International Labour Organisation (ILO)

By Richard Halsey, Neil Overy, Tina Schubert, Ebenaezer Appies, Liziwe McDaid and Kim Kruyshaar - Project 90 by 2030, September 19, 2019

A just transition (JT) is a highly complex topic, where the overall goal is to shift to systems that are better for people and the planet, and to do so in a fair and managed way that “leaves no one behind”. A JT is about justice in the context of fundamental changes within the economy and the society.

Both of these areas are extremely contested, consensus is hard to achieve, and people are generally resistant to change. A JT confronts “business as usual” and threatens powerful vested interests in certain economic sectors. In recent years, a vast amount of literature on the subject has been published, and in South Africa the conversation has picked up pace. The urgency of acting now is indisputable.

While a JT can apply to many sectors and industries, this publication focuses on energy. In addition to being a major contributor to climate change, environmental damage and impacts on human health, the energy sector (particularly Eskom), is facing significant challenges in South Africa. We fully acknowledge that energy is linked to other sectors such as transport, agriculture, water and land use, and that a just energy transition (JET) is a part of a wider JT. While the focus of this report is on one sector, we do so recognising that it is linked to other parts of a larger system in many ways.

Our approach was to look at what we can learn from international experience, to combine that with what has already been done in South Africa, and to make recommendations about how to move forward. This publication focuses on the shift from coal to renewable energy (RE), mainly for electricity generation. We are well aware that a movement away from fossil fuels (coal, oil and gas) is far more than just moving from coal to RE, but as discussed in Chapter 3, this particular transition is the obvious starting point in South Africa. The lessons and recommendations presented here can also be adapted to other fossil fuel sectors. While the focus of this study is on coal, a big picture perspective of the energy system is crucial. South Africa must adopt an integrated planning approach, for energy and other sectors.

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By Tord Kjellstrom, Nicolas Maître, Catherine Saget, Matthias Otto and Tahmina Karimova - International Labour Organization, July 1, 2019

The phenomenon of heat stress refers to heat received in excess of that which the body can tolerate without physiological impairment. It is one of the major consequences of global warming. By 2030, the equivalent of more than 2 per cent of total working hours worldwide is projected to be lost every year, either because it is too hot to work or because workers have to work at a slower pace. This report shows the impact of heat stress on productivity and decent work for virtually all countries in the world. It presents innovative solutions based on social dialogue to promote occupational safety and health for the most vulnerable groups of workers.

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By Chrislain Eric Kenfack - University of Alberta, 2019

In the current context of climate change and its accompanying adverse effects on natural, human and social systems, the imperative of transitioning to low- and preferably post-carbon societies has become a non-negotiable reality if we want to avoid reaching the point of no return in terms of environmental and climate catastrophe. Such a transition requires that the interests and needs of workers and their communities be taken into consideration to make sure they do not bear the heaviest part of the burden in terms of loss of jobs and means of survival, and that they are prepared to face the new, post-carbon labour environment.

The concept of Just Transition was coined to describe both the socio-political project put forward by trade unions in response to climate change, and the recognition by climate activists that the livelihoods and security of workers and their communities must be ensured during the transition to a post-carbon society. However, just transition movements are divided between two quite different orientations, which are labelled “affirmative” and “transformative.” On the one hand, affirmative just transition advocates envisage a transition within the current political-economic system. Transformative just transition activists, on the other hand, envisage a post-capitalist transition.

This article, drawing upon an extensive case study of the Portuguese climate jobs campaign, goes beyond showing how these orientations shape the positions taken by union and climate activists. The article also analyses how the conflicts and cooperation between these key actors can shed light on the possibilities and/or limitations of just transition as a framework for the collective action needed to achieve rapid, deep decarbonisation of economies in the Global North context.

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By Greg Muttitt, Anna Markova, and Matthew Crighton - Oil Change International, Platform, and Friends of the Earth Scotland, May 2019

This new report released by Oil Change International, Platform and Friends of the Earth Scotland shows that a well-managed energy transformation based on Just Transition principles can meet UK climate commitments while protecting livelihoods and economic well-being, provided that the right policies are adopted, and that the affected workers, trade unions and communities are able to effectively guide these policies.

This report examines the future of UK offshore oil and gas extraction in relation to climate change and employment. It finds that:

• The UK’s 5.7 billion barrels of oil and gas in already-operating oil and gas fields will exceed the UK’s share in relation to Paris climate goals – whereas industry and government aim to extract 20 billion barrels;
• Recent subsidies for oil and gas extraction will add twice as much carbon to the atmosphere as the phase-out of coal power saves;
• Given the right policies, job creation in clean energy industries will exceed affected oil and gas jobs more than threefold.

In light of these findings, the UK and Scottish Governments face a choice between two pathways that stay within the Paris climate limits:

1. Deferred collapse: continue to pursue maximum extraction by subsidising companies and encouraging them to shed workers, until worsening climate impacts force rapid action to cut emissions globally; the UK oil industry collapses, pushing many workers out of work in a short space of time. Or:
2. Managed transition: stop approving and licensing new oil and gas projects, begin a phase-out of extraction and a Just Transition for workers and communities, negotiated with trade unions and local leaders, and in line with climate change goals, while building quality jobs in a clean energy economy.

The report recommends that the UK and Scottish Governments:

• Stop issuing licenses and permits for new oil and gas exploration and development, and revoke undeveloped licenses;
• Rapidly phase out all subsidies for oil and gas extraction, including tax breaks, and redirect them to fund a Just Transition;
• Enable rapid building of the clean energy industry through fiscal and policy support to at least the extent they have provided to the oil industry, including inward investment in affected regions and communities;
• Open formal consultations with trade unions to develop and implement a Just Transition strategy for oil-dependent regions and communities.

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By staff - International Labour Organization, April 2019

At its 329th Session (March 2017), the Governing Body of the International Labour Office decided that a Global Dialogue Forum on decent work in the management of electrical and electronic waste (e-waste) would be held in Geneva. During its 334th Session (October– November 2018), it decided that the date of the meeting would be 9–11 April 2019 and that all interested governments should be invited. Eight Employer and eight Worker participants would be appointed on the basis of nominations made by their respective groups in the Governing Body, and selected intergovernmental organizations and non-governmental organizations would be invited as observers.

The purpose of the Global Dialogue Forum is to discuss current and emerging issues and opportunities related to the promotion of decent work in the management of e-waste, with the aim of adopting points of consensus, including recommendations for future action by the International Labour Organization (ILO) and its Members. Taking place in the centennial year of the ILO, the Forum is also an opportunity to discuss more broadly the future of work in the circular economy.

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By Sara Huier - International Development Studies and Global Studies, Roskilde University, April 2019

The study argues that the Circular Economy (CE) model often privileges the Global North economies’ standpoint, revealing a significant inadequacy. Therefore, the present research investigates the extent of the disparities in closed-loop strategies between developed and developing countries. The objective of the analysis is to understand whether these contingencies are relevant and whether they are the display of global economy dynamics that reinforce mechanisms of inequality, conflicting with the Sustainable Development rationale.

It is found that the analysis corroborates the existence of imbalanced drivers, opportunities, barriers and drawbacks between the Global North and the Global South, although potential benefits for the South are entailed. However, it also emerges the existence of critical transnational dynamics which may prevent the achievement of CE objectives globally. The existence of these overlooked and unaddressed global forces is identified as the actual problem of the CE model. Indeed, the narrow focus of the CE on production processes and local, national and regional dynamics diverts the attention from the Global Value Chains. Thus, it is recommended to analyse the global CE structure by applying the Global Value Chain framework, in order to investigate if it is possible to overcome the exposed CE’s limits.

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By staff - International Labour Organization, 2019

New forces are transforming the world of work. The transitions involved call for decisive action.

Countless opportunities lie ahead to improve the quality of working lives, expand choice, close the gender gap, reverse the damages wreaked by global inequality, and much more. Yet none of this will happen by itself. Without decisive action we will be heading into a world that widens existing inequalities and uncertainties.

Technological advances – artificial intelligence, automation and robotics – will create new jobs, but those who lose their jobs in this transition may be the least equipped to seize the new opportunities. Today’s skills will not match the jobs of tomorrow and newly acquired skills may quickly become obsolete. The greening of our economies will create millions of jobs as we adopt sustainable practices and clean technologies but other jobs will disappear as countries scale back their carbon- and resource-intensive industries. Changes in demographics are no less significant. Expanding youth populations in some parts of the world and ageing populations in others may place pressure on labour markets and social security systems, yet in these shifts lie new possibilities to afford care and inclusive, active societies.

We need to seize the opportunities presented by these transforma-tive changes to create a brighter future and deliver economic security, equal opportunity and social justice – and ultimately reinforce the fabric of our societies.

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By staff - Platform for Accelerating the Circular Economy (PACE) and E-waste Coalition, January 2019

The global consumption of smart phones and other electronic devices is increasing, and bringing benefits to many people in areas as wide- ranging as health, education, finance and commerce. But there is a downside: the world is now seeing a growing tsunami of e-waste.

A new report launched by the United Nations E-waste Coalition indicates that the global economy generates approximately 50 million tonnes of e-waste every year. This is a huge amount, representing the mass of all the commercial aircraft ever produced.

Unfortunately, less than 20% of this is waste formally recycled. This results in global health and environmental risks, as well as the unnecessary loss of scarce and valuable natural materials.

But businesses, policy makers, and the public can turn this global challenge around. And the rewards will be significant. Indeed, the proper management of e-waste yields not just one, but multiple gains for development.

The new report calls for a systematic collaboration with major brands, small and medium-sized enterprises (SMEs), academia, trade unions, civil society and associations in a deliberative process to reorient the system and reduce the waste of resources each year with a value greater than the GDP of most countries.

