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Green transition: Challenges and opportunities for the trade unions

From 18 to 19 May 2023 took place in Limassol/Cyprus a seminar about “Green transition: Challenges and opportunities for the trade unions”, organized by KIKEA-DEOK (Cypriot Institute of Training/Education and Employment (KIKEA) - DEOK), with the support of EZA and funded by the European Union. Representatives of workers’ organisations from Cyprus, Greece, Slovakia, Romania, Bulgaria, Lithuania, Czech Republic, Portugal, France, Spain and Belgium participated in the seminar.

The seminar offered an excellent opportunity to trade union leaders and other workers’ organizations and stakeholders, to listen, discuss and exchange views regarding the policies that have to be make in order to support the employment to the green transition. The union leaders participated in the project shared presentations and observations of implementing this transition among the member states. Finally, the seminar focused on the role of social dialogue and the consultation that has to take place before any social or employment initiative.

Climate change and environmental degradation are an existential threat to the European Union and to the world. The European Green Deal aims to make Europe climate neutral by 2050, boost the economy through green technology, create sustainable industry and transport, and cut pollution. Turning climate and environmental challenges into opportunities will make the transition just and inclusive for all. The seminar made a significant contribution to the social dialogue as it strengthens the EU's strategy for the Member States' transition to a green economy. Employees and trade unions must be prepared and exchange views between delegates in order to be able to meet the challenges and seize the opportunities that will be given.

The following topic fields were discussed:

  • The developments in the European Union and policies regarding the introduction of a European minimum wage
  • The contribution of the minimum wage to the promotion of economic equality and social justice
  • The situation in the EU member states regarding the minimum wage
  • The criteria for determining and the adjustment mechanism of the minimum wage
  • The role of the social partners implementing a minimum wage
  • The effect of the minimum wage on youth employment
  • The impact of the minimum wage on reducing the gender pay gap and poverty

Results

The Cyprus Recovery and Resilience Plan responds to the urgent need to promote a strong recovery and prepare Cyprus' future. The reforms and investments included in the plan will help Cyprus become more sustainable, resilient and ready for the challenges and opportunities of the green and digital transition.

Climate change and environmental degradation are an existential threat to Europe and the world. To overcome these challenges, the European Green Deal will transform the EU into a modern, resource-efficient and competitive economy by ensuring:

  • no greenhouse gas emissions by 2050
  • economic growth decoupled from resource use
  • no person and no place is left behind

European Green Deal

  • clean air, clean water, healthy soil and biodiversity
  • renovated, energy efficient buildings
  • healthy and economical food
  • cleaner energy and clean cutting-edge technology innovation
  • longer lasting products that can be repaired, recycled and reused
  • future jobs and transition skills training
  • globally competitive and resilient industry
  • more public transport

The trade union movement is facing many challenges. For a healthy working environment, the role of trade unions is important and the state itself is next to the trade unions and not against them. The biggest challenge is the green transition and we have to align with the new reality. The priority of the Ministry of Finance is to equip and develop the local human resources through the promotion of green digital skills.

It is based on three pillars:

  1. Skill specialization
  2. Qualification standards for 7 professions – certification
  3. Promotion of modern professional culture

Preparation of a specific plan in collaboration with the social partners for a smooth transition to the new data.

The situation in the EU Member States and the role of trade unions

Environmental education activities are organized on a private initiative in Slovakia. Established in 1992, the Sosnay Eco Center organizes environmental festivals with a target group of children aged 7 – 13 and traditional games to teach children about the environment. Also, in Slovakia there is a non-governmental organization that covers global environmental issues through education and operates in more than 300 schools.

The situation in Romania in relation to the green transition is quite satisfactory because the state inherited from the communist regime a green energy unit. Romania has decided to close all coal-fired plants by 2032, but with this move many workers will lose their jobs. Companies do not have the corresponding information about the green transition. For this reason, it was decided that the state should start a dialogue with the trade union bodies for their immediate intervention in the country's companies and local authorities.

Bulgaria is energetically the most powerful country in the region, it has the main energy production centre. The closure of this centre will be a threat to the country's economy. The green transition is important but the timetable set to close the plant by 2026 will be devastating to the economy. A smooth transition needs time, dialogue and not to exert too much pressure from the European Union.

In Lithuania the green transition is a process of transition to more sustainable and environmentally friendly practices in various industries and sectors. This can include reducing greenhouse gas emissions, promoting renewable energy sources, increasing energy efficiency and developing more sustainable ways of producing goods and services. The goal is to create a more sustainable future for our planet and ensure that future generations have access to the resources they need. Lithuania is also in a green process with an emphasis on reducing greenhouse gas emissions and promoting renewable energy sources. The country has set ambitious targets to increase the share of renewables in its energy mix and is investing in a range of technologies such as wind, solar and biomass. Lithuania also promotes energy efficiency measures, such as renovating buildings to reduce energy consumption and using energy-efficient appliances. In addition, the country is working to promote sustainable transport, including electric vehicles and public transport.

In the Czech Republic it was decided to end coal by 2030 but due to the war it was extended until 2038. 11% of companies are ready for the green transition, a very small percentage. The social partners in collaboration with the state for companies and civil society should inform, raise awareness and prepare the state for a smooth green transition.

