05/09/2017

Ensuring a Just Transition in Mining

Communities towards a Greener Economy

MINING PHILIPPINES CONFERENCE AND EXHIBITION

05 September 2017
Manila City

Outline

Key Concepts: Green Jobs and Just Transition

Just Transition Framework ins Mining
Communities

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Key Concepts

Climate Impacts on Workers,

Enterprises, and Communities

Bangladesh, 2007. Cyclone Sidr Philippines, November 2013. Typhoon Haiyan

disrupted several hundred thousand small had direct impact on an estimated 5.9 million
businesses and adversely affected 567,000 workers, half of which were in vulnerable
jobs. employment, across 9 regions

Philippines, December 2014.

Typhoon Hagupit affected around
800,000 workers, with their source
of livelihood damaged or
disrupted overnight.

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Enterprises and Workers Impacts

on Climate

2 Key Challenges of the 21st Century

Environmental
Social challenge
sustainability
- Alleviating poverty
- Averting climate change
- Providing decent work
and environmental
for all
degradation
- Well-being
- Safeguarding resources
- Dignity & social inclusion
for life-support

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Climate Change & Decent Work

Climate action offers
opportunities for decent work
and social inclusion through:
- Job creation
- New Jobs & enterprises in
green products and services
- Greener workplaces
- Climate resilient infastructure

Unabated climate change poses risks

on jobs and incomes through:
- Job losses
- Damage to business assets
- Impacts on productivity
- Impacts on OSH
Source: ILO 2015, Decent Jobs in a Safe Climate:
- Forced migration ILO Solutions for Climate Change

Green Job: Policy Definition

provide the linking element to address
the dual challenge Green jobs are decent jobs in any economic
sector (agriculture, industry, service) that:

Employment &
Social Inclusion Improve energy and raw materials efficiency

GREEN Limit greenhouse gas emissions

JOBS
Environmental Minimize waste and pollution
sustainability
Protect and restore ecosystems

Support adaptation to the effects of climate change

(Source: Green Jobs: Towards decent work in a sustainable, low-carbon world
UNEP/ILO/IOE/ITUC, 2008)- Working Definition

help reduce environmental impact, ultimately to levels that are sustainable...

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Green jobs are also DECENT JOBS

Guaranteeing rights at work

Respect of the ILO International Labour Standards

Creating jobs

Equal opportunities, freely chosen, productive and gainful

Extending social protection

Decent salary, social protection coverage, OSH

Promoting social dialogue

Freedom of association and collective bargaining

Gender equality Non discrimination

Green Jobs: Statistical Definition

A. Employment in production of
environmental outputs is defined as
A employment in the production of
environmental goods and services
for consumption outside the
producing unit.

C B. Employment in
environmental processes is
B defined as employment in the
D: Jobs in non-
production of environmental
environmental goods and services for
sector created consumption within the
D thanks to producing unit.
greening

Employment in environmental sector= AB

Employment created thanks to greening = ABD
Green jobs (Employment in Environmental Sector that is decent)= (AB)C
Employment in environmental sector= AB
Employment created thanks to greening = ABD
Green jobs (Employment in Environmental Sector that are decent) = (AB)C

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Inclusive Green Economy

one that results in improved

human well-being and social LOW CARBON
equity, while significantly RESOURCE EFFICIENT
reducing environmental risks SOCIALLY INCLUSIVE
and ecological scarcities
- UN Environment

PREMISE: designing and

implementing green economy
policies will stimulate economic
growth, reduce environmental risks,
create new jobs and improve human
wellbeing.

Job and Productivity Gains

The resource-intensive development model of the past will lead

to rising costs, loss of productivity and disruption of economic
activity: productivity levels would lower by 2.4% in 2030 and
7.2% by 2050 in a BAU (ILO Global Economic Linkages model).

Whereas, a greener economy and more sustainable

enterprises is creating tens of millions of green jobs:
15-60 million potential additional jobs globally
over the next two decades.

At least half of the global workforce, the equivalent of 1.5 billion people, will be affected
by the transition to a greener economy. 8 key sectors are expected to play a central role:
agriculture, forestry, fishing, energy, resource-intensive manufacturing, recycling,
building and transport.

