Is the Just Transition fund in Europe’s Green New Deal funded adequately?

Europe’s landmark Green New Deal was unveiled on December 11 2019, but eu flag heldcriticisms abound over the structure, ambition, and particularly the funding.   “Question marks raised over scale of EU’s new climate fund” in Euractiv (Jan. 14) discusses the Just Transition Mechanism funding, and “Commission warns of Green Deal failure if Transition Fund not well financed” ( February 12) states that the European president warned Members of the European Parliament that “she would ‘not accept’ any result that does not guarantee at least 25% of the budget devoted to the fight against global warming and to proper funding of a just transition for regions and workers.”

A more general criticism comes in “The EU’s green deal is a colossal exercise in greenwashing”, an Opinion piece in The Guardian on February 7.  Authors Yanis Varoufakis and David Adler  compare the €1tn (over 10 years) allocated for the GND with an estimated €4.2tn spent to support the European financial sector after the 2008 recession.  Furthermore, they state that the  €1tn GND money “is mostly smoke and mirrors”…”composed of reshuffled money from existing EU funds and reheated promises to mobilise private-sector capital down the road.”  As for the Just Transition mechanism itself, they state: “the deployment of just transition funding in the green deal is a pork-barrel payoff to rightwing governments that supported Von der Leyen’s election and who she fears might throw a spanner into her signature proposal.”  (Euractiv helps to explain this in “Poland, Germany get largest slices of Just Transition Fund” ).

Yanis Varoufakis and David Adler are part of the Democracy in Europe Movement 2025,  a coalition of European scientists, activists and trade unionists. Their Blueprint for Europe’s Just Transition  outlines a strategy for a radical, activist  pan-European movement for a Green New Deal: “The climate movement today — whether it takes the form of student strikes, Extinction Rebellion, or the Gilet Jaunes — has articulated a shared enemy: climate and environmental breakdown. But it has yet to come together to articulate a set of shared demands…. It advocates “ channeling the energies of activists across the continent to clash with the institutions that sit at the Belgian capital — through strikes and sit-ins, occupations and demonstrations: the full arsenal of direct action and civil disobedience.”

The Blueprint is built around three major actions: 1. Green Public Works: (“an investment programme to kickstart Europe’s equitable green transition”);  2. an EU Environmental Union: (“a regulatory and legal framework to ensure that the European economy transitions quickly and fairly, without transferring carbon costs onto front-line communities”); and 3). an Environmental Justice Commission: (“an independent body to research and investigate new standards of ‘environmental justice’ across Europe and among the multinationals operating outside its borders”).

Further, with emphasis on the democratic, grass-roots activism demanded:

  …. This Blueprint provides a general framework for Europe’s just transition, but it must be complemented by deliberation at the ground level to decide where the resources raised by the Green Public Works programme will be directed. No campaign, movement, union, NGO, or political party can devise a climate plan on its own; the People’s Assemblies for Environmental Justice offer a common process by which to develop it.

Just transition for the Coal and Car Industries – a period of “revolutionary” change in Europe

coal-cars-and-the-world-of-work coverTowards a just transition: Coal, cars and the world of work  is a new and unique report edited by Béla Galgóczi, senior researcher at the European Trade Union Institute, a member of the Adapting Canadian Work and Workplaces to Climate Change (ACW) research project , and the author of several previous reports on Just Transition, including  Phasing out Coal – A Just Transition approach (2019) and  Greening Industries and Creating Jobs (2012).

In his introduction, he states:

” ‘Just transition’ has become the main concept and strategy tool for managing the transformation towards a net zero-carbon economy in a way that is both balanced and fair, but it is also clear that this concept is developing in a too broad and general, and often even over-stretched, manner. In order to discuss it meaningfully, we need to turn to specific case studies. Coal-based energy generation on the one hand and the automobile industry on the other do not only represent two sectors that are responsible for a large part of total GHG emissions, they also illustrate what is really meant by the different contexts of just transition.”

The report chapters, available individually for download here, are written by European experts, and will provide English-speaking readers with access to some of the research written in the European languages.

Part 1 updates the well-researched decarbonization of the coal industry, in Poland, Germany, France and Italy.

Part 2 breaks newer ground, as it “delivers an account of the revolutionary change taking place in the automobile industry, proceeding from a European overview (chapter 6) to insights both from France (chapter 7) and from Germany, the latter with its central eastern European supply chains (chapter 8). Chapter 9 then gives the view of IG Metall, a trade union which has a key role in managing change in the automobile industry in an active and forward-looking way.”   Regarding the automobile industry, the introduction states: “With digitalisation and decarbonisation, the industry faces unprecedented challenges in the near future that will re-write its entire business model, redefine work and redraw its value chains. Managing this change requires innovative approaches from the main actors and new forms of relationships between the actors.”  Germany’s social partnership bargaining structure is the framework for the innovative initiatives described at the EU, federal, regional and plant level.

The report is summarized by Mr. Galgóczi  in “Why should just transition be an integral part of the European Green Deal?”,  which appeared in Social Europe on December 4.