Although in Greece there are all the necessary data for the green transition, unfortunately it is progressing very slowly as in the previous decade we neglected it and, in this decade, we were faced with the economic crisis. A new program was launched in Greece (ESPA – Green transformation and green investment). The bundle of State Aid Actions "GREEN TRANSITION OF SMEs", of the "Competitiveness" Program (ESPA 2021 – 2027) with a total budget 700,000,000 euro, It aims at upgrading of the country's small and medium enterprises. At eligible Expenses of the Actions include, among others: buildings, facilities and environment, machinery - equipment, product certification, marketing costs, as well as costs to improve energy efficiency and energy saving. On the road to the green transition there are risks and opportunities. In Greece, the termination of coal is forcibly imposed and while they were expecting natural gas, it did not come. Regarding work, there is a risk that many will be out of work due to the new data. The transition must be done with flexible timetables and with care. Opportunities will certainly arise as new jobs will be created which will also be of quality.

In Portugal the circular economy is a model of production and consumption, which includes exchanging, renting, reusing, repairing, refurbishing and recycling existing materials and products as much as possible in order to extend their life cycle. In practice, the circular economy implies the reduction of waste to the minimum possible level. When a product reaches the end of its life, its construction materials are retained within the economy to be used again and again, creating added value to the product.

France missed its 2020 renewable energy target, but is taking steps to get back on track. It has increased its renewable energy targets, aiming to increase solar power tenfold and double the capacity of its onshore wind farms by 2050. But considering the human factor, many lives are lost all year in China because workers are exposed in excess carbon dioxide to send electric cars to France. The green transition must take into account the human being, the family.

The Bank of Spain confirms that the green transition may cause higher inflation and an impact on employment. The step towards an ecological transition is necessary, but it carries risks. Fortunately, the Spanish unions reached an agreement with the business organizations through the Social Dialogue without the involvement of the Spanish government's politicians, to increase the wages of all workers in the private sector. The agreement provides for a salary increase of 4% in 2023 and 3% in 2024 and 2025, which cumulatively amounts to a 10% increase. It is unbelievable that the government of Spain is violating this agreement and increasing the wages of public workers by only 8 euros in three years. Unions in Spain are preparing strikes and demonstrations against the worst employer in Spain, which is the Spanish government. In Spain there are 21 million workers, of which 3.5 million works in the public sector. Unions enforce through the Works Council in the context of collective bargaining to channel the proposals and guarantee the improvement of working conditions of all workers and at the same time determine the participation of workers in environmental protection and enforce legislation.

In Belgium the transition to a climate-neutral industry will have a far-reaching impact on the work of trade unions. The union can play an important role in preparing workers for a complex and urgent industrial transition that is headed our way anyway. Unions have the opportunity to fight for sustainable and quality jobs, where workers can upgrade their skills and where necessary be guided into a new job. In Belgium, unfortunately, politicians seem to be slow to draw up just transition plans. Because the regions could not agree on how to spend the EU funds, Belgium has not yet submitted a just territorial transition plan to the European Commission. Nor are trade unions involved in drawing up such a plan. Trade unions, on the other hand, will have a seat at the table of the Permanent Consultative Body created under the new industrial decree. The radical transition of our industry requires broad support. It will therefore benefit from the active involvement of the whole of civil society, including trade unions and environmentalists, in all aspects of industrial policy.

The role of social partners

The transition to the green economy is inextricably linked to entrepreneurship, development, and the everyday life of all of us. OEB (Cyprus Employers & Industrialists Federation) is actively involved in policy issues for the development and implementation of European, national, regional and sectoral action plans and policies for the green economy. Represents businesses in decision-making channels, in order to ensure the protection of their competitiveness, play an important role in mapping and anticipating the challenges and needs of businesses for a successful green transition, creating the necessary awareness within the market (energy efficiency, management waste). OEB took the initiative to establish the Cyprus Circular Economy Network (CCEN), the first pioneering Circular Economy Network in Cyprus

OEB actions for the Green Transition

  • Visits to companies to familiarize themselves with the challenges for the green transition and to promote academic and industrial cooperation in related fields
  • Delivery of number of events such as information days, workshops, lectures etc. related to the green transition
  • Participating in many events, briefings and workshops both as speakers and as invited guests that enhance our knowledge and expertise on topics related to the green transition
  • Organizing sustainability-related awards such as the Foodprint Awards

The role of social partners is very important towards the green transition. State laws must be strictly followed. It is the duty of the employer to protect the workers in matters of safety and health especially for that category of people who are exposed to extreme weather phenomena.

Social Dialogue in the Green Transition: Challenges and Opportunities for Trade Unions

In the developed economies of the global North, millions of workers are at risk of losing decent-paying jobs. In addition to job losses, decarbonisation will potentially mean more expensive energy costs in the short term, as dirtier, but often cheaper energy sources are replaced by green energy sources, the cost of which will decrease in the future. In Europe alone, the Green Transition directly affects 20-25 million workers in industries ranging from mining and quarrying exploration to the manufacture of goods such as chemicals, plastics, rubber, paper and machinery.

Stronger collective bargaining and social dialogue

Stronger rights to effective collective bargaining and participation and unionization to empower workers. Increasing coverage of collective bargaining. Creating, rebuilding and strengthening social dialogue and collective bargaining structures at all levels in Europe. Conditions in public procurement to ensure that contracting companies participate in collective bargaining. Allocation of community and national funding for capacity building for social dialogue and collective bargaining. Strengthening and implementation of the European Pillar of Social Rights and approval of commitments to promote collective bargaining and extend the coverage of collective bargaining to all member states. Implementation of ILO conventions and Council of Europe decisions on the right of access to collective bargaining in all member states and for all workers.