JOBS NOTES Issue No. 16 OPTIONS TO SUPPORT WORKERS THROUGH A TRANSITION AWAY FROM COAL IN EASTERN WIELKOPOLSKA BACKGROUND Eastern Wielkopolska is an area that is economically The European Union (EU) committed to global heavily dependent on coal and energy production climate policies including those declared in the Paris (it generates 5 percent of Poland’s electricity) and is Agreement (2015) and the European Green Deal characterized by the presence of the most polluting (EGD), a growth strategy aimed at achieving carbon plants in the region: greenhouse gas (GHG) emissions neutrality by 2050 in the EU. The intermediate target in the Eastern Wielkopolska amounted to 7.62 million is to reduce GHG emissions by 55 percent (compared Mg in 2019, about 62 percent of all emissions in to 1990 levels) by 2030, in line with the EU’s Nationally Wielkopolska. The energy poverty and the challenge Determined Contribution (NDC).3 The Just Transition of changing the heating structure of both private and Mechanism (JTM) will help mobilize about €100 billion public buildings are pressing. 1 The ZE PAK Capital of investments over 2021–2027 to support Member Group is the biggest employer in the region and the States achieve the ambitious targets set under the EGD. largest private energy group in Poland, consisting of The Just Transition Fund (JTF)—pillar 1 of the JTM— entities acting in the field of lignite extraction, power represents a key financial instrument for mitigating the generation from conventional and renewable sources, social and employment impacts of the coal transition heat production, and electricity trading. Lignite mining of carbon-intensive regions. The Konin subregion in activities are planned to shut down in KWB Konin Eastern Wielkopolska is identified as one of the coal (operating in the area of Konin and Kola) by 2030 and regions eligible for JTF support.4 Coal regions may in three power plants operated by the ZE PAK Capital access and disburse JTF resources on the basis of their Group by 2024.2 The region’s ambition is to transition Territorial Just Transition Plan (TJTP). out of coal-based energy production toward green energy as part of the regional smart specialization According to the Partnership Agreement 2021–2027 of the Greater Poland voivodeship and of the Konin adopted on November 30, 2021, yet to be agreed with subregion: renewable energy sources (RES) and modern the European Commission (EC), the Ministry of Funds energy technologies, including hydrogen. and Regional Policy is the Managing Authority of the 1 According to Climate Neutrality Strategy of Eastern Wielkopolska (2021) about 100,000 buildings need renovation in Eastern Wielkopolska and an estimated 20,000 families are energy poor, consuming more than 10 percent of their income on energy. 2 The KWB Adamów completed the operations in February 2021. 3 (EC 2019). Communication from the Commission to the European Parliament, the Council, the European Economic d Social Committee and the Committee of the Regions, the European Green Deal, COM/2019/640. 4 Only projects in eligible JTF regions at NUTS 3 level qualify. Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 JTF national program and the regional administrations education. The TJTP (and therefore JTF-supported (Marshal Offices) act as intermediary bodies. The interventions) is envisioned as part of the Regional eligibility criteria of potential projects and the timeline Operational Program 2021–2027 for Wielkopolska. for disbursement are not yet defined. 5 Eligible beneficiaries are not strictly defined in dedicated JTF The World Bank is providing analytical and advisory regulation. In principle, therefore, any type of public or services to improve the capacity of Polish coal regions private law entity, as defined in the Common Provisions to manage the clean energy transition as part of the Regulation, qualifies, although large enterprises (that Support Polish Coal Regions in Transition technical is, other than small and medium enterprises [SMEs]) assistance (TA) with support from EC DG Energy. The TA can receive JTF support for productive investments supports medium- to long-term interventions to ensure only in limited cases. Eligible activities include (a) those a ‘just transition’ away from coal—such as a national directly linked to addressing the social, employment, approach to reclamation and repurposing of both former economic, and environmental impacts of the transition mining lands and physical assets and development of to carbon neutrality targets and (b) those that regional economic diversification strategies in some contribute to the implementation of the TJTP. In terms cases, the establishment of governance structures to of social protection and labor, eligible JTF interventions implement the transition over the coming decades, include (a) upskilling and reskilling of workers and and the development of strategies to help affected jobseekers, (b) job search assistance to jobseekers, (c) workers transition to new employment opportunities. labor market inclusion of jobseekers, and (d) other With respect to labor aspects, the TA generated new activities to promote social inclusion. The JTF cannot knowledge on the profile of workers at risk of losing finance early retirement schemes or compensation their job due to the mine closures, an assessment of the schemes for workers who have been laid off. potential indirect effects of mine closure on their supply chains to inform employment, technical and vocational The draft TJTP for Eastern Wielkopolska for 2021– education and training (TVET) and social policies to 2027 (October 2021 version) states three objectives: manage the reallocation and reskilling of workers in (1) building a zero-emission, dynamic circular each of the three coal regions (Silesia, Lower Silesia economy; (2) ensuring an integrated, high-quality and Eastern Wielkopolska). Finally, the TA supports environment and economic space; and (3) promoting the design of pilot projects eligible to be financed an active society through access to social services through EC financing instruments and their readiness and awareness of green and just transition. The for implementation. This policy note is prepared in TJTP proposed interventions to achieve objective 1 the context of Component 3 of the TA to assist Konin including outplacement services for workers at risk Agency for Regional Development (ARR) to review, of losing their job because of the transition; support assess, and exploit synergies across alternative draft for business start-up, research and development project proposals and to develop a comprehensive (R&D), and for existing SMEs to adapt to changing ‘outplacement program’ for workers of the ZE PAK technologies and create new jobs; and investment in Capital Group and other workers indirectly affected education institutions from early childhood to higher by the transition in partnership with key stakeholders. 5 Based on the Partnership Agreement adopted by the Cabinet of Ministers on November 30, 2021, the implementation of the JTF will take place within the framework of a national program and will include actions of a national and regional nature. Each region will have its own priority axis in alignment with objectives identified in TJTPs. The Ministry of Funds and Regional Policy is the Managing Authority of the national program and regional administrations (Marshal Offices) act as intermediate bodies. The role of the regions would go beyond a typical mandate of an intermediate body as they would be de facto in charge of the entire decision-making process (related to their priority axis): starting with project selection, contracting of projects, and overall financial management. The ministry would play a coordinating role and be responsible for the implementation of the horizontal priority axis financed from the national envelope. In early 2022, it was decided that the implementation of JTF regional envelopes will be managed by regional authorities as an integral part of their Regional Operational Programs 2021–2027. 2 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 In October 2021, Konin ARR submitted to the World adviser, representatives of the Association for Social Bank three draft project fiches6 for the implementation Cooperatives, the chairman of the Employee Council of outplacement support under the TJTP7 with a specific of PAK KWB ‘Konin’, the Institute of the Green Future request to review them, identify complementarities, and in Konin, representative of Jobs First, and the Regional provide recommendations on a coordinated approach Labor Office (LO) in Poznan ´ (Annex 1). to manage the transition of affected workers.8 Given the overlaps across the three proposals in objectives, target population, and proposed outplacement interventions, CONTEXT the World Bank was requested to recommend design options based on international best practice and to Local labor markets propose feasible implementation arrangements for a single outplacement program managed by a single The subregion of Eastern Wielkopolska, where most of authority responsible for the coordination with other the region’s mining activity is concentrated, has been key stakeholders and accountable for results. identified as an area particularly vulnerable to the clean energy transition. The five largest mining companies The objective of this policy note is to provide an account for about half of the total employment and overview of the three draft project proposals and to more than 75 percent of revenues. The employees recommend key design principles and implementation of these companies will be directly affected by the arrangement options for a coordinated outplacement transition toward climate neutrality. The economic and program in the Eastern Wielkopolska region that would social consequences of the energy transformation are provide a package of services to motivate and help expected to be highest in the following five counties affected workers find suitable jobs in alignment with (powiats): Konin, Koni´nski, Kolski, Słupecki, and Turek. the TJTP. The focus of the note is on interventions They have the heaviest dependence on fossil fuel supporting the social and labor transition in Eastern exploitation and high-emission processes.9 Wielkopolska, rather than the economic, spatial, and energy transformations which are also part of the JTM While population dynamics in Wielkopolska have Pillar 1. Efforts to promote local economic development remained pretty stable over the past twenty years, with and environmental rehabilitation of affected subregions a stable level of working-age population, demographic as well as to develop stakeholder engagement and patterns in the Eastern Wielkopolska subregion10 are public communication strategies are beyond the scope changing. The working-age population, 274,000 people of this note. in 2020, has been shrinking due to both ageing and outmigration. The depopulation has been particularly The policy note is based on the draft project fiches large in Konin, the largest municipality in the subregion, submitted to the World Bank and on bilateral and where the overall population dropped by 12 percent in multilateral consultations held between mid-October the past twenty years.11 The rising unemployment in the 2021 and mid-March 2022 with Konin ARR and the Konin municipality was the main push factor causing authors of the fiches including the heads of several the outflow of residents to find employment in other ZE PAK Capital Group trade unions, the ZE PAK CEO regions or abroad. 6 Prepared by (a) ZE PAK Capital Group together with ZE PAK trade unions (outplacement project); (b) Employees’ Council (representing ZE PAK employees of the of PAK KWB Konin S.A. plant) and an NGO Institute of the Green Future (outplacement project); and (c) Association for Social Cooperatives (Green Solidarity Social Cooperatives project). 7 With the exception of the one prepared by ZE PAK trade unions assigned to the National Just Transition Plan (NJTP). 8 Including workers who were laid off since the beginning of 2018 and are still unemployed. 9 Churski, Perdal, and Burchard 2021. 10 Eastern Wielkopolska has about 430,000, 12 percent of the Greater Poland region. 11 There were 82,640 residents in the Konin municipality in 2000 and 72,539 in 2020 (GUS). 