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By Georgia Piggot, Michael Boyland, Adrian Down, and Andreea Raluca Torre - Stockholm Environment Institute, January 2019

Meeting agreed climate goals requires a rapid decarbonization of the global energy system, which in turn necessitates a reduction in fossil fuel production. While limiting fossil fuel use will likely bring a multitude of societal benefits — related to reduced climate risks, sustainable economic growth, air quality and human health — it is important to recognize that not everyone will benefit equally from a transition to a low-carbon economy. In particular, those who rely on fossil fuel production for their livelihood, or who were anticipating using fossil-fuelled energy to meet development needs, may carry a disproportionate share of the burdens of an energy transition.

The need for a “just transition” to a low-carbon economy — namely, a transition that minimizes disruption for workers and communities reliant on unsustainable industries and energy sources — is gaining traction in climate policy and political discourse. A call for “a just transition of the workforce” was included in the preamble to the Paris Agreement, and the United Nations Framework Convention on Climate Change (UNFCCC) secretariat has prepared a technical paper on transition planning.10 In addition, several national and regional governments have recently announced new transition planning processes, including Canada, Germany, Spain, Scotland, New Zealand, and the European Union.

A central concern of just transition efforts is to ensure that low-carbon transitions address social and economic inequality. The UNFCCC calls for a transition that “contribute(s) to the goals of decent work for all, social inclusion and the eradication of poverty.” Likewise, the European Commission aims to “boost the clean energy transition by bringing more focus on social fairness.” And the Scottish Government is seeking a transition that “promotes inclusive growth, cohesion and equality.”

Key messages:

• Governments are introducing new “just transitions” policies to help workers and communities move away from fossil fuels.
• Most policies assume that justice goals will be achieved by helping those dependent on coal, oil and gas move into new roles; however, there is little critical reflection on what justice means in the context of an energy transition away from fossil fuels.
• There are a number of gaps in current just transition policies when viewed through a justice lens. For example, no policies contain measures to improve the lives of people currently marginalized in the energy system.
• Creating just and equitable transition policies requires collecting data on the current distribution of the harms and benefits of the energy system, and mapping out how this will change as fossil fuels become a less-prominent part of the energy mix.
• By taking justice considerations into account, transition policies are more likely to limit social and political resistance, win a broad consensus, and achieve effective implementation.

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By Peter Sheldon, Raja Junankar, and Anthony De Rosa Pontello - CFMMEU Mining and Energy, December 3, 2018

Australia’s coal-fired power stations will all close in the next two or three decades. We know this because the companies that operate the 23 power stations currently operating nation-wide have told us so.

Despite the empty rhetoric of some, it is unlikely that the economic case for investing in new coal-fired power stations in Australia will stack up. Those who currently own and operate coal power stations have no plans to build new ones.

The bad news is that the transition in how we produce power will bring great change to the workers and communities we have relied on to provide Australian homes and industry with reliable energy over many decades.

The good news is that we have the lead time to make smart decisions about what that change looks like—or at least, we now have the lead time after being caught unprepared by earlier closures, including Hazelwood in 2017.We have the choice to manage this structural economic change so that individuals, families and regions aren’t abandoned to unemployment, low-value jobs, poverty and associated health and social decline. Even better, we have the evidence about what works to deliver just transitions for coal power workers and communities, with skills, jobs, opportunities and hope for the future.

Communities grow around power stations and the mines that supply them. They are unique communities bonded in many cases by history, geography, difficult and dangerous working conditions and good unionised jobs. They are also uniquely vulnerable in their heavy dependence on the coal power industry.

This analysis of transitions in resource economies internationally and here in Australia provides valuable insights into the ingredients of success and the wide scope of outcomes.The Appalachian region in the United States is a heart-breaking story of industry transition characterised by short-term, reactive and fragmented responses to closures of coal mines, resulting in entrenched, intergenerational poverty and social dysfunction.

Compare this with the transition away from a heavy reliance on coal mining in Germany’s Ruhr region, where forward planning, investment in industry diversification, staggering of mine closures and a comprehensive package of just transition measures delivered a major reshaping of the regional economy with no forced job losses.

Central to these vastly different outcomes is the presence of a national, coordinated response. To this end, a major recommendation of this report is the establishment of a national, independent statutory authority to plan, coordinate and manage the transition.

In the energy debate to date, the impact of the transition on workers and communities has been almost completely ignored. This is an omission we can’t afford. After all, the costs of investing in a Just Transition need to be balanced against the costs of doing nothing and abandoning whole communities to a bleak future.

While global trends suggest that Australian export coal for steelmaking and energy production will be in demand for decades to come, coal-fired power generation in Australia is winding down. On the information available, there are no excuses for not taking action to protect the best interests of those affected.</p.

I thank Peter Sheldon and the team at UNSW Sydney’s Industrial Relations Research Centre for this important piece of work. I call on all power industry stakeholders to engage with its findings and consider how we can work together to deliver a Just Transition for coal power workers and communities.

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