Trade union the National Union of Mineworkers (NUM) on March 31 presented its ‘Just Transition and the Energy Sector’ report for discussion and adoption, on the second day of its yearly national congress.

The report emphasises that, while the union supports the just energy transition, there are a number of concerns that need to be addressed.

It states that workers and trade unions are not opposed to the ultimate objective of the country’s transition to a low-carbon, climate-resilient economy. However, they have reservations about how the concept is defined and the proposed path for it to be achieved.

A key concern for workers is the anticipated loss of jobs and livelihoods, especially in the energy and mining sectors.

This has resulted in the reluctance of workers to embrace the just energy transition.

Reservations stem from, besides others, calls by some just energy transition proponents for an immediate halt to coal use, as well as little consideration of the opportunity cost and socioeconomic implications of phasing out coal, it was noted at the congress.

The NUM also highlighted the unresolved questions around the just energy transition, such as the future of coal and what an appropriate pace of the transition should be.

Concerning the potential pathways that are being considered nationally for the just energy transition, the NUM said that, while renewable-energy sources, especially solar and wind, have been identified as potential key drivers, these pose risks to jobs, owing to the different skills required.

Moreover, it said that although nuclear energy is potentially clean and more reliable, this is not supported by all unions.

Further, while the report acknowledges the negative impact of coal on the environment, it notes that coal still remains a strategic national resource and, therefore, cannot just be discarded.

Against this background, the report’s proposed resolution for the just energy transition includes that it should be underpinned by four pillars: social dialogue, social protection, rights at work and employment protection and creation.

Moreover, research has to be conducted to inform the implementation of the transition to ensure that it is just, the report emphasises.

It is also argued that the ultimate goal for the country should be net-zero emissions, rather than zero emissions.

The report says the pace and timing of the transition should not be based on environmental concerns only, but must also consider the socioeconomic implications for the country as a whole.

The report says that while the NUM supports bold and urgent action to address climate change, it is opposed to a “green structural adjustment” that is led by government and organisations such as the International Monetary Fund and financial institutions.

The report states that while South Africa can take preliminary steps to advance the transition away from coal, it must first withdraw its proposal to unbundle Eskom, declare a moratorium on the Renewable Energy Independent Power Producer Procurement Programme, and find ways to build low-carbon generation capacity that is consistent with persevering energy sovereignty and building local supply chains.

The report is opposed to the privatisation of energy, calling instead for a public pathway approach to the energy transition. The foundation stone of this approach would be having a fully public national energy utility, a “new Eskom”.

Secretariat Report

Also presented on the day, for discussion and adoption, was the NUM’s secretariat report.

Key findings include that State-owned Eskom has decided to reduce the number of seconded leaders who serve the union full time. The NUM said this was done without consulting the union; therefore, it would be engaging with Eskom on the matter, given that a considerable number of its members are employed by Eskom.

The NUM’s ten-year plan document has been reviewed and now runs from 2020 to 2030, with the revised plan now containing a section of the metals industry, with various scenarios around Covid-19 as well.

The report indicates that the NUM’s membership has been declining since 2018 and that its revenue has also been decreasing.

The report points out that the NUM has successfully concluded collective bargaining agreements with several companies, including Harmony Gold, Northam Platinum, Royal Bafokeng Platinum, Exxaro Resources and Murray & Roberts.

However, no agreement has been reached with Eskom and Sibanye-Stillwater’s South African gold division. The former is offering union members a 1.5% wage increase, with the matter having been referred for arbitration.

With regard to Sibanye’s gold operations, the NUM noted that it had asked for a 6% wage increase, which had been rejected by the company. The NUM is calling for the Department of Mineral Resources and Energy and other government departments to intervene and help resolve the impasse.

The report also touches on the National Women’s Structure (NWS), a separate structure within the NUM.

It notes that the challenges experienced by this structure were mainly caused by the Covid-19 pandemic and include an increase in job losses, gender-based violence, harassment and femicide.

The report recommends that this structure’s regional conferences continue to be conducted separately from the main regional conferences and that the structure’s elections be conducted by an independent electoral commission.