Opinion of the European Economic and Social Committee on Social dialogue within the green transition (Exploratory opinion requested by the Czech Presidency)
Date: 2022-09-21
Institutions: European Economic and Social Committee
Subjects: adaptation to climate change, aid for restructuring, carbon neutrality, circular economy, economic transition, green economy, labour market, social dialogue (EU), social impact, sustainable development








C_2022486EN.01009501.xml










21.12.2022   


EN


Official Journal of the European Union


C 486/95






Opinion of the European Economic and Social Committee on Social dialogue within the green transition
(Exploratory opinion requested by the Czech Presidency)
(2022/C 486/14)






Rapporteur:



Lucie STUDNIČNÁ











Referral


Czech Presidency of the Council, 26.1.2022




Legal basis


Article 304 of the Treaty on the Functioning of the European Union




Section responsible


Agriculture, Rural Development and the Environment




Adopted in section


5.9.2022




Adopted at plenary


21.9.2022




Plenary session No


572




Outcome of vote
(for/against/abstentions)


162/1/7




1.   Conclusions and recommendations









1.1.


Addressing the climate emergency has become a number one policy priority. The economic model that had been established since the industrial revolution is up for a fundamental overhaul. The colossal transformation to a digitalised climate-neutral circular economy, requires considerable adjustment efforts. Russia’s aggression on Ukraine only reinforced the necessity of this transition, at the same time putting huge costs and burdens on society.












1.2.


As an integral part of the European Social Model, and as a source of European competitiveness, social dialogue needs to be meaningful at all levels — European, national, sectoral, regional and workplace level. Member States should recognise the value of social dialogue, the fact that it represents an added value and an important part of the decision-making process. The EESC stresses that social dialogue should be strengthened and actively promoted. This also means that adequate competences for social partners are necessary and they also need to have access to expert support.












1.3.


Therefore, strong involvement of trade unions and employers’ federations through robust social dialogue and the involvement of civil society needs to be an integral part of the entire climate action policy framework. Member States have to make a greater effort in terms of involvement and guaranteeing the support from the workers to move towards a sustainable society. And this does not just concern the MS, but also the EU institutions.












1.4.


Trade unions play a key role in preparing and representing workers in the process of social-ecological transformation, so an active and coherent social dialogue must be guaranteed to ensure that climate action delivers for workers, makes the transition just and genuinely leaves no one behind.












1.5.


Social dialogue must be accompanied by continuous and robust civil dialogue, especially with organised civil society and stakeholder engagement. For a just transition to a net-zero economy, it is important to build fairer societies, eradicating poverty and tackling adjustment problems inherent in the green transition. Civil society organisations represent millions of people in vulnerable situations and those who are systematically excluded, and therefore constitute an important voice that must be included in decisions around the transition. Close cooperation with the Committee of Regions on this issue would add the regional dimension.












1.6.


The prioritisation of social justice and implementation of the European Pillar of Social Rights must be of utmost importance. Furthermore, the EU must also promote and actively support collective bargaining so that workers can shape sustainable workplaces as well as green, competitive, and decent jobs. In this way, EU is not only becoming fairer and more equal, but also more competitive and resilient.












1.7.


It is critical that all jobs created through the transition respect the ILO Declaration on fundamental principles and rights at work, which includes the right to decent employment, freedom of association and collective bargaining, no discrimination, no forced and child labour, and no violence and harassment at work.












1.8.


The EESC proposes a systematic mapping of the functioning of social dialogue at Member State level, and further comparative studies are necessary to explore the role of social dialogue in National Energy and Climate Plans, such as in NRRPs.












1.9.


As part of the overall effort to strengthen the social dimension of the European Green Deal, social dialogue structures need to be actively supported and strengthened by incentives and funding, paying special attention to Member States and sectors where these institutions are weak.












1.10.


In line with the non-binding Council Recommendation on ensuring a fair transition towards climate neutrality, the EESC stresses that guidance to Member States should be provided on how to tackle the social and employment effects of the transition. Proposals, including the one raised by the EESC opinion on ‘Fit for 55’: delivering the EU’s 2030 Climate Target on the way to climate neutrality (1) to encourage member states to create ‘Just Transition Commissions’, should be considered.












1.11.


The EESC stresses the importance of timely information and consultation during the restructuring process. In line with the Directive on Consultation and Participations rights, workers’ information, consultation and participation rights (2) need to be strengthened at all levels of EU, national and local administration. Decisions taken without consultation should be avoided and providing information in advance should become mandatory.




2.   General comments


Background









2.1.


