Creating a New Social Contract for the Just Transition

Eurofound have released a new report, 'Creating a New Social Contract for the Just Transition: Is Partnership Working?' which dives deep into the evolving landscape of employment, social dialogue, and environmental sustainability across Europe. The report provides insights into whether current partnerships are effective in fostering a fair and equitable transition towards a greener economy.

The concept of a "just transition" has gained significant traction as Europe moves towards a more sustainable and carbon-neutral future. This transition, however, cannot merely focus on environmental goals; it must also consider the social and economic implications for workers and communities affected by the shift. The report by Eurofound examines the frameworks and partnerships that are in place to ensure that this transition does not leave anyone behind and explores whether these mechanisms are adequate in achieving their intended goals.

The "new social contract" referred to in the report is a comprehensive approach that seeks to balance economic growth, social equity, and environmental sustainability. It recognises the interconnectedness of these areas and advocates for an inclusive strategy that involves governments, employers, workers, and civil society. The idea is to create a cohesive framework that addresses the challenges posed by the transition to a green economy, ensuring that it is not only environmentally sound but also socially just.

Key Findings: Is Partnership Working?

One of the central questions posed by the report is whether the existing partnerships—between governments, trade unions, employers, and other stakeholders—are effectively facilitating a just transition. The findings highlight both successes and shortcomings:

1. Strengthened Social Dialogue: The report notes that in many European countries, social dialogue has been strengthened as a response to the challenges posed by the transition. This includes increased involvement of trade unions and employer organisations in policy discussions related to climate action and labor market adjustments. However, the extent and effectiveness of this dialogue vary significantly across countries and sectors.

2. Diverse National Approaches: Eurofound's analysis reveals that there is no one-size-fits-all approach to partnership in the just transition. Different countries have adopted various models based on their unique economic structures, labour market conditions, and environmental policies. For instance, nations with a strong tradition of social partnership, like those in Scandinavia, tend to have more robust frameworks in place, while others are still in the early stages of developing effective collaboration mechanisms.

3. Challenges in Implementation: Despite the progress made, the report identifies several challenges in implementing effective partnerships. These include disparities in power and resources between stakeholders, the complexity of aligning diverse interests, and the difficulties in ensuring that vulnerable groups, such as low-income workers and marginalised communities, are adequately represented and protected.

4. Case Studies: The report provides a series of case studies that illustrate both the successes and obstacles in different regions. These case studies highlight innovative approaches to partnership, such as sectoral agreements that provide training and reskilling for workers transitioning out of carbon-intensive industries. However, they also underscore the need for more inclusive and participatory processes, particularly in regions where social dialogue is weaker. 

Recommendations for Strengthening Partnerships

In light of its findings, Eurofound makes several recommendations for strengthening partnerships to ensure a just transition:

• Enhancing Inclusivity: There is a need to broaden the scope of social dialogue to include a wider range of stakeholders, particularly those from civil society and underrepresented groups. This would ensure that the voices of all affected parties are heard and considered in the decision-making process.

• Building Capacity: Strengthening the capacity of trade unions, employer organisations, and other stakeholders is crucial for effective participation in the transition. This includes providing resources for training, research, and advocacy to enable these groups to engage more effectively in social dialogue.

• Promoting Best Practices: The report calls for the dissemination of best practices across Europe, encouraging countries and regions to learn from each other's successes and challenges. This could involve creating platforms for the exchange of knowledge and experiences related to partnership in the just transition.

• Ensuring Policy Coherence: There is a need for greater coherence between environmental, economic, and social policies at both the national and European levels. This would help to align the goals of the just transition with broader policy objectives, ensuring that they reinforce rather than undermine each other.

Social Justice Ireland's proposals

A New Social Contract

Social Justice Ireland has a vision for an Irish society in which, we believe, most Irish citizens would aspire to live. Developing a new Social Contract, that takes a comprehensive approach to the wellbeing of the person and society as a whole, will involve better planning and preparedness for the major transitions facing our country. Managing change successfully requires ambition. Indeed, if managed well, these changes would provide an opportunity to achieve a fairer, more just society. 

Social Justice Ireland strongly believes in the importance of developing a rightsbased approach to social, economic, environmental, and cultural policy. Such an approach would go a long way towards addressing the inequality Ireland has been experiencing and should be at the heart of a new Social Contract. We believe seven basic rights should be acknowledged and recognised. These are the rights to

1. Sufficient income to live life with dignity;
2. Meaningful work;
3. Appropriate accommodation;
4. Relevant education;
5. Essential healthcare;
6. Cultural respect; and
7. Real participation in society.

For these seven rights to be vindicated, greater public expenditure to fund a broader provision of services is required. As part of a new Social Contract, Government should ensure that future tax and spending policy is focused on building up Ireland’s social infrastructure, prioritising areas such as healthcare, social housing, education, childcare and early education facilities. These are areas in particular where Ireland is experiencing an infrastructure deficit. Without adequate future planning for the kinds of social infrastructure and services we need, it will not be possible to maintain – never mind improve – the current standards of living for all citizens, from children to older people. For more see Chapter 2 of Social Justice Matters: 2024 guide to a fairer Irish society.

A Just Transition 

Social Justice Ireland understands a Just Transition as leaving no people, communities, economic sectors or regions behind as we transition to a low carbon future. Transition is not just about reducing emissions. It is also about transforming our society and our economy and investing in effective and integrated social protection systems. It is about delivering quality services and a robust social infrastructure through investment in education, training and lifelong learning, childcare, out of school care, health care, long term care and public transport. For more read our recent publication - Delivering a Just Transition for Ireland: policy options.