Strengthening the Role of Trade Unions on Just Energy Transition

“Trade unions have a significant role in the management of energy transition policies in Indonesia. By ensuring that this new energy transition is owned and managed by the state, Trade Unions in Energy sector played that role well,”Indah Budiarti in her introduction at the Seminar on Just Energy Transition to Strengthen the Position and Advocacy of Trade Unions held in Jakarta, Tuesday (6/6).

Trade unions’ strategic position was born from an awareness that Article 33 of the 1945 Constitution regulates the management of energy resources that must be utilized as much as possible for the prosperity of the people and contolled by the state. Therefore, the trade unions are not just fighting for the interests of workers, broader than that, ensuring the constitutional rights of citizens regarding electricity. 

As many as 46 trade union leaders and activists from electricity unions:  SP PLN, PP IP, SP PJB, SPEE-FSPMI, dan Serbuk attended this seminar. While the objective of this seminar is to ensure that unions play a key role in the just transition process. “Not only that, the seminar also is aimed at strengthening the position of just transition from the point of view of unions and the community. And also ensuring the just energy transition adhere the principle of electricity to be contolled by the state,” added Indah. 

Also present in the seminar, PSI’s Project Officer, Luis Monje, and SEA Sub-regional secretary, Ian Mariano. There was also representatives from PSI’s partner organization; Regional Representative for SEA of Trade Union Solidarity Centre of Finland SASK, Farizan Fajari, the Finish Trade Union for the Public and Welfare Sectors – JHL, Eveliina Petälä and the General Secretary of KNS,  Kjartan Lund. 

The hybrid seminar invited several resource persons. From Asia Development Bank, David Elzinga and and Rangina Nazmieva. Both of them presented ADB’s Energy Transition Mechanism or ETM. 

In his presentation, David and Rangina emphazised on the energy transition mechanim’s approach that prioritises profit and investment. Including what has the Indonesian government done to accelerate the transition, one of them is the steamed-coal power plans early retirement. 

The participants thought that this policy opens opportunities for privatization. In any case, private sectors are profit oriented. Therefore, the ADB gave an impression that they prioritize the privates. 

Participants responded the presentation enthusiastically. Basically, participants encourages to hold more discussions on just transition that involve trade union. The involvement must not only be a formality, but a meaningful one. Including to take account workers’ interest to avoind the adverse impacts such as job loss and termination. In addition to that, the impact on the electricity provision and consumers. 

The next speaker, Andy Wijaya from PPIP, presented the current situation of Indonesia towards energy transition, specifically related to the policies and practices on the field. Andy emphazised on the Constitutional Court decision on the judicial review against Law No. 20 of 2004 and Law No. 30 of 2009, that declared that electricity is a public good and important branch of industry, concerns with the livelihood of the people, therefore, must be controlled by the state. 

“The principle of “controlled by state” can cover four functions. Administration funciton, management function, regulation and monitoring function must be in the hands of the state. Therefore, it is clear that electricity is not to be privatized,” said Andy. 

Therefore, Trade Union support the just transition only if the transition is in accordance to the Constitution, specifically article 33 paragraph 2 (without privatization), affordable electricity price, and ensure the safety for consumer and the environment. 

Following Andy, Tom Reddington from PSI shared just energy transition in Asia Pacific. Tom took an example that occurred in Australia. With the important role played by trade union, the stuggle succeeded in strengthening electricity ownership to be remained in the hands of the public. 

Tom also shared that with the big role of the trade union, in the State of Victoria, the struggle convinced the local government to issues financial package to ensure that the adverse impact of transition could be avoided. 

“Trade unions worked together with other civil society organizations, students and environment groups, in campaigning for publicly owned renewable energy. This campaig gained so many momentums that culminated in the a platform for energy and environment in the election. The elected government took back the ownership of their electricity,” said Tom. Similar success also gained in Queensland State. 

In his section about Trade Unions’ position in the face of power wheeling scheme for Indonesia’s renewable enery, Muhammad Abrar Ali, SP PLN Chairperson, asserted that power wheeling does not exist tin the Problem Inventory of the Parliamet in relation to Renewable Energy Draft Bill. Nevertheless, everyone agreed that we still have to be very cautious about the implementation of power wheeling, whether or not  it is in the Parliament Inventory. 

Talked via zoom, Anna Korpikoski, the Special Advisor of JHL for Climate Change and Just Transition, explained just transition in Finland. Anna reminded the participants that the just transition is still going on and in a long term. Therefore, it is important also to see what will happen in the future, and trade union must play an important role in it. 

“The Capital, Helsinki, will reach carbon neutrality in 2030,” said Anna. As a part of that policy, whether we want it or not, we have to replace fossil energy with clean new energy. This is a problem then that created a potential termination, as happened in the Hlsingin Energia Ltd. or also known as Helen Ttd. 

However, trade unions saw this problem from the perspective of just transition. At the end of 2021, Helen employed more than 1000 workers. In 2022, the number reduced to be 700. More than 250 worekrs were transferred to a new company, Enesens, a neutran carbon energy company. The rest of the workers stayed working at Helen. That means trade union holds an importan role in ensuring that workers will not experience the advers impact, loosing their job. Those workers were transferred to a new company. 

Meanwhile, Rita Tambunan from APHEDA/ITUC IKI-JET invited all participants to understand just transition even further but with taking account the principle of social justice and workers’ rights. 

Rita explained that the “just transition” phrase was coined by a trade union activist name Tony Mazzocchi. When chemical industries in the United States were about to be closed down and workers were about to lose their jobs, Tonny insisted that the transition must take account the also the environment. However, at the same time workers’ rights must also be prioritized. 

“Don’t talk only about the environment, but also the workers,” added Rita. 

The last speaker, David Boys, explained the strategies and actions that Trade Unions must take for a just energy transition. David firstly explained the global discussion on just transisiton, which actually still in favor of privatization. David also described the bigger picture of just transition and also bigger decision. 

“Basically, this transition is a way to put more private investements, and many times, it tends to be privatization,” said David. Therefore, we must consolidate out position and strengthen our roles as union by increasing our membership and claiming our position. 

Lastly, Ian Mariano summarized the speakers explanations. In his conclusion, Ian asserted that there needs to be more research about just transition so that our advocacy will be a research-based ones. It will also help trade unions in formulating their position and also to see clearly what position is taken by the government. 

In addition to that, trade unions in electricity sector also aware that the Consitutional Court decision exists and can be a part of the social dialogue. In addition to that, trade unions, together with their alliance and other organizations, have a strong position against just transition. 

Ian also appreciated the alliance formed by trade unions in electricity sector and their persistence in fighting against privatization. Including in relation to Omnibus Law Employment Creation that included articles that had already cancelled by the Consitutional Court. 

In the end, participants agreed that the follow up action will be to continue the collaboration of trade unions by organizing an FGDs to prepare a position paper.