Changes from report parliamentary committee draft to plenary report

I. Background

The European Globalisation Adjustment Fund (EGF) was created to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

In accordance with point 9 of the Interinstitutional Agreement of 16 December 2020, the Commission is required, following the positive assessment of an application, to submit a proposal to mobilise the Fund to the budgetary authority and to complement it with a corresponding request for transfer to the relevant budget lines.

II. Denmark’s application and the Commission's proposal

On 6 December 2023, Denmark submitted an application EGF/2023/004 DK/Danish Crown for a financial contribution from the EGF, following 751 redundancies at the company Danish Crown (Danish Crown A/S) and 2 suppliers and downstream producers resulting from the closure of Danish Crown's slaughterhouse in Sæby. This is the fourth application of 2023 and the second to be examined under the 2024 budget.

Following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.

On 29 February 2024, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Denmark to support the reintegration in the labour market of 390 targeted beneficiaries, i.e. workers made redundant as a result of the closure of Danish Crown's slaughterhouse in Sæby. In total, EUR 1 882 212 will be mobilised from the EGF for Denmark, representing 60 % of the total costs of the proposed actions.

The Commission deemed the Danish application admissible under the intervention criteria of Article 4(2)(a) of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in an enterprise in a Member State, including workers made redundant by suppliers and downstream producers and/or self-employed persons whose activity has ceased.

EGF co-funding has been requested for the following five types of actions, to be provided to redundant workers:

(a) Motivation: This first measure is a combination of information, motivation, and counselling, along with workers’ profiling. The main goal of the motivation process is to develop participants’ confidence in their own abilities, make them realise that improving their skills will help them obtain a new job, discuss possible barriers that could hinder their skill improvement and together find solutions to remove these barriers.

(b) Retention: The objective of this measure is to maintain motivation to participate in educational and upskilling pathways by supporting redundant workers through individual mentoring and advice, helping them resolve challenges and minimize barriers.

(c) Training on general competences: The Danish Act on Active Employment Efforts sets that redundant workers must be offered training in reading, writing, arithmetic and dyslexia training, if necessary. Therefore, the training offer part of the EGF package reinforces the basic training provided for by law and focuses on general adult education that allows improving one or more subjects at primary school level, as well as language skills in Danish. Training in Danish is particularly relevant, since 41 % of the redundant workers have a migrant background15 and are not fluent in Danish. Training in digital skills and ad-hoc training tailored for Danish Crown former workers is also foreseen. The adapted training is a combination of language training and employment-oriented support (including job-search) to help participants meet labour law requirements and reconnect with the labour market.

(d) Upskilling/reskilling training: The profiles of the displaced workers do not correspond to the skills sought in the labour market. Most of the workers have low levels of formal qualifications (46 %) or rather outdated qualifications and skills (40 %). Most workers with only primary education belong to the age group of 30-39 years, while most of the workers with vocational education or training (VET) as the highest educational level belong to the age group of 50-59 years. The training offer includes shorter pathways for skills improvement (AMU-training) and vocational training based on competency assessment (RKV) that certifies any competency obtained in the formal educational system, at work or in continuing training. AMU focuses on training low-skilled adults and covers most of trades, industries, and services. AMU's offer ranges from introductory to highly specialised courses. Training is delivered in workshops that resemble enterprises' work environment.

(e) Training/job-seach allowance: Workers will receive an allowance while engaged in training or job-search.

According to the Commission, the described measures constitute active labour market measures within the eligible actions set out in Article 7 of the EGF Regulation and do not substitute passive social protection measures.

Denmark provided the required information on actions that are mandatory for the enterprises concerned by virtue of national law or pursuant to collective agreements. They confirmed that a financial contribution from the EGF will not replace such actions.

Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 1 882 212 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).

According to an internal agreement within the Parliament, the Employment and Social Affairs Committee and the Committee on Regional Policy should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund.