradise Papers revealed that the world’s super rich are hiding at least $7.6 lakh crore from the tax authorities utilising the global network of tax havens. It is estimated that the world’s top 1% is evading an estimated $200 billion in tax.

It is obvious that ordinary people cannot increase their money in this manner despite being equally or even more talented, innovative and hardworking.

And, of course, increased exploitation of workers

based workers etc – is increasing all over the world. In 2017, around 42% of workers across the world were in vulnerable forms of employment, according to the ILO. In emerging countries like India, their proportion is estimated to be 46%. The number of workers in vulnerable employment in the world is projected to increase further, by 17 million every year in 2018 and 2019.

The conditions of vast majority of workers continue to be far from decent. The employment situation across the world continues to be a source of worry despite slight improvement. Young people are less likely to be employed than adults with the global youth unemployment rate standing at 13% or three times the adult rate of 4.3%. Around The Global Wage Report of the ILO shows that the highest paid top 43% of the global youth labour force is either unemployed or working 10% people receive almost 43% of total wages paid to all employees but living in poverty. Over 50 crore young people survive on less than whereas the lowest paid bottom 50% receive only 17%. While $2 a day. Despite working, often for long hours and under the wages and working conditions of workers are under harsh conditions, workers continue to be poor. Recent attack, the returns for senior executives have highly estimates by the ILO show that almost one in three The escalated. For example, a CEO in the USA earns, workers in emerging and developing countries conditions of vast by working for a little more than one day, what live in poverty. majority of workers an ordinary worker earns by working the The number of workers under precarious whole year. A CEO from the top five garment continue to be far from working conditions –the contract, casual, companies in the world earns in four days what decent. The employment temporary, part time, fixed time, home an ordinary Bangladeshi woman garment situation across the world worker earns in her whole life time. continues to be a source

of worry despite slight improvement.

Another ILO report - the World Social Protection Report 2017 – 19 says that only 45% of the global population are effectively covered by at least one social protection benefit. 55% people, i.e. around 400 crores do not have any social security.

Under pressure from international finance to reduce fiscal deficit, most of the governments are today adopting the so called fiscal consolidation policies cutting down expenditure on social protection including for children.

Women’s unpaid labour continues to be a major support to the economy worldwide. The World Economic Forums’ Global Gender Gap Index 2017 reports that the gender gap has widened for the first time after 2006, the worst being the gender divide at the work place.

The report estimates that at the present rate it would take 217 years to close the gender gap. According to the World Economic and Social Outlook Trends 2018 of the ILO, on average women are less likely to participate in the labour market with a global gender gap of over 26% points; they are less likely to find a job when they do participate.

Class oriented trade unions under attack Workers produce wealth but remain poor because the major source of accumulation of wealth is the increased exploitation of the workers and other sections of toiling people - pushing down wages and working conditions of the workers, evading labour laws and forcing the governments to amend labour laws. In most of the capitalist countries labour laws are being amended to deprive the workers of their hard won rights, including the basic rights to organise and collective bargaining and their rights to social security.

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Such unacceptable levels of inequality can be brought down only by improving the income of the workers and taking measures for the redistribution of wealth. But most of the governments implementing the international finance dictated neoliberal policies are not willing to do so. Inequalities cannot be brought down without improving employment situation and ensuring decent work to all workers.

By fighting for the improvement in the conditions of the workers, trade unions, particularly class oriented trade unions, have been acting as a counterbalance to the power of wealth. That is the reason neoliberalism attacks trade unions and the trade union rights of the workers including the right to organise and collective bargaining.

being lost. A study by McKinsey Global Institute estimates that a little less than 50% of all work activities globally have the potential to be automated. A big debate is going on in the world about the jobs that will be lost and the scope of new job creation due to the new technology.

New technologies can be used to benefit the workers by reducing their working hours, making work easy for them and providing them more leisure. The World Federation of Trade Unions (WFTU) has demanded reduction in the working week to 35 hours. But who reaps the benefits of technology and to what extent depends on who owns the technology and for whose benefit it is used. In the present capitalist society technology owned by a few rich countries and a few big corporates is used to increase their profits; not for the benefit of the workers or the common people.

Capitalism cannot be humane Today the world has enough resources, scientific knowledge and technology to ensure education to all, health to all, food for all, and housing for all; to ensure decent living conditions to all. These science, technology, knowledge could not have been and have not been developed by a few, in isolation. Common people, workers, peasants and other sections of people have all contributed and continue to contribute in their development. Yet, in the capitalist system, the fruits of scientific, technological development are owned by a few who corner the wealth generated by the toil of the working people. They are used to serve their interests and the interests of the rich, instead of for the benefit of all people. It is an irony that in the midst of unprecedented development of science and technology, unprecedented wealth, the vast majority of people are deprived of even the basic necessities of life.

In a world where 3 D printing of human organs is already being practices and research is progressing on increasing the speed up the process of developing human organs for transplantation: More importantly, neoliberalism has been mounting serious attack on organised working class and on working class ideology. As a result of all this, in many countries the membership and strength of trade unions have come down. This is accompanied by a rise in precarious employment, short term contracts, outsourcing, temporary, part time work etc, further exploitation of workers and further rise in inequalities.

Attacks on trade unions are meant to increase the appropriation of wealth produced by the workers.

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• 361000 children under 5 years of age die every year due to diarrhoea which can be easily prevented by providing safe drinking water and sanitation services and cured with simple medicines. • 4.50 billion, across the world, do not have safely managed sanitation. Out of them, 2.3 billion do not have basic sanitation services.

New technology: who benefits?

• 155 million children under 5 years of age globally were stunted in 2016 because of malnutrition while every year 1.3 billion tonnes of food gets lost or is wasted across the globe, enough to feed 870 million people

With the huge technological advances, particularly Artificial Intelligence and Robotics, there is serious concern about lakhs of jobs

The super rich are dreaming of space tourism, of staying in space stations and watching the Earth from that vantage point.

International Congress Trade Unions International (Energy & Petrochemicals)

• But 100 crore people in low income countries do not have access to all weather roads • 16% of world’s population or over 1.2 billion people globally have little or no access to electricity.

• It is estimated that 160 crore people globally lack adequate housing and 15 crore people are homeless across the world.

This is the cruelty of the capitalist system which is driven by the greed for profit not the well being of people. It is inherently crisis ridden. It seeks to come out of each crisis by further increasing the exploitation of the toiling people for profit maximisation, further increasing inequalities.

Growing disenchantment Such growing inequalities and attacks on the rights of worker have resulted in the growing resentment against neoliberalism, more pronounced among the youth who are among the most adversely impacted by these policies. This is reflected in the huge struggles of workers that are taking place across the world.

Today the world has enough resources, scientific knowledge and technology to ensure education to all, health to all, food for all, and housing for all; to ensure decent living conditions to all.

Workers and other sections of toiling people across the world are today searching for alternatives that can provide answers for a better life. This search is leading them to read Capital written more than 150 years back

by Karl Marx who was born 200 years ago. In a survey conducted in Hampshire in memorial of the first publication of Capital in 1867, more than two thirds of people opined that Capital is ‘more up to date than ever before’.

The famous words of Karl Marx- “The philosophers have only interpreted the world in various ways. The point, however, is to change it”- written in ‘The Communist Manifesto’ published 170 years back, act as a guide for the working class and people, even today. In the bicentenary year of Marx’s birth, we have to take his teachings to wider sections of the working class and create awareness about their role in changing this exploitative society.

The anger amongst the people against the impact of neoliberalism is sought to be exploited by the right wing forces who seek to divert it into divisive channels by creating animosities between people on the basis of race, religion, caste, region etc. Thus they seek to disrupt the unity of the toiling people and weaken the struggle against the neoliberal policies. They are able to do this wherever the left forces are weak or fail to lead the struggles against the neoliberal policies.

International finance has been promoting such right wing forces across the world to see that the left forces which consistently oppose

neoliberalism do not become stronger and emerge as an alternative political force. The right wing forces wherever they have come to power utilising discontent against the neoliberal policies have been implementing the same neoliberal policies while in power and once they regain power.

One of the major reasons for the rise of the rightwing forces, as in several countries in Europe, is the betrayal of the social democratic and left parties which have embraced neoliberalism while in power.

At the same time where the left forces have been in the forefront in opposing and leading the struggles against the neoliberal policies, they have registered gains.

Worldwide resistance to neoliberalism, strengthening wftu need of the hour In view of the increasing attacks on the working class across the world it is necessary to develop strong worldwide resistance to these attacks and ensure that international unity and solidarity of the working class are strengthened. That is the only way to defeat neoliberalism and ultimately end capitalist exploitation. A globally strong WFTU is necessary to achieve this.

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WFTU’s Objectives T

he WFTU proclaims its prime objective is to contribute to the emancipation of the working people by means of struggle:

Against all forms of exploitation of people and for obtaining and guaranteeing living and working conditions for all workers which would allow them the widest possible benefits from the fruits of their labour, in order to obtain for them and their families the time and the means to live in conditions appropriate to our epoch which is one marked by the headlong progress of science and technology: against colonialism, imperialism, domination and expansionism in the economic, social, political and cultural spheres; for the elimination of racism and underdevelopment; to guarantee sovereignty, freedom and security, of nations, non-interference in their internal affairs, respect for their political, economic and social independence and the establishment of a new and just international economic order; for the right to full employment and the guarantee of this right; for full and adequate social security legislation to protect workers and their

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families in the event of sickness and old age, and every other type of assistance and social security: for training, education and culture for all workers, thus enabling them to gain access to any responsibility or position within their capabilities for protection of the working environment, effective measures to maintain and promote ecological standards and sustainable development; for the achievement of social, economic and political democracy, the defense and development of workers' and trade unions' tights and freedoms, respect for human rights and the implementation of the Universal Declaration of Trade Union Rights; for the prevention of a nuclear war and the dissolution of all military alliances and blocs; against aggression and war and to promote international detente, the establishment of a just and lasting peace, peaceful coexistence and mutually advantageous cooperation amongst all peoples and among States; an end to the arms race, especially in nuclear arms and the total prohibition and elimination of nuclear weapons; and progressive arms reduction leading to general and complete disarmament.