Source: ILO 2012, Working towards sustainable development. Opportunities for decent work and social inclusion in a green economy

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2030 Sustainable Development Agenda

and the Paris Agreement

taking into account the imperatives of a just transition

of the workforce and the creation of decent work and
quality jobs in accordance with nationally defined
development priorities

Green, but not decent Green and decent

Examples: Examples:
Electronics recycling w/o Unionized wind and solar
adequate occupational power jobs
safety Green architects
Low wage installers of Well-paid public transit
ENVIRONMENT

solar panels employees

Exploited biofuels
plantation day labourers
Neither green nor Decent, but not green
decent Examples:
Examples: Unionized car
Coal mining w/o manufacturing workers
adequate safety Chemical engineers
Women workers in the Airplane pilots
cut flower industry
Hog slaughterhouse
workers

DECENT WORK

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Transition to a Green Economy

2. Employment will be
1. Additional jobs will be SUBSTITUTED
CREATED Shift from fossil fuels to RE&EE,
Manufacturing of green automobiles to mass transit, waste
technologies, green equipment, disposal to recycling, primary
green services metals production to secondary
production

4. Existing jobs will be

3. Jobs may be ELIMINATED
TRANSFORMED
Packaging materials are
discouraged or banned and Skills sets, work methods and
production is discontinued, profiles of plumbers, electricians,
extractive sectors metal workers, and construction
workers greened

Transition to Green Economy

Impact on Jobs/ Employment

New Jobs Created will offset (some)

of those lost

But those who will get the Green

Jobs are not necessarily those who
will have lost their jobs

Need for Just Transition!

Source: ILO 2011 Skills for green jobs: A global view and other products from the EC and ILO
joint management agreement Knowledge sharing on early identification of skill needs

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Just Transition

A just transition means that the burden of

change that benefits everyone will not be
placed disproportionately on a few.
ITUC

A just transition for all implies

that responses to climate change
and environmental sustainability
should maximize opportunities
for decent work creation and
ensure social justice, rights and
social protection for all leaving
no one behind.

Just Transition

The transition will have strong impact on workers and

communities, even enterprises
Many will benefit, but others may struggle as some
industries/occupations will decline.
It is essential to set in place policies to ensure
protecting those likely to be negatively affected via
income support, (re)training opportunities, relocation
assistance, and others.

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Policy Guidelines on Just Transition

towards Environmentally Sustainable
Economies and Societies for All
Policy coherence and
effective institutional arrangements

Social Dialogue

Macro/Sector Employment Social Protection

Enterprises Occupational
Macroeconomic
safety and health

Labour Standards
Labour Standards

Skills

Industrial and
Social protection
sectoral Labour market

Pilot Application of Just Transition

Philippines

The Philippines is one of the three pilot countries for the

application of the policy guidelines for a Just Transition.

Overall Objective:
To build the capacity of the Philippine
constituents in operationalizing the
Green Jobs Act and leveraging the
process of structural change towards a
sustainable, climate-resilient pathway
to create decent jobs

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Tripartite Project Advisory Committee

Members

DOLE (Chair)

Workers

Employers
Government

TUCP (Vice-chair) ECOP (Vice-chair)

CSC DOT FFW Philippine
SENTRO Constructors
CCC DTI Association, Inc.
ALU
CHED DOTr Philippine Food
PSLINK (public
DA DICT sector) Processors and
DBM LMP ALLWIES (informal) Exporters
DepEd LPP Organization
DOE NCIP Philippine Chamber
DENR NEDA of Commerce and
DOF PSA Industry
DILG TESDA Philippine Hotel
Owners Association
DPWH ULAP
Chamber of Mines
DOST of the Philippines

Just Transition Framework

in Mining Communities

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Philippines Mining Industry

5th most mineralized country

3rd 4th 5th 6th
Gold Copper Nickel Chromite

14.5 billion metric tons of metallic reserves,

USD840 billion untapped mineral wealth

Exports: 4.5 to 7% share (2013 & 2014)

GDP: 1.10%; GVA: 0.02 to 22.1% (ave. of 1.38%)

in 2014

Employment: 218,000 formal and informal workers

0.5% of labour force (2016)
Source: DENR-MGB, PSA

Source: DENR-MGB

Employment in Mining and Quarrying

Employment in the sector has been declining.

300,000
250,000
235,000 236,000
250,000 218,000

200,000

150,000

100,000

50,000
0.7% 0.6% 0.6% 0.5%
0
2013 2014 2015 2016
Employment in Mining and Quarrying % of the labour force

Source: Philippine Statistics Authority

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Working Conditions and Labour

Standards
Despite considerable efforts, the rates of death,
injury and disease among mine workers remain high,
and mining remains the most hazardous occupation
when the number of people exposed to risk is taken
into account.
Need to strengthen implementation of Occupational
Safety and Health Standards in mining, in conformity
to ILO Convention 176 (OSH in Mines)
Majority of mine workers are unorganized without
leverage to assert their rights and bargain for better
working conditions

A Just Transition in Mining

Communities
The closure and suspension orders issued by the DENR in
February 2017 brought to the fore mining issues as well as the
vulnerabilities of workers and communities and the necessity of
having comprehensive and coherent policies and measures to
address the multifaceted challenges and to pursue an
environmentally sustainable growth, while ensuring a just
transition, which has a potential to become a strong driver of
job creation, job upgrading, social justice and poverty eradication.