European Industrial Policy report calls for social dialogue, shared responsibility for skills training in transition

Industry 2030 just transition graphicA Vision for the European Industry until 2030, released by the European Commission on June 27,  is the final report of a High-Level Industrial Roundtable working group of 20 members from business and academia, and also including the General Secretary of industriAll Europe  and the former Deputy General Secretary of the European Trade Union Confederation (ETUC).  The press release from the ETUC  is titled “Industry 2030 report is a step towards just transitions”, and states: “The comprehensive report puts European industry on a path to an “innovative, sustainable, competitive and human-centered collaborative economy [that] respects planetary boundaries…. It proposes an action plan which includes massive investment in innovation on digital and zero or low-carbon technologies, a commitment to fair and rules-based international trade and to social inclusiveness that leaves no worker or region behind.”

The report is wide-reaching, and includes a strong awareness of environmental and climate change imperatives – for example, amongst the the “game-changing actions” recommended are: Carbon-leakage 2.0 plan: ; a Green Deal with industry which shares risks and benefits, drawing on the principles of the  “Entrepreneurial State” concept outlined by Mariana Mazzucato; standardized carbon reporting; and a Circular Economy leadership role for Europe by 2030.

Some statements on the issue of  Social Dialogue: 

“Climate, energy, raw materials, and bio-economy policies are key areas considered essential for the future of EU industry in terms of challenges and opportunities. They need to go hand in hand with industrial policy and a societal dialogue on what emission reduction and other environmental policies mean in terms of costs, benefits and behavioural changes for everyone. (p. 13)

Considering the speed with which technologies and new business models transform entire industries, planning structural disruption regularly and proactively is key. The establishment of a culture of social dialogue at all levels (company, sector, regional, national) becomes imperative to ensure smooth and just workforce transitions, to help re-train those whose jobs are at risk and to support the regeneration of adversely affected regions.”(p. 19)

Ensure social fairness of industrial transition:  Foster a culture of constructive and effective social dialogue at all levels of the economy (company, sector, country), according to national industrial relations systems and timely information and consultation processes as key elements for anticipating and managing change, i.e. skills.”

Selected statements from the extensive proposals re education and training: 

“Link education and training  policy more strategically to the industrial policy for instance by reinforcing cooperation between companies (especially SMEs), social partners & industry and education and training providers.

Enhance industry’s active role in upskilling and skills development. EU citizens of all ages need to be sensitized to engage in lifelong learning. At the same time, private sector, in collaboration with EU, national and European social partners, should be encouraged to provide training and life-long learning opportunities for all workers. This could be done by establishing new and innovative educational programmes and solutions to complement the role of academia and scaling-up successful existing initiatives, e.g. work-based learning and dual systems , modularized learning offer, e-learning; promotion of quality and effective apprenticeships; promotion of sector-specific training initiatives; providing adult learning opportunities to prevent skills obsolesce and support employability; installing a culture of lifelong learning, including through the promotion of the internal mobility of workers inside the company….

Maintain or increase the employability of the workforce, especially in sectors in transition, by up- and reskilling of the workforce to the jobs of the future, and supporting a smooth transition from one job to another (group outplacement, employment cells, tailor-made training programmes, job search assistance). This should be a shared responsibility between industry and the public sector.”  (p.32)

Build a pan-European coalition involving the EU, Member States, regions, industry, education and training systems and trade unions to take a systemic approach to skills…. Under the coalition, the EU will build on existing instruments to further facilitate flexibility and fast response mechanisms to react to changing labour market needs through procedures for the certification and compatibility of skills
and qualifications across borders and industrial sectors, e.g. using skills badges, which shall recognize informal learning, e.g. by working in a company. (p.33)

Climate change and health: more evidence of the dangers of extreme heat for workers

european health reportThe Imperative of Climate Action to Protect Human health in Europe was released on June 3  by the European Academies Science Advisory Council, urging that adaptation and mitigation policies give  health effects a greater emphasis, as well as proposing priorities for health policy research and data coordination in the EU.   The report also acts as a comprehensive literature review of the research on the present and future health impacts of climate change in EU countries.  It documents studies of direct and indirect health effects of extreme heat, forest fires, flooding, pollution, and impacts on food and nutrition.  Some of these impacts include communicable infectious diseases, mental illness, injuries, labour productivity, violence and conflict, and migration. It identifies the most vulnerable groups as the elderly, the sick, children, and migrating and marginalized populations, with city dwellers at greater risk of heat stress than rural populations.

