Strong Labour Standards Urged for Energy Transition

Taxpayer funding for renewable energy projects and new manufacturing jobs should come with strong labour standards, a think tank says.
A report from the Australia Institute’s Centre for Future Work, released on Sep. 13, recommends guardrails for industrial relations so the renewable energy transition doesn’t come at the expense of workers.
“The transition to net zero is obviously a win for the environment, but it can and should be a win for Australian workers too,” report author Charlie Joyce said.
Many of the jobs being created were insecure, temporary, and do not provide adequate training opportunities, which undermined the development of the stable, top-quality workforce that these industries would need, he said.
According to the report, public money should come with strings attached, which would also strengthen community support, often referred to as the “social licence”, of renewable projects, especially in regional areas.
To meet the legislated target for 82 percent renewable energy by 2030, best-practice industry policy should not seek to “pick winners” and run the risk of cronyism and pork-barrelling, the report warned.
Instead, governments are urged to “pick the willing” by working with firms to lock in secure, well-paid jobs for communities where coal-linked industries are shutting down.
Labour standards have been embedded in public industrial aid in other countries, including the United States, Canada, and Ireland.
While Australia’s natural resources create potential, neglect of the manufacturing base and historic lack of government support mean these advantages will not necessarily translate into industrial success, the research report warns.
The report proposes a Secure Australian Jobs Code with minimum standards on job security, fair wages and conditions, gender equality, hiring equity, environmental sustainability, and the right to join and participate in a union.
Occupational health and safety must be guaranteed, particularly when working in environments subject to climate change-induced safety risks.
Apprenticeship quotas, ongoing training, and skills development should be built into publicly financed projects to reduce skills shortages.
There should also be maximum pay standards so public finance was not misused to reward executives and CEOs, the report said.
Separately, Australian Energy Market Commission chair Anna Collyer has warned of particular challenges for women, who make up less than a quarter of the workforce in the energy sector but more than a third in renewables.
“There is no value in leaving half of the world’s great ideas on the sidelines just because the people having them aren’t traditionally found in energy sector jobs,” she told the Women in Renewables Summit this week.
The main barriers are threats to physical and psychological safety, bias and interpretations of “merit”, and systemic barriers connected to child-bearing, parenting and other forms of caring.
“We aren’t going to magic up hundreds of thousands of female electricians and engineers”, she warned.
“Until we can openly identify and resolve safety and welfare issues, no amount of leadership and empowerment in other areas will attract and retain women in our sector in great numbers, especially out in the field,” she said.