H Mahadevan

Dy. General Secretary, WFTU & In-charge WFTU Asia Pacific Region

Article 13 of the constitution of WFTU, as was voted and adopted by the 16th World Trade Union Congress held in Athens on 06-10 April, 2011 elaborately reaffirmed the role, status and functioning of the Trade Union Internationals (TUIs), as a part of WFTU structure.

The participation of TUIs within the WFTU leading bodies is set forth in article 2,3(iii)b 4(e), 5,7,8 and 9 of the constitution. The TUIs are organizations which benefit from executive autonomy and from independence in their activity. This requires genuine co-operation between the initiatives of the TUIs and those of the WFTU. The TUIs

have their own constitutions. These should, however, be in harmony with that of the WFTU. The WFTU co-operates with TUIs in their industrial branches, which group together, the organizations of workers from their respective industries, professions and jobs. They are centres of planning, co-ordination and stimulation of international trade union activity at industrial level, for greater unity and solidarity in the interest of the workers of their respective branches. Through the participation of the TUIs members in the regional offices on the basis of and with the working methods determined by the latter.

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Role of WFTU - The future WFTU has advanced the international campaign on Globalisation of rights - for public education, decent housing, clean water, free medicine, right to food. This is to be carried forward. These basic issues should not be continued as profit providers for capitalists.

The future campaigns, demonstrations and other forms of struggles should be on the broad principles based demands. a. Alternate system of Government with social ownership, control and planning. b. Radical transformation towards the new economic order built on certain principles; i) economic justice ii) equitable development Iii) people's participation in the shaping of economic policy iv) food and energy sovereignty v) Universal access to essential services & public utilities vi) protection and promotion of human rights vii) using industrial policy for creating purchasing power of the people for ensuring living wage viii) protection and promotion of jobs. c. Reorient budgets, repeal and reverse the policies that brought the crises. More public investment for social infrastructure. d. Progressive tax system; dismantle tax havens; Arrest movement of speculative capital.

The TUIs co-operate with the WFTU to implement the guidelines of the world trade union congress in which they have taken part. Cooperation between WFTU and TUIs takes the form of conferences of the secretariats of the WFTU & TUIs aimed at exchanging experiences and information and shared problems as well as, when necessary, cocoordinating initiatives and actions as for as possible. The regional offices are to co-operate with the TUIs to promote sectoral activities on the continent.

We have, for the present, 10 TUIs (Agriculture, Banks and Finance, Energy, Education, Hotel and Tourism, Metal and Mining, Public Services Allied, Pensioners and Retired Employees, Transport, Fisheries and Communications, Construction and the 11th (Textile, Garments and Leather Workers) is in the offing.

I am confident in these two days, we would review the current status, role and functioning of the TUI Energy based on their own reports and evolve constructive proposals to improve and effectivise them as to enable to play more and more decisive role in the world of work, in their respective sectors.

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r. It struggles for trade union and democratic freedoms. It is against state violence, authoritarianism and persecution of trade unionists.

It is against the neo-fascism and racism. s. It defends the right to strike and all trade union rights. t. To hit careerism, elitism, bureaucracy, the manipulation and corruption of consciousnesses. u. It organizes trade union seminars and training.

Let us again recall WFTU’s basic principles and carry on our future tasks at all levels-unit level, National level, Regional level as well as International level. e. Phase out WB, IMF and WTO to build a new international financial architecture, full scale socialization of banks. f. Every investment should result in job creation and job retention; no jobless growth. g. Abandon capitalist practices of i) capital intensive industrial structure ii) Lean model production iii) easy exit policy. h. From everyone according to ability; to everyone according to necessity. i. Struggle for peace and friendship between peoples - against imperialism, wars. j. To defend the right of every people, every working class to decide for themselves about their present and future. k. The countries' natural resources belong to the people and workers in the country. The WFTU is opposed to privatization. l. Unity of the working class - Social alliance with poor peasants, self-employed, intellectuals and indigenous populations. m. To involve young people, women and migrant workers in the life, action and administration of trade unions. n. Priority to health and safety issues for workers, quality of life and the environment in general. o. To promote the struggle against transnational corporations and the organization of the international coordination and working-class solidarity. p. The right of all workers to public and free healthcare, education and social security. Continuous improvement of living standards, wages and pensions following the scientific achievements and technical progress. q. The WFTU as a class-oriented trade union Organization reinforces criticism, self-criticism and comradely emulation amongst leaders and members.

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International Unity & Struggles of the Working Class

Against Imperialist Onslaught in Energy Sector 30

International Congress Trade Unions International (Energy & Petrochemicals)

Swadesh Dev Roye

Deputy General Secretary, WFTU International General Co-ordinator of TUIs

T

he TUI (Energy & Chemicals) International Congress is taking place in India in the background of the continued systemic crisis of capitalism. The era is witnessing unprecedented intensification of class onslaught by the imperialist forces on the toiling people and at the same time struggles by the class oriented trade union movementa over the world in particular and the working class movement in general has been witnessing dimensional height.

And the only international trade union organization committed to class struggles – World Federation of Trade Unions (WFTU) is leading the struggles from front.

Commenting on the nature of the present crisis Fidel Castro noted, “But it is not the usual crisis that happen every certain number of years, or even traumatic crisis of 1930; rather, the worst of all since the world started to pursue this model of growth and development.”

Political hegemonic machinations by imperialist powers led by US imperialism motivated by their class and country specific vested interest, more so in the era of finance capital driven neo-liberalism, is imposing political volatility in several energy producing countries and is a major cause of serious concern in world energy front.

Kolkata (India) International Meeting of WFTU-TUIs The other reckonable factor before this Congress is the International Meeting of WFTU-All TUI Leaders held at Kolkata (India) on 9th and 10th October 2018. TUIs being the member of WFTU family, they play supplementary and complementary role in strengthening International Unity of working class and in intensifying class struggles for the cause of the toiling people on short term basis and the long term goal being complete emancipation of the people from capitalist class exploitation. Therefore, conclusion of the Kolkata (India) International Meeting (circulated to the Delegates of the Trivandrum Congress) must the objectively guide for the deliberations and

conclusion of the TUI (Energy) Congress being held at Trivandrum, Kerala, India.

It would be pertinent to quote here from the speech of Comrade George Mavrikos, General Secretary delivered at the Kolkata WFTUAll TUI Leaders, “TUIs are tasked with spreading the class analysis to the trade union movement to counter attack on the ideological war of the bourgeoisie and the yellow trade unions that attempts to disorient and divide workers. Further TUIs must also work for achieving close class alliance with poor farmers, students, youth and women and also self employed.”

Energy Rich Countries Victims of Imperialist Aggression The actual game behind the US aggression on oil & natural gas rich countries is captured in the fact that in the matter of consumption; United States is way ahead of the rest of the nation states. United States, with just 4.5 percent of the world's population, consumes 25 percent of the world's petroleum every year. Today the USA imports 19.5 million barrels of crude oil per day which works out to 51% of its total crude oil need. According to Energy Information Administration, the USA will import 64% of its crude oil requirement or in absolute terms 25.8 million barrels per day by 2020.

The world faces an array of intractable energy problems which have been worsening in the recent years. These problems are multiplying on either side of energy’s key geological divide: belowground, onceabundant reserves of easy-to-get “conventional” oil, natural gas, and coal are drying up; above ground, human miscalculation and geopolitics are limiting the production and availability of specific energy supplies. With troubles mounting in both arenas, our energy prospects are only growing dim.

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as a whole and country specific as well. These giant oil monopolies are vertically integrated, meaning that they all are involved in the oil and gas industry at every level, including exploration, production, refining and wholesale and retail marketing. There are a number of smaller, though still very rich, companies, but the Big Five dominate.

The latest such move in India is a deal in the final stage. It is reported that Oil and NG MNC Shell has signed an enabling letter of intent to take over remaining 26% stake of Total in Hazira LNG Port venture from oil giant Total. Incidentally Shell already purchased 74% share of the venture.

Pathetic Plight of People Deprived of Energy Right In today’s Scientific and Technological Revolution driven human civilization, availability and affordability of energy for each and every family and individual is the primary parameter for modern civilized human society. However the grim fact is that, there are still an estimated three billion people around the world who cook and heat their homes using simple stoves or open fires that burn wood, animal dung or coal.

In India the situation reflects the anti-people class character of the successive Government of the country ever since liberation of the country from imperialist rule. Only one shocking fact shall speak a volume about the whole situation. As per Government of India figure nearly 304 million people in the country are without access to electricity, and about 500 million people are still dependent on solid bio-mass for cocking.

MNCs in Oil Sector Mergers and Acquisitions have taken place in the global oil and gas industry in a very big way resulting in monopolization of business both in upstream and downstream sector. Post mergers scenario can be understood from the following: The Five following major oil MNCs dominate the U.S. oil and gas industry: Exxon-Mobil, Chevron-Texaco-Gulf-Unocal, BP-AmocoArco, Total-Elf-Fina and – Shell. These giant oil corporations exerts tremendous influence over the US Governments and interfere through various notorious means in shaping the petroleum policies of the world

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In fact the present of die hard core pro-privatisation Government of India has launched huge attack on Energy Sector. One of the disastrous strategies the Government has been pushing is disintegration of various segments of Energy sector activities. For example, the state owned enterprise Gas Authority of India has been asked to give up Natural Gas transportation and marketing through its own pipeline and only to concentrate on laying of pipe lines and hand over to private sector gas transportation and marketing. Similarly the Power Grid Corporation of India has been asked to concentrate only on construction of electric transmission line and towers erection and power transmission and marketing jobs to go to private sector.