3 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 In fact, while regional (Greater Poland12) labor market slowdown. Negative social and employment impacts indicators compare quite favorably with EU-27 in the subregion are expected to affect workers and averages,13 the Eastern Wielkopolska subregion is their families both directly (ZE PAK direct workers) lagging behind. The registered unemployment rate in and indirectly (workers and SMEs in sectors with high Eastern Wielkopolska in 2020 was 6.9 percent (and as dependency on coal‑based power generation and high as 9.7 percent in Konin county) compared to 3.7 lignite mining production technologies and services percent in Greater Poland and 6.3 percent in Poland; the related to these employees at risk of losing their job). labor force participation is only 49.5 percent compared to 57 percent in Greater Poland and 56 percent in The ZE PAK Capital Group has a key role to play in the Poland; the employment rate in Eastern Wielkopolska in social and labor transition (in addition to the energy and 2020 was 45 percent, significantly lower compared to economic transition) as many jobs will be lost and new 54 percent in Greater Poland (based on Główny Urza˛d ones created. The ZE PAK Capital Group is the biggest Statystyczny [GUS] data). employer in Eastern Wielkopolska. ZE PAK Capital Group employed 8,700 workers in 2011 and 3,593 as The employment structure of Eastern Wielkopolska is of October 2021. ZE PAK Capital Group employment characterized by a high share of workers in agriculture declined by 21 percent (about 1,000 workers) in the and a low share in services. Agriculture accounts for past two years (Figure 1) and downsizing is expected one-third of employment in Eastern Wielkopolska to continue over the next five years. compared to 18 percent nationally; services accounts for 38 percent compared to 53 percent at the national ZE PAK Capital Group workers account for 1.2 percent level and industry accounts for 29 percent of workers, of the entire working-age population in the Konin mostly in mining and energy (Instrat 2021). Jobs in the subregion as of end of 2021; they represent a large services sector have increased in the past years (with the percentage of working-age population especially in the exception of the Konin municipality). Within industry, municipalities of Turek (close to 6 percent) and Kleczew the construction and industrial processing sectors, and Kazimierz Biskupi (close to 5 percent) and of total especially the furniture, metal, and food industries, employment, especially in Kazimierz Biskupi (close to 40 have also exhibited strong job growth in the region percent) and Wilczyn or Wierzbinek (about 30 percent). (IBS 2021). The share of the unemployed registered with LOs in the working-age population is also highest in those last two The structure of the Eastern Wielkopolska economy municipalities, around 6 percent (Figure 2). reflects a high degree of specialization in coal-based extractive and energy industries. Mining and energy ZE PAK Capital Group workers are less educated sector activity has led to the development of other than the average education attainment in the region. economic activities directly related to mining and As of the end of 2019, nearly 40 percent of the ZE energy production (in their supply chain) and indirectly PAK Capital Group workforce had either primary or related to services.14 The discontinuation of mining vocational education (as compared to 34 percent and activities in KWB Konin within the ZE PAK Capital 28 percent in Greater Poland and Poland, respectively), Group is expected to result in job losses and possibly 38 percent had secondary education, and 22 percent further outmigration, in addition to local economic higher education, based on ZE PAK Capital Group 12 Wielkopolska. 13 Regional labor market indicators based on LFS survey (which does not provide representative statistics at the subregional level) are comparable to national and EU-27 averages: the employment rate was 71 percent in Greater Poland and 69 percent nationwide, against an EU-27 average of 69 percent (Eurostat, lfst_r_lfe2emprt); the unemployment rate in Greater Poland was 1.8 percent and 3.2 percent in Poland, lower than the EU-27 average of 6.3 percent in 2020 (Eurostat, lfst_r_lfur2gan); and the labor force participation in Greater Poland is 72 percent and 71 percent in Poland, compared to 73 percent average in EU-27 (Eurostat, lfst_r_lfp2actrtn). 14 The mining and energy sector in Greater Poland is vertically integrated, and most activities are carried out by the ZE PAK Capital Group or two subsidiaries directly integrated in the ZE PAK Capital Group (PAK Górnictwo and PAK Serwis) which employ about 2,200 people (IBS 2021). 4 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 Figure 1 ZE PAK Capital Group employment decline in the past two years –21% 0 –55 –165 –235 –170 –125 –124 4,467 4,467 4,412 4,500 4,247 4,012 4,000 3,842 3,717 3,593 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 PAK Mining KWB Konin KWB Adamów ZE PAK PAK Service Others (PII, VOLT, Polish Hydrogen Bus) Mining Energy Source: ZE PAK Capital Group. Figure 2 ZE PAK Capital Group workers as a share of total employment and share of registered unemployed, by municipality of residence 7% 45% 40% 6% 35% 5% 30% 4% 25% 3% 20% 15% 2% 10% 1% 5% 0 0 sła ł ów Tu nin ów Pr rek zy a up z rz n Kr k Kl sk w sk Br sin w a o Ry te ów o w ca dy wa sk er n ne in y ln st ze ze gó am ul i W i up W ilcz ko w e ia w zk m Bi imi ol po Ko Tu h bi Sk Śl ec ud Rz ro Sł M c zy G lis m z st Kr Ka e ie So O ar ła St W Share of registered unemployed in total working age population Share of the ZE PAK employees in total employment (Right axis) Source: World Bank team based on ZE PAK Capital Group data and GUS. 5 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 administrative data. ZE PAK Capital Group workers The job losses are expected to be spatially concentrated are mostly men (91 percent). Most are older workers, in the municipalities where most ZE PAK Capital Group with 41 percent ages between 41 and 50 and 35 workers live (Kazimierz Biskupi, Wierzbiniek, Kleczew, percent older than 50. It is estimated that one-third Wilczyn, Konin, and Turek municipalities), which overlap of the workforce (1,200 employees) will have pension showing weak labor market indicators. In fact, almost rights by 2025 and more than half of the workforce all (98 percent) ZE PAK Capital Group employees live in (55 percent) will have earned their retirement rights Eastern Wielkopolska, 30 percent of whom commute by 2030, coinciding with the end of the coal-based from the municipality of Konin where the registered operations (Instrat Foundation 2021). unemployment rate was already about twice as high as in the entire voivodship. In Turek, with the closure Earnings in ZE PAK are about 30 percent higher than of Adamów plant, the layoff process was terminated. the average wage in Wielkopolska region and have been rising over time. The average gross monthly salary The ZE PAK Capital Group estimates that 511 new jobs in the ZE PAK Capital Group between 2013 and 2019 will be created as part of the investments in three new increased from almost PLN 4,800 to PLN 5,500, about projects15 under their new green strategy. The new jobs 8 percent higher than the regional and national average would require the upskilling and reskilling of some of remuneration (Instrat Foundation 2021). Generally, coal the workers expected to remain employed in the ZE PAK hourly wages tend to be substantially higher than hourly Capital Group; in other words, existing workers who wages in other sectors. The high mining wage distorts are willing to continue to work in the ZE PAK Capital the labor market by impeding labor reallocation to Group will either transition to other occupations or other sectors. In the context of coal phase out, the high perform different tasks within the same occupation wages of mine workers drive up their reservation wages, within the ZE PAK Capital Group. The timeline for the potentially reducing their willingness to take other jobs. implementation of the three new projects remains clear; a mismatch could arise between the timing of dismissals The ZE PAK Capital Group is expected to downsize and when the new jobs are created. to 1,500 employees in net terms by the end of 2024; some workers will be retrained while new jobs will To date no estimates are available on how many be created in the new renewable energy projects workers will be needed to carry out activities related to ZE PAK Capital Group is investing on. However, the the closure of mines and reclamation of land during the employment reduction in the ZE PAK Capital Group next three years. However, when the process of closing by 2024 as a result of scaling down the operation the Adamów plant started in July 2020 there were 130 of lignite mines and power plants will be faster than employees, in July 2021 there were 113 employees, as of the rate of normal retirement of employees and than December 2021 there were 10 employees, and in 2022 the speed at which new jobs will be created. ZE PAK there will be no employees. Employees were needed to estimates that 2,356 workers will lose their job in the prepare the embankment, lead the machines out of the next three years (Figure 3). After the liquidation of pit, dismantle some parts, and secure these machines. KWB Adamów lignite mine in 2021, two out of three About 150–160 employees of PAK Górnictwo were mining opencasts operating in KWB Konin lignite mine dealing in particular with reclamation, drainage, and will close and about two-thirds of installed capacity in electricity supply, they were 90 as of December 2021 the power plant will be discontinued and, after 2025, and in 2022 about 60–65 employees will deal with the the potentially continued operation of Pa˛tnów II Power completion of the reclamation process. Plant will require a much smaller workforce pool. 15 Based on the draft proposal submitted to the World Bank. In October 2020, the ZE PAK Capital Group published a new strategy to radically change the direction of the group’s development, in which it declared the gradual closure of existing lignite discoveries, the abandonment of new coal-fired power plants, and the closure of coal-fired power plants by 2030. The new direction includes the development of Poland’s first technologically advanced electrolyze manufacturing plant (a TPC cooler module factory and heat pump competence center), the development of a manufacturing line for serial production of a Polish hydrogen bus for passenger urban transport, and the production of green hydrogen using post-coal infrastructure of Pa ˛tnów-Adamów-Konin Power Plant Complex. 6 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 Figure 3 ZE PAK Capital Group projected employment change between 2021 and 2024 1,600 1,404 Employment figure (population size) 1,400 1,200 974 1,000 –77% –15% 800 706 –74% 646 –51% 600 600 400 314 323 250 200 113 0 ZE PAK SA KWB Konin KWB Adamów PAK Górnictwo PAK Serwis Employment figures as of 28 Feb. 2021 Employment figures projected for 31 Dec. 2024 Source: ZE PAK Capital Group administrative data. Preliminary findings of a Preference and Skills Survey to relocate, reluctance to change job (especially among conducted by the World Bank team with ZE PAK Capital the older) and a ‘wait to retire’ mindset prevail. Group workers in October 202116 and consultations However, almost two-thirds of ZE PAK Capital Group with ZE PAK trade unions indicate that workers at risk workers were willing to be upskilled and reskilled for of losing their job are predominantly men, have lived a new job based on the survey. Preferred future jobs mainly in small towns, are relatively more tenured and include those that would match their competences and production oriented, and have high wages. One in four experience, with a preference to the renewable energy of ZE PAK Capital Group surveyed workers reported sector, especially among higher educated and younger that ZE PAK salary is the only source of income in workers. About one-third of ZE PAK Capital Group his family. For the majority of ZE PAK Capital Group workers expressed willingness to be self-employed workers, the ZE PAK Capital Group was their only (while self-employment accounts for 15 percent of employer throughout their working lives, and few employment in the four most affected municipalities workers are accustomed and prepared for job-to- where ZE PAK Capital Group workers live). job transitions.17 Critically, when asked about their aspirations for future job pathways, no specific answer In addition to direct coal jobs, many jobs in the region was provided on what would be a viable and desirable are indirectly related to the mining sector through their job transition. Workers had not yet weighted their associated supply chains and through the broader preferences on their future as workers. The results of demand for services in the community (restaurant, the survey show strong resistance among residents of food, entertainment, and so on). The ZE PAK Capital affected municipalities and ZE PAK workers to commute Group supply chain includes inputs such as machinery or relocate elsewhere in Poland for work. Unwillingness and processing equipment as well as the goods and 16 The Preference and Skills Survey sampling strategy draws on both ZE PAK Capital Group workers and working-age people in the four most-affected municipalities. The final sample includes 524 ZE PAK employees and 482 working-age adults in four most affected municipalities. 17 About 8 percent of surveyed ZE PAK Capital Group workers reported to have been looking for a job and 30 percent considered to change jobs in the past 12 months (World Bank Preference Survey 2021). 