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2015/2019(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the steel sector in Belgium
RoleCommitteeRapporteurShadows
Lead BUDG PLENKOVIĆ Andrej (EPP) GARDIAZABAL RUBIAL Eider (S&D), JÄÄTTEENMÄKI Anneli (ALDE), NÍ RIADA Liadh (GUE/NGL), VANA Monika (Verts/ALE), ZANNI Marco (EFD)
Opinion EMPL
Opinion REGI
Lead committee dossier: BUDG/8/02467

Activites

  • 2015/03/10 Decision by Parliament, 1st reading/single reading
  • #3374
  • 2015/03/09 Council Meeting
  • 2015/03/02 Budgetary report tabled for plenary, 1st reading
    • A8-0031/2015 summary
  • 2015/02/26 Vote in committee, 1st reading/single reading
  • 2015/01/28 Committee referral announced in Parliament, 1st reading/single reading
  • 2014/12/09 Non-legislative basic document published
    • COM(2014)0725 summary
    • DG {'url': 'http://ec.europa.eu/dgs/budget/', 'title': 'Budget'}, GEORGIEVA Kristalina

Documents

  • Non-legislative basic document published: COM(2014)0725
  • Budgetary report tabled for plenary, 1st reading: A8-0031/2015
  • Decision by Parliament, 1st reading/single reading: T8-0043/2015
AmendmentsDossier
9 2015/2019(BUD)
2015/02/16 BUDG 9 amendments...
source: 549.297

History

(these mark the time of scraping, not the official date of the change)

activities/5/docs/0/text
  • The European Parliament adopted by 534 votes to 77, with 12 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 981 956 in commitment and payment appropriations to assist Belgium affected by redundancies in its steel sector.

    Parliament recalled that the Union set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

    Belgian application: Belgium submitted application EGF/2013/007 BE/Hainaut steel for a financial contribution from the EGF following 708 redundancies in two companies, linked to the closure of Duferco and to staff reductions at NLMK, operating in the NACE 2 Division 24 'Manufacturing of basic metals', and both located in La Louvière in the Hainaut region. The redundancies took place during the reference period from 22 January 2013 to 22 October 2013 and are linked to a decline of the Union's market share in in the sector of steel production.

    Parliament noted that the conditions set out in Article 2(b) of the EGF Regulation are met. Therefore, Belgium is entitled to a financial contribution under that Regulation.

    It also welcomed the fact that, in order to provide workers with speedy assistance, the Belgian authorities decided to initiate the implementation of the personalised services to the affected workers on 1 June 2013, well ahead of the decision and even the application on granting the EGF support for the proposed coordinated package.

    Nature of the redundancies: Parliament considered that the redundancies in Duferco and NLMK are linked to major structural changes in world trade patterns due to globalisation, given that the steel production sector has undergone serious economic disruption, in particular a rapid decline in the EU’s market share. Futhermore, as a consequence of the economic crisis and a relative increase in production costs, world trade patterns were worsened by other factors such as a decline in demand for steel in the automotive and construction sector.

    It also considered that the redundancies are expected to have a negative impact on the Hainaut region, a former coal-mining and steelmaking area in which employment is strongly dependant on traditional heavy industry and on the public sector, where in 2012 the unemployment rate was 17.7%, compared to 15.8% on average in Wallonia and 11.2% at national level and peaked at 39% for the persons aged from 18 to 25. Members highlighted that the low level of qualification of jobseekers (51% do not have higher secondary education, compared to 47% in Wallonia) is an additional difficulty for the job search. Overall, Parliament noted that, in the context of the economic situation and the number of redundancies in the metallurgic industry in the region, in order to find a new job in that region, the workers from Duferco and NLMK will have to retrain to find jobs in other occupations and other sectors. It stated that the proposed measures also target a group of managers of the companies concerned

    A package of personalised services: Parliament stressed that the coordinated package of personalised services to be co-funded includes following measures for the reintegration of 701 redundant workers into employment (grouped by category): (1) individual job-search assistance, case management and general information services, (2) training and retraining and (3) promotion of entrepreneurship.

    It recalled the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career. It also stressed that EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment.

    Lastly, Parliament noted that measures which are mandatory under collective redundancy procedures in Belgium and which are carried out as part of the standard activities of the Redeployment Units (e.g. outplacement support, training, job-search assistance and careers advice, etc.) are not included in this EGF application. More than half of the total estimated costs are to be spent on redeployment services, namely support, guidance and integration measures.

activities/0/docs/0/celexid
CELEX:52014PC0725:EN
activities/0/docs/0/text
  • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Belgium following redundancies in its steel sector.

    PROPOSED ACT: Decision of the European Parliament and of the Council.

    CONTENT: Article 12 of Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 provides that the EGF shall not exceed a maximum annual amount of EUR 150 million (2011 prices) over and above the relevant headings of the financial framework.

    The rules applicable to financial contributions from the European Globalisation Adjustment Fund (EGF) are laid down Regulation (EC) No 1927/2006 of the European Parliament and of the Council on the European Globalisation Adjustment Fund.