Similar is the situation with Coal and Oil – upstream, mid-stream and downstream.

Oil & Natural Gas Scenario Oil still continues to be the significant source of energy in the world.

From a humble beginning today oil supplies about 40% of the world’s energy and 96% of its transportation energy. According to hydrocarbon R&A data, it will continue to remain so for a considerable period forward.

However, the world is moving away from overwhelming dependence on fossil fuel, and within the fossil fuels, away from coal and oil in favour of Natural Gas. Against an 88% total share of fossil fuels globally in the primary energy mix in the year 2005, the same fell to 86% in the year 2015. The share of oil has fallen from 36% to 33%, while that of natural gas has increased from 23% to 24% and that of Renewal Energy (including nuclear and large hydro) has been going up continuously.

Almost a quarter of world energy comes from Natural Gas. Natural gas has the fastest growth rate amongst the fossil fuels. World natural gas consumption is expected to increase at 1.6 per cent per year, from 111 trillion cubic feet in 2008 to 169 trillion cubic feet in 2035.

Russia is biggest exporter of natural gas. However, according to report Turkmenistan has entered the field of natural gas export. In Europe, Denmark, Netherlands and Norway are also exporter of natural gas.

In Africa Algeria and Nigeria export natural gas.

Middle East is a major player in natural gas production. Iran has the largest natural gas production capacity but it is a victim of US imperialist onslaught of unilateral economic sanction by USA and of course Qatar is next in the reckoning.

In the entire continent of America, Venezuela is the main producer of natural gas. Nearly 66% of the continent’s natural gas reserves are located in Venezuela. The other countries of the region are Trinidad & Tobago and Argentina.

Crude Oil Refining Sector

In the situation of rising prices it was told that, “oil prices won’t fall below $100 a barrel”. On the other hand when the price started falling Phillip Verleger, a former adviser to US Government had forecast that, “oil to collapse $20 per barrel”

However, the world witnessed the actual picture of sky rocketing crude oil prices to a high of close to USD 150 per barrel in July 2008. On the other hand with the Oil still economic meltdown the price dropped to a low continues to be in the range of USD 35-40 per barrel after four the significant source

of energy in the world.

From a humble beginning today oil supplies about 40% of the world’s energy and 96% of its transportation energy.

Although the giant oil companies from the US and Western countries are vertically integrated ventures, the imperialist powers always almost forced the crude oil producing countries not to go for establishment of crude oil refineries with the ulterior motive to ensure feeding of the refineries in their respective countries.

However, this ill situation has started changing. A new strategy has of late emerged under which refining hubs are established based on totally imported crude oil and products are entirely exported. The game behind such design is exploitation of cheap labour of poor countries. Of course in recent period crude oil producing countries have been entering into refining activities.

New Technology & Capital Investment It is a well-known fact that resources for investment and new technology are controlled by private oil MNCs. Now these oil giants are totally opposed to public sector and they put privatization of oil companies as pre-condition for their investment in oil industries of respective countries.

A rather contemporary development is that the age-old monopoly of private oil companies in technology are being broken by the state owned oil companies (SOOC). The SOOCs of countries like India China, Brazil etc. have been increasingly active in cross-border M&A. Brazil’s Petro bras and China National Petroleum Corporation are building up impressive asset portfolio outside their own countries. The other example is the Indian up-stream SOOCs: Oil and Natural Corporation of India (ONGC) and Oil India Limited (OIL) have also established oil drilling and production ventures abroad.

Oil Price Volatility The world has been witnessing extreme volatility in crude oil prices.

Forecast by experts has been submerged by the tide of volatility.

months. Again the prices have been going up. Presently it has again reached to76 USD per barrel. This price volatility has highlighted as to how sensitive prices of crude oil are to socio-politico-economic situation of the world.

Coal & Electric Power Scenario Coal sector is hugely dominated by private capital all over the world.

Top Five private Coal Companies control 521 million tonnes or 47 per cent of the world coal mining. Coalmines related serious social and human concerns are many. Some of these are: environmental protection, climate change, community development and of course, the burning question of safety and health of the coal miners.

Increasing numbers of fatal accidents in coal mines continues to be top priority concerns for the working class in the industry.

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hydro power potential has mostly been harnessed.

Nuclear power is projected to grow. The most significant increases will occur in China, Russia, the United States and Korea. However, the Fukushima Daiilchi nuclear power plant incident as a result of devastating earthquake and subsequent tsunami on March 11, 2011 has re-invigorated the debate on nuclear power technology. We must watch the developments in the days to come.

Renewable Energy supplies around 19% of global final energy consumption counting traditional biomass, large hydropower, and other renewable (small hydro, modern biomass, wind, solar, geothermal, and bio fuels).

Statistical Picture of Energy Sector

Electricity is the world’s fastest-growing form of end-use energy consumption. Coal is the second most important primary energy source just behind oil. Coal-fired power plants currently fuel 41% of global electricity. In some countries coal fuel a higher percentage of electricity. For example, South Africa 93%, Poland 87%, China 79%, Australia 78%, Kazakhstan 75%, India 68%, Israel 58%, USA 45%, Germany 41%.

Hydro and Nuclear Power Hydro power is most widely used form of renewable energy which constitutes 21% of the world’s electricity generating capacity. The theoretical potential of world-wide hydropower is 2,800 GW, about four times greater than the 723 GW that has been exploited. The future capacity addition in hydro power shall be mainly in developing countries particularly in South and Central Asia, Latin America and Africa. In most of the European countries the economically feasible

Country

Population Million

GDP (2005 USD)

After the long spell of stagnation there has been some recovery in Global primary energy consumption which is unlikely to sustain due to the continuing systemic crisis of capitalism and consequent volatility in the energy sector.

The growth was led by natural gas and renewable, with coal’s share of the energy mix continuing to decline. The development has been summarized as under:

Total Primary Energy Supply Mtoe

TPES per capita (Toe/capita)

CO2 Emission Mt

CO2 per capita tone/capita

USA

312

13226

2191

7.02

5287

16.94

EU*

503

12626

1654

3.29

3543

7.04

China

1344

4195

2728

2.03

7955

5.92

Russia

142

947

731

5.15

1653

11.65

Brazil

197

1127

270

1.37

408

2.07

India

1241

1317

749

0.60

1745

1.41

World

6958

52486

13113

1.88

31342

4.50

Source: World Energy Statistics for 2011

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The table below provides a very interesting data based on the parameters drawn in the table in the matter of total primary energy supply and per capita consumption and per capita CO2 emission by the respective countries in the table. Surprisingly revealing fact is that the USA despite in the lower bracket of the size of its population in the group of countries, consumes second highest, only next to China – the highest populated country in the world. In the matter of CO2 emission also the picture is the same. The table makes it clear the motive behind the aggressive hegemonic role of US imperialism particularly against the energy rich countries (dealt with elaborately elsewhere in this Report) (See Table).

International Congress Trade Unions International (Energy & Petrochemicals)

• Primary energy consumption growth averaged 2.2% in 2017, up from .2% last year and the fastest since 2013. This compares with the 10-year average of 1.7% per year.

• By fuel, natural gas accounted for the largest increment in energy consumption, followed by renewable and then oil.

• Energy consumption rose by 3.1% in China. China was the largest growth market for energy for the 17th consecutive year.

• Carbon emissions from energy consumption increased by 1.6%, after little or no growth for the three years from 2014 to 2016. The oil price (Dated Brent) averaged $54.19 per barrel, up from$43.73/ barrel in 2016. This was the first annual increase since 2012.

• Coal consumption increased by 25 million tonnes of oil equivalent (mtoe), or 1%, the first growth since 2013.

• Coal consumption growth was driven largely by India (18 mtoe), with China consumption also up slightly (4 Mtoe) following three successive annual declines during 2014-2016. OECD demand fell for the fourth year in a row (-4 mtoe).

• Coal’s share in primary energy fell to 27.6%, the lowest since 2004.

• World coal production grew by 105 mtoe or 3.2%, the fastest rate

• Global oil consumption growth averaged 1.8%, or 1.7 million barrels per day (b/d), above its 10-year average of 1.2% for the third consecutive year. China (500,000 b/d) and the US (190,000 b/d) were the single largest contributors to growth.

• Global oil production rose by 0.6 million b/d, below average for the second consecutive year. US (690,000 b/d) and Libya (440,000 b/d) posted the largest increases in output, while Saudi Arabia (-450,000 b/d) and Venezuela (-280,000 b/d) saw the largest declines.

• Refinery throughput rose by an above-average 1.6 million b/d, while refining capacity growth was only 0.6 million b/d, below average for the third consecutive year. As a result, refinery utilization climbed to its highest level in nine years.

• Natural gas consumption rose by 96 billion cubic metres (bcm),or 3%, the fastest since 2010.

• Consumption growth was driven by China (31 bcm), the Middle East (28 bcm) and Europe (26 bcm).

Consumption in the US fell by1.2%, or 11 bcm.

• Global natural gas production increased by 131 bcm, or 4%, almost double the 10-year average growth rate. Russian growth was the largest at 46 bcm, followed by Iran (21 bcm).

Hydro power is most widely used form of renewable energy which constitutes 21% of the world’s electricity generating capacity. The theoretical potential of worldwide hydropower is 2,800 GW, about four times greater than the 723 GW that has been exploited.

