Democratic coalition conflict on display in a battlefield state

Consumers and employers were hit with rapidly rising energy bills last year. The numbers speak for themselves. “The annualized 12-month electricity price inflation rate increased 5.1% and continues to outpace the consumer price index by 50%,” the Bureau of Labor Statistics reported on May 14.

Despite disproportionate increases in energy costs, a coalition of utilities in the 2024 battleground state of Wisconsin recently announced a business decision that will have an inflationary impact on electricity costs. In a joint statement issued on March 26, Wisconsin’s largest utilities announced that in the future they will use only union labor to build and maintain renewable energy projects.

“WEC Energy Group recognizes the impact clean energy jobs have on state and local economies and has been pleased to work with Wisconsin’s construction unions to provide the state with affordable, reliable and clean energy,” a WEC Energy spokesperson said in a statement. adding the utility will work with unions “to ensure that developers and contractors on these projects employ Wisconsin contractors who employ union workers to the fullest extent possible.”

Critics of this decision by Wisconsin utilities, however, point out that it means that the vast majority of Wisconsin workers cannot even be considered for employment on renewable energy projects. Critics note that voluntary restrictions on the supply of available labor adopted by Wisconsin utilities will harm environmental goals by increasing the costs of implementing renewable energy and transmission projects.

“More than 70% of Wisconsin construction workers work for Open Shop contractors,” noted a joint statement from the National Federation of Independent Business and the Associated Builders and Contractors. “They consistently deliver high-quality work, pay taxes and utility bills, and actively contribute to training a future workforce of skilled construction professionals. It is infuriating that Wisconsin utilities are depriving their ratepayers of savings as all responsible Wisconsin contractors compete for their business.”

The Biden White House has been criticized for the fact that the Inflation Reduction Act, which the White House and others began calling the climate bill after its passage, sacrificed green energy goals in favor of union demands, as is currently happening in Wisconsin. The inflationary effects of Wisconsin utilities’ decisions to exclude nonunion workers worry not only those who would like to lower energy costs. It should also be a concern for green groups looking to build more wind and solar power, as a European Union-only pledge by Wisconsin utilities in late March will translate into fewer renewable energy projects being built.

No wonder the president and other politicians are trying to calm down trade union bosses. What puzzles many is why environmental organizations and activists go along with union demands, as they often make renewable energy projects more expensive and time-consuming to build.