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Tuesday, 23 October 2018 - Strasbourg
Mobilisation of the European Globalisation Adjustment Fund: application EGF/2018/002 PT/Norte – Centro – Lisboa wearing apparel

European Parliament resolution of 23 October 2018 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 Portugal – EGF/2018/002 PT/Norte – Centro – Lisboa wearing apparel) (COM(2018)0621 – C8-0399/2018 – 2018/2223(BUD))

The European Parliament,

–  having regard to the Commission proposal to the European Parliament and the Council (COM(2018)0621 – C8‑0399/2018),

–  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 (A8-0311/2018),

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;

C.  whereas Portugal submitted application EGF/2018/002 PT/Norte – Centro – Lisboa wearing apparel for a financial contribution from the EGF following 1 161 redundancies in the economic sector classified under the NACE Revision 2 Division 14 (Manufacture of wearing apparel) in the NUTS level 2 regions of Norte (PT11), Centro (PT16) and Lisboa (PT17) in Portugal;

D.  whereas the application is based on the intervention criteria of point (b) of Article 4(1) of the EGF Regulation, which requires at least 500 workers being made redundant over a reference period of nine months in enterprises operating in the same economic sector defined at NACE Revision 2 division level and located in one region or two contiguous regions, or in more than two contiguous regions defined at NUTS 2 level provided that there are more than 500 workers affected in two of the regions combined in a Member State;

1.  Agrees with the Commission that the conditions set out in point (b) of Article 4(1) of the EGF Regulation are met and that Portugal is entitled to a financial contribution of EUR 4 655 883 under that Regulation, which represents 60 % of the total cost of EUR 7 759 806;

2.  Notes that the Portuguese authorities submitted the application on 24 April 2018, and that, following the provision of additional information by Portugal, the Commission finalised its assessment on 10 September 2018 and notified it to Parliament on the same day;

3.  Notes that Portugal argues that the redundancies are linked to major structural changes in world trade patterns due to globalisation, more particularly to the liberalisation of trade in textiles and clothing following the expiry of the World Trade Organization Multifibre Agreement at the end of 2004 which has led to radical changes in the structure of world trade in textiles and clothing;

4.  Notes that the unemployment rate in the wearing apparel sector in the districts where the redundancies occurred is higher than in the Norte, Centro and Lisboa regions where those districts are situated and that prospects for redeployment are low as the dismissed workers are mostly low-skilled women;

5.  Recalls that the redundancies that occurred in two enterprises operating in the Portuguese wearing apparel sector are expected to have a significant adverse effect on the local economy, and that the impact of the layoffs is linked to redeployment difficulties due to the scarcity of jobs, to the low educational background of the dismissed workers, and to the high number of job seekers;

6.  Recommends the application of Structural and Investment Funds, and in particular the European Social Fund, to improve the qualifications of Portuguese workers in order to reduce unemployment, and especially youth unemployment and long-term unemployment;

7.  Notes that the application relates to 1 161 workers made redundant, of whom 730 will be targeted by the proposed measures; points to the fact that the majority of the redundant workers are women (88,63 %); further notes that 20,55 % of the redundant workers are over 55 years of age; acknowledges, in view of that fact, the importance of active labour market measures co-funded by the EGF to improving the chances of reintegration of those vulnerable groups into the labour market;

8.  Welcomes the fact that personalised services co-financed by the EGF will also be provided to up to 730 young people under the age of 30 not in employment, education or training (NEETs);

9.  Notes that Portugal is planning three types of actions for the redundant workers covered by this application: (i) training and re-training, (ii) promotion of entrepreneurship, (iii) allowances;

10.  Stresses that training and re-training should create real alternatives for re-integration in the region taking account of sectors with growing labour demand;

11.  Notes that financial allowances, including training, mobility and meal allowances, do not exceed the maximum of 35 % of the total costs set out in the EGF Regulation and that those actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities;

12.  Acknowledges that the coordinated package of personalised services has been drawn up in consultation with a working group, which included the Public Employment Service, representatives of the trade unions, the Institute of Social Security and the Authority for Work Conditions;

13.  Stresses that the Portuguese authorities have confirmed that the eligible actions do not receive assistance from other Union funds or financial instruments and have provided assurances that any double financing will be prevented and that the proposed actions will be complementary to actions funded by the Structural Funds;

14.  Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements, or measures for restructuring companies or sectors and welcomes Portugal’s confirmation in that regard;

15.  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;

16.  Calls on the Commission to urge national authorities to provide more details, in future proposals, on the sectors which have growth prospects and are therefore likely to hire people, as well as to gather substantiated data on the impact of the EGF funding, including on the quality of jobs and the reintegration rate achieved through the EGF;

17.  Recalls its appeal to the Commission to ensure public access to all the documents related to EGF cases;

18.  Approves the decision annexed to this resolution;

19.  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;

20.  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.



on the mobilisation of the European Globalisation Adjustment Fund following an application from Portugal – EGF/2018/002 PT/Norte – Centro – Lisboa wearing apparel

(The text of this annex is not reproduced here since it corresponds to the final act, Decision (EU) 2018/1720.)

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