Introduction

Worker protection during the fossil-fuel phase-out is a central component of South Africa’s Just Transition. As coal mines, coal-fired power stations and related industries decline or restructure, workers may face retrenchment, occupational displacement, loss of income and disruption of communities dependent on fossil-fuel industries. South African law therefore combines constitutional labour rights, employment legislation and emerging climate-transition policy to ensure that decarbonisation does not impose disproportionate costs on workers. The Climate Change Act 22 of 2024, which commenced substantially on 17 March 2025, expressly seeks to facilitate a long-term just transition to a low-carbon and climate-resilient economy and society.

Constitutional and Just-Transition Framework

Section 23 of the Constitution guarantees everyone the right to fair labour practices and protects collective bargaining and trade-union participation. During fossil-fuel restructuring, these rights require employers and government institutions to respect workers’ participation in decisions affecting employment.

South Africa’s Just Energy Transition Investment Plan also recognises that decarbonisation must protect affected workers and communities. Government policy identifies reskilling, upskilling, active labour-market measures, economic diversification and new employment opportunities as essential components of a just transition.

Particular attention is required in coal-dependent areas such as Mpumalanga, where mine closures and power-station decommissioning may affect entire local economies.

Labour Relations Act and Retrenchment Protection

The principal statutory safeguard is section 189 of the Labour Relations Act 66 of 1995 (LRA). Where an employer contemplates dismissal for operational requirements arising from economic, technological or structural changes, it must consult employees or their recognised representatives.

Consultation must constitute a meaningful joint consensus-seeking process addressing ways to:

avoid dismissals;

minimise the number of workers dismissed;

change the timing of dismissals;

mitigate adverse consequences;

establish fair selection criteria; and

determine appropriate severance arrangements.

Large-scale retrenchments may additionally fall under section 189A.

Case Name/Citation: Solidarity obo Members v Barloworld Equipment Southern Africa and Others [2022] ZACC 15

Facts: Barloworld initiated restructuring and contemplated large-scale retrenchments following adverse economic conditions. Trade unions challenged aspects of the consultation procedure.

Legal Issue: Whether the employer had complied with the requirement for a meaningful joint consensus-seeking process under sections 189 and 189A of the LRA.

Judgment: The Constitutional Court examined the statutory consultation regime and confirmed the importance of meaningful engagement before operational-requirement dismissals occur.

Legal Principle/Ratio: Consultation must occur before the final retrenchment decision and requires sufficient disclosure and genuine consideration of alternatives.

Significance: During coal-mine or power-station closures, employers cannot simply announce job losses as an accomplished fact. Workers and unions must have a meaningful opportunity to propose redeployment, retraining, phased closure or alternative employment.

Case Name/Citation: Molaba v Mamba Technical (Pty) Ltd [2026] ZALCJHB 279

Facts: An employee challenged a retrenchment process on grounds including inadequate consultation.

Legal Issue: Whether the employer complied with section 189 procedures before dismissal.

Judgment: The Labour Court reiterated that consultation is mandatory and must seek to avoid retrenchments, reduce their number or mitigate their consequences.

Legal Principle/Ratio: Retrenchment consultation is a joint problem-solving process rather than merely notification of a predetermined decision.

Significance: Fossil-fuel employers must seriously consider alternatives such as renewable-energy redeployment, maintenance work, rehabilitation projects and skills conversion.

Severance Pay and Social Protection

Section 41 of the Basic Conditions of Employment Act 75 of 1997 generally requires an employee dismissed for operational requirements to receive at least one week’s remuneration for each completed year of continuous service, subject to statutory exceptions.

However, severance alone is insufficient for a just transition. Government policy therefore emphasises retraining, income protection, entrepreneurship, social-security measures and investment in alternative industries.

Mine Rehabilitation and Alternative Employment

Mine closure can itself create employment through environmental rehabilitation, land restoration, renewable-energy development and repurposing of industrial sites. South Africa’s Just Energy Transition framework expressly identifies protection of vulnerable workers, mine rehabilitation and creation of quality green jobs as transition priorities.

Conclusion

Worker protection during fossil-fuel phase-out requires more than compensation after job losses occur. South African law supports an anticipatory approach based on consultation, collective participation, fair retrenchment procedures, severance protection, reskilling, redeployment and regional economic diversification. The emerging climate framework reinforces the principle that decarbonisation should proceed in a manner that protects livelihoods and enables fossil-fuel workers to participate meaningfully in the emerging low-carbon economy.