European Commission: communication A Green Deal Industrial Plan for the Net-Zero Age

On 1 February, in response to a United States law (the Inflation Reduction Act – IRA) that is intended to encourage the environmental transition of American industry, the European Commission presented a communication on the Green Deal Industrial Plan. The aim is to “enhance the competitiveness of Europe’s industry” in its “fast transition to climate neutrality” (see press release). This plan accompanies the objective set by the European Climate Law, i.e. that of achieving a climate-neutral Union by 2050 (see European Green Deal). At a social level, the communication proposes various initiatives, such as establishing “Net-Zero Industry Academies to roll out up-skilling and re-skilling programmes in strategic industries”. The European Trade Union Confederation believes that the EU is “being left behind when it comes to social conditions to ensure public money is used for the common good”, whereas the IRA is providing for, among other things, bonus tax credits for companies that pay decent wages and hire apprentices (see press release). Luc Triangle, General Secretary of IndustriAll Europe, explains: “In return for green subsidies, companies must ensure a fair transition with worker participation and collective bargaining, fair pay, quality jobs, and high social standards” (see press release). It is odd that, at a time when the Commission is proclaiming the importance of collective bargaining – and stating in the “minimum wage” directive that it would like to see 80% of Europe’s employees covered by collective agreements – that “social dialogue” and “working conditions” chapters are absent from public policies (see Minimum wage). Speaking before the European Parliament, Dutch MEP Agnes Jongerius (S&D) expressed her disappointment and her view that the Commission had missed an opportunity: “any public money spent should go only to companies that are covered by a collective bargaining agreement”. This is one way of emphasising that the environmental transition cannot be achieved without closely involving the social partners who will have to manage the huge crises that lie ahead. In other words, why not assign this key role to them right now?