Industrial Policy and Workers’ Rights in the Twin Transition: A Call to Action

Federico Tomasone

The international conference on industrial policies and workers’ rights in the twin ecological and digital transition, held on 10 January in Milan, provided a crucial space for political and strategic discussion among trade unions and workers representatives. Organised by FIOM-CGIL Lombardia with the support of the Rosa Luxemburg Foundation, the event underscored the urgent need for a radical shift in Europe’s industrial strategy—one that places workers, not capital, at its centre.

Industry in Crisis, Labour Under Attack

A central theme of the conference was the failure of European industrial policy to support a just transition. Antonio Castagnoli, General Secretary of FIOM-CGIL Lombardia, opened the discussion by emphasising the political stakes of the debate. Federico Tomasone from the Rosa Luxemburg Foundation, welcomed the participants in the name of the RLS and reinforced this point, stressing the importance of workers’ struggles in shaping an alternative industrial strategy.

Matteo Gaddi (FIOM’s research centre director) presented data highlighting a dangerous lack of public investment in industrial policies, leading not only to missed climate targets but also to mass layoffs and offshoring. He also provided an analysis of the Draghi Report, criticising its reliance on financialisation, the absence of public spending commitments, and its failure to propose a robust industrial strategy. Gaddi argued that this approach perpetuates past mistakes, offering no real solutions to the structural decline of industrial capacity.

The testimonies from union representatives offered a compelling and interconnected critique of Europe’s industrial policies, illustrating the broader consequences of a fragmented and profit-driven approach. Frédéric Touboul (CTM-CGT, France) highlighted how France’s industrial landscape is divided, with each company pursuing its own self-interest rather than collaborating toward a collective strategy. This disjointed approach has deepened social inequalities, leaving wealthier citizens able to access electric vehicles while the working class remains depended on outdated, polluting transport options.

Christian Egner (IG Metall Frankfurt) painted a similarly bleak picture of a crumbling industrial model in Germany. The once-dominant export-driven economy is becoming increasingly unsustainable, with employers opting for wage suppression and mass redundancies rather than a critical reevaluation of their industrial priorities. His call for greater workplace democracy and public investment tied to social and labor standards underscores the need to safeguard workers in an evolving economic environment, pushing back against the downward pressure on wages and working conditions.

Özkan Atar (Birlesik Metal-Is DISK, Turkey) drawed attention to the unintended consequences of European environmental standards. Rather than fostering a just transition, these policies are being used to exploit workers in countries like Turkey, where a lack of public investment and strategic planning threatens to turn the green transition into a mechanism of precarious labor conditions, allowing companies to avoid responsibility while workers bear the burden.

Meanwhile, Juan Blanco (Comisiones Obreras-Industria, Spain) highlighted the immense power wielded by multinational corporations, which continues to be a major barrier to progress despite recent political changes. While there have been some improvements, the unchecked influence of big business still looms large. Blanco stressed the importance of carefully monitoring and regulating EU funds for the green transition, ensuring they are used to strengthen workers’ rights and not simply to subsidize corporate profits.

Together, these interventions painted a picture of an industrial system in crisis, where the absence of a cohesive strategy leaves workers vulnerable and threatens to turn the green transition into a tool of further exploitation. The need for an industrial policy prioritizing social equity, sustainable development, and workers’ rights is more urgent than ever.

In Lombardy, workers from major companies — including SIAE, IVECO Brescia, Cameron Pavia, Candy, Dell’Orto and Sirti — spoke of dramatic job losses, plant closures, and the long-term consequences of deindustrialisation. Decades of short-sighted corporate strategies have not only stripped the region of its productive base but have also led to a loss of skilled labour and innovation capacity. Delegates detailed how multinational corporations prioritise short-term profitability over long-term industrial planning, outsourcing production and leaving entire communities without work. Many companies have seen successive rounds of layoffs, with increasing reliance on temporary contracts, making employment more precarious. Workers also expressed concerns that the skills and expertise lost through deindustrialisation will be difficult to recover, further weakening the industrial fabric of the country. The refusal of political leaders to confront these realities means that, once again, the expanding arms industry is being portrayed as the only viable industrial strategy — an inadequate and politically dangerous solution.

The Political Challenge for Trade Unions

In his closing speech, Michele De Palma, General Secretary of FIOM, framed the current crisis as a turning point for the labour movement. Europe’s ruling elites have no real answers to the crisis beyond further financialisation and privatisation. The result is not only economic instability but also a deepening disillusionment with democratic institutions among workers, who see no material improvements in their lives. De Palma stressed that the greatest danger is not just economic decline, but the erosion of class consciousness and collective organisation. The labour movement must therefore reclaim its political role. A just transition requires a fundamental redistribution of wealth — 80% of the value produced today goes to capital, not labour. This means confronting capital directly, linking public investments to strong social standards, and demanding democratic control over economic decisions. Trade unions cannot remain neutral in this struggle: they must radicalise their role, both in workplaces and within the political discourse, to shape an industrial strategy that serves the many, not the few.

Mobilisation and Next Steps

The conference concluded with a clear commitment: trade unions will take their demands to Brussels on 5 February, where they will mobilise for concrete action on industrial policy, workers’ rights, and public investment. The twin transition cannot be left in the hands of private corporations. Only through collective action can workers ensure that the transformation of industry serves social and ecological needs, rather than deepening inequalities. The incapacity of Europe’s current ruling class to develop a coherent industrial strategy opens a crucial space for the labour movement and socialist forces to put forward an alternative. Without a strategic vision, the continent risks deepening its dependence on financial markets and corporate interests, rather than building a sustainable and socially just economy. This moment demands not just resistance but proactive leadership from trade unions and political forces. The continuation of this discussion at the European level is essential to shaping an industrial policy that serves workers and the broader public, rather than leaving it to the failed strategies of the past.

 

Federico Tomasone is Project Manager for Social Global Rights and Labour Policies, as all activities related to Italy at the RLS Office Brussels.