EU globalisation fund helps thousands

Ten thousand workers within the EU were helped by the European Globalisation Adjustment Fund last year and of these, more than two-thirds found a new job, according to a report adopted by the European Commission.

The second annual report on the EGF shows an increasing uptake of the funds by EU countries for measures to support workers dismissed as a result of globalisation. It also reports on the outcome of the first EGF contributions in terms of helping the redundant workers into new jobs.

In 2008, the Commission received five applications for a contribution from the EGF. These applications, submitted by Italy, Spain and Lithuania related to 6,587 redundancies and requested a total amount of €20,626,022. After an in-depth analysis of their eligibility, the Commission had submitted three of these applications to the Budgetary Authority by December 31, 2008, while the other two were approved in 2009.

A total of €49,035,729 was granted in 2008 in eight EGF contributions, five of which were for applications received in 2007 and three for applications received in 2008. These funds were used to co-finance active labour market policy measures (mostly job-search allowances, training and employment incentives) and were targeted at 9,941 redundant workers in five member states, Italy, Malta, Portugal, Spain and Lithuania.

In 2007 when 675 employees from VF Corporation and Bortex were made redundant Malta applied for funds from the EGAF. It was consequently given almost €700,000 for a scheme to help the workers acquire new skills and reintegrate into the labour market.

Of the 675 employees, 427 (63.5 per cent) found a new job, 54 (eight per cent) are still registering for work while 192 (28.5 per cent) are classified as "inactive" meaning they are still looking for work but are not registering as unemployed.

In 2008, the Commission received final reports on the implementation of the first three EGF cases. These reports showed that the EGF had directly contributed to the re-integration into employment of 2,158 workers (69 per cent of those targeted for help) who had been made redundant in the automotive industry and the mobile phone sector.

The final reports also suggested that the EGF contributions allowed the member states concerned to prepare a more effective package of measures benefiting the redundant workers, in particular through innovative social actions such as interaction in peer groups, more one-to-one guidance and counselling and an extended duration of support, which would not have been available without the EGF contribution.