This exploratory opinion was requested by the Czech EU Presidency as part of the assessment of the social dimension of the European Green Deal, and in particular the role of social dialogue.












2.2.


Addressing the climate emergency has become a number one policy priority. The entire production and consumption system is up for a fundamental overhaul. While the benefits of this transformation towards a digitalised climate-neutral circular economy are unquestionable, it entails considerable adjustment efforts and huge costs for society.












2.3.


This fundamental restructuring process that our economies need to go through in a few decades to reach net-zero emissions, is a policy-driven process that will have disparate effects on people with different socio-economic characteristics, as well as companies, especially SMEs. Policymakers have significant responsibility to address these.












2.4.


Climate change certainly creates new inequalities, and mitigation and adaptation measures, if applied without just transition policies, might create winners and losers. Recognising this, the announcement of the European Green Deal in 2019 included pledges to ‘leave no-one behind’.












2.5.


This ongoing transition process has been further aggravated by two extraordinary events: the COVID-19 crisis and a fundamental change in Europe’s geopolitical situation due to Russia’s assault on Ukraine. Both have increased burdens on society in the short term, while at the same time might also contribute to speeding up the transformation.





Social dialogue









2.6.


Over the last few decades, big changes in the means of production were often raising adaptation or transition issues, especially where these changes have generated less safe and low paid jobs leaving many people such as women and vulnerable communities locked out of decent work. Therefore, we must address a number of transitional problems, issues such as contractualisation, precarious forms of work, privatisation and restructuring, in order to generate a just economy, where poverty is eradicated. This problem is also addressed in the Council Recommendation on Ensuring a Fair Transition towards Climate Neutrality, adopted at the Social Affairs Council 16 June 2022.












2.7.


The promotion of social dialogue is enshrined in the Treaty on the Functioning of the EU. The ‘New Start for Social Dialogue’ initiative (2016) recognised the importance of social dialogue for recovery and competitiveness. Several EESC opinions (3) and a resolution (4) have recently emphasised the importance of social dialogue in related transformations.












2.8.


Social dialogue has also proven its positive contribution to a successful restructuring process; companies with well-functioning social dialogue perform better, are more competitive and resilient, and pay higher wages.












2.9.


The EESC stresses that all levels of social dialogue at European, national, sectoral, regional and workplace level have crucial but distinct functions in managing and facilitating the green transformation. However, structures and institutions at these levels have very different strengths.












2.10.


Social dialogue must be accompanied by continuous and robust civil dialogue, especially with organised civil society and stakeholder engagement. For a just transition to a net-zero economy, it is important to build fairer societies, eradicating poverty and tackling adjustment problems inherent in the green transition. Civil society organisations represent millions of people in vulnerable situations and those who are systematically excluded, and therefore constitute an important voice that must be included in decisions around the transition. Close cooperation with the Committee of Regions on this issue would add the regional dimension.












2.11.


Social dialogue institutions and actors have different levels of capacity and influence across Member States, partly due to diverse social and industrial relations models in Member States, but in some cases decentralisation policies and recommendations in the wake of the financial crisis and the Eurozone crisis have actively contributed to their weakening. The EESC underlines that well-functioning social dialogue is an important feature of the European social market economy and welcomes the fact that this has been recognised by the European Commission, most recently in its Recommendations to the Council.












2.12.


As part of the overall effort to strengthen the social dimension of the European Green Deal, social dialogue structures need to be actively supported and strengthened, paying special attention to Member States and sectors where these institutions are weak.





Just transition









2.13.


A just transition means that addressing both the employment and distributional effects of a shift to a net-zero economy should be seen as an integral part of the climate policy framework (e.g. the Fit for 55 package) and not only as supplementary corrective measures. These issues span many dimensions such as the distributional effects of decarbonisation policies, jobs losses and employment transitions, the protection of basic social rights and the inclusion of citizens and organised civil society in decision-making.












2.14.


The Just Transition Fund and the proposed Social Climate Fund (SCF) as part of the Fit for 55 package are some of the main EU measures announced to date intended to mitigate the impact of the transition on the most affected regions, vulnerable individuals and businesses. The EESC welcomes that the Commission has also proposed a Council recommendation on ensuring a fair transition towards climate neutrality, to provide guidance to Member States on how to tackle the social and employment effects of the transition.












2.15.


