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Eurofound – European Foundation for the Improvement of Living and Working Conditions www.eurofound.europa.eu The European Globalisation Fund: a cornerstone of the European social model? Forum on Protection of Worker's Rights and Decent Work in the Context of Regional Trade Integration Ministry of Labour, Taipei, 18 August 2015 Christian Welz

European Globalisation Fund - Christian Welz - Eurofound - Dublin

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Page 1: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

Eurofound – European Foundation for the Improvement of Living and Working Conditions

www.eurofound.europa.eu

The European Globalisation Fund: a cornerstone of the European social model?

Forum on Protection of Worker's Rights and Decent Work in the Context of Regional Trade Integration

Ministry of Labour, Taipei, 18 August 2015

Christian Welz

Page 2: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• article 175 TFEU - regulation 1927/2006 /EU repealed by regulation 1309/2013/EU

• one-off specific funding opportunity to assist individual employees adversely affected by globalisation, a high increase in imports and a decline in EU exports

• globalisation could put into question the European Social Model, a system that promotes sustainable economic growth, social dialogue, equal opportunities and good employment terms and conditions

background

Page 3: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• in operation since January 2007

• maximum annual budget EUR 150 million for the period 2014-2020

• total budget 2014-2020: 1.05billio EUR

• fund up to 60% of the cost of projects designed to help workers find another job or set up their own business

budget

Page 4: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• conditions to be fulfilled

a minimum of at least 500 employees have to have been made redundant in a company or Member State (MS) - including employees in suppliers or downstream producers) over a period of 4 months

period increases to 9 months here this involves small and medium-sized enterprises (SMEs)

conditions

Page 5: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• Member State has to

demonstrate the link between planned redundancies and economic global structural changes

identify the affected enterprise and worker

identify the territory affected and the impact redundancies will have on local and regional employment

discuss the procedures used to consult the social partners.

conditions

Page 6: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• job-search assistance, occupational guidance, tailor-made training, outplacement assistance and entrepreneurship promotion or aid for self-employment

• special time-limited measures, e.g. job-search allowances, mobility allowances or allowances to individuals participating in lifelong learning and training activities

• measures to stimulate in particular disadvantaged or older workers, to remain in or return to the labour market.

types of actions funded

Page 7: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• 134 applications amounting to €561.1 million from 20 MS since 2007

• over 122 000 redundant workers have been targeted and many of them have already received tailor-made assistance

• France requested the highest amount of co-funding (€84.6 million) followed by Ireland (€67.3 million), Denmark (€63.7 million) and Italy (€62.5 )

achievements

Page 8: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• applications from 45 sectors (2007-2014)• most of them in manufacturing, but construction and services

were also represented

• 4 manufacturing sectors accounted for the largest number of applications the automotive industry machinery and equipment textiles printing

achievements

Page 9: European Globalisation Fund - Christian Welz  - Eurofound - Dublin
Page 10: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• enabled MS to respond more flexibly to the current employment challenges, to devote more attention to lower skilled people and harder-to-help job seekers

• useful instrument at a time of budget deficits and public sector cuts, when MS and companies are struggling to recover from the crisis.

achievements

Page 11: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• helped a total of 27 610 workers during 2013/14• provided more than €114.4 million to assist workers in 13

Member States (AT, BE, DE, DK, EL, ES, FI, FR, IE, IT, NL, PL and RO)

• funding was matched by another €94.1 million from national resources

• half the workers (7,656 out of 15,245) who participated in the measures found new jobs or became self-employed

• additional 667 people were at that time in education or training to increase their future employability

achievements

Page 12: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• IE made 9 successful applications

6 by made redundant in specifically named companies (i.e., Dell, Waterford Crystal, and SR Technics, Talk Talk, Andersen Ireland, Lufthansa Technik

3 EGF applications covered almost 9,000 workers and apprentices made redundant in three sectors of the construction industry

EGF and Ireland

Page 13: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• Committee of the Regions (2012) MS States must also consult with the relevant local and regional

authorities and SP during the application

• ETUC limited role of the SP in the implementation essential for the SP to be consulted and their input taken into account support only be given to workers who suffer from delocalisations to

third countries

Views on the EGF

Page 14: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• Eurochambres (Association of European Chambers of Commerce and Industry) thinks the globalisation fund "is a mistake". produces a wrong message to European entrepreneurs may give the impression that one can protect Europe from the rest of

the world, which we cannot

• Houses of the Oireachtas / IE (2010) SP must be involved throughout the process

Views on the EGF

Page 15: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

• European Commissioner for Employment, Social Affairs, Skills and Labour Mobility Marianne Thyssen said:

"During times when public resources are limited, the EGF has been providing welcome support to workers made redundant in mass lay-offs caused by globalisation or the crisis. Through personalised and targeted

assistance we have supported the transition of some of the most vulnerable workers into new jobs, leading to an encouraging re-employment rate of almost 50%.”

View of the European Commission

Page 16: European Globalisation Fund - Christian Welz  - Eurofound - Dublin

Further information

[email protected]

slideshare Welz_

European industrial relations dictionary