    On 27 September 2013, Belgium submitted application EGF/2013/007 BE/Hainaut steel (Duferco-NLMK) for a financial contribution from the EGF, following redundancies linked to the closure of Duferco Belgium SA (‘Duferco’) and to staff reductions at NLMK La Louvière SA (‘NLMK’) which are both located in La Louvière.

    In this context, the Commission examined the application for mobilisation of the EGF to assist Belgium and concluded the following:

    Belgium: EGF/2013/007 BE/Hainaut steel (Duferco-NLMK): on 27 September 2013, Belgium submitted the application. It was supplemented by additional information up to 4 July 2014.

    In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, the Belgian authorities argue that the sector of the production of steel has undergone serious economic disruption, in particular a rapid decline of the EU’s market share. According to data referred to by the Belgian authorities, between 2006 and 2011, the production of crude steel in the EU-27 decreased from 206.9 million tonnes to 177.7 million tonnes (− 14.1 %; − 3.0 % annual growth), whereas, at worldwide level, production increased from 1 249.0 million tonnes to 1 518.3 million tonnes (+ 21.6 %; + 4.0 % annual growth). This has led to a decrease of the EU-27’s market share in the production of crude steel, measured in volume terms, from 16.6 % in 2006 to 11.7 % in 2011 (− 29.4 %; − 6.7 % annual growth).

    By comparison, during the same period, China’s market share increased from 33.7 % to 45.0 % (+ 33.6 %; + 6.0 % annual growth), whereas the market shares of the five other largest producers (which account together for around 25 % to 30 % of worldwide production) either decreased, although to a lesser extent than for the EU-27 (Japan, USA, Russia), or increased moderately (South Korea, India). These data therefore show a rapid decline of the EU’s market share in the sector of the production of crude steel at worldwide level.

    The effects of these changes in trade patterns have been worsened by other factors such as a decrease in demand in steel in the automotive and construction sectors in the EU as a consequence of the economic crisis and a relative increase of production costs (raw materials, energy, environmental constraints, etc.). These factors have harmed the competiveness of the EU’s steel industry and have led to a high number of job losses in the steel sector in recent years due to plant closures and restructuring by several steel manufacturers in Europe. For instance, between 2008 and 2013, the number of persons employed in the metallurgic industry (NACE Rev. 2 division 24 ‘Manufacture of basic metals’) in the EU-27 decreased by around 280 000 from 1.44 million to 1.16 million (− 19.4 %).

    Since the start of the EGF in 2007, there have been four EGF applications in the steel sector.

    Belgium introduced its application under the intervention criteria of Article 2(b) of the EGF Regulation, which requires at least 500 redundancies over a period of nine months in enterprises operating in the same economic sector defined at NACE Rev. 2 division level and located in one region or two contiguous regions defined at NUTS 2 level in a Member State.

    The application relates to 708 redundancies made during a period of nine months from 22 January 2013 to 22 October 2013 (which includes 381 redundancies at Duferco and 327 redundancies at NLMK). Duferco and NLMK are located in the same NUTS level 2 region (BE32 Prov. Hainaut) and operate in the same sector of economic activity (NACE Rev. 2 division 24 ‘Manufacture of basic metals’).

    On the basis of the application from Belgium, the proposed contribution from the EGF to the coordinated package of personalised services is EUR 981 956, representing 50% of the total cost.

    FINANCIAL IMPLICATION: considering the maximum possible amount of a financial contribution from the EGF, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above.

    The proposed decision to mobilise the EGF will be taken jointly by the European Parliament and the Council, as laid down in point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management.

    The Commission presents separately a transfer request in order to enter in the 2015 budget specific commitment appropriations, as required in Point 13 of the Interinstitutional Agreement of 2 December 2013.

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  • url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2015-0043 type: Decision by Parliament, 1st reading/single reading title: T8-0043/2015
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  • group: S&D name: GARDIAZABAL RUBIAL Eider
  • group: ALDE name: JÄÄTTEENMÄKI Anneli
  • group: GUE/NGL name: NÍ RIADA Liadh
  • group: Verts/ALE name: VANA Monika
  • group: EFD name: ZANNI Marco
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2015-03-10T00:00:00
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  • date: 2014-12-09T00:00:00 docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/com/2014/0725/COM_COM(2014)0725_EN.pdf type: Non-legislative basic document published title: COM(2014)0725 type: Non-legislative basic document published body: EC commission: DG: url: http://ec.europa.eu/dgs/budget/ title: Budget Commissioner: GEORGIEVA Kristalina
committees
  • body: EP responsible: True committee: BUDG date: 2015-01-14T00:00:00 committee_full: Budgets rapporteur: group: EPP name: PLENKOVIĆ Andrej
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: Regional Development committee: REGI
links
other
  • body: EC dg: url: http://ec.europa.eu/dgs/budget/ title: Budget commissioner: GEORGIEVA Kristalina
procedure
reference
2015/2019(BUD)
title
Mobilisation of the European Globalisation Adjustment Fund: redundancies in the steel sector in Belgium
geographical_area
Belgium
stage_reached
Preparatory phase in Parliament
subtype
Mobilisation of funds
type
BUD - Budgetary procedure
subject