...Wage standards aren’t tied to Oregon’s energy tax credits
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ect. In 2008, the Legislature doubled
the limit for solar manufacturers,
which can now get up to $22 million
in tax breaks per project.
For its Hillsboro factory, Solar-
World was approved for an $11 mil-
lion tax credit under the program. As
the Portland Tribune reported April 9,
since SolarWorld doesn’t pay corpo-
rate income tax, it sold the credit at a
discount to WalMart. [Under the
state’s “pass through” rule, the tax
break, known as Business Energy Tax
Credit, can be sold.] SolarWorld will
also get $19.45 million of tax credits
for its investment in a new 210,000-
square-foot logistics, distribution and
production center next to its existing
Hillsboro factory.
About 150 to 200 union building
trades workers will be employed on
the expansion, due for completion in
November. But the Oregon AFL-CIO
is pushing lawmakers in Salem to
tweak the Business Energy Tax Credit
and enterprise zone tax break to better
ensure that tax-break-subsidized jobs
are good jobs.
The Oregon State Building and
Construction Trades Council is push-
ing a proposal to require that compa-
nies getting enterprise zone tax breaks
on large projects of more than $5 mil-
lion be required to pay area standard
wages and benefits to the construction
workers.
“If local residents are losing tax in-
come off the property, they ought to at
least have prevailing wage require-
ments to protect local workers,” said
Clif Davis, business manager of Inter-
national Brotherhood of Electrical
Workers Local 48.
When lawmakers expanded the
Business Energy Tax Credit in 2007
and 2008, the state budget was in
good shape. Now, a recession is sap-
ping state revenues, and with compa-
nies lining up to seek over $100 mil-
lion a year in business energy tax
breaks, lawmakers are taking a sec-
ond look.
“[The Business Energy Tax Credit]
is talked about as an economic devel-
opment tool,” said Oregon AFL-CIO
Political Director Duke Shepard at a
Feb. 19 hearing, “but it has none of
the standards typically associated
with an economic development pro-
gram. There aren’t wage standards.
There’s no cost-per-job standard.”
And it’s not at all clear that the
credits are necessary for some kinds
of renewable energy investment to
take place. Wind farms, for instance,
were given a guaranteed market in
2007 when the Legislature required
private utilities to massively increase
the amount of renewable power they
buy — and pass on extra costs to
ratepayers.
Solar manufacturers have lots of
other reasons to locate in Oregon’s
“silicon forest.” Solar cells and com-
puter chips use the same foundation
—silicon wafers — and a similar ba-
sic technology. Oregon is a good lo-
cation for wafer making because it
has very pure water, relatively cheap
electricity, and an experienced silicon
manufacturing workforce. Judging by
employment ads, SolarWorld isn’t
even looking at applicants with less
than two years in silicon chip manu-
facturing.
If it’s not clear the credits are even
causing the investment, at least they
ought to be ensuring decent wages,
says labor ally Chuck Sheketoff of the
Oregon Center for Public Policy.
Lawmakers appear to be listening.
The Oregon Legislature is consider-
ing lowering the credit from its cur-
rent $10 million to $5 million per
project for projects that generate en-
ergy like wind farms, solar arrays,
and methane digesters.
For solar manufacturers, the maxi-
mum credit would remain $20 million
— and that amount would be made
available to electric vehicle manufac-
turers as well, if any should choose to
locate in Oregon.
Lawmakers are also considering
requiring recipients stay in operation
for at least five years, and giving the
Oregon Department of Energy the au-
thority to consider job creation, where
the power will be sold, and whether
the credit is necessary for the project
to go forward — before credits are
approved.
As State Sen. Ginny Burdick put
it, “the money we spend on this credit
is money that’s not being spent on
health care, schools, and public
safety.”
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Local Motion
March 2009
Union certifications and decertifications in Oregon and Southwest
Washington, as reported by the National Labor Relations Board and
the Oregon Employment Relations Board
Recognition elections
Name of employer
Date
Name of union
Results:
Location
Union Union
Yes No
Petermann Northwest ( DECERTIFICATION )
3/5
Teamsters Local 58
Battle Ground
82
73
Aramark Uniform & Career Apparel
3/6
Teamsters Local 962
Medford
9
3
ProTec Fire Services
3/11
Teamsters Local 962
5
0
17
24
4
0
Medford
Safeway
3/12
UFCW Local 555
Tuality Healthcare
3/23
Oregon Nurses Assn.
Burns
Hillsboro
Requests for recognition election
Name of employer
Name of union
Albertsons (coffee bar clerks)
United Food & Commercial Workers Local 555
APRIL 17, 2009
NORTHWEST LABOR PRESS
Location
Number of employees
West Linn
7
Mercy Flights, Inc. ( DECERTIFICATION )
Teamsters Local 962
Medford
61
REpower USA (windmill maintenance techs)
IBEW Local 125
Portland
5
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