Sharing the challenges and opportunities of a clean energy economy: Policy discussion paper A Just Transition for coal-fired electricity sector workers and communities

By staff - Australian Council of Trade Unions - November 2016

The ACTU is primarily concerned with workers, their rights, their welfare and their future. A just and civil society is one where everyone shares in the wealth of the nation but it is also one where economic costs are equally shared.

Transitioning an industry is a massive economic and social disruption. History shows that this has often been done poorly in Australia, with workers and communities bearing the brunt of such transitions - suffering hardship, unemployment and generations of economic and social depression.

Research in the textiles, clothing and footwear (TCF) and car manufacturing industries shows, for example, that only one third of workers find equivalent full time work following their retrenchment, while one third move into lower quality jobs (lower wage, lower job status or into part-time and casual work) and one third are locked out of the labour force altogether.

International experience however shows that a transition can be done equitably, achieve positive outcomes for workers, save communities and forge new areas of industrial growth and prosperity.

Australia is currently facing one such transition in the coal-fired electricity sector. If Australia manages this transition well, the nation would have a structured and equitable approach that could apply to any industry undergoing similar change in the future.

At last year’s Paris climate conference, Australia alongside 194 countries, committed to limit global warming to less than 2°C above pre-industrial levels. As part of this historic agreement, unions successfully achieved recognition of the need for a ‘Just Transition’ that supports the most affected workers obtain new decent and secure jobs in a clean energy economy.

While Australia’s international obligations will require a range of complementary policies that focus on emission reduction across a number of sectors of the economy, as the largest contributor to Australia’s emissions, effective reform of the electricity sector has been identified as a key step in tackling climate change.

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Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author.