The litmus test of a ‘Just Transition’ must be the efficiency in dealing with the adaptation problems of business, employees and citizens, encouraging for instance restructuring of business activities, upskilling and reskilling of employees and avoidance of energy and mobility poverty, with a view to ensuring that no one is left behind; particularly the degree to which the individual women and men whose jobs will disappear or be downgraded or otherwise threatened are engaged with, assured of a useful, fulfilling and secure future in good quality employment, and assisted in developing themselves to enable them to fill these roles.












2.16.


The scale of the challenge cannot be underestimated. It will entail the development of well thought-out integrated medium- and long-term economic and social objectives with a view toward ensuring productivity and inclusion with due regard to specificities of different member states and involving social partners at national, regional and local level in all stages of policy making, including through social dialogue and collective bargaining, where adequate. These entail the deliberate, conscious redirection of resources at national and central level towards the areas and regions affected. Apart from incentivising new investment with grants, loans and the provision of expertise, and helping the operation of MSMEs, start-ups can be helped through capital participation, while new public enterprises could also be created. Besides the commitment of public resources, it will be necessary to optimise the flexibility of state aid rules and even to suspend them in some circumstances.












2.17.


It is critical that this large-scale restructuring, which includes the transformation of tens of millions of jobs in Europe, happens in a balanced and managed way and is forward-looking; a well-functioning social dialogue is key for this. The Just Transition Fund to support workers in transitions to new jobs should be expanded both in terms of its resources and its scope, with measures targeted to specific sectors.












2.18.


The three dimensions of sustainable development — economic, social and environmental — are strongly interrelated and need to be addressed by the use of a comprehensive and coherent policy framework. The 2015 ILO Guidelines for a just transition provide a set of practical tools for governments and social partners in managing this transformation process.












2.19.


The 2015 ILO Guidelines state that ‘strong social consensus on the goal and pathways to sustainability is fundamental’. Social dialogue has to be an integral part of the institutional framework for policymaking and implementation at all levels. Adequate, informed and ongoing consultation should take place with all relevant stakeholders.





Social dialogue within the green transition









2.20.


Social dialogue should not be reduced to a formality, it needs to be meaningful at all levels — European, national, sectoral, regional and workplace level. This also means that adequate competences for social partners are necessary and they also need to have access to expert support.












2.21.


The EESC recognises that social dialogue institutions have a very uneven character across the EU, due to the diverse national and industrial-relations models and traditions in different Member States.












2.22.


The EESC proposes a systematic mapping and monitoring of the functioning of social dialogue at Member State level (5), and further comparative studies are necessary to follow the role of social dialogue in National Energy and Climate Plans, such as in NRRPs.












2.23.


The EESC believes that existing initiatives to address the social challenges of the green transformation have remained fragmented. The Just Transition Mechanism is limited and addresses a small part of the transition process. The proposed Social Climate Fund will have a limited scope and purpose, and above all balance the regressive distributional effects of a planned ETS2 for transport and buildings (see in particular the EESC opinion on the Social Climate Fund (6)). While the EESC welcomes the Council Recommendation on ensuring a fair transition towards climate neutrality, it also notes that this non-binding recommendation does not offer the comprehensive policy platform that the EU needs to deal with the impacts of the transition on affected workers, regions and vulnerable individuals.












2.24.


The EESC stresses that that the EU needs to have a strong framework to secure a level playing field for managing the transition. Such a robust EU just transition framework should, among other things, address the anticipation and management of change in the green transformation, via meaningful participation of workers, companies and citizens’ involvement.












2.25.


The EESC stresses the importance of timely information and consultation during the restructuring process. Decisions taken without consultation should be avoided and providing information in advance should become mandatory.












2.26.


The EESC calls for promoting social dialogue and stakeholder involvement at all levels, and ensuring that new green jobs are good jobs in line with the ILO Decent Work agenda and the European Pillar of Social Rights. In line with the spirit of the Council recommendation on ensuring a fair transition towards climate neutrality, referring also to the EESC opinion related to the SCF, a Social Climate Fund should deal with a broader range of the distributional effects of climate policies with targeted measures against energy and transport poverty, supporting and facilitating the affordability and accessibility of low carbon technologies for lower income households.




3.   Specific comments









3.1.


The EESC believes that it is essential to recognise the complementarity between climate, environmental and social policies. The social dimension should be an integral part of a comprehensive climate policy framework from its design to implementation. This includes the entire European Green Deal and all the concrete implementation policies under the Fit for 55 packages.












3.2.


The EESC also recognises that this restructuring process will have massive effects on jobs, labour relations and income distribution. All levels of society and the economy will be affected, from transnational to workplace level, and social dialogue should play a key role in managing this process in a forward-looking manner.












3.3.