7 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 services associated with the use of coal, for example, Public employment services transportation to the coal-fired power plants and other end-user points. Mine closures reduce demand The voivodeship (regional) LO is located in Poznan ´ ; it for these goods and services along the supply chain has four subregional branch offices in Konin, Kalisz, creating indirect job losses. They are also expected Leszno, and Piła. The regional LO supervises, funds, and to induce job losses among the businesses that coordinates the powiat LOs for the entire voivodeship, produce goods consumed by coal mine employees monitors and produces research and analytics (job and their families. Estimating indirect and induced barometer) and an annual publication on labor market impacts is difficult and there is a range of different trends in the region, and is responsible for training estimates for the job multiplier effects depending on powiat office staff and maintaining the registry of the methodology used. For example, an assessment vocational training providers in the region partnering of publicly tendered contractors (six in total) providing with powiat LOs.20 Regional LOs provide information the ZE PAK Capital Group repair service and companies and career guidance services directly to citizens in their enabling the management of combustion byproducts offices through the Career Information and Planning and restoration of degraded land concludes that Center. 21 The regional LO manages both EU and 1,200 mining-related jobs are connected with the ZE national funds (the Labor Fund, Guaranteed Employee PAK Capital Group Complex and potentially induced Benefits Fund) and determines the distribution of funds losses, 250 of which are located in Greater Poland (IBS across counties considering the directions and priorities 2021), resulting in a multiplier of about 0.1. This is a set out in the regional action plan for employment. The lower bound for the potential indirect effects as the regional LO has experience in managing regional and six subcontractors represent only a small share of ZE national programs funded by the European Social Fund PAK’s existing supply chain.18 Based on a very different (ESF)22 and by the European Globalization Adjustment methodology (based on input-output matrix), it is Fund.23 The regional LO and the Turek LO had helped estimated that the job multiplier in the Greater Poland manage the transition of workers laid off in KWB region is about 2.2, meaning that for every job lost in Adamów plant in February 2021 with support from the mining sector there will be two jobs lost due to the national Labor Fund. both intraregional and interregional trade (equivalent to about 8,000 jobs) (JRC 2018). Overall, in Poland, At the powiat level, there are 31 powiat level LOs every coal mining job would generate between 0.6 and (PUP) in Greater Poland, 4 of which are in Eastern 1.4 additional jobs (equivalent to 79,000 to 130,000 Wielkopolska. 24 Powiat LOs provide employment jobs, respectively) (JRC 2018).19 services to registered unemployed, jobseekers, and workers at risk of losing their jobs declared redundant 18 The same methodology based on public tendered contracts in Silesia yielded more comprehensive results (IBS 2021). 19 These estimates of the indirect impact of the transition relied on data from EURACOAL 2015, and include power generation, equipment supply, services, and R&D. 20 There is a competitive market of private companies operating in Greater Poland that ZE PAK workers trust more than the LOs, as reported by ZE PAK Trade Unions to the World Bank 21 The center offers meetings and consultations covering, among others, the following issues: getting to know yourself and your professional potential, building a professional image, recruitment challenges faced by a job candidate, effective search for employment, time management, communication assertiveness, coping with stress, and entrepreneurship. Career counselors provide individual counseling free of charge. For those interested in group activities, participation in workshops, information meetings, webinars is offered to facilitate exchange of ideas, information, and experiences, help strengthen confidence in own abilities and strengths, and develop soft skills and gain reliable knowledge. 22 The Poznan´ regional LO is one of three intermediary bodies of the Regional Operational Programs, specifically in the implementation of two ESF-funded priority axes of labor markets and social inclusion. The budget of measures managed by regional LO as the intermediary body is EUR 227.4 million. The regional LO was the intermediary body for the Program Knowledge-Education-Development 2014–2020. 23 ´ in 2011. It was used to manage the transition of workers laid off in the Cegielski company in Poznan 24 Konin, Turek, Słupca, and Koło. 8 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 by their employers.25 Powiat LOs conduct interviews the national level of 85.5 percent. However, ALMPs and prepare individual action plans (IAPs) tailored in Greater Poland are more efficient than the country to the individual needs and capabilities, considering average: the overall cost-effectiveness index26 is PLN their education, work experience, and the possibility 9,491, compared to the national level of PLN 10,154. of taking up a job or business activity. Based on Professional training, wage subsidies, and internships jobseekers’ profile, powiat LOs provide a wide menu are the most cost-effective (Table 1). of employment services and programs including job search assistance; job matching; career counseling; The quality and scale of labor market programs provided identifying, organizing, and financing of vocational by local LOs may not address the needs of mine workers training; internships and scholarships; initiating and at-risk of being dismissed. Given the large number of subsidizing of additional job creation (wage subsidies), workers at-risk of unemployment in the local labor and payment of unemployment benefits. In Greater market (more than 2,000 workers according to ZE Poland, about 46,000 unemployed were registered PAK estimates), the LO’s implementation capacity is with LOs (out of about 61,000 unemployed in the further challenged. The quality of job search assistance, region as per GUS data), less than half of the registered profiling and referral to vocational training performed unemployed (19,542) participated in active labor market by job counselors in LOs is already compromised by programs (ALMPs), and 73 percent of participants their high case load. As a result, local LOs may not (14,289) found a job in 2019. The most common be able to provide the intensive and individualized ALMP is the six-month subsidized internship mostly assistance that affected workers would need for a targeted at youth, followed by professional training. successful job transition. Many affected coal workers The employment effectiveness of ALMPs in Greater are mid-age, worked with one employer only, are Poland (that is, those completing the program find reluctant to move, and have high reservation wages employment) is 81.7 percent, which is slightly below and lower foundational skills. Table 1 Coverage and job placement effectiveness of ALMPs in Greater Poland (2019) Profes- Business Wage Public All ALMPs Internship sional start-up subsidy works training grants Participants 19,542 6,620 4,765 3,063 1,882 625 Completed the 17,497 5,805 4,272 3,320 1,687 577 program Found a job 14,289 5,090 2,314 3,186 1,528 524 Employment 81.7 87.7 54.2 96.0 90.6 90.8 effectiveness (%) Cost-effectiveness 9,491 7,583 4,883 17,360 4,485 11,543 index (PLN) Source: Powiat LOs in Greater Poland. 25 For massive layoffs, the employer is required by law to notify the powiat LO and ‘register’ affected workers who will then become eligible for outplacement services. 26 Defined as the ratio of the amount of the labor fund expenses incurred by powiat self-governments for financing basic forms of professional activation to the number of people who during or after participation in ALMPs were employed. 9 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 Relevant employment protection law and to provide labor market services implemented in the social protection entitlements form of a program to employees who are either under dismissal notice or within six months after termination According to the Labor Code, the employer must notify of their contracts. Such a program may be implemented the representative trade union in case of dismissal of a by either a powiat LO or an employment agency or a worker with a regular contract. If the employee is not training institution. protected by the union, the employer does not have to consult with the union about the dismissal. The length According to the Polish Employment Protection Law, of notice period depends on the tenure duration and is employees in companies with less than 20 employees maximum of three and half months for longer tenures. are not entitled to severance pay. Severance payments In cases of collective dismissals, there are additional are mandated for employers with at least 20 employees notification requirements: the employer must notify the if the termination of employment is based on collective employee representative (trade unions) 20 days before dismissal 29 and if the termination of individual implementation and also the local (powiat) LO27 before employment is due to reasons not attributable to the the start of notice period. Alternatives to redundancy employee. The severance pay is paid by employers should be considered and an agreement should be when the employment contract is terminated in reached with trade unions on the employer’s layoff collective redundancies due to reasons not attributable program and best ways to mitigate the effects.28 The to employees by notice or mutual agreement. The day parties should hold consultations with the intention of after notice periods ends, employees are entitled to a reaching an agreement. If consensus over the content severance payment equal to (a) a one-month pay for of the agreement cannot be reached, the employer employee who has been employed for less than two must prepare regulations defining the procedure for years, (b) a two-month pay if the employee has been mass layoffs with special regard to agreements with the employed for 2–8 years, (c) a three-month pay if the company trade unions in the course of the negotiations. employee has been employed for more than 8 years.30 The Act on Employment Promotion and Labor Market Early retirement is a possible alternative, available Institutions stipulates the obligations for employers exclusively to the Polish mining sector (both coal and initiating mass layoffs procedures. An employer who lignite miners). Early retirement incentivizes workers intends to dismiss at least 50 employees within a period to remain in the sector until pension eligibility age. of three months is obliged to agree with the competent The regular retirement age for men is 65 (and 60 for powiat LO on the scope and forms of assistance for women), whereas underground miners can retire up the dismissed employees, in particular regarding job to 15 years earlier. Specifically, miners can retire at age placement and vocational counseling and training. of 50 if they have worked at least 25 years, including In the case of mass layoff, the employer is obliged at least 15 years underground and at the age of 55 if 27 Article 4 of the Act of Employment Promotion on specific terms and conditions for terminating employment relationships with employees for reasons not related to the employees. 28 The agreement or employer’s layoff program should cover at least reasons for the intended collective layoff, the number of the employees and occupational groups to which these employees belong, the occupational groups to which the employees to be laid off belong, the period in which the employees will be laid off, proposed criteria of selecting the employees to be laid off under the collective layoff program, the sequence of laying the employees off, proposed resolution of employee issues related to the intended collective layoff, and if these issues include pecuniary benefits, the employer shall additionally present the methods for determining their amounts (Article 2 of the Act on specific terms and conditions for terminating employment relationships with employees for reasons not related to the employees). 29 Collective dismissals are defined as 10 workers in firms with 20–99 employees and 10 percent in firms with less than 300 employees and 30 workers in firms with 300 or more employees (Article 1 of the Act on specific terms and conditions for terminating employment relationships with employees for reasons not related to the employees). 30 Article 92 of the Labor Code, Article 8 of the Act on specific terms and conditions for terminating employment relationships with employees for reasons not related to the employees. 10 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 they have worked at least 25 years, including at least percent of their previous earnings. Benefits are fully 10 years underground.31 indexed to inflation on an annual basis. An unemployed person is entitled to unemployment Unemployed people not eligible for unemployment benefits if able and ready to work full time and is benefits can claim means-tested social assistance registered with powiat-level LOs. Eligibility conditions benefits and family allowances.33 The social assistance include being in working age (18 years to retirement benefit amount is calculated as a flat rate of 28 percent age, which is 60 for women and 65 for men), having of the national average wage in the previous quarter. worked at least 180 days in the previous year, and Family allowances provide between PLN 95 and PLN not possessing agricultural land of more than 2 ha. 135 per month per qualifying dependent (depending The duration of the unemployment benefit is for a on his/her age). maximum of 12 months and the benefit amount is calculated based on employees’ tenure.32 Workers In the context of the ZE PAK Capital Group, its workers who are dismissed in group layoffs are entitled to 75 are entitled to severance payments, unemployment Figure 4 Existing social protection benefits and labor programs SP entitlements for coal SP general entitlements Active labor market programs in GP sector workers Severance up to 3 months’ Unemployment benefits up Internships pay for employees in large to 75% of previous 46,000 Beneficiaries: 6,620 (>20 employees) companies earnings for mass layoffs unemployed Job placement: 88% registered in PUPs Professional training Unemployment benefits Early retirement is possible (2019) Beneficiaries: 4,765 up to 12 months for mining sector workers Job placement: 54.2% Business start-up support Means tested Social Social Agreement (2021) for Beneficiaries: 3,063 assistance benefits hard coal miners Job placement: 96% Wage subsidies Beneficiaries: 1,882 Job placement: 91% Public works Beneficiaries: 625 Job placement: 91% Source: World Bank. 31 Early retirement options for sectors other than mining are limited in Poland. The so-called bridging pension system introduced in 2008 allows workers in 51 occupations that involve working in hazardous jobs to retire at the age of 55 (women) or 60 (men). Unlike mining pensions, bridging pensions are financed with revenue from a dedicated contribution (IBS 2018). 32 The amount of unemployment benefits is determined in accordance with the applicable Act on the Promotion of Employment and Labor Market Institutions. 33 The amount of unemployment benefits is determined in accordance with the applicable Act on the Promotion of Employment and Labor Market Institutions. 11 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 benefits upon registration with the local LO, and arrangements, expected coverage, and results differ outplacement services as agreed with the employer and across the three proposals. Table 2 provides an overview trade unions. The Social Agreement signed in May 2021 of the main design and implementation characteristics provides entitlements to new social protection benefits based on the draft proposals submitted to the World for hard coal miners,34 thus is not applicable to the ZE Bank between October and November 2021. PAK Capital Group lignite coal miners and power plant workers and in general to the Wielkopolska region as Some of the interventions proposed by the first two there is no hard coal mining. proposals such as short-term vocational training, job search assistance, career guidance, wage subsidies, and support for business start-up are also provided by powiat OVERVIEW OF THE DRAFT PROJECT LOs. Nonetheless, the quality of job search assistance, PROPOSALS TO SUPPORT COAL profiling, and referral to vocational training performed WORKERS UNDER THE TJTP by LOs’ job counselors is compromised by their high case load, which would not allow LO job counselors Three draft outplacement project35 proposals have been to provide individualized assistance with the intensity developed to mitigate the social and labor impacts required by this target group. Other measures such as of Eastern Wielkopolska’s transition out of lignite the mobility assistance and preretirement assistance are extraction and lignite-based power generation. The not currently provided to these workers, while support three proposals were prepared by (a) the ZE PAK Capital to green neutral social cooperatives would build and Group together with ZE PAK trade unions, (b) the ZE PAK expand the existing assistance to social cooperatives Employees’ Council36 together with the NGO Institute provided by the association. of the Green Future, and (c) the Association for Social Cooperatives. The Association for Social Cooperatives Specifically, the Association for Social Cooperative is a nongovernmental organization (NGO) currently project proposes to promote new and existing social supporting 300 social cooperatives. The proposed cooperatives focusing on the readaptation of buildings outplacement project proposals were prepared during (insulation and other improvements to increase the the elaboration of the TJTPs for Eastern Wielkopolska to energy efficiency) of energy-poor families, tapping be funded by the JTF once it is operational. Meanwhile, on the skills and expertise of ZE PAK Capital Group two small pilot initiatives are planned to take place workers. The proposed project would complement in 2022: individualized job counseling and job search existing government programs37 meant to subsidize the assistance performed by Jobs First with ZE PAK financing cost of replacing energy sources in residential building and the Smooth Transition Project under the Regional to achieve energy efficiency. The association tested Operational Program 2014–2020 (Box 1). an approach based on social enterprises, including local government social cooperatives, and municipal All three proposals share the same objective to provide companies and administration in municipalities as social and employment assistance to ensure a smooth an outplacement pathway for ZE PAK Capital Group transition of affected workers. While there is some workers in two municipalities (Kazimierz Biskupi and degree of overlap on the target beneficiaries and Rychwał), though evidence is scant to gauge whether types of proposed interventions, the implementation 34 Workers in the hard coal mining industry are entitled to (a) a monthly social benefit equal to 75 percent (80 percent) of the monthly remuneration for employees who have been granted the right to take a leave before December 1, 2021 (after December 1, 2021) for up to four years, provided it allows them to acquire the right to the pension before January 1, 2028 and up to three years, provided it allows them to acquire the right to the pension before January 1, 2027; (b) one-time severance pay of PLN 120,000 for employees who do not have the right to mining leave; and (c) equivalent payment to receive free coal. 35 ‘Outplacement program’ refers to a set of services and activities meant to mitigate the social and labor impacts of affected workers including job search assistance, intermediation services, training, wage subsidies, support to self-employment, mobility assistance, early retirement, and other types of income support. 36 The Employees’ Council represents only staff of PAK KWB Konin S.A. plant. 37 The STOP SMOG program implemented by municipalities. 12 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 joining social cooperatives is a viable pathway for the low take-up was the unwillingness among ZE PAK miners. Out of the twenty workers who were offered Capital Group workers to accept a job in a different to either start a social cooperative, or accept a job in occupation and the belief that their workplace in the the municipality administration, or a job in a municipal ZE PAK Capital Group will be maintained and there will entity at the same salary they were receiving in the ZE be no collective redundancies. It is worth noting that PAK Capital Group, only five expressed interest and the demand for workers being dismissed by ZE PAK only three ultimately accepted to join existing social Capital Group is high among municipalities, especially cooperatives and units dependent on municipalities, the demand for mechanics and maintenance workers. based on anecdotal evidence. The main reason for Table 2 Overview of the design and implementation features Upskilling and reskilling and professional activation of employees of the Capital Group of the Pątnów-Adamów-Konin The Employment Green Social Cooperatives Power Plant Complex Support Center for Solidarity (“ZE PAK Capital Group”) focused on creating and maintaining jobs Target Workers in the ZE PAK Group Workers from extractive and ZA PAK laid off workers and beneficiaries and from lignite value chain energy industry, declared energy-poor families companies in Eastern redundant and laid off Wielkopolska since 2018 Proposed Individualized counseling, job Training vouchers for upskilling Motivational and mobilization interventions search assistance within and and reskilling; technical and meetings, profiling, vocational outside ZE PAK, upskilling and financial support to start and training, grants and bridge reskilling and relocation support run a business; career guidance, finding instruments to facilitate job matching, wage subsidies; creation of green jobs in new social inclusion services; and existing social pre‑retirement income support cooperatives, business training and job incubation plan for new and existing social cooperatives Expected results/ 2,200 ZE PAK laid off workers n/a 1,000 new jobs created and 100 targets (304 youth and 1,657 above new green social cooperatives 54 y.o.) Duration Until 2025 Until 2029 Until 2026 Cost Euro 48 to 73 million (PLN 220– n/a Euro 20 million 330 million) Leading agency GK ZE PAK Management Board n/a Social Cooperative Promotion and Trade Unions Association Partners Regional and powiat LOs, Social ZE PAK employee council, the ZE PAK S.A. Group, Instrat economy and solidarity Regional Center for Social Foundation, selected economy actors, Outplacement Assistance, Powiat LOs, municipalities consultants, Business support representatives of NGOs, institutions representatives of business support institutions Source: An elaboration of information included in the three draft proposals. 13 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 The second proposal prepared by ZE PAK trade unions transition-related challenge faced by the ZE PAK Capital raises concerns on its eligibility (see Box 2). ZE PAK (as Group and the broader entire Eastern Wielkopolska. a large private company) would qualify as beneficiary The Employment Support Center (ESC) has a strong of the JTF only if outplacement services represent a participatory approach and puts forth the concept of minor share of a bigger productive investment. On the a one-stop-shop (the ESC) for social and employment other hand, ZE PAK trade unions could potentially be support interventions offered under the program. The the eligible beneficiary of the outplacement project— Green Social Cooperative meets the dual objective of as the eligible beneficiaries of the JTF have not been supporting affected workers and promoting energy precisely defined in the JTF regulation, thus in principle, efficiency for energy-poor families in the subregion. The any type of public or private legal entity, as defined in ZE PAK Capital Group proposal has a strong result-based the Common Provisions Regulation, qualifies. However, approach, building on the pilot that is about to be imple- the capacity of such an entity to perform envisaged mented. A contract with Jobs First has recently been tasks within the outplacement project and effectively signed to pilot individualized counseling and job match- manage EU funds should be thoroughly assessed and it ing services, starting January 2022, for 100 employees will have to meet requirements defined in the relevant who have been notified as redundant.38 The pilot is project selection criteria (Jaspers 2021). funded by ZE PAK Capital Group own funds using a per- formance-based contract with disbursement linked to All project proposals outline social and labor interven- results (job placements). The strengths and weaknesses tions to tackle the employment issues at the core of of each of the three proposals are outlined in table 3. Table 3 Strengths and weaknesses of each proposal Strengths Weaknesses Upskilling, reskilling, and activation of ZE PAK Capital Group affected workers Focus on tailored, individualized counseling Main focus is on ZE PAK direct workers; outreach to affected workers (indirect and induced) is not discussed nor budgeted ZE PAK Capital Group knows its workers and needs better; Limited sustainability. Once all ZE PAK Capital Group ZE PAK Capital Group may better prepare and help identify workers are outplaced, the program is over. Should workers who can transition to the new RES jobs created beneficiaries be placed in temporary employment and by the group become unemployed again, they would not be eligible Strong commitment as shown by the pilot, and plans to Main focus of the pilot is to provide an employee with a build on its results new job rather than skills development per se Limited capacity to coordinate with training providers; overall, the capacity of the Trade Unions as project beneficiary would need to be assessed Some proposed measures may not be eligible under the JTF 38 Jobs First has already implemented programs to find jobs for about 5,000 unemployed workers in Poland and about 500,000 in UK, mostly long-term unemployed. They are specialized in finding suitable employment. The placement rate in their previous experience with the Polish Government is 70 percent. The average time of employment in the existing Jobs First programs is 3.5– 4.5 months, while the time of participation in the program for one participant in the pilot is a maximum of 9 months. 