Redundant workers to get more help from EU

People made redundant by the current economic crisis will be eligible to new benefits which have been approved by the European Parliament.

The money will come over and above the existing European Globalisation Adjustment Fund (EGF) which also helps member states deal with layoffs.

The EGF was set up in 2006 to help workers laid off because of globalisation. But, as the current economic crisis wreaks havoc leaving millions of redundant workers in its wake, the EU has decided to introduce temporary changes to the rules of the EGF in order to specifically help such workers.

The fund will now cover redundancies by co-financing training and job placements.

Support will be extended from 12 to 24 months to allow enough time to re-integrate the most vulnerable workers into new jobs.

Also, the eligibility threshold for EGF applications was lowered from 1,000 to 500 redundant workers in one economic sector or company.

In order to encourage member states to make use of the fund, the EU's contribution has been raised from 50 per cent to 65 per cent of the funding until the end of 2011, the rest being provided by the member state.

The vote of the European Parliament comes after member states had previously approved the proposal.

According to the new rules, a "direct and demonstrable" link between the redundancies and the financial and economic crisis needs to be proven for the money to be made available.

The fund has a maximum annual budget of €500 million.

Malta already made use of the fund in 2007, when €700,000 was granted for the sudden redundancy of 675 workers from two textile factories, VF (Malta) Ltd and Bortex Clothing.