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European Commission proposes €2 million to 500 shipbuilding workers made redundant in Galicia




The Galician ship repair industry has had to lay off a lot (photo MetalShips)
The Galician ship repair industry has had to lay off a lot (photo MetalShips)
SPAIN. On Friday, September 11, 2020, the European Commission expressed the wish to grant €2 million to Spain under the European Globalisation Adjustment Fund (EGF). Created in 2007, this mechanism aims to support workers who are victims of major changes in world trade patterns or of an unforeseen financial and economic crisis.

After approval by the European Parliament and the European Council, this sum will help 500 former workers in the shipbuilding and related sectors who have been made redundant in Galicia to find new jobs. A package of measures amounting to €3.4 million has been adopted and will therefore be co-financed by the EGF and the Xunta de Galicia, the regional authority. It provides for vocational guidance, support in their job search, opportunities to acquire new skills through vocational training, as well as mentoring and support after finding another job. These employees will also be eligible for a variety of other incentives, such as a contribution towards the costs of family caregivers and financial support to encourage a quick return to employment.

The GEF will evolve after 2020

Madrid has requested the intervention of the GEF while 960 professionals in this field have lost their jobs between May 2019 and February 2020, due to the "decline in the EU's market share in global ship production and increased international competition", as stated by the European Commission.

Since its inception, the European Globalisation Adjustment Fund has received 161 applications for €636 million in aid to more than 151,000 employees and 4,429 young people who are not working and are not in education or training. 177 M€ are still available for the year 2020 and could accompany the massive redundancies linked to the Covid-19 pandemic.

After 2020, this scheme should evolve with an extension of its scope to include unforeseen major restructuring leading to massive layoffs, a lowering of the threshold for layoffs from 500 to 250 (and a shortening of the reference period) as well as a rationalization of the mobilization procedure. This is to help workers more quickly. These changes to the EGF are currently under discussion with the European Parliament and the European Council.

 

Frédéric Dubessy


Friday, September 11th 2020



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