• Gas trade expanded by 63 bcm, or 6.2%, with growth in LNG outpacing growth in pipeline trade.

• The increase in gas exports was driven largely by Australian and US LNG (up by 17 and 13 bcm respectively), and Russian pipeline exports (15 bcm).

of growth since 2011. Production rose by 56 mtoe in China and 23 mtoe in the US. • Renewable power grew by 17%, higher than the 10-year average and the largest increment on record (69 mtoe).

• Wind provided more than half of renewable growth, while solar contributed more than a third despite accounting for just 21% of the total.

• In China, renewable power generation rose by 25 mtoe – a country record, and the second largest contribution to global primary energy growth from any single fuel and country, behind natural gas in China.

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• Hydroelectric power rose by just 0.9%, compared with the 10-year average of 2.9%. China’s growth was the slowest since 2011, while European output declined by 10.5% (-16 mtoe).

• Global nuclear generation grew by 1.1%. Growth in China (8 mtoe) and Japan (3 mtoe) was partially offset by declines in South Korea (-3 mtoe) and Taiwan (-2 mtoe).

• Power generation rose by 2.8%, close to the 10-year average.

Practically all growth came from emerging economies (94%).

Generation in the OECD has remained relatively flat since 2010.

• Renewable accounted for almost half of the growth in power generation (49%), with most of the remainder provided for by coal (44%).

• The share of renewables in global power generation increased

far offshore, in problematic geological formations like Canada’s tar sands, and in the melting Arctic. However, extracting and processing tough oil will prove ever more costly and involve great human and even greater environmental damage.

Such is the world’s thirst for oil that a growing amount of this stuff will nonetheless be extracted, at a pace and on a scale necessary to replace the disappearance of yesterday’s and today’s easy oil. Along with continued instability in the Middle East, this tough-oil landscape seems to underlie expectations that the price of oil will only rise in the coming years.

The price of coal, too, has soared in recent months, thanks to mounting worldwide demand as supplies of energy from nuclear power and hydroelectricity have contracted. Many countries have launched significant efforts to spur the development of renewable energy, but these are not advancing fast enough or on a large enough scale to replace older technologies quickly. The transition from fossil fuel based energy to renewable energy is a reality but the process will take time Globally, unconventional gas reservoirs are present in significant number of geological basins. Typical unconventional gas resources are Shale Gas, Tight Gas, Coal Bed Methane and Gas Hydrates. It is estimated that globally 16,000 trillion cubic feet of gas is present in Shales. Among various unconventional gas resources; the CBM, tight gas and shale gas are being commercially exploited in US and Canada, Australia, China etc. in different proportions.

Shale gas is typical. Though plentiful, it can only be pried loose from underground shale formations through the use of explosives and highly pressurized water mixed with toxic chemicals. In addition, to obtain the necessary quantities of shale oil, many tens of thousands of wells will have to be sunk across the American landscape, any of one of which could prove to be an environmental disaster.

from 7.4% to 8.4%.[Source: BP Statistical Review of World Energy 2018]

Forthcoming Features of Energy Sector Despite the IEA’s forecast of diminished future oil consumption, global energy demand continues to outpace increases in supply.

From all indications, this imbalance will persist. A growing number of energy analysts now agree that the era of “easy oil” has ended and that the world must increasingly rely on hard-to-get “tough oil.”

Focus of operation is poised to enter new areas - deep underground,

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International Congress Trade Unions International (Energy & Petrochemicals)

Experts are warning about the threat to municipal water supplies posed by the use of toxic chemicals in the fracking process. These warnings have proven convincing enough to lead lawmakers in a growing number of states to begin placing restrictions on the practice, throwing into doubt the future contribution of shale gas to the world’s energy supply. Also, on May 12th, the French National Assembly voted 287 to 146 to ban hydro-fracking in France.

Precisely with the easily accessible mammoth oil fields of Texas, Venezuela, and the Middle East either used up or soon to be significantly depleted, the future of oil rests on tar sands, shale oil, and extra-heavy crude that require a lot of energy to extract, processes that emit added greenhouse gases, and as with those tar sands, tend to play havoc with the environment.

Likewise, the future of coal will rest on increasingly invasive and

hazardous techniques, such as the explosive removal of mountaintops and the dispersal of excess rock and toxic wastes in the valleys below.

Any increase in the use of coal will also enhance climate change, since coal emits more carbon dioxide than do oil and natural gas.

Extra Ordinary Urgency for Solidarity with the People of Arab Region To understand the energy centric evil design of the imperialist forces, it is very important to remember that the North Africa and the Middle East is the repository of the lion’s share of oil reserves in the world.

As the people of these countries are denied fundamental rights including unhindered right to elect government of their choice, so too obviously, the working class is denied of free and unfettered trade union rights. However, as magnitude of multifarious exploitation of workers is increasing, so too the anger of the exploited workers is heightening and the manifestations are also dimensionally widening.

Fight to free the Arab countries from the clutches of imperialist powers effectively under the leadership of democratic forces led by working class is the task before the toiling people of the region.

The trade union movement in the Energy Sector must not forget even for a moment that because Iran is the second largest producer of oil in the Arab Region, it (Iran) has been targeted by the US and Western imperialist powers and the Zionist Israel with false and evil intentioned vilification campaign accusing that Iran is pursuing military objectives in its nuclear programme.

Within the Organization of Petroleum Exporting Countries (OPEC), the five Middle Eastern countries Saudi Arabia, Iran, Iraq, Kuwait, and United Arab Emirates accounted for seventy percent of oil reserves in 2009, with Saudi Arabia alone accounting for twenty-six percent of total OPEC reserves.

Non-OPEC production accounts for about sixty percent of current global oil supply.

Arab Region China has emerged as the largest oil presents a sordid state consuming country in the world with of affairs of the energy annual growth rate of about seven industries plagued by technopercent.

economic-political domination

According to all projections of global of private MNCs and the pathetic petroleum output, Saudi Arabia and plight of the workers of the the other Persian Gulf states are industry in the countries under slated to supply an ever-increasing the regimes subservient to share of the world’s total oil supply US imperialist powers. as production in key regions elsewhere declines. However, development of new petroleum reserves — especially the heavy, “tough oil” variety requires far more costly infrastructure than existing “easy oil” deposits. Moreover, socio-political volatility in the Arab region can create serious oil market crisis. And in such situation oil prices can climb upto $200 to $300 per barrel Arab Region presents a sordid state of affairs of the energy industries plagued by techno-economic-political domination of private MNCs and the pathetic plight of the workers of the industry in the countries under the regimes subservient to US imperialist powers.

International unity and struggles against hegemonic aggression of Anglo-American imperialist powers in the Middle-East bears extra ordinary importance for the trade union movement in energy sector.

Liberating the people of the Arab world from the direct or indirect clutches of the imperialist forces and installation of genuine popular rule of democracy in the African and Middle East countries shall go a long way in the fight against imperialism.

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In this regard the specific experience of the struggle of the people of Latin America confirms that anti-imperialist struggles under the leadership of working class wedded to the doctrine of class struggle is the path through which the Anglo-American imperialist powers can be driven out of the Arab region.

Combined Fight Against Lack and Loss of Jobs In the era of systemic crisis of capitalism, the question of unemployment has posed a serious challenge to the trade union movement internationally with new dimensions. In the present crisisridden political and economic context, struggle against menacing unemployment and fight against the capitalist onslaught on jobs including job losses and extreme casualization and precarization of jobs must be fought jointly by the working class and young unemployed workforce together.

Today composition of workforces has been pushed into extreme fragility by the Employers’ class in order the intensify exploitation and deny trade union rights. Number of permanent workers in all spheres employment is shockingly sliding down and number of fragile workforce is increasing phenomenally in ever increasing scale. And the fragile jobs also have different nomenclatures. Fixed

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International Congress Trade Unions International (Energy & Petrochemicals)

term, contractual, casual, scheme based, zero hour workers etc. are engaged by employers in all countries in huge numbers and that too in regular core jobs of permanent character.

Energy sector has been one of the worst hit in this regard. In the midst of serious crisis in the sector particularly after the financial meltdown in the USA, consequential stagnation in the world economies impacting the energy sector also, job losses has been huge. According to New York Times in the private MNCs operating in the USA, UAE, Russia, Saudi Arabia and Nigeria alone an estimated 2,50,000 workers have lost their job during the period under review. In North America around 200 companies have filed for bankruptcy. Globally around 68 energy sector projects worth more than 380 billion USD investment have been abandoned.

Job losses in coal mining industries across the world due to combination of several factors is already going on and poised to attain unbelieving dimension. Of course, transition from fossil to renewable energy is going to contribute job losses in coal mines in a very big way. Sandeep Pai, a Research Scholar in his paper circulated in this Congress has provided the analytical details on this issue.

Among other factors, automation and other technological factors are also contributing in job killings. According to a study, between

precarious employment which has become most exploitative labour practice manifested internationally. This atrocious development In the era of must be fought with top priority all over the systemic crisis of world. It is not mere a matter of fighting capitalism, the question the exploitation of a section of workers, of unemployment has but must be perceived as a huge danger to the trade union movement itself. This posed a serious challenge attack of capital must be understood to the trade union ideologically and must be fought as a movement internationally class battle. with new dimensions.

2004 and 2013 the average number of workers per 10,000 tonnes of coal produced has been reduced from 29 to 14 only. It has been reported that employment in coal mines in China shall come down from the level of 5.29 million in 2013 and consequently around 2.3 million coal mine workers in China will need new jobs by 2020.

