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Spotlight on START: supporting older workers in mining regions

The energy transition is gathering speed all over the European Union. The shift away from fossil fuels, while crucial for a sustainable future, has major social and economic implications for affected coal, peat, lignite, and oil shale territories - coal+ regions - and the communities living and working in them. To help tackle and design tailored solutions to context-specific challenges arising from transition action, the European Commission’s Initiative for coal regions in transition has been delivering technical assistance to selected recipients through its START facility.

date:  23/06/2024

As part of one START assignment undertaken at the request of the Hungarian Trade Union of Mining Energy and Industry Workers (BDSZ), research was conducted on the topic of targeted support and social assistance for older workers displaced by the closure of mining and power plant operations. The research yielded valuable insights and recommendations that could be extended to other regions. Summarised below, are the salient findings of this research, a detailed version of which can be found in the report Retirement and support packages for older workers in the EU coal sector: a briefing paper on European cases, available in the full repository of freely accessible START outputs.  
 
Background 
 
The Matra Power Plant, active since 1969, is a lignite fired power plant in Visonta, Heves County, which has a population of nearly 300,000 inhabitants. Aligning with transition goals, the plant is slated for closure between late 2025 and late 2029. The plant and its associated lignite mining activities employs around 2,200 workers directly, with more than 5,000 additional workers in the power supply chain. Many of these workers belong to an older demographic and are unlikely to be reassigned to other jobs or be able to find suitable alternative employment in the vicinity. BDSZ has tabled a proposal to the national government for the creation of a support fund for the benefit of such workers until reaching retirement age. The START programme sought to assist these efforts through a review and analysis of comparable initiatives in Germany, Spain, Czechia and Poland, identifying the solutions proposed and lessons learned.  
 
Key findings 
 
1) Even though each of the examined cases has their own specific context, the overarching challenges for older workers, and the experiences in implementing support schemes were similar. 

2) The country case studies demonstrated that early retirement schemes are most successful when implemented as part of a broader and coordinated mix of policy initiatives, including welfare and social support, and economic diversification and reskilling in affected communities. 

3) Support schemes for coal workers are not novel, but the impetus to provide adequate assistance, especially for older workers, has increased given Member State commitments to their National Energy and Climate  Plans and environmental targets, and the broad political consensus for achieving a just transition. 

4) Early retirement schemes and other support measures are an important element for achieving a just transition, however support and guidance should still be provided for older workers to enable them to remain in employment if they so desire.  

5) Support schemes for older workers should be accompanied by investments in innovation, sustainability, and green transition that are forward-looking and will provide opportunities for younger generations and affected communities as a whole. 

Designing a just transition for everyone

The results of the research reaffirm the importance of incorporating social justice and solidarity into climate action, especially for those communities who are disproportionately impacted. The research shows that context specific solutions must be paired with broader EU-level measures. As START enters a third round of assistance, the Initiative for coal regions in transition will continue to cooperate with regions on building a fair and just energy transition that is centered on people.