Trade Union Sustainable Strategies

- the future of Energy

ETUI Conference

David Tarren

ADAPT International

Manchester, 24th October 2012

• 250,000 jobs disappeared in energy from 1990 to 1998 (ECOTEC)

• Liberalisation of the sector main driver• Ageing workforce in Electricity and Gas• Difficult to isolate Gas and Electricity from

European Commission categories • Studies by GHK, ECOTEC, ADAPT and Syndex

among others

Background

Just Transition

A shift towards a sustainable and environmentally

friendly economy, based on social dialogue in a

way that promotes high economic growth and

investments in low-carbon technologies, while

ensuring a smooth social transition and the

development of skilling and reskilling programs (or

just new skills) and the creation of quality jobs

Research

• Syndex and WMP– 71 000 new jobs created in RES – 31 000 in CCS ... all by 2030

• GHK– Anticipate change, plan and prepare, provide social

support measures– investment still insufficient– Restructuring relies on strategic choice of companies– Job opportunities seen through anticipation

• Greenpeace – 42% of worldwide and 86% of European electricity

from renewables by 2030– 2 million more jobs in the energy sector between

2010 and 2030

• European Commission– Increase of jobs in RES– Decrease in traditional energy – 2.3 million jobs by 2020

Research

Investment in Capacity

• Number of jobs depends on geography and technology• The energy sector will employ more workers than today• Retraining of existing workers will be key• Engagement with workforce crucial• Employers in sector poor at introducing environmental

awareness training programmes • Work in the future will require a higher level of skill

Key Issues

Anticipation of Change• Employer skill strategies must anticipate future skill needs in

order to establish effective training programmes• Anticipation of skills for the future must balance the demand from

industry with the supply of labour with the right skills• Just over a third of employers say company has undertaken

specific initiatives to forecast their future skill and competency requirements

• Skills investment must include improvements of the training and educational infrastructure

• But must also consider incentives to motivate workers to participate in training

Views of Unions and Employers

Key issues for the transition (in order of priority):• R&D• Investment • Skills and Competencies

• Unions and Employers consider technology as the main driver, but next..... – Liberalisation by unions– Climate Change by Employers

Occupational Change• Decreases in transport workers, labourers (low skills)• In the coming decade the occupations likely to see the largest

increase in number of workers are:– Professional/Technical– Followed by Managers– Then Service/Sales

• Social dialogue is taking place across Europe, but ......• Not a lot is happening on the ground. • Nearly 50% of unions and employers surveyed said social

dialogue had taken place but nothing had been done as a result !

Ageing WorkforceWhat percentage of your workforce are over 50 years of age ?

Demographic Change

2004 to 2012

• Relatively easy to fill skills gaps and shortages • Employers should begin examining future

requirements and introducing strategic plans for their survival over the next two periods

• This period must be dedicated to ensure measures are put in place and employment practices are established to weather future change

Demographic Change

2013 to 2019

• Companies will witness tightening labour market and difficulties in finding the right skills

• Those that have not established in-house strategic training programmes and new employment practices will begin to feel the pain

• Impact of older workers retiring and not being replaced with younger workers will begin to bite

Demographic Change

2020 onwards

• High point of ageing effect across Europe• In this period the number of people of working age

drops, despite improvements in participation rates• Employers will compete with each other to recruit

the right number of people with the right skills• Employers who have not tackled the ageing effect

will be fighting for survival

David Tarrendavidtarren@adaptinternational.eu+44 (0) 7979 241989

Questions?