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A Just Transition in Mining

Communities
Mining is a temporary land use activity and dependent on
finite resources, making closure of mining operations
inevitable.
Mine closures is a complex issue that requires a proactive
management and a comprehensive and integrated
approach.
If not managed well, closures can incur significant liabilities
to Government and pose safety, environmental, social and
economic risks.
A comprehensive and integrated just transition approach will
help mitigate the adverse impacts and maximize beneficial
outcomes for all stakeholders.

Case Study Mining Transition

Higher levels of re-

employment
Company reinvestment in
new business models
Regional economic
regeneration

Source: Coal Transition in the Netherlands, Climate Strategies and IDDRI, 2017

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Key Lessons from Coal Mining

Transitions

A successfully managed mining transitions takes a long time, in order

to ensure new jobs for workers, regional economic regeneration, and
company reinvestment in new business models.
If well-anticipated and actively managed, just transitions are possible.
On the contrary, unplanned transitions often led to multiple problems
Early anticipation is especially important in regions which are highly
specialized in coal, and geographically isolated from more
economically dynamic regions.
Forging basic consensus - between the government, companies,
trade unions and other civil society organizations on the questions
of whether and why to transition is essential.

Source: Coal Transition in the Netherlands, Climate Strategies and IDDRI, 2017

Key Lessons from Coal Mining

Transitions
Long-term investment in workers as people is essential
Need to invest in mining regions, particularly focusing on regional
economic regeneration/diversification
In addition to other non-monetary costs, such as social,
environmental and human impacts, the financial costs of worker
reconversion and regional economic adjustment are often much
smaller than the costs of failing to implement a transition.

Source: Coal Transition in the Netherlands, Climate Strategies and IDDRI, 2017

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Just Transition Framework in Mining

Communities

Policies and Institutional Arrangements

Social Dialogue and Tripartism

Impact Assessment

Compensation Measures

Employment and Skills Development Measures

Social Protection Measures

Local Economic Diversification and Measures for Affected Communities

Driving Environmentally Sustainable Investments

Funding Arrangements

1. Policies and Institutional Arrangements

Strengthen enforcement and coherence of all existing policies,

laws, rules and regulations on labour, environment, economic,
health and safety, and governance in the mining sector
Review and amend existing laws, policies, and regulations to be in
line with international standards, specifically on OSH and
fundamental principles and rights at work
Strengthen coordination between DOLE, DENR and the local
government in governing the mining sector through a joint
memorandum
Ensure direct, active, substantial and effective participation of
labour in all decision-making processes and representation in
government committees related to mining
Establish a Just Transition policy to enable the shift to a more
environmentally sustainable and inclusive economy to cover critical
sectors such as mining and other sunset industries

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2. Social Dialogue and Tripartism

Make social dialogue central throughout the process, with

participation of those affected, including representatives of mine
workers, trade unions, mining companies, community members,
indigenous peoples, local and national government authorities, civil
society, among other key stakeholders
Immediate establishment of the Mining Industrial Tripartite Council
(MiITC) at national, regional and provincial and community levels,
composed Government, employers representatives and workers
unions, associations, and organizations
Representation of the labour sector in the Mining Industry
Coordinating Council

3. Impact Assessment

Collect field level information, including the scale of potential

impact on directly and indirectly affected workers and workers
profiles
Formulate and push for a policy to require data disclosure by mining
companies of all relevant data necessary in establishing a proper
and appropriate just transition program
Coordinate the administrative data to determine the extent to which
laws have been implemented as well as create the basis for targeted
programs and interventions

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4. Compensation Measures

Establish interim compensation measures for all those affected by

closures and suspensions, both actual and impending to include:
payment of benefits as required by law
financial assistance for a period of time of up to six months to
help displaced workers transition to another job, including
payment of SSS, Philhealth and Pag-Ibig contributions during the
six-month period
moratorium in the payment of loans incurred with SSS, GSIS or
Pag-Ibig for the duration of being unemployed until the
placement to a next job

5. Employment and Skills Development

Measures

Having identified the workers profile, their qualifications and skills

set, develop a policy and mechanism to:
upgrade workers skills, or
to train, assess and have them certified in qualifications where
they have successfully completed training;
incentivize workers redeployment to other industries hiring
transitioning workers;
to employ/deploy workers to alternative green jobs, within area
rehabilitation programs or mining supply/value chain
Provide retooling and upskilling for workers in both affected and
non-affected mines to enable them to seize new opportunities once
the mine has closed

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5. Employment and Skills Development

Measures

Develop skills partnerships with employers, particularly in assessing

skills needs for green jobs and greening of training regulations of
TESDA
Mainstream environmental sustainability and green skills in curricula
from primary, secondary, tertiary, and technical vocation education
and promote better access to education
Expand community-based training and entrepreneurship
development programs for mining communities
Integrate a human resource development plan for the mining
sector in the National Green Jobs Human Resource Development
as required by the Philippine Green Jobs Act.