14 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 Strengths Weaknesses Employment Support Center (ESC) Independence of the proposed ESC compared to its own Main focus is on ZE PAK Capital Group direct workers employer Principle of the one-stop-shop for client-oriented Implementation arrangements are not developed, the services proposal lacks an implementation plan and costing Comprehensive set of interventions also focusing on Some activities are not eligible under the JTF (retirement entrepreneurial prospects bonus and subsidies) Green Social Solidarity cooperatives Focus on a broader target group and dual objectives Unclear implementation arrangements for the provision (addressing energy efficiency and job losses) of vocational and business training Established experience to support green social Expected limited take-up cooperatives Multisectoral cooperation (public, private, social) Limited scalability Source: An elaboration of information included in the three draft proposals. BOX 1: ‘SMOTH TRANSITION’ OUTPLACEMENT INITIATIVE FOR AFFECTED WORKERS IN EASTERN WIELKOPOLSKA IMPLEMENTED UNDER THE GREATER POLAND REGIONAL OPERATIONAL PROGRAM 2014 – 2020 The lack of readily available JTF resources to finance the implementation of a comprehensive outplacement project for affected workers continues to be a major concern for all stakeholders, with ZE PAK trade unions continuously appealing for launching support measures as soon as possible. In the absence of a social contract for the lignite and energy sectors, the lack of funds from ReactEU and the JTF, as well as the growing socioeconomic crisis resulting from the war in Ukraine, dismissed workers face a difficult situation and urgent measures to support them are necessary. The issue of availability of the JTF is beyond the region’s remit and depends on the course and effects of Partnership Agreement 2021–2027 negotiations between the Government and the EC, which are still ongoing. In parallel to the pilot program for 100 ZE PAK employees (funded by ZE PAK and implemented by Jobs First), another pilot outplacement program (the ‘Smooth Transition’ program), implemented by Gift of Education Foundation, was launched in January 2022 with support of the Regional Operational Program 2014–2020 targeting about 250 workers either at risk of dismissal or planned to be dismissed or dismissed for reasons not related to the employee but in the context of limiting the extraction and use of lignite (as a result of restructuring, adaptation, and modernization processes of the enterprise). Worker eligibility is also set based on territorial residence for those who work or live in the following powiats: Kolski, Koniński, Słupecki, Turek, and the city of Konin. The objective of the project is that minimum of 124 people will take up or continue employment, as a result of participation in the project. Project end date is June 30, 2023. Each project participant will be provided with comprehensive support considering the full offer of support covering all forms of assistance possible to implement as part of the project, which will be identified by the participant. Envisaged support activities include the following: 15 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 1. Diagnosis of professional competence in the field of running a business and assessment of candidates’ predispositions to run a business (1 hour/person) 2. Preparation and implementation of IAP (6 hours/person) 3. Career counseling (1 hour/person) 4. Vocational training for 198 people. Thematic scope developed on the basis of IAP in accordance with the participant’s professional and health predispositions and the needs of the labor market. The average cost of training with the exam is PLN 2,500. 5. Job placement (6 hours/person, for 198 people) 6. Group training and advisory support in the field of preparation for running a business (56 hours/ group, for 50 people) 7. Individual training and advisory support in the preparation of a business plan (8 hours/person) 8. Subsidy for opening a business in the amount of PLN 23,050 (for 40 people) 9. Financial bridging support for a period of 12 months in the amount of PLN 2,670.00 for 40 people who will receive a grant. As of end of April 2022, there was no application to this program and only five workers benefited from ZE PAK pilot. The uncertainty on the layoff schedule, hence the lack of program take-up, delays the evaluation plans for the existing two initiatives in Eastern Wielkopolska. Source: Gift of Education Foundation (http://daredukacji.pl/plynne-przejscie/); Jobs First. BOX 2: ZE PAK CAPITAL GROUP MANAGEMENT BOARD ELIGIBILITY UNDER THE OUTPLACEMENT PROJECT Concerns were raised on the eligibility of the ZE PAK Capital Group Management Board as a partner of the outplacement project. In line with the provisions of JTF Regulation, the ZE PAK Capital Group Management Board—being a large company—could be an eligible financial partner (responsible for the implementation of selected activities) for outplacement services under the JTF only if such ‘soft investments’ (retraining and upskilling) accompany (as a minor share) the ZE PAK Capital Group’s productive investments, leading to job generation to offset job losses resulting from the transition. In such circumstances, the ZE PAK Capital Group Management Board could serve as a financial partner of a comprehensive outplacement project responsible for the pre-layoff provision of reskilling, upskilling, and on-the-job training of ZE PAK Capital Group workers declared redundant, to help them move to the new jobs created under the ZE PAK Capital Group’s three renewable energy line of business services, as recommended in the World Bank note. In line with the stipulations of draft Polish Implementing Act, the ZE PAK Management Board could not be included in the consortium as a ‘non-financial partner’ (not incurring any expenditures and only providing in-kind contributions such as making the company’s premises available to conduct training for workers participating in the outplacement program, and so on) as the draft regulation states that the participation of partners in the partnership project cannot consist solely in contributing resources for other partners. 16 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 INTERNATIONAL GOOD PRACTICES FOR A charitable organizations, cultural and academic insti- SUCCESSFUL TRANSITION OF AFFECTED tutions, and partners in the private sector—Ruppert WORKERS Bulmer et al. 2021). Mitigating the social and employment impacts of coal A review of international experience points to some mine closures requires adopting systemic and coor- lessons for designing outplacement services (ALMPs dinated measures, in accordance with the principles and temporary income support measures) be provided of a just transition, that is, to concentrate on geo- before and after the layoffs. graphic areas, industry sectors, and employees con- fronted with the greatest problems. Outplacement The timeliness of action is key to prepare redun- programs include both passive and active measures dant workers before layoffs. It is important to act that are sequenced and coordinated to protect income, early and provide the information regarding outplace- encourage reemployment, and build human capital. ment assistance options when the worker receives The precise design of a support package for mitigating the notice of redundancy / dismissal. The main lesson social and labor impacts of the coal transition depends learned from the Russian coal transition in the 1990s on the local context, including the local economy and was that, ideally, the design and institutional and local labor demand, availability of fiscal resources, the regulatory framework to implement the outplace- state of the social protection system, and the dynamics ment programs (the Local Development Programs39) of the coal transition whether rapid or gradual transi- should be in place before the large-scale layoffs take tion (Cunningham and Schmillen 2021). place. Instead, mine closure started in 1993 while the Local Development Programs were introduced only in It has to be noted that labor policies that support 1996. As a result, only few of the former coal work- the transition of displaced workers to new jobs are ers found jobs or self-employment through outplace- necessary but not sufficient to sustain a successful ment programs compared to the number of layoffs. transition, as labor demand needs to be there in sec- The transition experience in Germany (Ruhr Valley) tors and types of occupations that may absorb the job and more recently of the government of Alberta, losses. An economic development strategy including an Canada, through its Climate Leadership Plan,40 show industrial restructuring process should be prepared and that the provision of job-search services should begin implemented in advance to mine closure and layoffs as soon as the workers receive notice or even before to boost the local demand, especially in remote and in order to improve the effectiveness of such mea- lagging regions. Efforts to promote, diversify, and plan sures (OECD, 2018). local economic development as well as environmental rehabilitation should start as soon as possible before Eligibility criteria to select beneficiaries of out- the closure of mines. Improving the business envi- placement services should be clear and inclusive ronment and fostering entrepreneurship can increase of both directly and indirectly affected workers, profitability and attract new firms. Investment in phys- formal and informal workers. It is important to ical infrastructure and physical and digital connectiv- clearly identify who is at risk of losing a job because ity will enhance the appeal for investors by reducing of a mine and power plant closure and define eligi- transport and other operational costs. Experience from bility determination and verification criteria for out- earlier transition episodes illustrates that local govern- placement services. The coal transition experience ments and institutions cannot manage alone, requiring in the Appalachian region (US) shows that workers regional and sometimes national support—with plan- indirectly employed in coal supply chains or near the ning, policy coordination, and financing—as well as mines should be considered when defining the benefi- the cooperation and expertise of NGOs (for example, ciary selection rules of assistance programs, in addition to direct mine workers. And in settings where mines 39 The Local Development Programs were meant to be used for pre-redundancy consultations, professional retraining, temporary public works programs, small business support, job creation programs, and relocation assistance. 40 The Plan introduced an accelerated phasing-out of coal-fired power generators and the introduction of a carbon price. 