The Challenges and Tasks before Working Class in Energy Sector

The challenges before the trade union movement in the energy sector has common as well as multidimensions. The major sources of energy - Oil & Natural Gas, Coal and Electricity are afflicted with ills of different characteristics. While Oil & Natural Gas sector is the victim of imperialist hegemonic design, the coal sector has almost been grabbed by private giant MNCs while the electricity – generation, transmission & distribution – has reached to the height of anarchy due to privatization, restructuring and total departure from people orientation to ultra automation driven private profit orientation.

The political-organisational tasks before the TUI (Energy), along with the tasks adopted in the ‘KOLKATA (INDIA) CONCLUSION’ are, inter-

The challenges before the trade union movement in the energy sector has features common to the energy sector as a whole as well as different segments specific. The major sources of energy - Oil & Natural Gas, Coal and Electricity are afflicted with ills of different dimensions. While Oil & Natural Gas sector is the victim of imperialist hegemonic design, the coal sector has almost been grabbed by private giant MNCs, while the electricity – generation, transmission & distribution – has reached to the height of anarchy due to privatization, restructuring and total departure from people orientation to private profit orientation.

The consequence of the disastrous privatization of coalmines and that too in the major countries of established reserves with dangerous degree of monopolistic concentration is a big challenge before the trade union movement in this segment of energy sector. The ‘quick buck’ philosophy of private monopolies has created human, environmental and sustainability of coalmines.

The challenges in the electricity sector are most wide-spread and literally global. In the matter of access and affordability, the situation is rather deceitful and worsening. The USA itself is a glaring example as to how restructuring and privatization has become of the cause of plunging the US people into repeated darkness. The people in general and workers of the industry both are victims of neo-liberal policies in power sector. Therefore trade union movement of the sector must join hands with the public and unleash long drawn united movement.

Common to entire energy sector is the menacing contractual

alia (a) Conduct continuous world-wide agitation and propaganda against the hegemonic onslaught of imperialist powers centering round the energy sector. (b) Machinations of different vested interests in creating vitality in crude oil pricing should be exposed by the trade union movement in the sector (c) Contractual precarious employment and out-sourcing of jobs must be strongly opposed and all categories of non-regular workers must be organized into trade unions (d) While strengthening the central functioning of TUI (Energy) in observance of democratic organisational principles, continent-wise regional centres should be established by constituting Regional Secretariats and also unleashing segment-wise activities.

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Energy World and Energy Workers

40

International Congress Trade Unions International (Energy & Petrochemicals)

Prasanta N Chowdhury

General Secretary Electricity Employees Federation of India

T

rade Union International (Energy) is holding its 3rd Congress in Thiruvananthapuram (Kerala), India on 11-12th September, 2018. The 1st Congress took place at Mexico in the year, 2007 and 2nd Congress in Caracas, Venezuela on 29-30 November, 2012. Past two Congress dealt the whole gamut on affairs on energy as well Energy workers. In this 3rd Congress, we are to take stock of the situation as its stands, evaluate our progress and adopt tasks for the days ahead.

Let us recapitulate the political-organisational tasks adopted by the 2nd Congress : (a) Conduct continuous world-wide agitation and propaganda against the hegemonic onslaught of imperialist powers centering round the energy sector. (b) Machinations of different vested interests in creating vitality in crude oil pricing should be exposed by the trade union movement in the sector (c) Contractorisation, Casualisation of employment and out-sourcing of jobs must be strongly opposed and all categories of nonregular workers must be organized into trade unions (d) While strengthening the central functioning TUI (Energy) in observance of democratic organisational principles, continentwise regional centres should be established by constituting Regional Secretariats and also unleashing segment-wise activities.

While we have assembled in this 3rd Congress we need to discuss our success and limitation. We must be self-critical to admit that we have not been able to create or consolidate continent-wise regional centres. In fact the secretariat elected in the 2nd congress could meet only thrice in five years last. We met once Johannesburg in South Africa, once in Kolkata, India and last in WFTU Headquarters Athens. In all these meetings, we got support from WFTU Centre. In

the course of 3rd meeting of the Secretariat WFTU General Secretary, Com George Mavrikos extended his valued guidance. But due to inherent weakness of the Secretariat, assigned task upon it could not be complied in true sense and spirit. Limitation of the Secretariat touched such fathomless disintegration, While WFTU allocated 3 delegates for the 17th Global Congress of WFTU at Durban, no formal TUI (Energy) delegation took part in this historic Congress.

Two individual members of the Secretariat attended the congress as delegate representing Trade Unions of their respective countries. Out of this crumbling, no TUI (Energy) Secretariat meeting as side line meeting of the WFTU Congress could take place.

Hence, this 3rd Congress of TUI (Energy) is to shoulder the stupendous worldwide class responsibility to invigorate Trade Union movement in the arena of Energy encompassing the ambit of sustenance of modern mankind, while imperialist capitalist hegemony will keep itself engaged in neo-liberal policy of market economy with blunt denial to right to energy along with its natural resources. Trade Unions of the energy sector vowed to stick to their path of class struggle towards emancipation from the claws of exploitative world order are to reaffirm their multi-prong effort towards extending democratic rights and livelihood standard of energy workers, right to energy for the people of the respective countries as well universal energy and environment policies opposing economic policies of capitalist forces segregating the world denying energy access right of the mankind.

Let us have estimation in brief on Global Energy Scenario and energy Workers as reported by news media: “The guardian� from UK published a survey report in its international edition on September 6, 2017. Report reflects that one out of six workers keeps their heating Power off to evade Energy Bill. One of eight workers is striving too hard to afford square meals for members of their families.

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Report of labour Press on July 18, 2018 exposes a story of locked out gas workers struggle from Boston. 1250 workers are out of job. Some of them fail to afford cost of treatment for the ailing members of their family.

Financial post from Calgary (Canada) reports on 7th September, 2017 that 1,00,000 oil & gas workers lost their jobs and seeking new jobs.

Some of them shifted to Dubai with hope for new job.

South African Electricity Network (ESKOM) had to operate with constant constraint while its 15,000 workers are in strike to press wage hike in last June.

We clearly understand that all these energy workers placed out of employment not for the reason that magnitude of energy requirement in those countries has fallen. They are unemployed due to the reason that Energy price has gone down in the global market. Hence, the capitalists have tapered off production. They bother least for their workers. This is the capitalist system. We the energy workers are to develop our plan of action to oppose this policy.

International Energy Agency formulated its current Energy Policy in 2013. A study on the policy document is disappointing to note that the policy maker forgot to consider the matter of Energy workers.

Who are major stake holders in the system. They referred to pricing and consumer, carbon emission, climate change, resources and

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International Congress Trade Unions International (Energy & Petrochemicals)

development plan for resources but did not take up the matter of affordability of Energy. Rapid change of Technology from Coal, Oil, Gas, Nuclear, Bio-Mass, Solar, Wind, shale gas to Hydrogen cell will have resultant effect on workers. Policy maker evaded to consider the matter of job loss, Skilling & re-skilling.

As an example of widening energy inequality, we note that 40% of world’s population is having 10% of total income of world population.

They are using only 10% of Energy consumed throughout the world. Similarly in those countries itself, wide variation of Energy consumption are there between rural and urban population. There are variation in energy access to community amenities and services also. In sub Saharan Africa 35% primary school have electricity access, while 48% in South Asia and 93% in Latin America.

In India per capita consumption of Energy is still in the lower side, while one out of four household does not have access to Electricity.

Since independence, 7 decades ago India adopted its policy of rapid Electrification towards all round development of the country was initiated. In order to cope with the growing demand in agriculture, transport, industry as well domestic use of various forms of Energy ambitious projects was taken up. Planned growth of economy with installation of modern power stations with different sources of Energy was taken up. Needful infrastructure for setting up fertilizer, steel, cement, heavy engineering production got enough momentum.

Legal and organisational frame work was developed. Within a span of 3 decades food deficient India became food surplus country.

Almost all core sector of economy was nourished under public sector.

Consumption of primary Energy along with Electricity grew till neo liberal policy infected economy of India.

Working class of India opposed tooth and nail against the transition of economic model from public sector to capitalist pattern. In Energy sector door was opened for foreign and indigenous capitalists, with condition of funding the projects. Those were nothing but back door entry of the private monopoly. Private ownership with public funding became new model of Indian economy. Legislation of new laws towards introduction of neo liberal economic policy was taken up by the Government, while the electricity workers, employees and engineers irrespective of their colours or political identity came together. Some anti people legislation could be opposed and some amendment in the legislation could be achieved.

• save the public owned power sector form total bankruptcy • pending regularisation equal wage for equal work for all contract, casual workers • full proof pension scheme for all • save working condition • stop transfer of natural energy resources to private hands • ensure right to energy as Human Right.

Working class of India is passing through waves of struggle along with peasants and agricultural workers. Huge rally at Delhi on 5th September last shook the national capital to warn the Government to change its anti people and pro-capitalist policy. If the Government tries to turn deaf ear on the demands of the workers stringent

India, being a vast country with second highest population in the world is having the points of comfort and concern together so far Energy aspect is concerned. Government of India allured people of our country to supply cheaper Electricity through improvement of Energy As an efficiency and competition among the example of private players with implementation of Electricity Act, 2003. With experience widening energy of one and half decade all these inequality, we note that commitment and allurement has been 40% of world’s population is proved to be hoax. Cost of supply of having 10% of total income of Electricity has been hiked in multiple world population. They are in all the states of the country. Private using only 10% of Energy players, entered into business of consumed throughout generation of Electricity have failed to the world. repay the loan they drew for investment in the power projects from the public sector Banks. Now priority of our Government has been shifted from supply of Electricity for the people to bail out the private entrepreneur and their investing bankers from burden of their huge non-performing assets. movement of Working class will compel the Government to move to Suicidal Electricity policy and its implementation through legislation right track. Electricity workers of India will be in the fore front of this faced severe failure. But the Government has not learnt any lesson nationwide struggle. from it. Now they are trying to farther anti people amendment This planned struggle of Indian working class solicit support and towards curbing right to electricity for the people. 20,000 strong solidarity from this 3rd World Congress of TUI(Energy). Electricity massive rally of Electricity Employees and Engineers shook Parliament Employees Federation of India, an active member of TUI (Energy) Street at Delhi on 3rd April, 2018. National convention took place on activities assures this congress to shoulder the responsibility of 8th June at Delhi resolved to nationwide strike of Electricity Workers extending activities among the South Asian countries as well global on 7th December next. Major demands of this united movement are arena with its fullest zeal, gesture and drive as will be resolved by this • complete hold upon anti people Electricity enactment historic congress.

