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. Belgium’s application and the Commission's proposal

On 19 July 2024, Belgium submitted an application EGF/2024/002 BE/Limburg machinery and paper for a financial contribution from the EGF, following 681 redundancies - 567 at the company Sappi Lanaken following the closure of this paper-producing site, and 114 at Purmo Group Belgium as the consequence of the stop of its production line of panel radiators at its Zonhoven site. This is the second such application of 2024.

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 5 November 2024, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Belgium to support the reintegration in the labour market of 632 targeted beneficiaries, i.e. workers made redundant by Sappi Lanaken and Purmo Group. In total, EUR 704 135 will be mobilised from the EGF for Belgium, representing 60 % of the total costs of the proposed actions.

The Commission deemed the Belgian application admissible under the intervention criteria of Article 4(2)(c) of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in in enterprises operating in the same or different economic sectors and located in the same region.

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

a) Social Intervention Advisor (SIA). A social intervention advisor is the first service provided to laid-off workers. The service begins by providing information about the support available to facilitate the workers' transition to employment. The SIA are a point of reference for workers throughout the process.

b) Guidance, counselling, and vocational orientation. Motivational and inspirational help. Support and information about developments on the job market and possible career paths. Encouragement to upgrade skills or to learn new skills and participate in training measures aimed at finding new employment. Support in job-search activities, assistance with the job application process, preparation for job interviews, etc. Reinforced career guidance is planned for workers with greater distance to the profiles requested in the available job vacancies or with poor command of Dutch.

c) Active job-search support. Among other support activities, this includes job scouting to locate potential job vacancies that are not yet published and which might suit eligible workers. Furthermore, a variety of job search events, like job fairs, will be organised.

d) Training, retraining and vocational training. Workers will have access to the standard training offer of the public employment services. In addition, upon agreement of individual projects with the vocational counsellor, specific training will be offered to cater for the identified needs.

e) Training at the workplace. Workers receive on-the-job training at the enterprise that will employ them after training. Depending on the needs of the worker, the training can last between 4 and 26 weeks. Training is followed by an employment contract, either permanent or fixed term of at least the same duration as the training.

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.

Belgium 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 704 135 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.