17 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 employ both formal and informal workers, such as training programs can assist labor redeployment at in India, informal mine workers are at greater risk moderate costs per beneficiary when they are demand than their formal counterparts for several reasons: driven. The provision of training could be delivered in they lack severance rights and other basic labor pro- class and on the job, directly by hiring employers. In tections such as advanced notice of layoff; they are the case of class-based short-term vocational training, ineligible for social insurance programs such as unem- it will be important to align the selection of courses to ployment benefits; and they earn much lower incomes the occupation in higher demand and in high produc- and are therefore less able to weather income shocks. tivity sectors. Informal and temporary work may be significant in the mining companies and their suppliers and in other Employment services and education and train- local sectors that are indirectly associated with coal ing programs are likely to have little impact mines employees. The displacement of informal work- when local labor markets are highly dependent ers whose income depends on the coal sector is par- on mining-related economic activities and job ticularly concerning in poorer families (Ruppert Bulmer opportunities are limited in the affected area. In et al. 2021). such contexts, the most promising strategy might be to tilt the balance of outplacement programs toward It is critical that workers are clearly informed of temporary passive income support to manage long the options and services they may be provided transition periods coupled with mobility assistance and procedures to follow, well before the actual to facilitate access to other labor markets. Mobility layoff occurs. Pre-layoff assistance is intended to assistance reimbursing the cost of moving to a dif- prepare workers for impending layoffs. Typical ser- ferent region based on a job offer (as implemented vices implemented as part of pre-layoff assistance in Romania) could be more cost-effective than invest- include the following: (a) establish strong commu- ments in employment services and training in the nication with workers to determine their expecta- region. As not everybody is willing to move and tions and priorities and assess interest in temporary mobility constraints are higher among older miners, income support and active labor market policies; (b) it is generally worth targeting it to specific groups, for worker profiling and skill assessments to provide each instance younger coal miners. worker with a clear understanding of their skills and assistance needs; and (c) provision of initial in-plant The right balance between income support mea- job counseling and placement services. Pre-layoff sures and re-employment services depends on assistance should involve the Government, workers, the local labor demand as well as the workers’ and the employer with the objective of starting ser- characteristics. Temporary income support should be vices for workers before they even leave the mine/ considered when there is insufficient labor demand plant (Cunningham and Schmillen 2021). For exam- in remote or lagging regions. Formal workers dis- ple, Canada’s Industrial Adjustment Services of labor missed in mass layoffs are eligible for the one-time market information, information on employment pro- severance by law (see previous section) and unem- gram, services to firms and communities facing large- ployment benefits if eligibility conditions are met. scale job displacements were effective in reducing However, these existing instruments may not provide the period of unemployment. Critical success factors enough protection in case of longer-term unemploy- included a focus on the most vulnerable workers and ment spells typical of labor displacement in the coal the involvement of local stakeholders (Fretwell 2017). sector. Temporary income support can take the form of wage supplements and unemployment benefit Active measures should be responsive and coor- top-ups and/or training stipends. For example, the dinated with local investment in economic and US Trade Adjustment Assistance Program provides a business development, and hence with the type variety of reemployment services including training of occupations and skills that will be in demand and job searching assistance and benefits to work- in the short and medium term. The job counseling, ers who have been adversely affected by foreign job search assistance, and the referral system should trade, import competition, and offshore outsourcing. be informed by the analysis of labor market demand Under the 2021 revision, the main benefits include (a) in terms of skills and occupations. Education and trade readjustment allowances (TRA) in addition to 18 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 regular unemployment insurance of cash payments protection measures for sector-specific displaced up to 117 weeks for beneficiaries participating full workers, as coal workers. For instance, the design time; (b) training in different modalities including of regular social assistance or unemployment bene- classroom training, on-the-job training, customized fit systems should directly influence the features and training designed to meet the needs of a specific generosity of temporary income support and active employer or group of employers, apprenticeship pro- labor policies offered to laid-off coal workers to incen- grams, post-secondary education, or remedial educa- tivize job search. In addition, social protection and tion; (c) the alternative trade adjustment assistance labor benefits should be harmonized across catego- for workers ages 50 and over, and earning less than ries of coal workers. Complementary social protection US$50,000 per year in reemployment, provides a measures for coal workers are introduced as regular wage supplement equal to 50 percent of the differ- employment services may not be adequate for the ence between a worker’s reemployment wage and special needs of coal workers, may not be responsive the worker’s certified job wage with a maximum ben- enough, or for political reasons. Nonetheless, it will be efit of US$10,000 over a period of up to two years critical to avoid exacerbating labor market distortions (workers must be reemployed within 26 weeks); (d) through generous outplacement packages to mine job search assistance allowance to cover necessary workers who already benefit from higher wages com- expenses incurred while seeking employment outside pared to workers in other sectors, widening existing normal commuting area; and (e) relocation allowances labor market distortions risks and slowing the pace of to reimburse for approved expenses when moving to adjustment and local economic recovery. a new area to earn family sustaining wages in employ- ment outside of normal commuting area. Worker profiling and individualized support tailored to the needs of affected workers are Income support measures for mass layoffs should key determinants of success. International good be coordinated to maximize protection while practice shows that individualized counseling and minimizing job search disincentives. Different sophisticated tools to profile and assess the skills, forms of income support (severance, unemploy- preferences and constraints of affected workers ment benefits, last resort social assistance, and early are key determinants of success in supporting job- retirement benefits) should be deployed in a sequen- to-job transitions of coal workers. For example, not tial fashion and not overlap. For example, in coun- all employees are willing to move to the renewable tries with a strong unemployment insurance system, energy sectors. The RES training project experience social assistance benefits would be provided once shows that few employees were willing to move from unemployment insurance benefits terminate. When mining to solar energy: only 20 percent of reskilled income support packages are too generous, the risk employees ultimately accepted job offers (Box 3). A of creating work disincentives is high as shown in proper evaluation of the RES training was not con- the 1990s mine closure in Poland (Ruppert Bulmer ducted, though consultations with the ZE PAK Capital et al. 2021). Early retirement benefits, if not well tar- Group and their trade unions point to the distance, geted, are costly solutions that may have the adverse mobility constraints, older age, and the perception impact of pushing out of the labor force people, who that jobs in the photovoltaic are not long term as would otherwise work. This was particularly prob- main reasons for limited take-up. Despite the com- lematic in the case of aging societies, as it happened munication, information, and training services pro- in Spain during the privatization of state-owned vided and the fact that the offered wage was similar enterprises (SOEs) in the 1980s (Cunningham and (slightly less) as previous wage by the ZE PAK Capital Schmillen 2021). Group, only a few ZE PAK Capital Group workers accepted to take up jobs of installing solar panels. Outplacement programs should be designed to avoid potential displacement effects on other The maximum duration of the outplacement ‘regular’ unemployed, notably youth and long- program should be defined to ensure workers term unemployed. Alignment with existing social are placed in sustainable jobs. Placements in short protection and labor programs has to be carefully term and temporary employment would not solve the considered when designing complementary social unemployment challenge, beneficiaries may become 19 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 unemployed again and in need of additional support. throughout the program to allow for continuous Beneficiaries should be eligible to benefit from pro- learning and program adaptation. In the case of gram services within the program duration. In China, employment services for ZE PAK Capital Group work- the Xiagang reemployment program was introduced ers, it will be important to monitor and evaluate the to manage the mass labor layoffs in the late 1990s. It individualized counseling and job search assistance required SOEs to provide temporary income support services piloted by Jobs First for 100 ZE PAK Capital and reemployment services for up to three years to Group workers to finalize the design of a broader workers who had been laid off. Those who still lacked outplacement services. The World Bank Preference a job after three years could claim unemployment Survey and the existing qualitative evidence on work- insurance benefits for a maximum of two years. ers’ perspectives will also provide useful inputs to the design of pre-and post-layoff outplacement services. Strong public-private partnerships and direct dia- logue across different levels of government, the It is important to mobilize the necessary financ- private sector, trade unions, NGOs, and the civil ing up front before the process/outplacement society organizations (CSOs) are key elements program is made public. The mitigation of social of success to mitigate the social labor impacts and employment impact of the coal transition has of the coal transition. The best approach is regular both short‑term and long-term costs that should be and up-front involvement of different stakeholders in considered and budgeted early on. As EU Member general and labor representatives in particular in the State, Poland could tap the following funding sources: design of the response. If the capacity on the ground the JTF (JTM pillar 1) not yet ready to be deployed, of local governments is limited, including because of the ESF under 2014–2020 and 2021–2027 Regional high case load of job counselors or limited skills to Operational Programs (ESF and ERDF), EIB loans provide individualized vocational counseling in public to the public sector under pillar 3 of the JTM, the employments services offices, outsourcing to private European Globalization Adjustment Fund, and the service providers (employment agencies and train- second tranche of the ReactEU fund to complement ing providers) should be considered. In Poland, LOs national state budget from the Labor Fund and the have increasingly relied on outsourcing of counseling Guaranteed Employee Benefits Fund. services for the unemployed to private companies. A rigorous impact evaluation assessed the effectiveness Carefully managed communication is critical for of counseling services in the Małopolskie Voivodeship ensuring the coal transition is correctly under- outsourced to private providers41 compared to pub- stood and well received and to avoid public lic delivery through LOs based on a random assign- perception of unfairness that could undermine ment of the registered unemployed (Gajderowicz and the reform process. The communication around Jakubowski 2019). Results show that the unemployed the outplacement options for workers in mass layoffs receiving counseling services from private providers and those at risk of losing their jobs through indirect have shorter unemployment spells, by one month on and induced effects needs to be carefully managed. average, than those served by LO counselors and the A communication plan on the outplacement options impact tends to diminish over time. The short‑term for redundant workers should be prepared and imple- impact is significantly higher for older workers. mented in affected municipalities once the outplace- ment program is set and funds secured. A strong monitoring and evaluation system should be planned in advance and implemented 41 Private companies were paid a success fee and were free to decide what kind of services to provide to each unemployed person, while beneficiaries were given a profile by the LO. The program was designed for unemployed people who were to some extent disadvantaged in the labor market. 