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Coal Industries’ Challenges and Struggles 44

International Congress Trade Unions International (Energy & Petrochemicals)

D D Ramanandan

General Secretary All India Coal Workers’ Federation

G

lobally, workers in the coal industry are facing tremendous hardships due to three main reasons. First, many workers in the coal industry are facing job losses due to either mechanization or closure of mines. While many jobs are being lost, some of the lost jobs are being replaced by menial contractual jobs. Second, private companies in the coal industry are subverting labour rights and denying them of even the most basic social security services. Finally, due to climate change and environmental concerns, many governments are taking steps for transitioning away from the coal industry, which is leaving workers without employment. These challenges are faced by coal workers everywhere.

(AITUC) have systematically exposed this misinformation campaign and made this a non-issue during the wage negotiations.

Yet, the two challenges remain. The next section will provide a detailed account of the two big challenges that the coal industry in India is facing today.

First challenge: Mechanization & Mine Closures

The history of coal mining in India dates back to 1774 when Mr. John Sumner and Mr. Suetonius Grant Heatly of the East India Company commenced commercial exploitation of the Raniganj coalfield along the Western bank of Damodar river in Eastern India. Despite their efforts, the growth of the coal mining got stagnated for nearly a In India, the first and the second challenge is severe and growing. century due to absence of commercial utilization of coal as fuel. The Today, coal-based energy remains the backbone of the Indian introduction of steam locomotives in 1853 boosted demand, and coal electricity sector, accounting for over 70% of generation and is also production rose to an annual average of 1 million tonnes. Throughout India’s most plentiful domestic energy resource. Unlike other parts of the history, coal mining remained in the private hands and prior to the world, where coal mining is declining, in India coal production year 1971 coal was extracted in a haphazard, unscientific is increasing. The reason is that India’s energy demand and wasteful manner by the private mine owners. is increasingly rapidly. The International Energy The private suppliers were not able to keep pace Historically, Agency (IEA) predicts, “India is set to contribute with the increasing demands of coking coal by coal trade unions more than any other country to the projected the iron and steel industry. The demand of and workers are known rise in global energy demand, around onenon-coking coal was also increasing as the to be militant and have quarter of the total.” demand of energy was increasing in various fought many battles that have sectors of the industry. Fulfilment of the Nonetheless, even though all projections led to creation of tri-partite growing demand required huge investments show that coal industry will grow in India, committees at different levels and mechanization. The government was the federal government in India is running including at each coal mine also concerned about the very poor working a misinformation campaign using climate level, area level, and conditions of the mine workers in the privatelychange as an excuse(threatening that coal CIL/ SCCL level. owned mines. The workers worked and lived in will decline as the renewables are rising) during miserable conditions while the owners and the wage and safety negotiations. The main purpose managers enjoyed best of the comforts. of this campaign is to give less wages to the workers.

However, the trade unions led by WFTU affiliate Centre of Indian Trade Unions (CITU) and All India Trade Union Congress

On account of the above-mentioned reasons and sustained struggle by the workers’ unions for better living condition of the

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miners, the then federal Government took a decision to nationalize the private coalmines. With the enactment of the Coal Mines (Nationalization) Act, 1973, all coal mines in India were nationalized.

Ultimately the vast reserve of coal in India was entrusted with Coal India Limited (CIL), a Public Sector Undertaking and its’ eight subsidiaries for exploration, and mining. Other than CIL, there exists another government owned company Singareni Collieries Company Limited (SCCL), which has been operational since 1920s.

Today, India has the fifth largest coal reserve in the world and is the second largest coal producer in the world, producing over 700 million tonnes in 2016-17. The coal production increased by over 12 times since the coal mining industry was nationalised in India. During this period, there’s been massive reduction of overall workforce in the coal mining industry in India. While in the mid-1970s, more than 850,000 people were employed by CIL and SCCL, today that number has come down to 350,000. One of the big reasons for such reduction in employment is the rapid mechanization of coal mines and the slow but steady retirement of the manpower. The CIL and

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SCCL have virtually stopped new recruitment. While good permanent jobs are being lost, and new recruitment is not happening, in place of permanent coal jobs, CIL and SCCL are now engaging contractor workers for all coal mining related works.

For example, in India the production in some of the major coal mining areas have been outsourced to private contractors, who exploit the contractor workers with poor pay and compensation, depriving of basic amenities, work more than 8 hours, lack of medical, social security and safety measures. Although some of the permanent jobs are being replaced by contract jobs, the overall number of manpower employed by the coal mining in India is declining rapidly.

It is predicted that in the next 10 years even though the coal production will more than double, the number of permanent employees would fall below 100,000. One of the main reasons attributed to this decline in employment would be the rapid mechanisation of mines, and replacement of good permanent jobs with temporary contractor jobs. Other than that, CIL/ SCCL has been deliberately trying to close

down older underground mines in the plea of economic viability.

This is threatening the livelihood of workers working in these mines.

For instance, CIL is contemplating to close down 136 coal mines on the question of their economic viability. The operating unions made viability studies in some of these mines and found most of these mines having adequate coal reserve. Since then, the unions have been demanding that these mines should not be closed, on the contrary suitable modern technology and machineries be deployed for the mining of the coal reserve.

Second challenge: Exploitation of Workers Historically, coal trade unions and workers are known to be militant and have fought many battles that have led to creation of tri-partite committees at different levels including at each coal mine level, area level, and CIL/ SCCL level. These committees are generally comprised of trade union representatives, company officials and in some cases even the officials from the regulators’ office. The mandate of these committees is to ensure wage revision, welfare and safety. However, in practise, since nationalisation numerous major and minor accidents have come to the fore, and thousands of workers have either lost their lives or have suffered serious injuries. Despite raising these concerns and launching workers moments around these issues, these issues stillpersist.Workers continue to suffer due to subsidence, roof fall, inundation, explosion in gassy mines and sliding of overburden and coal dumps.

Apart from the issue of safety, there are concerns regarding fair wages and compensation of both permanent and contractor workers. After nationalisation of coal mines, due to the prolonged and sustained struggle by the workers and trade unions, CIL and SCCL has agreed for wage negotiations / revisions every 5 years. In every wage agreement the representative unions have emphasised for fair wages and compensation, favourable welfare measures and social security issues like pension and post-retirement medical facilities. It needs a special mention that in spite of pressure from the federal government

to change the period of negotiation from 5 to 10 years, the tenure of the wage negotiations still remains 5 years. In the year 2013, after the wage negotiation meeting, an historic agreement was signed for the first time to include contractor workers. This agreement signed between unions and the CIL/SCCL management laid out provisions for higher wages and other social security measures for contractor workers. In practise, the implementation of all these agreements are poor, and at times openly violated.

Moreover, as part of the neoliberal economic policy of the federal government, the government has taken steps for denationalization of CIL ending its monopoly, and vesting coal mining operations and sale in the hands of private players. So far, the federal government has disinvested around 22 % of government holdings in CIL, a majority of which are now being held by foreign institutional investors. Apart from that in the year2015, the Indian Parliament enacted the Coal Mines (Special provision) Act, 2015, which allowed the Government to allocate coal mines to Indian and foreign private companies through auctions. Basically, this law permits private players to mine coal for their own consumption or for sale. This is despite the fact that the vision 2030 document of the federal coal ministry clearly highlights that coal demand in India could have been easily met by the nationalized coal sector with adequate financial and infrastructural support.

Way Forward To overcome these challenges, trade unions need to engage in sustained struggles with unity of all workers. To this end, trade unions in the coal industry are constantly pushing for workers’ issues in different forums and launching campaigns and struggles. However, there is a recognition that there is a need to intensify these workers’ struggles in the coal industry.

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Crisis in upstream

Petroleum Industries Vs Global Economy

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International Congress Trade Unions International (Energy & Petrochemicals)

Nogen Ch. Chutia,

General Secretary Petroleum & Gas Workers’ Federation of India

T

he year 2016 was a history in the petroleum industry that had to face a severe crisis due to fall of crude oil prices to 26.19 $/bl against 147.27 $/bl in july 2008. The reasons behind this crisis are analyzed by the expert of petroleum industry.

Nobody can separate this crisis from the crisis of world economy which is still in the pipeline of 2008 great meltdown. Let us discuss the issue in detailsa) Production of shale oil by USA and some other countries Once when crude price was in increasing trend, reached to 147$/bl in 2008, USA started the job of exploration of shale oil in their country by investing huge capital. The shale oil is another form of crude oil needs more money for exploration. To save dollars against import of crude oil, USA decided to produce shale oil. Because the production cost of shale oil in USA is 73$/bbl (approx) which was cheaper than the international crude price at that time. After production of shale oil during the period of global economic meltdown, international crude oil price started to drop rapidly-unbelievable to 26.05 $/bbl.