The EESC welcomes the strong and ambitious climate policy framework the European Commission has set up within the European Green Deal, supported by the related legislative measures, but it also stresses that, in spite of all the positive declarations, its social dimension is still underdeveloped.












3.4.


The social dimension of the European Green Deal remains primarily in the hands of the EU Member States and national social partners as they are best-placed to understand the situation and propose measures at local, regional and national level. However, the social and employment-related challenges of the green transition span many dimensions, such as job losses and employment transitions, the reskilling and upskilling of the workforce, distributional effects of decarbonisation policies, and also the protection of social rights and citizen participation. Therefore, coordinated action and measures at EU level are necessary to accompany and support the national initiative. If not well addressed at an appropriate level, climate mitigation measures are likely to increase and exacerbate social inequalities.





Making the just transition a reality — governance/regulatory requirements for strengthening social dialogue









3.5.


Labour market transitions, social plans and pathways to sustainable and decent new jobs with a long-term commitment to regional and community development are all essential elements of a just transition roadmap.












3.6.


Training programmes tailored to individual and labour market needs and delivered by special purpose employment transition centres should be encouraged. This needs engagement in proactive social dialogue at community and regional levels, in cooperation with all stakeholders. Trade unions and employers should act in conjunction to support labour transition programmes.












3.7.


Unlike the far-reaching and coordinated set of hard-law environmental measures, the social elements of Fit for 55 are fragmented, and the proposed Council Recommendation does not have binding legal effect.












3.8.


These features need to be strengthened and social dialogue should become a mandatory element of key national policies set up in order to reach 2050 climate policy targets, including NECPs, NRRPs and just transition plans.












3.9.


For social dialogue to bring results mutual confidence, trust and a shared ambition to get results that bring added value to all parties involved are important.












3.10.


In some EU Member States this kind of social dialogue already exists, in others not. Where the latter is the case, social dialogue should be actively encouraged, for instance by imposing timely exchange of certain information and offering social dialogue as a means to resolve various administrative and labour law issues, facilitating access to funding, facilitating planning decisions, building permits etcetera. To prevent abuse, such benefits should be linked to an obligation to achieve results.












3.11.


The EESC is aware that in some Member States this will be a matter of a change of culture and that it may take some time to bring about. The EESC is however convinced that the time and effort invested will be highly worthwhile.












3.12.


The social dimension of the European Green Deal needs to be linked to the European Pillar of Social Rights, and reflected in the European Semester process.












3.13.


The Commission published a report (7) on strengthening social dialogue in February 2021, which fed into the action plan implementing the European Pillar of Social Rights, presented in March 2021. The action plan contains a commitment on the part of the Commission to present an initiative on supporting social dialogue at EU and national level in 2022. The EESC strongly believes that these upcoming recommendations by the Commission will make a strong contribution towards achieving this objective.





Brussels, 21 September 2022.


The President of the European Economic and Social Committee

Christa SCHWENG




(1)  OJ C 275, 18.7.2022, p. 101.

(2)  OJ L 80, 23.3.2002, p. 29.

(3)  EESC opinion: Industrial transition towards a green and digital European economy: regulatory requirements and the role of social partners and civil society (OJ C 56, 16.2.2021, p. 10); EESC opinion: No Green Deal without a Social Deal (OJ C 341, 24.8.2021, p. 23). EESC opinion: Social dialogue as an important pillar of economic sustainability and the resilience of economies (OJ C 10, 11.1.2021, p. 14).

(4)  Resolution on EESC proposals for post-COVID-19 crisis reconstruction and recovery: ‘The EU must be guided by the principle of being considered a community of common destiny’, based on the work of the Subcommittee on post-COVID-19 recovery and reconstruction (OJ C 311, 18.9.2020, p. 1).

(5)  EESC resolution (OJ C 155, 30.4.2021, p. 1); EESC opinion (OJ C 220, 9.6.2021, p. 38).

(6)  OJ C 152, 6.4.2022, p. 158.

(7)  Report on strengthening EU social dialogue, by author Andrea Nahles.




ANNEX
The following amendment, which received at least a quarter of the votes cast, was rejected during the discussion:

Point 2.25


Amend as follows:







Section opinion


Amendment




The EESC stresses the importance of timely information and consultation during the restructuring process. Decisions taken without consultation should be avoided and providing information in advance should become 
mandatory
.


The EESC stresses the importance of timely information and consultation during the restructuring process. Decisions taken without consultation should be avoided and providing information in advance should become 
current practice in accordance with the abovementioned Council Recommendation
.




Outcome of vote






(for/against/abstentions)


55/95/0