Australian unions call for 'just transition' from coal-generated electricity

Australian unions have thrown their weight behind a transition away from coal-generated electricity, calling for a new statutory authority to manage a “just transition”, supporting workers and communities that rely on fossil fuel-related jobs.

A policy discussion paper written by the Australian Council of Trade Unions (ACTU) said a planned closure of coal power stations – along with both a jobs and energy plan for the country – would “create a more prosperous and diversified economy”.

It called for an independent statutory body, Energy Transition Australia (ETA), to be created inside the environment and energy portfolio, which would be responsible for managing an orderly move to a clean energy economy.

Ged Kearney, president of the ACTU, said the transition away from fossil fuels in the power sector was inevitable. “We’re not experts in climate change, but what’s obvious to the ACTU is they are going to close. They already are closing around us.”

The move comes days after the announcement of the closure of Australia’s dirtiest power station, Hazelwood in Victoria, with federal minister for environment and energy Josh Frydenberg attacking Labor and the Greens for attempting to plan the closure of coal around the country.

“I think there’s a lot of resistance to planning for this in Canberra,” said Kearney. “Our framework very squarely places responsibility on the federal government to come up with a national plan for the sake of the workers in this industry. They’re constantly whining and complaining when the states do have plans but they’re not doing anything themselves.”

The ACTU discussion paper, titled “Sharing the challenges and opportunities of a clean energy economy”, acknowledged Australia’s current emission cuts planned for 2030 would need to be strengthened in order to meet commitments made in Paris to keep global warming “well below” 2C.

The paper said “it is widely agreed that Australia will need to move towards net zero by 2050 if we are to play our part in global efforts to limit the impact of global warming”.

“Australian unions recognise that the transition of coal-fired power stations has been identified as crucial to achieving emissions reduction targets,” it said.

The paper argues that while the country needs to ensure the transition happens, the costs of that transition should not fall predominantly on the shoulders of workers on those industries, but rather be equitably shared across society.

“The priority of any closures has to be the workers and the communities and the small businesses that rely on the flow-on effects from the stations.”

Kelly O’Shanassy from the Australian Conservation Foundation welcomed the ACTU’s paper. “The writing is on the wall that coal jobs are on the way out and there is really no future there. The unions are seeing that clearly and want to make sure workers and communities that rely on those jobs are looked after.

“For too long governments have wanted to ignore the transition and that’s made it worse. This change is happening and we need leadership.”

In order to manage a “just transition” effectively, the ACTU argued for a new statutory authority that would oversee:

• the closure of Australia’s coal-fired power stations
• an industry-wide multi-employer pooling and redeployment scheme for retrenched workers
• A labour adjustment package that would support workers finding new jobs with job services, retraining, financial and personal support, and travel subsidies and relocation assistance

The ACTU said the body should also carefully study what new industries would best be located in what regions, and support those industries growing in areas affected by the closure of coal-related industries.

The paper pointed out that the number of jobs in the clean energy sector was projected to reach 24 million by 2030. The US renewable energy sector had been growing quickly, the paper said, while Australian renewable jobs had declined. “This decline must be reversed,” the paper said.

Since most coal-related industries were located close together, the paper called for investment in coal-mining regions.

It cited research saying $88bn had been spent on adjustment packages following the closure of industries between 2000 and 2012. But it argued it was done in an ad hoc way, which needed to be better coordinated as the country transitions to clean energy.

The paper argues the transition should be funded by ending fossil fuel subsidies, introducing a carbon price, and from federal and state budgets.

The intervention from the ACTU marks a powerful coalition between the environment movement and the union movement that have traditionally been at odds.

Kearney said it had been a “long journey”.

“Most people in the environment sector now realise that the union movement has never been opposed to dealing with climate change but our concerns were about looking after workers. It was a difference that we didn’t just sit down and talk through. Now there’s a great deal of understanding on both sides.”

On Monday 17 prominent Australians, spearheaded by the Australian Conservation Foundation presented Frydenberg with a “clean energy blueprint”. It urged the Turnbull government to extend and expand the national renewable energy target and create a market mechanism to govern an orderly phase-out of coal-fired power in Australia. That blueprint also called for a just transition.

Both moves come ahead of the government’s’ review of its Direct Action policy in 2017, as well as a review into the national energy market led by the chief scientist, Alan Finkel.

The Finkel review followed a political battle between the Turnbull government and state governments, with Turnbull launching a rhetorical assault on state-based renewable energy targets after a statewide power blackout in South Australia in September.