Procedure : 2015/2125(BUD)
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Document selected : A8-0210/2015

Texts tabled :

A8-0210/2015

Debates :

Votes :

PV 08/07/2015 - 4.11
Explanations of votes

Texts adopted :

P8_TA(2015)0262

REPORT     
PDF 233kWORD 102k
25.6.2015
PE 560.558v02-00 A8-0210/2015

on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2015/001 FI/Broadcom, from Finland)

(COM(2015)0232 – C8‑0135/2015 – 2015/2125(BUD))

Committee on Budgets

Rapporteur: Petri Sarvamaa

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2015/001 FI/Broadcom, from Finland)

(COM(2015)0232 – C8‑0135/2015 – 2015/2125(BUD))

The European Parliament,

–    having regard to the Commission proposal to the European Parliament and the Council (COM(2015)0232 – C8‑0135/2015),

–   having regard to Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006(1) (EGF Regulation),

–   having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020(2), and in particular Article 12 thereof,

–   having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(3) (IIA of 2 December 2013), and in particular point 13 thereof,

–   having regard to the trilogue procedure provided for in point 13 of the IIA of 2 December 2013,

–   having regard to the letter of the Committee on Employment and Social Affairs,

–   having regard to the letter of the Committee on Regional Development,

–   having regard to the report of the Committee on Budgets (A8-0210/2015),

A. whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns or of the global financial and economic crisis and to assist their reintegration into the labour market;

B.  whereas the Union’s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible, in accordance with the Joint Declaration of the European Parliament, the Council and the Commission adopted during the conciliation meeting on 17 July 2008, and having due regard to the IIA of 2 December 2013 in respect of the adoption of decisions to mobilise the European Globalisation Adjustment Fund (EGF);

C. whereas the adoption of the EGF Regulation reflects the agreement reached between the Parliament and the Council to reintroduce the crisis mobilisation criterion, to increase the Union financial contribution to 60 % of the total estimated cost of proposed measures, to increase efficiency for the treatment of EGF applications in the Commission and by the Parliament and the Council by shortening the time for assessment and approval, to widen eligible actions and beneficiaries by introducing self-employed persons and young people and to finance incentives for setting up own businesses;

D. whereas Finland submitted application EGF/2015/001 FI/Broadcom for a financial contribution from the EGF following 568 redundancies in Broadcom Communications Finland, operating in the NACE Rev. 2 division 46 ('Wholesale trade, except of vehicles and motorcycles')(4), and 2 suppliers or downstream producers;

E.  whereas the application fulfils the eligibility criteria set up by the EGF Regulation;

1.  Agrees with the Commission that the conditions set out in Article 4(1)(a) of the EGF Regulation are met and that, therefore, Finland is entitled to a financial contribution of EUR 1 365 000 under that Regulation;

2.  Notes that the Finnish authorities submitted the application for an EGF financial contribution on 30 January 2015, and that its assessment was made available by the Commission on 2 June 2015; welcomes the speedy evaluation of less than five months;

3.  Recalls that, during the 2000s, personnel numbers in Finnish subsidiaries on all continents increased, until Asia emerged as the greatest employer in the electronics and electrical industry in 2004 and personnel numbers in Europe started declining; considers that the redundancies in Broadcom are partly linked to the trend that affects the entire Finnish electronics industry and culminated in Nokia's announcement of large-scale redundancies in 2011; concludes however that those events are substantially linked to major structural changes in world trade patterns due to globalisation;

4.   Notes that these redundancies will further aggravate the unemployment situation particularly in the region of Northern Ostrobothnia (part of the NUTS(5) level 2 region FI1A), where 424 of the 568 redundancies occurred; notes that in that region the unemployment rate is consistently a couple of percentage points higher than the national average; notes that in August 2014, while the national unemployment rate was 12,2 %, in Northern Ostrobothnia it was 14,1 % and in the most affected city, Oulu, it was 16,1 % and that the same region was strongly affected by the large-scale Nokia redundancies from 2011 onwards;

5.   Considers that the enterprise surveys and visits are actions which may benefit not only dismissed workers covered by this application, but may also contribute to building knowledge about employment issues within this sector for future redundancies; notes that these specific actions are already a continuation of a similar measure carried out during an earlier EGF case in Finland (EGF/2013/001 FI/Nokia);

6.  Notes that, to-date, the 'Wholesale trade, except of vehicles and motorcycles' sector has been the subject of one other EGF application (EGF/2010/012 NL/Noord Holland ICT) which was also based on the globalisation criterion;

7.   Notes with satisfaction that, in order to provide workers with speedy assistance, the Finnish authorities decided to initiate the implementation of the personalised services to the affected workers on 11 August 2014, well ahead of the decision and even the application on the granting the EGF support for the proposed coordinated package;

