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Twin transition: Challenges for workers and companies in Europe based on GTC study
The twin transition – that is the process of simultaneous transition to a low-carbon and digital economy – brings both opportunities and major challenges for workers and companies. The GTC project 'Growth through transformational changes in the industrial sector influenced by the EU Green Deal and digitisation and proactive participation of workers in restructuring the changing working environment' by examining the experiences of seven European countries (Poland, Slovakia, North Macedonia, Serbia, Montenegro, Romania and Spain) provides valuable insights into these challenges and how to address them.
First and foremost, the transition to a low-carbon and digital economy requires significant investment in new technologies and industrial solutions, which can sometimes be difficult for companies to bear and can change their competitive position in the global market. In addition, business models that take into account compliance with regulations stemming from decarbonisation and digital policies must change and adapt to new market conditions. An important part of business development planning is the process of upskilling their employees to enable them to work effectively in the new reality. The twin transition requires an overhaul of supply chains, which may involve new logistical and regulatory challenges.
The challenges in this context are also faced by workers, who also have to find their way in the new reality. Skill requirements are changing, as the digitisation of production and service processes requires new digital and job-specific competences from workers. Employees who are unable to adapt their skills to the new realities may find themselves in a difficult position on the labour market. In addition, automation and robotisation may lead to job cuts in some sectors. In addition, the development of remote and platform working may increase job insecurity and worsen working conditions. There is also a change in the organisation of work due to the introduction of new technologies, which can lead to stress and anxiety among employees. Algorithms used in recruitment and human resource management processes can lead to discrimination based on gender, age or origin.
The role of social dialogue
One of the key findings of the research in the GTC project is that it highlights the key role of social dialogue in managing the twin transition process. The involvement of trade unions, employers and governments is essential to develop solutions that promote both economic development and worker well-being. The twin transition represents both a challenge and an opportunity for Europe. To maximise its potential, coordinated action is needed at both national and European level. Investing in education and training, promoting social dialogue and ensuring adequate protection of workers' rights are key.
The materials of the project and the course are available at the following link: https://decentwork.msnzzpcmc.pl/en/course