20 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 BOX 3: THE RES TRAINING PROJECT IN KONIN In 2020, the process of collective redundancies began in three companies KWB Konin S.A., KWB Adąmów S.A., and PAK Górnictwo for the liquidation of the Adąmów open pit and the suspension of coal mining in the Drzewce open pit. To facilitate the transition of their workers to new jobs, the ZE PAK Capital Group, with the support of the Konin ARR, organized two three-day specialized vocational trainings in October 2020 to equip workers with new qualifications for photovoltaic installation fitter. The trainings were delivered by RES training center and ended with an exam after which the participants received a certificate confirming that they have completed the course ‘Photovoltaic installation fitter completed with a state exam’ and qualification certificates to deal with the operation of equipment, installations, and networks at the type D and E supervision post issued by the Association of Electricians Konin Branch. All participants passed the exam. The trainings were financed by granting each employee a loan from the company’s funds in the amount of PLN 2,400, 90 percent of which was subsidized by the ARR. After the training was completed, a meeting was organized by representatives of Esoleo inviting all training participants. At the meeting, Esoleo presented the required qualifications and characteristics of their job offers and invited interested candidates for individual interviews. Most of the training participants joined the organizational meeting and took part in individual recruitment interviews. Of the 50 employees who were trained, 33 participated in the joint meeting with Esoleo, 21 were interviewed, and 14 ended up accepting the job offers and are now employed: 5 as electricians of photovoltaic systems, 6 as photovoltaic installers in the Brudzewo Farm, and 3 as construction engineers. Despite the quality of training being high, only 11 people were interested in stationary work in the construction of a photovoltaic farm in Brudzewo and 10 people initially expressed interest in working as an installer. Part of the reason why the installer job offers were not appealing is because of the long distance (up to 120 km from Konin) to reach the photovoltaic installations every day. Second, trained employees were too old to work as installers in a photovoltaic farm. Finally, the photovoltaic sector does not offer long-term sustainable job opportunities: job demand is high at the beginning to build the infrastructure, then the market and job demand disappears. Table B3.1 Employment status of participants in the employer-driven RES training Number of employees Number of laid off whose employment employees who Employer Number of employed contracts were participated in terminated in 2020 the training KWB Konin S.A. 74 26 7 KWB Adąmów S.A. 61 17 0 PAK Górnictwo Sp. z o.o. 143 7 4 Total 278 50 11 Source: ZE PAK Capital Group. 21 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 PROPOSED IMPLEMENTATION promote the reemployment of all affected workers, it ARRANGEMENTS FOR A COMPREHENSIVE is proposed to implement the outplacement program PROGRAM FOR COAL-RELATED WORKERS for Eastern Wielkopolska as a consortium project with the regional LO as leading agency (main project Given the different skills profiles, preferences, and beneficiary) in partnership with the ZE PAK Capital readiness for reemployment across workers that will Group, ZE PAK Capital Group trade unions, a private be directly and indirectly affected by the closure of company providing individualized counseling, and mines and power plants, it is recommended to design powiat LOs in close coordination with representatives a comprehensive program that would offer a package of secondary industries that supply the mining industry of different integrated services to be delivered across and municipalities. different phases of the transition with the objective of accelerating coal communities’ out-of-coal transition The proposed implementation arrangement for a single to alternative economic activities. outplacement program as a partnership project rests on the following principles: (a) minimize potential It is recommended that targeted beneficiaries include exclusion among affected workers; (b) avoid the not only ZE PAK Capital Group workers directly affected potential costs associated with fragmentation and by mine and power plants closure but also affected overlapping programs; (c) exploit each stakeholder’s workers in the ZE PAK Capital Group contracted comparative advantage in delivering services; and (d) companies and formal and informal workers in services ensure the sustainability of the program during the related to ZE PAK Capital Group workers. Clear and energy transition process as impacts on the community specific eligibility criteria need to be further defined in can continue after the ZE PAK Capital Group layoffs alignment with a clear demarcation line between JTF are completed. It is critical to ensure that adequate and ESF+ beneficiary projects. It is important to mitigate implementation capacity needs to be in place for potential risks stemming from the potential exclusion each partner to deliver outplacement services at the of workers in companies highly dependent on the ZE expected scale and that every stakeholder has sufficient PAK Capital Group who are indirectly affected. In line confidence and trust in each other. with the stipulations of the JTF regulation, JTF eligibility applies to all affected workers in sectors vulnerable to Before layoff, the outplacement program would pro- the energy transition as identified in the TJTP. Therefore, vide the following integrated services to beneficiaries: it is critical that the TJTP clearly identifies which workers ‘who lost jobs due to the transition’ are included in the • Group communication, raise awareness of the proposed plans. Affected workers as identified in the program, and outreach to potential beneficiaries TJTP will be automatically eligible for support under Potential implementing partners: ZE PAK Capital the JTF. Group trade unions, powiat LOs (by law). The nature of beneficiaries and the multiplicity of • Outreach to potential employers who would be outplacement services require the involvement of interested in ZE PAK Capital Group redundant multiple partners. A public-private consortium as a employees beneficiary of an outplacement project would be in line Potential implementing partners: ZE PAK Capital with the stipulations of the JTF regulation and with the Group trade unions and private employment draft Polish Implementing Act.42 agency company. Based on the regional LO’s previous experience to • Individualized counseling as first step interaction to manage EU-funded projects and its legal mandate to motivate workers to continue to work, help them 42 The (draft) Polish Implementing Act provides relevant detailed requirements regarding how such a partnership should be established, including a timeline of setting up such a partnership (before the project application is submitted), the procedure for selecting partners (open call for partners launched by the entity initiating the project), and the allowed scope of roles that could be taken on by each of the partners. 22 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 understand their preference, and raise awareness services as psychological services and social assis- on potential job transition pathways that would tance income support offered by municipalities. be viable and on occupations and jobs that are in Potential implementing partner: A private employ- demand in the local labor market and which are the ment agency. steps that they would need to follow to transition to another occupation or job task and raise awareness • Job search assistance and job matching on the types of interventions that are provided as Potential implementing partners: Private employ- part of the comprehensive outplacement, including ment agency in partnership with powiat LOs and joining social cooperatives and or/partnering in ZE PAK Capital Group space/premises could be establishing a new one. Jobs First company was considered to deliver these services. selected by the ZE PAK Capital Group Management Board to pilot individualized counseling. • Reskilling, upskilling, and on-the-job training to Potential implementing partners: Private employ- help some of the existing workers move to the new ment agency, the ZE PAK Capital Group premises jobs created under the ZE PAK Capital Group three could be considered to deliver these services. renewable energy line of business.43 Potential implementing partner: The ZE PAK Capital • Skills assessment and worker profiling as a result of Group would provide these services for workers individualized counseling to assess (a) the overall identified as suitable to transition to the new jobs mindset, attitudes, aspirations; (b) the technical and already before the layoff. socioemotional skills as well as the willingness to be trained in different tasks in the same occupations • Registration of notified redundant workers as and/or in different occupations; (c) the reservation unemployed. wages; and (d) attitude to entrepreneurship, busi- Potential implementing partner: Powiat LOs ness start-up (by law). Potential implementing partner: A private employ- ment agency could perform the skills assessment After layoff the services to be provided should include and profiling service to targeted beneficiaries (ZE the following: PAK Capital Group workers and workers indirectly affected) in partnership with powiat LOs. • Continued individualized counseling (aptitude and interest assessment) and updated profiles • A referral system would need to be developed to Potential implementing partners: Private employ- lay out the pathways of outplacement services ment agency. based on the worker’s profile categorization (skills, attitudes, and readiness to work). As a result of the • Employment search assistance and job matching individualized counseling and profiling, an individ- ual employment plan would be developed by the Potential implementing partners: Private employ- private employment agency partner. Beneficiaries ment agency in partnership with powiat LOs. would be accordingly oriented/referred by the pri- vate agency job counselors to post-layoff services, • Upskilling and reskilling training through external including continued job search assistance, skills qualified training providers and on-the-job training training courses to meet the requirement of potential with hiring employer. The challenge is to train and suitable jobs, support services to either join or start motivate people to transition from lignite production social cooperatives, incentives to business start-up, to other forms of energy production and beyond other ALMPs offered by LOs, and complementary to other occupations in demand that represent viable pathways for lignite mine workers. Based on 43 It should be noted that in line with the information shared by the ZE PAK Capital Group in February 2022, only one out of three RES‑based investments—originally planned to be supported from the JTF in Eastern Greater Poland—will eventually be implemented in the region, with the other two being moved to Lubelskie and Pomorskie regions. 23 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 the World Bank Skills and Preference Survey 2021, eligible under the JTF: (a) temporary cash allowance desired pathways include jobs in the renewable (with build-in incentive to work) in addition to the energy sector as well as occupations matching 12-month unemployment benefit could be considered ZE PAK workers’ skills and work experience. In the to manage longer unemployment spells and for informal context of Wielkopolska it has to be noted that workers who do not qualify for unemployment benefits solar and modular nuclear energy would not offer and (b) a support system targeting preretirement enough and sustainable job opportunities. So, the employees, including bridge pension system (in provision of upskilling and reskilling training needs conjunction with public agencies and social security). to be carefully tailored to identified viable job offers, Unionized workers already benefiting from other social possibly together with the prospective employer packages (for example, the social package agreed for when the job offer is matched. hard coal workers) would not be eligible for such Potential implementing partners : Regional LO temporary income support benefits. Complementary through contracted high-quality training providers social inclusion measures such as health vouchers to with selection criteria agreed by the Steering support workers’ recovery, ongoing psychological Committee in coordination with the private employ- counseling and support for leaving workers and their ment agency providing job matching services. families, substance abuse and addiction counseling, and rehabilitation support.44 • Support for business start-up through small busi- ness grants Additionally, mobility allowances from affected Potential implementing partners: Powiat LOs to municipalities to support the cost of resettlement support beneficiary joining or start new green social and relocation to