REPORT 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/2014/007 IE/Andersen Ireland, from Ireland)
5.11.2014 - (COM(2014)0616 – C8‑0173/2014 – 2014/2098(BUD))
Committee on Budgets
Rapporteur: Ivan Štefanec
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/2014/007 IE/Andersen Ireland, from Ireland)
(COM(2014)0616 – C8‑0173/2014 – 2014/2098(BUD))
The European Parliament,
– having regard to the Commission proposal to the European Parliament and the Council (COM(2014)0616 – C8‑0173/2014),
– 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 (A8-0024/2014),
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 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 for 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 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 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 Ireland submitted application EGF/2014/007 IE/Andersen Ireland for a financial contribution from the EGF, following 171 redundancies in Andersen Ireland Limited, operating in the NACE Rev. 2 division 32 ('Manufacture of jewellery, bijouterie and related articles'), during the reference period from 21 October 2013 to 21 February 2014,
E. whereas the application fulfils the eligibility criteria set up by the EGF Regulation,
1. Notes that the Irish authorities submitted the application under the intervention criteria of Article 4(2) of the EGF Regulation, derogating from the criteria of Article 4(1)(a), which requires at least 500 workers being made redundant or self-employed persons' activity ceasing, over a reference period of four months in an enterprise in a Member State;
2. Agrees with the Commission that the exceptional circumstances put forward by the Irish authorities, namely that the redundancies have a serious impact on regional employment and the local and regional economy, justify a derogation to the 500 redundancies threshold according to Article 4(2) of the EGF Regulation, and that, therefore, Ireland is entitled to a financial contribution under that Regulation;
3. Notes that the Irish authorities submitted the application for EGF financial contribution on 16 May 2014, and that its assessment was made available by the Commission on 3 October 2014; welcomes the speedy evaluation of less than five months;
4. Considers that the 171 redundancies in Andersen Ireland Limited are linked to major structural changes in world trade patterns due to globalisation, with the EU jewellery sector being outstripped four-fold by imports within 4 years (2008 to 2012), out of which 95% from Asia;
5. Notes that this is the first EGF application for workers made redundant in the sector of jewellery, bijouterie and related articles, a sector that also suffers from the increase of online sales and could therefore be further weakened;
6. Notes that these redundancies will further aggravate the unemployment situation in the region, as Andersen Ireland was a major employer in this mainly rural area which already had an unemployment rate (39.3 %) twice as important as the national average (19 %);
7. Notes that the Irish authorities decided to provide personalised services co-financed by the EGF to up to 138 young people not in employment, education or training (NEETs) under the age of 25 in addition to the redundant workers, increasing the number of targeted beneficiaries expected to participate in the measures to 276 persons; expresses its concerns about the uncertainty of the way the targeted NEETs are to be identified; calls on the Irish authorities to bear in mind the social criteria and to ensure that the selection of the recipients of EGF support fully respects the principles of non-discrimination and equal opportunities;
8. Reminds that the proposed actions should be adapted to take into account the differences between the needs of dismissed workers and NEETs;
9. Expects a separate list of financial measures for the targeted NEETs in the midterm review;
10. Notes that training available for NEETs should be inclusive and should encompass all sections in society including disadvantaged groups;
11. Welcomes the fact that, in order to provide workers with speedy assistance, the Irish authorities decided to initiate the implementation of the personalised services to the affected workers on 21 October 2013, well ahead of the final decision on granting the EGF support for the proposed coordinated package;
12. Notes that the coordinated package of personalised services to be co-funded will seek to open the widest possible range of employment opportunities in an area where thereare few expanding sectors or production sites and will require significant upskilling of the redundant workers;
13. Notes the fact that the coordinated package of personalised services has been drawn up in consultation with the targeted beneficiaries and the representatives of the targeted beneficiaries as well as the social partners and welcomes the intention to establish a consultative forum to complement the work of the EGF Co-ordination Unit in order to afford the redundant workers with the opportunity to input on an ongoing basis to the EGF programme's implementation;
14. Welcomes the set-up of an office of the EGF Co-ordination Unit in close proximity to the affected location which will serve as a one-stop shop for the workers and NEETs;
15. Welcomes that a local open day for both affected redundant workers and NEETs was held to showcase the range of supports available under the programme and to enable prospective EGF beneficiaries to discuss options with service providers;
