Procedure : 2014/2185(BUD)
Document stages in plenary
Document selected : A8-0065/2014

Texts tabled :

A8-0065/2014

Debates :

Votes :

PV 16/12/2014 - 5.11
Explanations of votes

Texts adopted :

P8_TA(2014)0083

REPORT     
PDF 171kWORD 94k
11.12.2014
PE 541.647v02-00 A8-0065/2014

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/2013/014 FR/Air France, from France)

(COM(2014)0701 – C8‑0247/2014 – 2014/2185(BUD))

Committee on Budgets

Rapporteur: Marco Zanni

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
 ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
 EXPLANATORY STATEMENT
 ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS
 ANNEX: LETTER OF THE COMMITTEE ON REGIONAL DEVELOPMENT
 RESULT OF FINAL VOTE IN COMMITTEE

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/2013/014 FR/Air France, from France)

(COM(2014)0701 – C8‑0247/2014 – 2014/2185(BUD))

The European Parliament,

–    having regard to the Commission proposal to the European Parliament and the Council (COM(2014)0701 – C8‑0247/2014),

–   having regard to Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund(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 (A8-0065/2014),

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 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 Regulation (EU) No 1309/2013(4) 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 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 France submitted application EGF/2013/014 FR/Air France for a financial contribution from the EGF, following 5213 redundancies, with 3886 persons expected to participate in the measures, during and after the reference period from 1 July 2013 to 31 October 2013, linked to a decline in the Union's market share in air transport,

E.  whereas the application fulfils the eligibility criteria laid down in the EGF Regulation,

1.  Notes that the conditions set out in Article 2(a) of the EGF Regulation are met; therefore agrees with the Commission that France is entitled to a financial contribution under that Regulation;

2.  Notes that the French authorities submitted the application for EGF financial contribution on 20 December 2013, supplemented it by additional information up to 24 July 2014 and that its assessment was made available by the Commission on 11 November 2014;

3.  Welcomes the fact that, in order to provide workers with speedy assistance, the French authorities decided to initiate the implementation of the personalised services to the affected workers on 6 November 2012, well ahead of the decision and even the application on granting the EGF support for the proposed coordinated package;

4.  Considers that the redundancies in Air France are linked to major structural changes in world trade patterns due to globalisation, with the Union market share in air transport falling, notably in the face of a spectacular rise of three major companies in the Persian Gulf, a trend which is aggravated by the global financial and economic crisis;

5.  Notes that the redundancies at Air France are expected to have a negative impact on the Île-de-France region, which is also faced with another mass redundancy as the Peugeot Citroën Automobile (PSA) production plant in Aulnay is being closed entirely in 2014;

6.  Notes that the coordinated package of personalised services to be co-funded includes the following measures for the reintegration of 3886 redundant workers into employment: advisory services and vocational guidance for workers, training, contributions to business creation, regular information and communication activities, redeployment allowances, mobility allowances;

7.   Welcomes the amount of EUR 21 580 020 devoted to the redeployment allowance which will be paid until the end of the “congé de reclassement” and amounts to 70 % of the worker's last gross salary; notes the fact that Regulation (EU) No 1309/2013 limits the share of such allowances to 35 % of the total EGF amount mobilised for a given case but stresses that France submitted the application in accordance with Regulation (EC) No 546/2009(5), which applies to applications submitted until the end of 2013 and which allows for a much more generous use of funds for specific allowances, such as redeployment allowances and contributions to business creation;

8.   Opposes the use of the EGF as a way to funding redundancies; advocates that this fund should be used to assist the reintegration of workers into the labour market;

9.   Recalls that funds should help the reintegration of beneficiaries into the labour market instead of providing them with salary replacement after being dismissed; notes that this purpose can be much better achieved through the provisions of Regulation (EU) No 1309/2013 which is currently in force;

10. Welcomes the fact that the co-ordinated package of personalised services has been drawn up in consultation with the representatives of the targeted beneficiaries and the social partners: training, advisory services for workers, contributions to business creation, redeployment allowances, mobility allowances;

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. Notes with regret that the majority of redundant workers are aged between 55 and 64 years; welcomes the differentiated incentive within the business creation contribution measure to recruit workers aged above 55;

13. Stresses that, in accordance with Article 6 of the EGF Regulation, it shall be ensured that the EGF supports the reintegration of individual redundant workers into stable employment; stresses, furthermore, that EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment; reiterates that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements nor measures restructuring companies or sectors;

14. Notes that the information provided on the coordinated package of personalised services to be funded from the EGF does not include information on complementarity with actions funded by the Structural Funds but refers to a written agreement with the dismissing enterprise to the effect that, in implementing the measures described above, it will not also receive financial contributions from other Union financial instruments for the same measures; reiterates its call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect for the existing regulations and that no duplication of Union-funded services can occur;

15. Approves the decision annexed to this resolution;

16. 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;

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

(1)

OJ L 406, 30.12.2006, p. 1.

(2)

OJ L 347, 20.12.2013, p. 884.

(3)

OJ C 373, 20.12.2013, p. 1.

(4)

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 (OJ L 347, 20.12.2013, p. 855).

(5)

Regulation (EC) No 546/2009 of the European Parliament and of the Council of 18 June 2009 amending Regulation (EC) No 1927/2006 on establishing the European Globalisation Adjustment Fund, OJ L 167, 29.6.2009, p. 26.


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/2013/014 FR/Air France, from France)

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 (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 establishing the European Globalisation Adjustment Fund(1), and in particular Article 12(3) thereof,

Having regard to Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Fund (2014-2020) and repealing Regulation (EC) No 1927/2006(2),

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(3), 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(4), 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 additional support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation 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)      On 20 December 2013 France submitted an application to mobilise the EGF, in respect of redundancies in the enterprise Air France, and supplemented it by additional information up to 24 July 2014. This application complies with the requirements for determining the financial contributions as laid down in Article 10 of Regulation (EC) No 1927/2006. The Commission, therefore, proposes to mobilise an amount of EUR 25 937 813.

(4)      The EGF should, therefore, be mobilised in order to provide a financial contribution for the application submitted by France,

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 25 937 813 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

(1)

              OJ L 406, 30.12.2006, p. 1.

(2)

              OJ L 347, 20.12.2013, p. 855.

(3)

            OJ L 347, 20.12.2013, p. 884.

(4)

              OJ C 373, 20.12.2013, p. 1.


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 the Article 12 of Regulation (EC) No 1927/2006(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 Air France application and the Commission's proposal

On 11 November 2014, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of France to support the reintegration in the labour market of workers made redundant, due to major structural changes in world trade patterns due to globalisation.

This is the twentieth application to be examined under the 2014 budget and refers to the mobilisation of a total amount of EUR 25 937 813 from the EGF for France. It concerns 3886 redundancies in the reference period from 1 July 2013 to 31 October 2013 and in the period after, but in the framework of the same collective redundancies procedure. The application is based on the intervention criteria of Article 2(a) of the EGF Regulation, which requires at least 500 redundancies over a period of four months in an enterprise in a Member State.

The application was sent to the Commission on 20 December 2013. The Commission has concluded that the application meets the conditions for deploying the EGF as set out in Article 2(a) of Regulation (EC) No 1927/2006.

According to data referred to by the French authorities, the international air transport has undergone serious economic disruption, in particular a decline of the EU’s market share. Over the period 2008-2012, the global traffic increased by 4,6 % per year, as part of a trend of long-term growth observed since 1970. However the air traffic between Europe and the rest of the world is growing at a slower pace (2,4 %) which has led to a decrease of the EU-27’s market share in air transport measured in revenue passenger-kilometres (RPK).

Available data for 2013(4) indicate that the trend shown for the period 2008-2012 continues. Europe grew by 3,8 % in 2013 compared to 2012, below the world average (5,2 %), and accounts for 38 % of the world traffic (measured in RPK), one percentage point less than in 2012. The Middle East region remains the fastest growing in the world, expanding at 10,9 % in 2013 and accounting for 9 % of the world traffic.

The effects of these changes in trade patterns have been worsened by other factors such as a decrease in demand as a consequence of the economic crisis and the increase of oil prices (fuel represents sometimes almost one third of seat/kilometer costs).

Finally, the French authorities argue that the growth of long-haul fleet of three major companies in the region of the Persian Gulf was unexpected and spectacular

The coordinated package of personalised services to be co-funded includes following measures for the reintegration of 3886 redundant workers into employment: Advisory services and vocational guidance for workers, Training, Contribution for business creation, Regular information and communication activities, Redeployment allowance, Mobility allowance.

According to the French authorities, the measures initiated on 6 November 2012 combine to form a co-ordinated package of personalised services and represent active labour market measures with the aim of re-integrating the workers into the labour market.

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the French authorities have confirmed in their application that:

•   the financial contribution from the EGF will not replace measures which are the responsibility of enterprises by virtue of national law or collective agreements;

•   the measures provide support for individual workers and are not used for restructuring enterprises or sectors;

•   the measures will not receive financial support from other Union funds or financial instruments

Concerning management and control systems, France has notified the Commission that the financial contribution will be managed by the Délégation générale à l’emploi et à la formation professionnelle (DGEFP, General Delegation for Employment and Vocational Training) of the Ministry of Labour, Employment and Health. The payments will be managed within the same ministry by the Département Financiement, Dialogue et Contrôle de Gestion - Mission du financement, du budget et du dialogue de gestion (DGEFP-MFBDG, Mission funding, budget and management). Certification will be provided by the Pôle de Certification (Certification Centre) of the Directorate-General for Finances in Nantes.

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 25 937 813 from the EGF reserve (40 02 43) to the EGF budget line (04 04 51).

This is the twentieth transfer proposal for the mobilisation of the Fund transmitted to the Budgetary Authority to date during 2014.

The trilogue on the Commission's proposal for a Decision on the mobilisation of the EGF could take a simplified form, as provided for in Article 12(5) of the legal base, unless there is no agreement between the Parliament and the Council.

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

(1)

OJ L 347, 20.12.2013, p. 884.

(2)

OJ L 406, 30.12.2006, p. 1.

(3)

OJ C 373, 20.12.2013, p. 1.

(4)

            http://www.icao.int/Newsroom/News%20Doc%202013/COM.43.13.ECON-RESULTS.Final-2.en.pdf


ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS

ZP/ch D(2014)56456

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/2013/014 FR/Air France from France (COM(2014)701)

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/2013/014 FR/Air France 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 2 (a) of the European Globalisation Adjustment Fund Regulation (EC) No 1927/2006 and relates to 5 213 workers made redundant in Air France in France within the reference period between 1 July 2013 and 31 October 2013;

B) Whereas the French authorities argue that the airlines sector underwent serious economic disruptions in particular a decline of the EU’s market share;

C) Whereas the French authorities argue that the effects of the changes in trade patterns leading to a weakened position of Air France on the market, were worsened by other factors, such as a decrease in demand as a consequence of the economic crisis and the increase in oil prices;

D) Whereas 59.75% of the workers targeted by the measures are men and 40.25% are women; whereas 68.94% of the workers are between 55 and 64 years old and 31.03% of the workers are between 25 and 54 years old;

E) Whereas the majority (72.13%) of the dismissed workers belong to the category of technicians and supervisors, 15.62% belong to the category of middle-ranking executives, 10.47% are employees and workers and 1.78% belong to the category of senior executives;

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 French application:

1.  Agrees with the Commission that the conditions set out in Article 2 (a) of the European Globalisation Adjustment Fund Regulation (EC) No 1927/2006 are met and that, therefore, France is entitled to a financial contribution under this regulation; points out however that the requested amount is very high; understands that the legal base does not enable the Commission to decrease the requested amount;

2.  Notes that this application is the largest in terms of the requested amount of funding since the launch of EGF;

3.  Considers that several applications of this magnitude may run the risk of depleting the fund not leaving enough funding for applications of more reasonable dimensions; notes that so far the reserves were never consumed entirely;

4.   Notes that the submission of this application fell under the previous EGF Regulation allowing for much more generous use of funds for specific allowances, such as the redeployment allowance and the contribution for business creation;

5.  Notes that due to the specific situation of the concerned company, it is the employer’s responsibility to pay the full costs of accompanying measures to ensure the redeployment of employees laid off; notes therefore that no public intervention is foreseen in support of former Air France workers;

6.  Regrets the decision of spending only 6.28% of the 51.8 million EUR support (out of which 26 million EUR EU funding) on training and thus on active labour market measures; believes that this deviates from the principles the Globalisation Fund was set up for; notes that the high number of allowances foreseen under personalised services (42%) in this application would not be in line with the current Regulation (maximum limit 35%);

7.  Reminds that funds should help the reintegration of beneficiaries into the labour market instead of providing them with salary replacement after being dismissed; notes that this purpose can be much better achieved through the provisions of the Regulation currently in force;

8.  Notes with regret that the majority of redundant workers are aged between 55 and 64 years; welcomes the differentiated incentive within the business creation contribution measure to recruit workers aged above 55;

9.  Notes that the expenditure for implementing EGF is proportionally low compared to the amount requested for the personalised services; deplores that no expenditure is set aside for information and publicity, which would be particularly required and preferred for communicating about the implementation and the results of this specific application.

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

Three 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 in the course of one of its forthcoming meetings.

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)0630 proposes an EGF contribution of EUR 1 426 800 for active labour market measures aimed at re-integrating into employment 634 workers made redundant in in STX Finland Oy in Rauma, in Finland.

-          COM(2014)0662 is a proposal for an EGF contribution of EUR 918 000 for active labour market measures aimed at re-integrating into employment 760 workers made redundant in in GAD société anonyme simplifiée, in France.

-          COM(2014)0672 is a proposal for an EGF contribution of EUR 1 890 000 for active labour market measures aimed at re-integrating into employment 608 workers made redundant in Whirlpool Europe S.r.l. and five suppliers and downstream producers, in Italy.

-          COM(2014)0699 proposes an EGF contribution of EUR 1 259 610 for active labour market measures aimed at re-integrating into employment 1 079 workers made redundant in Fiat Auto Poland and 21 of its suppliers, in Poland.

-          COM(2014)0701 proposes an EGF contribution of EUR 25 937 813 for active labour market measures aimed at re-integrating into employment 5 213 workers made redundant in in Air France, in France.

-          COM(2014)0702 proposes an EGF contribution of EUR 6 444 000 for active labour market measures aimed at re-integrating into employment 600 workers made redundant in Odyssefs Fokas S.A., in 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

11.12.2014

 

 

 

Result of final vote

+:

–:

0:

26

1

2

Members present for the final vote

Nedzhmi Ali, Richard Ashworth, Gérard Deprez, José Manuel Fernandes, Eider Gardiazabal Rubial, Jens Geier, Iris Hoffmann, Monika Hohlmeier, Vladimír Maňka, Clare Moody, Siegfried Mureşan, Victor Negrescu, Jan Olbrycht, Patricija Šulin, Eleftherios Synadinos, Paul Tang, Marco Valli, Monika Vana, Daniele Viotti, Marco Zanni

Substitutes present for the final vote

Pablo Echenique, Charles Goerens, Ernest Maragall, Andrey Novakov, Nils Torvalds

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

Eric Andrieu, Kostas Chrysogonos, Isabella De Monte, Sylvie Guillaume

Legal notice - Privacy policy