The reason is not only meltdown, but increasing production of shale oil by USA, Brazil and few other countries by reducing import of crude oil. As and when import of crude oil by USA became half, the formula of demand and supply got affected badly. Whole global market started to sink and many upstream oil companies compelled to stop production of crude oil. Large number of employees had been laid off from their jobs. But, the countries which are fully dependable on crude oil export business could not reduce production. Saudi Arabia and some other countries are increasing their production ignoring appeal of OPEC to cut down production. At the same time the advantages of Saudi Arabia for their lowest cost of crude oil production helps to maintain their economy somehow. b) Tight financial condition of the EU and some other countries compelled to reduce the import of crude oil. These phenomena

directly push down the price of crude oil. These countries could not maintain the previous allotment of import of crude oil when price is falling down. Please look the chart of import of crude oil of some developed countries: Year

France Italy

UK

2005

1722.30

2006

1670.60 1780.10

2007

1635.50 1780.10

2008

1670.30 1664.40

2009

1442.00 1541.00

2010

1298.00 1592.00

2011

1294.30 1452.70

2012

1142.80 1381.10

2013

1110.10 1178.70

2014

1076.70 1085.90

2015

1145.80 1261.60

2016 (Dec) 1095.70

India

1804.60 1150.80 (2004) 602.50 (1995)

1228.80

798.90

3935.50 4308.30

Other countries like Australia, Brazil, Bulgaria, Canada, Germany, Greece etc have reduced their crude oil import.

The figures prove the financial crisis of the countries which is a global phenomenon of economic meltdown in neo liberal globalization.

The basic formula of “Demand and Supply” catalyzed the down fall of crude oil price which will be continued in the next coming years. If USA uses to produce Shale oil continuously and importing countries reduce the import bill, there is no chance of improvement of crude oil price.

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Let us discuss the price of crude oil for last 10 years and its trend Year

2008

2010

January

----

83.95/72.43 98.97/91.24 38.39/26.19 55.24/50.71

February

----

80.51/69.50 103.80/96.26 34.69/26.05 54.94/51.22

March

----

83.85/78.06 105.22/97.37 41.90/33.37 54.44/47.01

April

----

87.09/80.53 104.99/98.86 46.78/35/24 53.76/48.20

May

135.09/110.30

87.15/64.24 104.50/98.74 50.21/43.03 52.00/43.76

June

143.67/121.61

79.38/69.51 107.73/101.60 51.67/45.83 49.17/42.05

July

147.27/120.62

79.69/71.09 106.09/97.60 49.35/40.57 50.41/43.65

August

128.60/111.34

82.97/70.76 98.67/92.50 48.75/39.19 50.43/45.58

September

130.00/90.51

80.18/71.67 95.91/90.43 48.32/42.55 52.86/46.56

October

102.84/61.30

84.43/79.25 92.96/79.44 51.93/46.63 54.85/49.10

November

71.77/48.25

88.63/80.06 80.98/65.69 49.90/42.20 59.05/53.89

December

54.62/32.40

92.06/83.63 69.54/52.44 54.51/48.98 60.51/55.82

international crude price to run in lower side. This is the additional production.

Highest price: July 2008: 147.27 USD/bbl Lowest price: February 2016: 26.05 USD/bbl.

Price forecast: $52.4------------2017 $54.1------------2018 $53.50-----------2020

Now let us discuss the production cost of crude oil of some countries: (USD/bbl) Country Russia

Arctic

120.00

Onshore 18.00

USA

Dip Water

57.00

Shale Oil

73.00

Venezuela 20.00 Oman, Qatar, Iran

15.00

UAE 07.00

OPEC is intervening among its member countries to reduce the crude oil production just to make crude oil price comfortable. But, nobody is listening OPEC’s request and produces crude oil as per their decisions. Saudi Arabia is one of the top crude oil producing country and increasing their production day by day to maintain their national economy in absence of any revenue earning resource. They are facing huge losses for the selling of crude oil in low prices. But, for Saudi one advantage is low production cost among all other crude producing countries. Therefore, they are not reducing the production. The crisis is very severe and shall have to face it for many years till shale oil production is continued. Due to this reason, a cold war is going on in between Saudi and USA and Russia and USA. Russia is one of the major energy exporting country in the world.

Let us see the crude of production data of different countries/world which proves the failure of the decision of OPEC.

Iraq 06.00

World Crude Oil Production (Fig in Million barrels per day)

Saudi Arabia

Year

03.00

From the above figures, everybody can judge how USA is facing the problem of high production cost of shale oil production when the international crude price is in lower side than the shale production cost. At this juncture, USA can’t stop the production of shale oil because they invested huge money in this operation when crude price was gone up to 147 dollars/bbl. This step of USA influences the

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2014 2016 2017

International Congress Trade Unions International (Energy & Petrochemicals)

April

July

Sept.

Nov. Dec.

2014

77.25 77.61 78.75 79.50 80.31

2015

80.02 80.92 80.56 81.29 81.45

2016

79.89 80.50 80.35 82.41 81.83

2017

80.35 81.41 81.00 81.79 81.03

Production is increasing even in crisis period.

Crude oil/Shale oil production of USA (Fig. in thousand barrels per day).

April’2017 July’2017 Sept’2017 Nov’2017 Jan’2018 9093

9209

9485

10,057 9964

Crude oil production of some oil producing countries Country

Russia

10,550,000 bbl/day

Saudi Arabia

10,460,000 bbl/day

USA

8,853,000 bbl/day

Iraq

4,452,000 bbl/day

Iran

4,068,000 bbl/day

China

3,981,000 bbl/day

Venezuela

2,277,000 bbl/day

Though some countries reduced their import quota, main oil producing countries have not reduced their production. But, some countries cut their production by stopping oil field operation putting lock in the rig. As a result, some thousands of employees already lost their job and became unemployed. From the trade union point of view, the global economic crisis pushed the employees jobless. TUI is fighting against it globally.

Another reason for low crude price and reduction of import bill is uses of alternative energy-particularly conversion of fuel in the vehicle from petroleum to electric energy.

As and when crude prices dropped, the prices of the petroleum product also dropped in many countries. It is a general phenomenon of the market. But, in India it is just reverse. Indian Govt. is increasing the price of petrol, diesel, LPG etc by increasing the excise duty and

is being earned huge money without giving the benefits of low crude oil price to the public of the country. It also proves the deplorable economic condition of Indian Economy and the character of the Govt.’s anti-people policy.

What is Shale Oil? Many people do not know what shale oil is, what their characteristic is and where it is produced. Shale oil itself created a history in the crude oil. Now the role of shale oil in the international crude oil market is remarkable. Let us discuss about the shale oil.

Shale oil is unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. This process converts the organic matter within the rock (kerogen) into synthetic oil and gas. Shale oil is an organic-rich fine-grained sedimentary rock containing kerogen (a solid mixture of organic compound) from which liquid hydrocarbon, called shale oil (not to be confused with tight oil-crude oil occurring naturally in shales) can be produced. This shale oil reserves refers to oil shale resources that are economically recoverable under current economic conditions and technological abilities. Oil shale deposits range from small presently economically unrecoverable to large potentially recoverable resources. Shale forms in very deep ocean water, lagoons, lakes and swamps where the water is still enough to allow the extremely fine clay and silt particles to settle to the floor. Geologists estimate the shale represents almost ¾ of the sedimentary rock on the earth’s crust. Shale is a fine-grained, clastic sedimentary rock composed of mud that is a mix of flakes of clay minerals and tiny fragments (silt-sized particles) of other minerals, especially quartz and calcite. Kerogen is part of rock that breaks down and releases hydrocarbons when heated. Hydrocarbons are substances made of entirely of hydrogen and carbon. The hydrocarbons in oil shale can be used as an alternative to petroleum or natural gas. To produce shale oil holes are drilled into an oil shale reserve and heaters are allowed into the earth. Over the course of two

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to three years, the shale is slowly heated and the kerogen seeps out.

It is collected on-site and pumped the surface. Surface mining of oil shale deposits causes the usual environmental impacts of open-pit mining. In addition, the combustion and thermal processing generate waste materials, which must be disposed of, and harmful atmospheric emissions, including carbon dioxide, a major greenhouse gas.

What is the difference of shale oil and crude oil?

The main difference between crude oil and shale oil is the process of generation of each type of oil. Crude oil is generated in shale rock, when the organic matter in the rock is exposed to high temperature and pressure over a period of several million years. However, this

reservoirs that can be pumped to the surface and sent to refineries for less than $10 per barrel. Shale oil production relies on the availability of suitable drilling rigs and skilled labor, which is one of the reasons why the US oil boom so far has been difficult to replicate in other countries.

Cost factor The problem in utilization of shale oil is cost of production. It takes a lot more money to generate one barrel of shale oil than to extract a barrel of regular crude. While shale oil is being used in the USA, other countries are still dependent on conventional crude, due to technological restrictions and cost factor. Shale oil came in widespread commercial production in just 10-15 years when the very high cost of crude oil made it commercially feasible. The recent collapse of crude prices now threatens that industry.

USA produced about 4.67 million barrels of shale oil per day in 2017 which is 50% of the total crude oil production in USA. USA’s consumption is 19.88 million barrels per day and presently imports 19% of consumption which is about 10.1 million barrels/day from 84 countries. Simultaneously USA exports 6.3 million barrels/day to 18 countries. Very recently, India imported about 1.5 million barrels of shale oil from USA and the consignment has arrived at Haldia port.

Through the relationship with USA, Modi Govt. agreed to import the shale oil from the far place of USA. Many countries do not prefer shale oil because it is not sweet crude.

Petroleum Energy-The Natural Resources is under the grab of Multinationals-Indian Context

crude oil attempts to reach to the surface and it migrates from the shale rock to other rocks like sandstone and limestone, which act as reservoir rocks and provide spaces for the crude oil to accumulate.