6. Social Protection Measures

Establish a mining industry-specific Employment Insurance Fund

with the following features: (i) unemployment benefits for a
defined duration; (ii) free skills training, re-skilling or up-skilling, job
referral or placement, relocation allowance (iii) incentives for
companies that train their own workers or that employ workers who
are trained under this scheme; (iv) continuing payment to
SSS/GSIS/Philhealth/Pag-Ibig for a defined duration of
unemployment.
Establishing an industry-wide health insurance programme that will
pay additional health benefits for workers in the mining industry and
that will cover the non-compensable mining work-related illnesses
by the ECC/Philhealth
Social pension schemes for workers who are out of work for any
reason and who cannot find an alternative or equivalent work.

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7. Local Economic Diversification and

Measures for Affected Communities

LGU to establish a local economic diversification plan with multi-

stakeholder participation to reposition regional and local
development, minimizing dependency of the local economy and
communities on mining, strengthening coping mechanisms in the
face of disruptions in mining operations and other risks and
contributing to reducing unemployment and poverty.
Promote access to productive resources, giving preferential
treatment to non-working spouses of affected workers and
vulnerable sectors that may be affected by mining operations
(farmers, fisherfolks, IPs), including access to training, credit, capital,
technology and market

7. Local Economic Diversification and

Measures for Affected Communities

Identify post-mining use of land and infrastructure, which can

provide employment opportunities to mine workers and other
vulnerable sectors in the area, including farmers, fisherfolks and
indigenous peoples
Targeted local area development to compensate for decline in
spending by mines and support local economy, such as in
environment regeneration activities, climate change adaptation
measures, waste and water management, infrastructure
development

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8. Driving Environmentally Sustainable

Investments

Encouraging investments in processing plants in the mining sector,

using technologies that minimize environmental impact, including
the creation of downward industries that will support the national
industrialization program of the country, and integrating a circular
economy model
Mainstream environmental sustainability and climate change, SDGs,
and promoting green enterprises and green jobs into local and
regional development plans
Mainstream environmental sustainability and climate change needs
in public procurement
Promote investment in green industries such as waste and water
management, green construction, sustainable agriculture and
forestry, ecotourism, renewable energy, green manufacturing by
providing incentives

8. Driving Environmentally Sustainable

Investments

Promote access to incentives provided for in the Philippine Green

Jobs Act, including providing green business development services
to enterprises, green technology, training, and research and
development
Build capacities of existing and new enterprises to shift to
environmentally sustainable practices, including those in mining
sector, through use of greener technologies and approaches

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9. Funding Arrangements

Review existing funding mechanisms to identify, harmonize and

assess sourcing, utilization and management of funds to optimize its
potential benefit to the economy and society
Implement a Polluter Pays principle in the economy
Establishment of a Just Transition fund, which encompasses the
following:
Rehabilitation of the mine sites and the immediate environment
Mine Workers Welfare Fund
Mining Social Amelioration Fund for those working in the
mining sector.
Local economic diversification and support to affected
communities.
The Funds to be managed and monitored by a multi-partite body
to include the contributors, the government and all sectors/groups
for which the funds are to be established.

Next Steps

Piloting of Just Transition framework in CARAGA

region
Operationalization of the Philippine Green Jobs Act
Regional dialogue on Green growth for jobs and
social inclusion: making the case for a just
transition in Asia, 25-27 September, Manila

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In conclusion

The world of work is at the heart of policies to address

environmental sustainability, not just as co-benefits,
but importantly as enablers of environmental action.
Transition policies are needed to realize net
employment gains and ensure social justice under both
adaptation and mitigation measures.
If well managed, environmental action can be a
pathway for reduced inequality and greater social
inclusion.
Social dialogue and policy coherence is essential:
coordinated social, economic and climate policies.

Just Transition is not simply about safety nets, but

a means to bring economic life into a democratic and
sustainable framework, to be decided through a
meaningful social dialogue and driven by broadly
shared economic and social priorities.

UNEP, ILO, IOE & ITUC

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Thank
Thank you
you
Gwyneth Anne Palmos
National Project Coordinator -
Gwyneth Anne Palmos
Just Transition
National to a Green
Project Economy
Coordinator -
Just Transition to a Green Economy
(CO-Manila)
(CO-Manila)
E-mail: palmos@ilo.org
E-mail: palmos@ilo.org

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