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  • Five manufacturers in the Galicia region affected
  • All five companies suffered from increased imports of textiles into the EU
  • EU funds cover measures such as job-search assistance and monetary incentives

EU job-search aid worth €720,000 for 303 workers made redundant by five clothing manufacturers was approved by the European Parliament in a vote on Thursday.

The former employees were made redundant by five companies in the municipality of Ordes in Galicia. Increased imports of textiles and clothing into the EU forced down prices, which caused the manufacturers to produce more offshore in non-EU countries with lower costs. This led to the closure of various companies in Galicia and workers were made redundant within the Caramelo, Confecciones Deus, Deus Creaciones, Viriato and Shivshi companies.

 

Overall, unemployment in Ordes rose by 40% between December 2016 and April 2017. In Galicia as a whole, 26% of clothing companies shut down over the period from 2010 to 2016.

 

The European Globalisation Adjustment Fund (EGF) money complements measures taken by the Spanish authorities. All 303 redundant workers benefit, 83.5% of whom are women between the ages of 30 and 54. Six types of measures are covered: preparatory workshops, occupational guidance, training, job-search assistance, tutoring after reintegration into work and monetary incentives.

The resolution, by rapporteur González Pons (EPP, ES), recommending that the aid request be approved, was passed by 550 votes to 75, with 6 abstentions.

 

 

Next steps

 

The EGF aid has already been approved by the Council of Ministers on 27 February and can now be used.

 

 

Background

 

The European Globalisation Adjustment Fund contributes to packages of tailor-made services to help redundant workers find new jobs. Its annual ceiling is €150 million. 

Redundant workers are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training. In most cases, national authorities have already started the measures and will have their costs reimbursed by the EU when their applications are finally approved.