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Procedure : 2017/2058(BUD)
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PV 17/05/2017 - 10.1

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Wednesday, 17 May 2017 - Strasbourg
Mobilisation of the European Globalisation Adjustment Fund: application EGF/2016/008 FI/Nokia Network Systems

European Parliament resolution of 17 May 2017 on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (application from Finland – EGF/2016/008 FI/Nokia Network Systems) (COM(2017)0157 – C8-0131/2017 – 2017/2058(BUD))

The European Parliament,

–  having regard to the Commission proposal to the European Parliament and the Council (COM(2017)0157 – C8‑0131/2017),

–  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),

–  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), 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 (A8-0196/2017),

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 Union promotes globalisation; whereas the Union takes care of the individuals who are momentarily subject to changes in the global market; whereas the adoption of the EGF Regulation reflects the agreement reached between the Parliament and the Council to reintroduce the crisis mobilisation criterion, to set the Union financial contribution to 60 % of the total estimated cost of proposed measures, 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/2016/008 FI/Nokia Network Systems for a financial contribution from the EGF, following redundancies in the economic sector classified under the NACE Revision 2 Division 26 (Manufacture of computers, electronic and optical products) in Nokia Oy (Nokia Network Systems) and three suppliers and downstream producers, operating mainly in the NUTS level 2 regions of Helsinki-Uusimaa (Uusimaa) (FI1B), Länsi-Suomi (Pirkanmaa) (FI19) and Pohjois- ja Itä-Suomi (Pohjois-Pohjanmaa) (FI1D) and whereas 821 out of 945 redundant workers eligible for the EGF contribution are expected to participate in the measures;

E.  whereas the application was submitted under the intervention criteria of Article 4(1)(a) of the EGF Regulation, which requires at least 500 workers being made redundant over a reference period of four months in a Member State, including workers made redundant by suppliers and downstream producers;

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 2 641 800 under that Regulation, which represents 60 % of the total cost of EUR 4 403 000;

2.  Notes that Finland submitted the application for a financial contribution from the EGF on 22 November 2016, and that, following the prompt provision of additional information by Finland, its assessment was finalised by the Commission on 7 April 2017 and notified to Parliament that same day;

3.  Recalls that the `Manufacture of computer, electronic and optical products` sector has already been the subject of 15 EGF applications, three of which were submitted by Finland(4), all based on the globalisation criterion; notes that four applications from the 15 concerned Nokia companies; notes that the final reports for the 2012 case shows that 44 % of participants in EGF activities were in employment two years after the date of Finland's EGF application and the 2013 case shows 65 % in employment; expects the Commission’s mid-term evaluation, due by 30 June 2017(5), to include detailed information about the long-term reintegration rate for those receiving EGF assistance, as already called for in Parliament’s resolution of 15 September 2016(6);

4.  Recalls that ICT plays a key structural role in Finnish economy; considers that the latest redundancies at Nokia Oy reflect a trend that affects the Finnish technology industry as a whole, where employment numbers in the last two years are extremely unstable as a result of high pressure to increase efficiency and maintain the competitiveness of products;

5.  Recalls that the ICT industry is highly sensitive to changes in the global market; notes that competition within the sector is global, meaning that all market players can compete for the same customers and the location and cultural background of personnel have limited significance;

6.  Notes that the redundancies at Nokia Oy are part of the company’s worldwide transformation programme, which is needed in order to be able to compete with East Asian rivals;

7.  Points out that, following the establishment of a joint venture with Siemens for network technologies, Nokia Oy took a number of measures, including a transfer of its resources towards technologies of the future and a reduction of personnel, which aim at bringing down its annual operating costs by EUR 900 million by the end of 2018;

8.  Notes that the persons who became unemployed from Nokia Oy in 2016 are all either university graduates (40 %) or have a secondary degree (60 %) and had been working in programming and designing, with their professional skills in many cases outdated; notes that 21 % of the targeted beneficiaries are over 54 years old, an age where re-employment in the job market is remarkably difficult; notes, in addition, that the unemployment rates have long been above the national average in two of the three concerned regions and that unemployment of the highly educated is overall at a high level in these regions, with the situation particularly difficult for employees over 50;

9.  Acknowledges the fact that Finland has drawn up the coordinated package of personalised services in consultation with stakeholders, with the Ministry of Economic Affairs and Employment having convened a Working Group including representatives of the targeted beneficiaries, social, national and regional partners;

10.  Notes that Finland is planning seven types of measures: (i) coaching measures and other preparatory measures, (ii) employment and business services, (iii) training, (iv) start-up grants, (v) expert assessments, (vi) pay subsidy, and (vii) allowances for travel, overnight and removal costs; notes that those actions constitute active labour market measures; notes that these measures will help the re-employment of the workers made redundant;

11.  Notes that the income support measures will constitute 13,34 % of the overall package of personalised measures, well below the maximum of 35 % set out in the EGF Regulation, and that these actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities;

12.  Welcomes the use of the EURES network service to pass foreign job advertisements to Finnish jobseekers; notes that international recruitment events will be arranged regionally in cooperation with EGF and EURES services; welcomes these measures and the fact that the Finnish authorities are encouraging the redundant workers to fully benefit from their right of free movement;

13.  Welcomes the range of training and counselling services to be provided as well as the support for people seeking employment outside Finland and for start-ups; considers these measures to be particularly appropriate in view of the age profile and skills of the workers concerned;

14.  Welcomes the fact that the Finnish authorities started providing the personalised services to the affected workers on 2 June 2016, well ahead of the application for the EGF support for the proposed coordinated package;

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

16.  Welcomes the amount of EUR 59 000 allocated to information and publicity and stresses its importance in encouraging eligible beneficiaries to participate in measures supported by the EGF;

17.  Notes that sufficient funds are allocated to control and reporting; notes that systematic reporting on services supported by the EGF will enhance the correct use of the funds; welcomes the amount of EUR 20 000 allocated in control and reporting;

18.  Notes that Nokia Network Systems has complied with its legal obligations and has consulted all stakeholders involved;

19.  Stresses that the Finnish authorities have confirmed that the eligible actions do not receive financial contributions from other Union financial instruments;

20.  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;

21.  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 of measures for restructuring companies or sectors; notes that Finland has confirmed that the EGF contribution will indeed not replace them;

22.  Recommends that Member States search for synergies with other actions funded by national or Union funds and utilise other Union programs alongside EGF measures;

23.  Asks the Commission to ensure public access to the documents related to EGF cases;

24.  Approves the decision annexed to this resolution;

25.  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;

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

(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) EGF/2007/004 FI/Perlos, EGF/2012/006 FI/Nokia Salo, EGF/2013/001 FI/Nokia.
(5) Article 20 of Regulation (EU) No 1309/2013.
(6) European Parliament resolution of 15 September 2016 on activities, impact and added value of the European Globalisation Adjustment Fund between 2007 and 2014 (Texts adopted, P8_TA(2016)0361).



on the mobilisation of the European Globalisation Adjustment Fund (application from Finland – EGF/2016/008 FI/Nokia Network Systems)

(The text of this annex is not reproduced here since it corresponds to the final act, Decision (EU) 2017/951.)

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