Better working conditions needed to close German energy transition's labour gaps – unions

A lack of skilled workers exacerbated by poor working conditions in the sector could become a serious challenge for Germany’s energy transition, the German Trade Union Association (DGB) has said. The economy and society face the "double challenge" of transforming the energy system while ensuring employment and economic wealth, which requires a resolute political strategy to avoid cascading effects that threaten the broader economic transformation, said DGB deputy leader Stefan Körzell in a position paper.

As Germany’s economy struggles to adapt to a changing geopolitical environment and catches up on missed opportunities to drive innovation, the energy transition could, under the right regulatory conditions, strengthen many sectors, he said.

A strong economy and social security must be backed by a reliable, affordable and climate-friendly energy supply, meaning the energy transition’s implications extend much further than decarbonisation alone, Körzell argued. Delivering the transition requires qualified workers in the skilled trades, in industry and in the energy sector as much as political targets and investments, he said. “Without these employees, political targets remain an abstraction.”

Labour shortages are already a limiting factor for the energy transition, even as many other sectors of the economy do not face a similar shortage, the labour union leader said. “Labour shortages are often the result of inadequate working conditions, insufficient collective bargaining coverage, too few opportunities for further training, uncertain prospects and untapped potential in the labour market.” Improving job quality in the sector is therefore essential to closing labour gaps, the DGB representative said. 

Regulatory certainty for companies and workers on the political conditions underpinning the energy transition is indispensable for making the sector more attractive, Körzell added. “Endless debates about basic principles, changing support frameworks and short-term programmes create uncertainty. A successful skilled worker strategy for the energy transition needs a long-term perspective.”

The German coalition government has faced criticism for long delays on energy and industry law reforms, which have left companies with uncertain conditions and inhibited progress in key energy transition areas, such as the roll-out of heat pumps or the construction of backup power plants to support intermittent wind and solar electricity. 

According to the DGB, expanding renewable energy capacity, transmission and distribution grids and a price framework that supports the shift to climate friendly industrial processes are key to improving conditions in the jobs that are essential to the energy transition. The confederation also called for transparent monitoring of skilled labour needs to enable targeted training, and greater efforts to tap the potential of underrepresented groups in the energy sector, including women, and people with a migration background.