other regions as well as mobility cooperatives by providing business development allowances to attract workers from other regions services, incubators, advise to help comply with to Eastern Wielkopolska and counterbalance the legal requirements, and provision of technical and outmigration trends could be considered once a new business training. economic development plan is implemented. • Support to start or join an existing green social A public-private partnership agreement would define cooperative roles and responsibilities across partners, the leading partner, activities that will be implemented by each Potential implementing partners: Association for partner, the expected results to be delivered, and the Social Cooperatives in coordination with municipal- budget flows and other key implementation stakehold- ities to identify, partner, and fund new green social ers. Training providers could be contracted through cooperatives. Support would include providing busi- performance-based contracts with disbursement linked ness development services, providing incubators, to results (job placements).45 The proposed governance advising to help comply with legal requirements, structure to implement the comprehensive outplace- and providing technical and business training. ment program is shown in figure 5. • Wage subsidies for those recruited to new jobs A Steering Committee could be established for the extending on the scheme currently provided by LOs overall program coordination and for key decision- to the ‘regular’ registered unemployed making (selection rules and contracting). The Steering Potential implementing partners: Powiat LOs. Committee board composition would include at least the ZE PAK managing board, ZE PAK trade The following income support measures could be unions, representatives of secondary mining-related considered as part of the package of benefits of the industries, regional and powiat LOs, ARR, and selected outplacement program though they would not be municipalities. 44 These measures would be provided as part of or complementing the Support for social change in Eastern Wielkopolska draft proposal submitted to the World Bank. 45 The possibility to introduce such contracts was confirmed with the EC. 24 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 Figure 5 Proposed governance for the outplacement program Project Beneficiary/Leading Agency: Regional LO (through its Konin branch and Project Implementation Unit) Overall management, fiduciary, funds flow, oversight, M&E, accountable for results Representatives of secondary ZE PAK SA mining-related industries Steering Committee Overall coordination ZE PAK Partner Private Trade Unions and decision making Employment Agency ARR Konin Partner: Powiat LOs Municipalities Contractors: Training providers, Association of Social Cooperatives, consultancies Proposed partners Implementation stakeholders Source: Authors. The regional LO—as a lead project beneficiary—would Group Management Board could also contribute by be responsible and accountable for the outcomes of making available in their premises the space needed the program, the management of the funds flows to locate the project service office. to partners, the procurement of services and goods, the overall program monitoring and evaluation, and A private employment service agency could be a part- oversight. A Project Implementation Unit with a couple ner in the consortium and responsible for delivering of consultants could be established to support the individualized counseling as a first point of contact project implementation and management. This unit with all beneficiaries and generating beneficiaries’ skills could be set up in the LO Konin subregional office to assessment, profiles, and referrals to training, business maintain strong presence on the ground. start-up, and social cooperatives based on interests and profiles. The private employment agency will be The ZE PAK Capital Group Management Board’s respon- responsible for delivering job search assistance and job sibilities (upon formal confirmation with the EC’s legal matching services before and after layoff, setting up a services that it could be included as a financial partner referral system to alternative outplacement pathways in the consortium) would include sharing results and based on needs assessment, and developing a project operational lessons from the pilot, making information operational manual laying out the procedures and build on redundant employees available, identifying and capacity in powiat LOs. The case load per job counselor training those who could be reemployed within ZE PAK should allow adequate case management depending Capital Group, synchronizing the stages of employment on the job readiness and intensity of support needed reduction with the new jobs created, collaborating to by beneficiaries. Job counselors should have the skills deliver pre-layoff services to its workers, and reaching and be trained to motivate beneficiaries and make out to potential other employers who could be inter- them good candidates for employers. Finally, the private ested in its redundant workforce. The ZE PAK Capital employment agency will be responsible for monitoring 25 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 and tracking the employment status of beneficiaries The four powiat LOs in the subregion would be respon- over time and report to the regional LO. sible for registering employees notified to be dismissed in mass layoffs and providing information on the cur- A methodology, operational procedures, and tools will rent situation and changes in the local labor market, need to be developed to profile beneficiaries, meaning current job offers, the different measures offered, and to assess their skills, attitudes, interests, and constraints. the rights and obligations of persons registered in the A referral system would need to be developed to lay out powiat LO. In partnership with the private employ- the pathways and operational steps to access outplace- ment service partner, powiat LOs will be responsible ment services based on the worker profile categoriza- for establishing arrangements with training providers tion. The World Bank stands ready to provide technical and providing regular ALMPs (subsidies for starting a assistance to develop such methodology, operational business, job placement, internships/wage subsidies) if manuals, and tools, for example standardized skills the services are deemed suitable to affected workers to tests, and preference assessment and tools to identify increase their chances of reemployment. Finally, powiat possible occupations that would be viable and desirable LOs will be responsible for monitoring and tracking the (based occupation similarity scores). employment status of beneficiaries over time and report to the regional LO. REFERENCES Churski P., R. Perdal, and M. Burchard. 2021. “Spatio-temporal Analysis of Changes in the Local Labor Market of the Konin Subregion in Consequence of Fair Transition.” Christiaensen, Luc, Céline Ferré, Tomasz Gajderowicz, Maddalena Honorati, and Sylwia Wrona. 2022a. Towards a Just Coal Transition—Labor Market Challenges in Eastern Wielkopolska. World Bank Group. Cunningham, W., and A. Schmillen. 2021. “The Coal Transition: Mitigating Social and Labor Impacts.” Social Protection and Jobs Discussion Paper, World Bank, Washington, DC. EC (European Commission). 2019. “Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, The European Green Deal, COM/2019/640.” Fretwell, D. 2017. “Mitigating the Social Impact of Economic Change During Enterprise Restructuring and Privatization.” Unpublished Background Paper, World Bank, Washington, DC. Gajderowicz, T., and M. Jakubowski. 2019. “What Works for Disadvantaged Unemployed: Private or Public ALMP Services? Evidence from Poland.” European Research Studies Journal 22 (4): 332–346. IBS (Institute Badan Strukturalnych). 2018. Managing Coal Sector Transition under the Ambitious Emission Reduction Scenario in Poland: Focus on Labor. Research Report. IBS. 2021. Labour Force Affected by Coal Mine Closures in Three Phasing-Out Polish Regions: Upper Silesia, Lower Silesia and Greater Poland. Instrat Foundation. 2021. “Just Transition in Eastern Wielkopolska: Diagnosis and Recommendations.” Joint Assistance to Support Projects in European Regions (Jaspers) 2021. “Guidance on Projects Allocation to the three Pillars of JTM.” JRC (Joint Research Center). 2018. “EU Coal Regions: Opportunities and Challenges Ahead.” OECD, 2018. “A review of “Transition Management” strategies: Lessons for advancing the green low-carbon transition.” Ruppert Bulmer, E., K. Pela, A. Eberhard, and J. Montoya. 2021. Global Perspective on Coal Jobs and Managing Labor Transition Out of Coal: Key Issues and Policy Responses. Washington, DC: World Bank. 26 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 ANNEX 1: LIST OF CONSULTATIONS Table A1 List of consultations (October 2021–March 2022) Date of the meeting Subject of the meeting Participants October 11, 2021 Introductory meeting on planned support to ARR Konin (M. Sytek, M. Rejewski) workers directly and indirectly affected by World Bank Team energy transition October 14, 2021 ZE PAK upskilling, reskilling, and activation ZE PAK (D. Baliński) of ZE PAK affected workers project fiche ARR Konin World Bank Team November 15, 2021 ZE PAK upskilling, reskilling, and activation ZE PAK trade unions (M. Kaźmierczak, P. of ZE PAK affected workers project fiche Rybiński, G. Żabierek, G. Matuszak, A. Messerszmidt, D. Zbierski, M. Markowski, G. Rauschfleisch, M. Reśkiewicz) ZE PAK (P. Woźny, P. Milczarek, D. Baliński) ARR Konin (M. Sytek, M. Rejewski) World Bank Team November 15, 2021 Employee Support Center project fiche Employee Council (W. Kłosowiak) Green Future Institute (A. Kuźmińska) ARR Konin (M. Sytek, M. Rejewski) World Bank Team November 16, 2021 Green Social Solidarity cooperatives Association for Social Cooperatives (P. project fiche Piechocki, M. Lewandowska, J. Jaskuła, M. Sobczak, D. Zbawicki) World Bank Team November 19, 2021 ´ and its role in Regional LO in Poznan Regional LO (B. Kwapiszewska, R. Zaczyński) outplacement programs ARR Konin (M. Sytek, M. Rejewski) World Bank Team November 24, 2021 Summary of consultation meetings ARR Konin (M. Sytek, M. Rejewski) World Bank Team December 3, 2021 Summary of consultation meetings EC (DG Ener—A. Sobczak, DG Employment—K. Dzięcielak, DG Regio—P. Olechnowicz) World Bank Team 27 Options to support workers through a transition away from coal in Eastern Wielkopolska . MARCH 2022 Date of the meeting Subject of the meeting Participants December 14, 2021 Joint online workshop for stakeholders ARR Konin Marshall’s Office ZE PAK trade unions ZE PAK Employee Council Green Future Institute Association for Social Cooperatives ´ Regional LO in Poznan Regional Center for Social Policy EC World Bank Team January 14, 2022 Summary of feedback received from ARR Konin stakeholders on the World Bank note and World Bank Team discussing next steps January 25, 2022 Technical meeting with the EC to provide EC (DG EMPL—K. Dzięcielak, DG Regio—P. update on progress with regard to the —A. Sobczak) Olechnowicz, DG Ener­ development of the outplacement project and World Bank Team to discuss JTF eligibility requirements, modalities of the outplacement project, and demarcation between JTF and ESF+ February 10, 2022 Presentation of feedback from the technical ARR Konin meeting with the EC and discussion about the World Bank Team potential implications for the design of the outplacement project February 23, 2022 Project update and planning for joint meeting ARR Konin with stakeholders World Bank Team March 10, 2022 Joint online meeting with stakeholders ARR Konin ZE PAK trade unions ZE PAK Management Board representative Employee Council Green Future Institute Association for Social Cooperatives ´ Regional LO in Poznan Regional Center for Social Policy EC (DG EMPL, DG Regio) World Bank Team 28 The policy note was prepared by Maddalena Honorati and Anna Banaszczyk, with inputs from Tomasz Gajderowicz and Celine Ferré. Luc Christiansen, Elizabeth Ruppert Bulmer, Rachel Bernice Perks, Lucian Bucur Pop, Manuel Salazar, Javier Sanchez, and Filip Kochan provided valuable comments to the note. The note benefited from detailed comments received from ZE PAK SA and the trade unions of the ZE PAK Capital Group, the Institute for Green Future, the Association for Social Cooperatives, the Regional Center for Social Policy, the Regional n, the Konin Agency for Regional Development (ARR), and the Marshall’s Office of Wielkopolska region. Labor Office (LO) in Pozna´ The production and publication of this report has been made possible through financial support from the European Commission Directorate General for Energy. All Jobs Group’s publications are available for free and can be accessed through the World Bank or the Jobs and Development Partnership website. Please send all queries or feedback to Jobs Group. Join the conversation on Twitter: @WBG_Jobs #Jobs4Dev.