8.   Notes that Finland is planning three types of measures for the redundant workers covered by this application: (i) helping them to transfer to a new job, (ii) helping them to start their own business, and (iii) providing training or education;

9.   Notes that the authorities plan to use 17,46% of all costs on allowances and incentives in the form of pay subsidies (as part of the salary for each employment relationship established for a targeted worker) and allowances for travel, overnight and removal costs, which amounts to half of the maximum allowed 35 % of all costs for such measures;

10.  Welcomes the procedures that the Finnish authorities have followed to consult the targeted beneficiaries or their representatives or the social partners as well as local and regional authorities;

11. Recalls the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career; expects the training on offer in the coordinated package to be adapted not only to the needs of the dismissed workers but also to the actual business environment;

12. Recalls that, in line with Article 7 of the EGF Regulation, the design of the coordinated package of personalised services should anticipate future labour market perspectives and required skills and should be compatible with the shift towards a resource-efficient and sustainable economy;

13. Welcomes the complementarity of the proposed EGF interventions with other actions funded by national or Union funds;

14. Notes that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on complementarity with actions funded by the Structural Funds; stresses that the Finnish authorities confirm that the eligible actions do not receive assistance from other Union financial instruments; reiterates its call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect of the existing regulations and that no duplication of Union-funded services can occur;

15. Appreciates the improved procedure put in place by the Commission, following the Parliament's request for the accelerated release of grants; notes the time pressure that the new timetable implies and the potential impact on the effectiveness of case instruction;

16. Approves the decision annexed to this resolution;

17. Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

18. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Globalisation Adjustment Fund (application from Finland - EGF/2015/001 FI/Broadcom)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006(6), and in particular Article 15(4) thereof,

Having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(7), and in particular point 13 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)      The European Globalisation Adjustment Fund (EGF) aims to provide support for workers made redundant and self-employed persons whose activity has ceased as a result of major structural changes in world trade patterns due to globalisation, as a result of a continuation of the global financial and economic crisis, or as a result of a new global financial and economic crisis, and to assist them with their reintegration into the labour market.

(2)      The EGF is not to exceed a maximum annual amount of EUR 150 million (2011 prices), as laid down in Article 12 of Council Regulation (EU, Euratom) No 1311/2013(8).

(3)      On 30 January 2015 Finland submitted an application EGF/2015/001 FI/Broadcom to mobilise the EGF, in respect of redundancies in Broadcom Communications Finland and two of its suppliers or downstream producers in Finland. It was supplemented by additional information provided in accordance with Article 8(3) of Regulation (EU) No 1309/2013. That application complies with the requirements for determining a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) No 1309/2013.

(4)      The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 1 365 000 in respect of the application submitted by Finland.

(5)      In order to minimise the time taken to mobilise the EGF, this decision should apply from the date of its adoption,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the European Union for the financial year 2015, the European Globalisation Adjustment Fund shall be mobilised to provide the sum of EUR 1 365 000 in commitment and payment appropriations.

Article 2

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption](9)*.

Done at Brussels,

For the European Parliament                      For the Council

The President                                                The President

EXPLANATORY STATEMENT

I. Background

The European Globalisation Adjustment Fund has been created in order to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

According to the provisions of Article 12 of Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020(10) and of Article 15 of Regulation (EU) No 1309/2013(11), the Fund may not exceed a maximum annual amount of EUR 150 million (2011 prices). The appropriate amounts are entered into the general budget of the Union as a provision.

As concerns the procedure, according to point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(12), in order to activate the Fund the Commission, in case of a positive assessment of an application, presents to the budgetary authority a proposal for mobilisation of the Fund and, at the same time, a corresponding request for transfer. In the event of disagreement, a trilogue shall be initiated.

II. The Broadcom application and the Commission's proposal

On 2 June 2015, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Finland to support the reintegration in the labour market of workers made redundant in Broadcom, operating in the economic sector classified under NACE Rev. 2 division 46 ('Wholesale trade, except of vehicles and motorcycles') and 2 suppliers or downstream producers.

This is the twelfth application to be examined under the 2015 budget and refers to the mobilisation of a total amount of EUR 1 365 000 from the EGF for Finland. It concerns 500 out of 568 workers made redundant in Broadcom and 2 suppliers or downstream producers. The application was sent to the Commission on 30 January 2015 and supplemented by additional information up to 27 March 2015. The Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the application meets the conditions for a financial contribution from the EGF.