16. Notes that the personalised services which are to be provided to workers made redundant consist of the following actions which combine to form a co-ordinated package of personalised services: occupational guidance and career planning supports, EGF Training Grants, training and second level education programmes, third level education programmes, skillsnets training supports, enterprise/self-employment supports, income supports including course expense contributions;
17. Welcomes the idea of the skillsnets training support action amongst the proposed actions, where training is geared at reintegration to employment in companies operating in the same industrial sector or geographical area;
18. Notes that the income support measures will be strictly limited to a maximum amount of 35% of the overall package of personalised measures, as set out in the EGF Regulation;
19. Notes the lack of clarity concerning the estimations of the amounts to be awarded as enterprise or self-employment support; considers that the number of actual beneficiaries may differ from the estimations resulting in a different distribution of the estimated total costs; points out the important role of the Local Enterprise Boards in providing soft services and hard support, and particularly in assessing the viability of the business proposals and granting the amounts of support, up to the maximum of EUR 15 000;
20. Reminds 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;
21. Welcomes that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation;
22. Approves the decision annexed to this resolution;
23. 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;
24. 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, 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/2014/007 IE/Andersen Ireland, from Ireland)
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[1], and in particular Article 15(4) thereof,
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 between the European Parliament, the Council and the Commission of 2 December 2013 on budgetary discipline, on cooperation in budgetary matters and on sound financial management[3], and in particular point 13 thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1) The European Globalisation Adjustment Fund (EGF) was established 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 addressed in Regulation (EC) No 546/2009[4], 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 shall not exceed a maximum annual amount of EUR 150 million (2011 prices), as laid down in Article 12 of Regulation (EU, Euratom) No 1311/2013.
(3) Ireland submitted an application to mobilise the EGF, in respect of redundancies in Andersen Ireland Limited in Ireland, on 16 May 2014 and supplemented it by additional information as provided for in Article 8(3) of Regulation (EU) No 1309/2013. This 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) In accordance with Article 6(2) of Regulation (EU) No 1309/2013, Ireland has decided to provide personalised services co-financed by the EGF also to NEETs.
(5) The EGF should, therefore, be mobilised in order to provide a financial contribution of an amount of EUR 1 501 200 for the application submitted by Ireland,
HAVE ADOPTED THIS DECISION:
Article 1
For the general budget of the European Union for the financial year 2014, the European Globalisation Adjustment Fund shall be mobilised to provide the sum of EUR 1 501 200 in commitment and payment appropriations.
Article 2
This decision shall be published in the Official Journal of the European Union.
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[1] and of Article 15 of Regulation (EU) No 1309/2013[2], 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[3], 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 Andersen Ireland Limited application and the Commission's proposal
On 3 October 2014, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Ireland to support the reintegration in the labour market of workers made redundant in Andersen Ireland Limited operating in the economic sector classified under NACE Rev. 2 division 32 ('Manufacture of jewellery, bijouterie and related articles') due to globalisation. Additionally, the Irish authorities will provide personalised services co-financed by the EGF to up to 138 young people not in employment, education or training (NEETs) under the age of 25 on the date of submission of the application, given that the redundancies occur in the NUTS level 2 region of Southern and Eastern (IE02), which is eligible under the Youth Employment Initiative.
This is the fourteenth application to be examined under the 2014 budget and refers to the mobilisation of a total amount of EUR 1 501 200 from the EGF for Ireland. It concerns a total of 276 beneficiaries. The application was sent to the Commission on 16 May 2014 and supplemented by additional information up to 11 July 2014. 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 Irish authorities argue that in terms of both volume and value, non-EU imports have come to dominate the EU costume (i.e.fashion) jewellery market for the past five years or more. In 2008, Eurostat figures cited by Ireland show that sales within the EU by both EU and non-EU producers started from an almost identical position of 56 000 tonnes in volume of product. Both experienced drops in volume, perhaps attributable to the aftermath of the 2008/2009 global economic and financial crisis. However, while the EU volume of product sold in the EU market dropped to 10 600 tonnes in 2012, the non-EU imported product, though dropping also, dropped far less to 45 700 tonnes.
Where there had been parity in 2008, four year later the EU was outstripped four-fold by imports. Of this volume of non-EU product, 95% was imported from mostly Asian countries such as China, India, Thailand, and the Philippines. These are precisely the same locations where several companies based in the EU had meanwhile moved their production facilities, including market leaders Folli Follie and Swarovski.
The Irish authorities argue that the redundancies have a significant adverse impact on the local and regional economy, as Andersen Ireland was a major employer in this mainly rural area, where the unemployment rate (39.3 %) was more than double the national average (19 %).
The personalised services which are to be provided to workers made redundant consist of the following actions which combine to form a co-ordinated package of personalised services: Occupational guidance and career planning supports, EGF Training Grants, Training and second level education programmes, Third level education programmes, Skillsnets training supports, Enterprise/self-employment supports, Income supports including course expense contributions.
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 Irish 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;
• the dismissing enterprise has complied with its legal obligations governing the redundancies and has provided for the workers accordingly;
· the proposed actions will provide support for individual workers and will not be used for restructuring companies or sectors;
· 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.
· the proposed actions will not receive financial support from other Union funds or financial instruments and any double financing will be prevented;
Ireland has notified the Commission that the sources of national pre-financing or co-funding are the Irish Exchequer, which is pre-financing the services and will also co-finance the programme upon approval of the EGF contribution. Expenditure will be drawn from the National Training Fund and voted expenditure subheads of the Department of Education and Skills and other relevant Government Departments. The financial contribution will be managed by the designated staff of the Department of Education and Skills, who have been appointed as the EGF Managing Authority. The Managing Authority examines and pays EGF claims submitted by Intermediate Bodies on behalf of public expenditure bodies.
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 1 501 200 from the EGF reserve (40 02 43) to the EGF budget line (04 04 01).
This is the fourteenth transfer proposal for the mobilisation of the Fund transmitted to the Budgetary Authority to date during 2014.
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
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/2014/007 IE/Andersen (COM(2014)616 final)
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/2014/007 IE/Andersen 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(2) of Regulation (EU) No 1309/2013 (EGF Regulation) and relates to 171 workers in Andersen Ireland Limited, operating in the NACE Rev. 2 division 32 ('Manufacture of jewellery, bijouterie and related articles') in the Southern and Eastern region of Ireland, who were made redundant or whose activities ceased within the reference period between 21 October 2013 and 21 February 2014; whereas the application furthermore relates to 138 young persons not in employment, education or training (NEETs), whose number equals to the total estimated number of participants from the dismissed workers;
B) Whereas the Irish authorities argue that the redundancies are linked to major structural changes in world trade patterns due to globalisation, with the EU jewellery sector being outstripped four-fold by imports within 4 years (2008 to 2012), out of which 95% originates from Asia;
C) Whereas 26.09% of the workers targeted by the measures are men and 73.09% are women whose wage was often the sole or most significant income for entire families in this economically challenged area; whereas the majority of the workers (89.86%) is between 30 and 54 years old; whereas on average, workers have been employed by the company for at least 15 continuous years, with some having worked there for more than 30 years;
D) Whereas the authorities estimate that 138 of the dismissed workers are expected to participate in the measures.