Crude oil may be found in shale rock areas because the oil has not been able to migrate. Shale oil on the other hand is generated by processing the organic matter present in the shale rock. Processes like pyrolysis (heating in absence of oxygen), hydrogenation (addition of hydrogen to shale rock and reacting it) or thermal dissolution are used to extract oil from shale rock. The produced is synthetic and can be used for the sale purposes as conventional crude oil.

Shale oil and it’s cousin, oil sands, a non-liquid form (called Bitumen) of crude oil that is so thick it can’t be pumped in the conventional way.

In places like Saudi Arabia, thinner oil resides in vast underground

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Petroleum energy is the prime energy in the modern world without which present civilization can’t be thought. The sources of the petroleum energy belong to the natural resources and the nations i.e. the citizens should be the owners or the right on it should goes to the people. But, after globalization and liberalisation, this vital energy is being grabbed by the private multinational companies at the initiatives of the respective governments resulting huge flow of the profits to the privates instead of enjoying benefits by the people.

The economy and politics of the world also determines by this energy in some extents. The politics in Venezuela, war in Iraq, economic blockade in Iran, activities in Syria in the name of insurgency etc are the prime example of pacification of petroleum energy. More important point is economy which depends on petroleum energy of the oil producing countries.

The global crisis of the system of the neoliberal economy is presently reflected in petroleum energy. During last few years, there is acute crisis in crude oil market which push the economy of some countries into a difficult situation. The prime reason of this situation is the

economic crisis of the importing countries which has been ignited by the shale oil production of USA.

HPCL

Scenario in India: India is becoming a hub of oil refineries. In 1998, total refining capacity of the refineries was only 62MMTPA which has gone to 232MMTPA in 2016 and present opacity stands 247.6MMT against the domestic demand of 193.74 in 2016-17. As per the International energy agency (IEA), the demands will be 335 by 2030, 458 by 2040 against the planned production of 414.35 by 2025 and 438.65 by 2030. The enhancement will be covered by the RIL (33 to 69), Essar (20 to 45), West coast (60), IOCL (80.7 to 116.55), HPCL (20 to 62.2) and BPCL (36.5 to 56). Currently Public sector refineries are producing 142.07 MMT, Joint venture 15MMT and Private 80.00 MMT. So, private sectors has entered into refining sector and managed a controlling position in Indian downstream oil industry. Like way, in upstream oil sector, the privates, both domestic and multinationals have captured the exploration and production of crude oil and natural gases activities. Indian government has been allowing the entry of the private parties into the oil sector by readjusting different policies in favour of the companies. Since 1997, 254 blocks awarded to private parties up to 9th round of NELP (new exploration and licensing policy).

Now NELP has been dropped and new policy with revenue sharing system has been introduced instead of earlier profit sharing. Under the new policy, 67 oil fields put into auction. Very recently, Govt has allowed 60% participation of private parties in the job of exploration and production of crude oil and natural gases of ONGC’s discovered fields. This will push the public sector into the hand of domestic and foreign private companies.

OIL 68.67%

Please see the Govt. Equity in oil PSUs in India.

Oil PSU

Govt. equity

IOCL 58.57% BPCL 54.34%

51.57%..... This oil PSU has been merged with ONGC and Govt. took the value of the equity.

GAIL 65.56% Please see the refining capacity of Indian refineries.

Capacity of the PSU refineries

Capacity of the private and joint venture refineries

IOCL

69.20

Reliance

68.2

BPCL

27.50

Essar

20.0

HPCL

15.83

Mittal-HPCL

11.3

MRPL

15.00

Oman-BPCL

06.0

NRL

03.00

Total

142.1 MMTPA

Total

95.5 MMTPA

Conclusion From the facts mentioned above, it is clear that the economy of the world is in turmoil condition based on crude oil production and prices. Though the shale oil production is a revolutionary event, it directly and indirectly has great influences on crude oil prices. USA is losing money by shale oil production for its high cost which can’t be stopped for huge investment. Other crude oil producing countries are facing critical situation for low crude oil prices. At the same time some developed countries reduced the import bill unable to procure crude oil at low prices. The situation is damaging political relationship between the countries ignoring the importance of OPEC. The global economy which is running in crisis is getting fuel into the fire for the crude oil prices.

In such a situation our TUI-Energy has a big role to fight against the handing over of the petroleum energy to private parties in the name of globalization and liberalization and to protect the jobs of the working people in this industry.

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Kolkata (India)

Conclusion

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T

his WFTU – TUI annual consultation meeting is being held around one year after the 17th World Trade Union Congress in Durban, South Africa and around five months after the meeting of the Presidential Council of WFTU in Havana, Cuba.

It is being held in a situation when the systemic capitalist crisis is deepening and the capitalist class continues its attempt to protect and increase their profits by shifting the burdens of the crisis on to the working class and other sections of the toiling people. All the hard earned rights and benefits of the working class are under attack.

This onslaught has to be fought nationally and internationally. TUIs have a big responsibility in leading this fight. They have to develop and strengthen sectoral and coordinated movements in their respective sectors throughout the world under the guidance and with the support of the WFTU. The ideology of the WFTU, the understanding of the 17th Congress of the WFTU about the world situation and the role of the class oriented trade unions have to be taken to the grass root level workers in our respective sectors.

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TUIs are major bodies of class oriented trade union movement. They have the fundamental responsibility of defending the rights of the workers in their respective sectors including the trade union rights, of linking the workplace with the WFTU. The basic principle of functioning enunciated by WFTU, of ‘open and democratic functioning’ should be duly reflected in the functioning of all our TUIs. Hence, whatever shortcomings in the functioning of the TUIs exist today have to be overcome with a sense of urgency.

To ensure this, we have to take up the following tasks: • All TUIs to meet regularly, discuss the developments in their industries, the conditions of the workers in their industries and their struggles in various countries at the global level. Mechanism for regular sharing of information among all affiliated unions across the globe to be evolved and effectively implemented.

• Support the struggles of workers in their industries across the world, plan solidarity actions and implement them; inform WFTU Secretariat about these struggles for broader support and solidarity • Plan activities that would help ideological development of the working class in their respective sectors • Review implementation of decisions and progress in all meetings and formulate activities accordingly

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International Congress Trade Unions International (Energy & Petrochemicals)

• Strengthen coordination among the various affiliated unions of the TUIs and between the TUIs and the WFTU to develop effective global resistance to the global onslaught of the capitalists • The 150th year of publication of ‘Das Capital’ to be observed to spread awareness about the inherent exploitative nature of the capitalist system and raise the consciousness of the workers on the need to change the system and the role of the working class in ending exploitation.

• TUI affiliates are to take up the day to day problems of workers, analyse objectively from working class angle the cause of problems and organise struggle to fulfil the demands of the workers.

• TUIs to work for developing unity with the farmers, students and self employed people.

• TUIs have the task of promoting international solidarity with workers from other sectors and countries.

• TUIs must pay attention to the diabolical developments of political refugees and economic migrants facing inhuman atrocities internationally which is directly linked to barbarity of imperialism and capitalist crisis.

• TUIs must act as powerful lever of struggle against capitalist barbarism pursued by monstrous multi-national corporations (MNCs).

• To take precise efforts to improve the functional position of the TUIs, with specific attention to strengthen the fund position of the TUIs in order to expand their function and activities.

George Mavrikos General Secretary World Federation of Trade Unions

• To undertake study at regular intervals to trace down the development in industries with facts and figures with a view to educate the cadres and masses internationally and send the reports to WFTU Secretariat.

• To establish co-ordination between the Regional Offices and TUIs in each Regions, so as to help each other and the implementation of collective programmes.

• TUIs must continuously promote the WFTU amongst the grass root level workers and unions and bring them into the WFTU family. This should be an important parameter to judge the organisational success of all the TUIs. • TUIs must participate in the activities of the different forums of WFTU and implement the campaign and action programmes time to time decided by the WFTU including observation of the Action Day on 3rd October every year • TUIs must democratically elect leaders in their Congress ensuring that the new cadres and leaders are active and effective in discharging the responsibility of the office they hold in the respective TUI. This meeting held at Kolkata, India on 9-10 October 2017 with representatives from the Nine TUIs requests the WFTU Secretariat to concretise the various proposals and action programmes planned by the TUIs. The Secretariat of WFTU may ensure communication to the TUIs regularly and extend class oriented ideological and organisational support to all the TUIs.

Swadesh Dev Roye Dy General Secretary & International General Coordinator, TUIs

[Note : This Declaration was adopted at the International Meeting of WFTU-TUI Leaders held at Kolkata, India on 9-10th October, 2017 and reprinted as part of documents for the International Conference of Trade Union International (Energy) held at Thiruvananthapuram, Kerala, India on 11-12 September, 2018.]

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Council of Ministers (1957–59)

The of Legislative Assembly, Kerala state (better known as E. M. S. Namboodiripad ministry - first term) was the first Council of Ministers, the executive wing of state government, in the Indian state of Kerala. The ministry was led (Chief Minister) by Communist Party of India leader E. M. S. Namboodiripad from 5 April 1957 to 31 July 1959 and had eleven ministries.

Punnapra-Vayalar uprising (October, 1946) was a communist uprising in The

the Princely State of Travancore, British India against the Ruler, C. P. Ramaswami Iyer and the state. Communist Party members were killed by the army of the Diwan, 470 people at Punnapra on 27 October and more than 150 at Vayalar on 28 October. The total loss of life is allegedly estimated to be more than a thousand.

Energy Workers, Unite!

Energise Toilers!

De-Energise Exploiters!

Edited, Printed and Published by Swadesh Dev Roye, Deputy General Secretary, WFTU, International General Co-ordinator of TUIs.