The Finnish authorities state that the event giving rise to the redundancies in Broadcom is the closing down all its activities in Finland. They link this closing down to major structural changes in world trade patterns due to globalisation by recalling that during the 2000s, personnel numbers in Finnish subsidiaries on all continents increased, until Asia emerged as the greatest employer in the electronics and electrical industry in 2004. This provoked a decline in personnel numbers in Europe. As regards their domestic situation, the Finnish authorities point to a trend that affects the entire Finnish electronics industry and culminated in Nokia's announcement of large-scale redundancies in 2011.

The personalised services which are to be provided to workers made redundant consist of three types of measures, (i) helping them to transfer to a new job, (ii) helping them to start their own business, and (iii) providing training or education;

According to the Commission, the described measures constitute active labour market measures within the eligible actions set out in Article 7 of the EGF Regulation. These actions do not substitute passive social protection measures.

The Finnish authorities have provided all necessary assurances regarding the following:

–      the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation;

–      the requirements laid down in national and EU legislation concerning collective redundancies have been complied with;

–      Broadcom Communications Finland, which has continued its activities after the lay-offs, has complied with its legal obligations governing the redundancies and provided for its workers accordingly;

–      the proposed actions will not receive financial support from other Union funds or financial instruments and any double financing will be prevented;

–      the proposed actions will be complementary with actions funded by the Structural Funds;

–      the financial contribution from the EGF will comply with the procedural and material Union rules on State aid.

Finland has notified the Commission that the source of national pre-financing or co-funding are mainly from the public employment services budget line in the administrative branch of the Ministry of Employment and the Economy. Some services will also be funded from the operating expenditure of the Centres for Economic Development, Transport and the Environment (ELY Centres) and the Employment and Economic Development Offices.

III. Procedure

In order to mobilise the Fund, the Commission has submitted to the Budget Authority a transfer request for a global amount of EUR 1 365 000 from the EGF reserve (40 02 43) to the EGF budget line (04 04 01).

This is the twelfth transfer proposal for the mobilisation of the Fund transmitted to the Budgetary Authority to date during 2015.

The trilogue procedure shall be initiated in the event of disagreement, as provided for in Article 15(4) of the EGF Regulation.

According to an internal agreement, the Employment and Social Affairs Committee should be associated to the process, in order to provide constructive support and contribution to the assessment of the applications from the Fund.

ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS

ZP/jb

D(2015)28432

M. Jean Arthuis

Chair of the Committee on Budgets

ASP 09G205

Subject: Opinion on the mobilisation of the European Globalisation Adjustment Fund (EGF) for the case EGF/2015/001 FI/Broadcom (COM(2015)0232)

Dear Chair,

The Committee on Employment and Social Affairs (EMPL) as well as its Working Group on the EGF examined the mobilisation of the EGF for the case EGF/2015/001 FI/Broadcom and adopted the following opinion.

The EMPL committee and the Working Group on the EGF are in favour of the mobilisation of the Fund concerning this request. In this respect, the EMPL committee presents some remarks without, however, putting into question the transfer of the payments.

The deliberations of the EMPL committee are based on the following considerations:

A) Whereas this application is based on Article 4(1) of Regulation (EU) No 1309/2013 (EGF Regulation) and relates to 568 workers in Broadcom Communications Finland and two subsidiaries, operating in the NACE Rev. 2 Division 46 (Wholesale trade, except of motor vehicles and motorcycles) in all NUTS5 level 2 regions of Finland (except Aland), within the reference period from 11 August 2014 to 11 December 2014;

B) Whereas in order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation the Finnish authorities argue that the redundancies at Broadcom are linked with the trend that affects the entire Finnish electronics industry and culminated in Nokia's announcement of large-scale redundancies in 2011;

C) Whereas in the early 2000s, personnel in the Finnish electronics and electrical industry based in Finland and in overseas subsidiaries showed a steady development, but from 2007, there was a marked change with numbers abroad increasing while the numbers in Finland began a steady decline;

D) Whereas the event giving rise to the redundancies in Broadcom is the decision to wind down the company's cellular baseband business, a decision which affected 3 000 people globally, 600 of whom in Finland. Broadcom is closing down all its activities in Finland; whereas the design of mobile chipsets is being delocalised by Broadcom and is set to continue in the United States and Asia;

E) Whereas 88.4% of the workers targeted by the measures are men and 11.6% are women; whereas the vast majority of the workers (94%) is between 30 and 54 years old;

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution concerning the Finnish application:

1.   Agrees with the Commission that the application complies with the requirements for determining a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) No 1309/2013; agrees therefore that the EGF should be mobilised in order to provide a financial contribution of EUR 1 365 000 in respect of the application submitted by Finland;