construction drinking waterHeat as a Health risk for workers:  Although the report doesn’t highlight outdoor workers such as farmers and construction workers as a high risk group, it does weigh in on heat effects on labour productivity for indoor and outdoor workers.   For example,  “Even small increases in temperature may reduce cognitive and physical performance and hence impair labour productivity and earning power, with further consequences for health. Earlier analyses had concentrated on the effects of heat on rural labour capacity, but now it is appreciated that many occupations may be affected. For example, recent analysis by the French Agency for Food, Environmental, Occupational Health and Safety (ANSES 2018) concludes that productivity and health of workers in most business sectors will be affected in European countries by 2050. The effects of indoor high temperatures in terms of altered circadian rhythms were recently reported (Zheng et al. 2019) as part of a broader discussion of the literature on indoor high temperatures and human work efficiency. For temperature rises greater than 2°C, labour productivity could drop by 10–15% in some southern European countries (Ciscar et al. 2018). Meta-analysis of the global literature confirms that occupational heat strain has important health and productivity outcomes.”Canada Post Strike 20160705

Also: “with 1.5°C global temperature change, about 350 million people worldwide would be exposed to extreme heat stress sufficient to reduce greatly the ability to undertake physical labour for at least the hottest month in the year; this increases to about one billion people with 2.5°C global temperature change .”

And also: Hot and humid indoor environments may result in “mould and higher concentrations of chemical substances. Health risks include respiratory diseases such as allergy, asthma and rhinitis as well as more unspecific symptoms such as eye and respiratory irritation. Asthma and respiratory symptoms have been reported to be 30–50% more common in humid houses.”

Calls to improve heat standards for U.S. workers : A report in 2018,  Extreme Heat and Unprotected Workers , stated that  heat killed 783 workers in the U.S. and seriously injured nearly 70,000 between 1992 and 2017. The report was published by  Public Citizen, a coalition of social justice groups and labour unions. They continue to  campaign  for a dedicated federal standard regarding heat exposure – most recently with a  letter to the U.S. Department of Labor on April 26, 2019 which states: we “call on you to take swift action to protect workers from the growing dangers of climate change and rising temperatures in the workplace. …. The Occupational Safety and Health Administration has an obligation to prevent future heat-related injuries, illnesses and fatalities by issuing a heat stress standard for outdoor and indoor workers.”  The campaign is described in   “Worker advocates burned up over lack of federal heat protections” in FairWarning (May 9), with examples of some U.S. fatalities.  Notably, the death of a  63-year-old postal worker in her mail truck in Los Angeles in July 2018  resulted in  H.R. 1299,  the Peggy Frank Memorial Act, which was introduced in the House of Representatives in February 2019 and would require any Postal Service delivery vehicle to include air conditioning within three years. (It has languished in the House Standing Committee on Oversight and Reform since.)

The article also reports that in April,  California released a draft standard: Heat Illness Prevention in Indoor Places of Employment  which, if approved, would make California the first U.S. jurisdiction to cover both indoor and outdoor job sites. The proposed standard would require water and rest breaks for workers when indoor temperatures reach 82 F degrees, with additional requirements when temperatures hit 87 F. It is noteworthy that this is a slow process – even in progressive California, which has had heat protection for farm workers on the books since 2006,  the Advisory Committee leading this initiative has been meeting since 2017, and the draft standard still under consideration has been revised numerous times .

ETUC Guide to best practices for union impact on EU climate change and Just Transition policies

etuc logoAt a conference in Brussels on May 15, the European Trade Union Confederation (ETUC) released  Involving trade unions in Climate action to build a Just transition,  a Guide which makes the arguments for why unions should care about climate change, and provides recommendations and best practice examples from unions in the European Union.  The ETUC press release summary is here, in which the ETUC General Secretary states: “The ETUC’s new guide is about the policies, initiatives and governance involved in a just transition. At the end of the day our key message is that there is no just transition without workers participation. Imposed solutions do not work, we need dialogue to make climate progress.” A YouTube summary from ETUC is here.

The 48-page guide is packed with information and examples where trade unions have made impacts on national policies.  It began with a questionnaire circulated to ETUC affiliates, and also includes insights from five workshops involving experts from EU  unions and “relevant institutions”, organized around five thematic areas: employment and working conditions; governance and trade union participation; education; training and skills; social protection; and internal capacity building for trade union organizations (how to mobilize and prepare unionists to engage in the transition).

The Guide offers analysis about the role of trade unions, and states that union involvement in climate change policy development is on the rise, though it varies widely across EU member countries. The main message is that a Just Transition requires workers’ participation and dialogue. Some of the specific thematic recommendations include:

Promote economic diversification in regions and industries most affected by the transition;

Negotiate agreements at sectoral and company level to map the future evolution of skills needs and the creation of sectoral skills councils, using the ETUC guide on “Restructuring and collective competences” (2013) ;

At sectoral and workplace levels, extend the scope of collective bargaining to green transition issues to discuss the impact on employment and wages of the decarbonisation process and the impacts on skills needs and health and safety at work;

Establish dialogue with all relevant stakeholders and regional authorities to identify and manage the social impacts of climate policies;

In line with the ILO guidelines on a just transition , promote the establishment of adequate social protection systems based on the principles of universality, equal treatment and continuity, providing healthcare, income security and social services;

Encourage internal union capacity and increase members’ participation by developing and strengthening a network of  green representatives at the workplace level,  and involve workers in concrete actions aiming to reduce the environmental footprint of their company.