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 Irish application:
1. Agrees with the Commission that the exceptional circumstances put forward by the Irish authorities, namely that the redundancies have a serious impact on regional employment and the local and regional economy, justify a derogation to the 500 redundancies threshold according to Article 4(2) of the EGF Regulation, and that, therefore, Ireland is entitled to a financial contribution under that Regulation;
2. Notes that the Irish authorities decided to provide personalised services co-financed by the EGF to up to 138 young people not in employment, education or training (NEETs) under the age of 25 in addition to the redundant workers, increasing the number of targeted beneficiaries expected to participate in the measures to 276 persons; expresses its concerns about the uncertainty of the way the targeted NEETs are to be identified; calls on the Irish authorities to bear in mind the social criteria and to ensure that the selection of the recipients of EGF support fully respects the principles of non-discrimination and equal opportunities;
3. Reminds that the proposed actions should be adapted to take into account the differences between the needs of dismissed workers and NEETs; welcomes the approach of the authorities therefore to provide highly personalised actions; points out that since these workers will mostly have to find jobs in other occupations in other sectors, their significant upskilling will be required;
4. Expects a separate list of financial measures for the targeted NEETs in the midterm review;
5. Notes that training available for NEETs should be inclusive and should encompass all sections in society including disadvantaged groups;
6. Notes that this is the first EGF application for workers made redundant in the sector of jewellery, bijouterie and related articles, a sector that also suffers from the increase of online sales and could therefore be further weakened;
7. Welcomes that a local open day for both affected redundant workers and NEETs was held to showcase the range of supports available under the programme and to enable prospective EGF beneficiaries to discuss options with service providers;
8. Welcomes the idea of the skillsnets training supports action amongst the proposed actions, where training is geared at reintegration to employment in companies operating in the same industrial sector or geographical area;
9. Notes that the income supports measures will be strictly limited to a maximum amount of 35% of the overall package of personalised measures, as set out in the Regulation;
10. Lacks some clarity on the estimations of the amounts to be awarded as enterprise or self-employment support; considers that the number of actual beneficiaries may differ from the estimations resulting in a different distribution of the estimated total costs; points out the important role of the Local Enterprise Boards in providing soft services and hard supports, and particularly in assessing the viability of the business proposals and granting the amounts of support, up to the maximum of EUR 15000;
11. 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
ASP 09 G 205
1047 Brussels
Dear Mr. Arthuis,
Subject: Mobilisations of the European Globalisation Adjustment Fund
Four separate Commission proposals for decisions to mobilise the European Globalisation Adjustment Fund (EGF) have been referred for opinion to the Committee on Regional Development. I understand that it is intended that reports on each of these will be adopted in the Committee on Budgets on 13 October and on 3 November.
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; and in Point 13 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission of 2 December 2013 on budgetary discipline, on cooperation in budgetary matters and on sound financial management
- COM(2014)0553 is a proposal for an EGF contribution of EUR 911 934 for active labour market measures in order to facilitate the re-integration of 939 workers made redundant following the closure of the steel slabs production plant of Carsid SA, located in Marcinelle (Charleroi), Belgium.
- COM(2014)0560 proposes an EGF contribution of EUR 12 704 605 for active labour market measures in order to facilitate the re-integration of 6 120 workers made redundant in the manufacture of motor vehicles, trailers and semi-trailers Peugeot Citroën Automobiles (PSA), in the regions of Ile de France and Bretagne, France.
- COM(2014)0616 is a proposal for an EGF contribution of EUR 1 501 200 for active labour market measures in order to facilitate the re-integration of 171 workers made redundant in Andersen Ireland Limited, which operated in the sector of the manufacture of jewellery, bijouterie and related articles, in the Southern and Eastern regions, Ireland.
- COM(2014)0620 proposes an EGF contribution of EUR 7 290 900 for active labour market measures in order to facilitate the re-integration of 761 workers made redundant in Sprider Stores S.A., which operated in the retail trade sector in the regions of Central Macedonia and Attica, Greece.
The Committee coordinators have assessed these proposals, and asked me to write to you stating that this Committee has no objection to these mobilisations of the European Globalisation Adjustment Fund to allocate the above-mentioned amounts as proposed by the Commission.
Yours sincerely,
Iskra MIHAYLOVA
RESULT OF FINAL VOTE IN COMMITTEE
Date adopted |
4.11.2014 |
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Result of final vote |
+: –: 0: |
25 3 0 |
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Members present for the final vote |
Nedzhmi Ali, Jean Arthuis, Richard Ashworth, Jean-Paul Denanot, Gérard Deprez, José Manuel Fernandes, Esteban González Pons, Ingeborg Gräßle, Iris Hoffmann, Bernd Kölmel, Zbigniew Kuźmiuk, Vladimír Maňka, Siegfried Mureşan, Liadh Ní Riada, Paul Rübig, Petri Sarvamaa, Patricija Šulin, Eleftherios Synadinos, Paul Tang, Indrek Tarand, Marco Valli, Daniele Viotti, Marco Zanni |
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Substitutes present for the final vote |
Pablo Echenique, Ernest Maragall, Ivan Štefanec, Nils Torvalds, Tomáš Zdechovský |
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