2.  Welcomes the complementarity of the proposed EGF interventions with other actions funded by national or Union funds;

3.  Notes that the authorities plan to utilise 17.46% of all costs on allowances and incentives in the forms of pay subsidy (as part of the salary for each employment relationship established for a targeted worker) and allowances for travel, overnight and removal costs, which amounts to half of the maximum allowed 35% of all costs for such measures;

4.  Notes that the estimated cost of pay subsidy amounts up to EUR 6000 per beneficiary, applying to a relatively small group of all targeted workers (62 beneficiaries);

5.  Considers that the enterprise surveys and visits is an action which may not only benefit dismissed workers covered in this application, but may also contribute to building knowledge about employment issues within this sector for future redundancies; notes that this specific action is already a continuation of the similar measure carried out during an earlier EGF case in Finland (EGF/2013/001 FI/Nokia);

6.  Welcomes the procedures that the Finnish authorities have followed to consult the targeted beneficiaries or their representatives or the social partners as well as local and regional authorities;

7.   Reminds that in line with Article 7 of the Regulation, the design of the coordinated package of personalised services should anticipate future labour market perspectives and required skills and should be compatible with the shift towards a resource-efficient and sustainable economy.

Yours sincerely,

Marita ULVSKOG,

Acting Chair, 1st Vice-Chair

ANNEX: LETTER OF THE COMMITTEE ON REGIONAL DEVELOPMENT

Mr Jean ARTHUIS

Chairman

Committee on Budgets

European Parliament

Dear Mr. Arthuis,

Subject:           Mobilisation of the European Globalisation Adjustment Fund

A Commission proposal for a decision to mobilise the European Globalisation Adjustment Fund (EGF) has been referred for opinion to the Committee on Regional Development. I understand that it is intended that a report on this will be adopted in the Committee on Budgets on 23 June March 2015:

-          COM(2015)0232 proposes an EGF contribution of EUR 1 365 000 for active labour market measures in order to facilitate the re-integration of 568 workers made redundant in the sector of repair wholesale trade (except of motor vehicles and motorcycles) activities, in the NUTS5 level 2 regions of Finland (except Åland), the most affected region being Northern Ostrobothnia.

The rules applicable to financial contributions from the EGF are laid down in Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006.

The Committee coordinators have assessed this proposal, and asked me to write to you reporting that the majority of this Committee has no objection to this mobilisation of the European Globalisation Adjustment Fund to allocate the above-mentioned amount as proposed by the Commission.

Yours sincerely,

Iskra MIHAYLOVA

RESULT OF FINAL VOTE IN COMMITTEE

Date adopted

23.6.2015

 

 

 

Result of final vote

+:

–:

0:

31

5

0

Members present for the final vote

Nedzhmi Ali, Jonathan Arnott, Jean Arthuis, Richard Ashworth, Reimer Böge, Lefteris Christoforou, Jean-Paul Denanot, Gérard Deprez, José Manuel Fernandes, Eider Gardiazabal Rubial, Jens Geier, Ingeborg Gräßle, Iris Hoffmann, Monika Hohlmeier, Bernd Kölmel, Vladimír Maňka, Ernest Maragall, Sophie Montel, Siegfried Mureşan, Liadh Ní Riada, Jan Olbrycht, Younous Omarjee, Paul Rübig, Patricija Šulin, Eleftherios Synadinos, Paul Tang, Isabelle Thomas, Monika Vana, Daniele Viotti, Stanisław Żółtek

Substitutes present for the final vote

Janusz Lewandowski, Nils Torvalds, Derek Vaughan, Tomáš Zdechovský

Substitutes under Rule 200(2) present for the final vote

Tiziana Beghin, Marco Zullo

(1)

OJ L 347, 20.12.2013, p. 855.

(2)

OJ L 347, 20.12.2013, p. 884.

(3)

OJ C 373, 20.12.2013, p. 1.

(4)

             Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC regulations on specific statistical domains (OJ L 393, 30.12.2006, p. 1).

(5)

             Commission Regulation (EU) No 1046/2012 of 8 November 2012 implementing Regulation (EC) No 1059/2003 of the European Parliament and of the Council on the establishment of a common classification of territorial units for statistics (NUTS) as regards the transmission of the time series for the new regional breakdown (OJ L 310, 9.11.2012, p. 34).

(6)

              OJ L 347, 20.12.2013, p. 855.

(7)

              OJ C 373, 20.12.2013, p. 1.

(8)

              Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884).

(9)

*              Date to be inserted by the Parliament before the publication in OJ.

(10)

OJ L 347, 20.12.2013, p. 884.

(11)

OJ L 347, 30.12.2013, p. 855.

(12)

OJ C 373, 20.12.2013, p. 1.

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