Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | BUDG |
NEGRESCU Victor ( S&D)
|
KÖLMEL Bernd ( ECR),
ALI Nedzhmi ( ALDE),
VANA Monika ( Verts/ALE),
ZANNI Marco ( EFDD)
|
| Committee Opinion | EMPL | ||
| Committee Opinion | REGI |
Lead committee dossier:
Subjects
Events
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in order to assist Ireland in dealing with redundancies in its aviation maintenance sector.
LEGISLATIVE ACT: Decision (EU) 2015/2458 of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (application from Ireland — EGF/2015/006 IE/PWA International).
CONTENT: with this Decision, the European Parliament and the Council have decided to mobilise the sum of EUR 442 293 in commitment and payment appropriations from European Globalisation Adjustment Fund within the framework of the 2015 budget.
This amount aims to obtain a financial contribution from the EGF following redundancies in PWA International Ltd and one supplier in Ireland.
Given that this application complies with the requirements for determining the financial contributions as laid down in Regulation No 1309/2013 (EGF Regulation 2014-2020), the European Parliament and Council have decided to grant the above-mentioned amount.
The application was considered admissible since the redundancies have a serious impact on employment and the local, regional or national economy. Ireland has also decided to provide personalised services co-financed by the EGF also to 108 young persons not in employment, education or training (NEETs).
To recall, the European Globalisation Adjustment Fund (EGF) aims to provide support for workers made redundant and self-employed persons whose activity has ceased as a result of major structural changes in world trade patterns due to globalisation, as a result of a continuation of the global financial and economic crisis, or as a result of a new global financial and economic crisis, and to assist them with their reintegration into the labour market.
Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020, allows mobilization of the EGF upto a maximum annual amount of EUR 150 million .
ENTRY INTO FORCE: 16.12.2015.
The European Parliament adopted by 580 votes to 100, with 11 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 442 293 in commitment and payment appropriations in order to assist Ireland in dealing with redundancies in its aviation maintenance 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 or of the global financial and economic crisis and to assist their reintegration into the labour market.
Irish application : Ireland submitted application EGF/2015/006 IE/PWA International for a financial contribution from the EGF following 108 redundancies in PWA International Ltd (PWAI), operating in the NACE Rev. 2 division 33 ('Repair and installation of machinery equipment') in the NUTS level 2 region of Southern and Eastern Ireland. All redundant workers are expected to participate in the measures.
Given that the application does not fulfil the traditional eligibility criteria set down by the EGF Regulation in terms of number of redundancies and is submitted under the intervention criteria of Article 4(2) of that Regulation, which allows for derogation under exceptional circumstances, Ireland is entitled to a financial contribution under that Regulation.
Nature of the redundancies : Parliament noted that Ireland specialised in the Maintenance Repair and Overhaul (MRO) sector in the 1990's, which served it well at that time, but made it particularly vulnerable to the recent trend to locate MRO activity near centres of global aviation expansion, i.e. Asia. Members also noted that the situation in South Dublin is worrying given that the closure of PWAI has had a serious impact on employment and on the local, regional or national economy.
Clarify the ceiling of EGF for ‘exceptional circumstances’ : Parliament agreed that the pre-existing difficult situation in the area, combined with the cumulative effect of three major closures in the MRO sector within a short period, and the fact that no employers in this sector remain in Ireland may justify a derogation from the threshold of 500 redundancies set out in article 4(1) of the EGF regulation. It reiterated, in this regard, its recommendation to the Commission to either clarify the derogation criteria set out in Article 4(1) of the EGF Regulation, or lower the threshold of 500 workers being made redundancies.
A package of personalised services : Parliament welcomed the fact that, in order to provide workers with speedy assistance, the Irish authorities decided to initiate the implementation of the personalised services to the affected workers on 22 May 2015, well ahead of the decision on the granting of EGF support for the proposed coordinated package. It noted that Ireland is planning five types of measures for redundant workers covered by this application:
guidance and career planning and development, EGF Training Grants, Training and Further Education Programmes, Higher Education Programmes, Time Limited Allowances.
It noted that 24.81% of the costs will be used for time limited allowances, which remains much below the maximum allowed 35% of all costs.
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. Members expected the training on offer in the coordinated package to be adapted not only to the needs of the dismissed workers but also to the actual business environment. They also noted that the Irish authorities confirm that the eligible actions do not receive assistance from other Union financial instruments.
Smallest number of laid off workers : Parliament regretted that the EGF mobilisation is proposed for only 108 redundant employees. It observed that this proposal aims to mobilise the EGF with effectively the smallest number of laid off workers proposed so far. Lastly, Parliament pointed out that all 108 redundancies are in the economic sector classified as "repair and installation of machinery and equipment", and more specifically aviation jet engines, which renders the workers skilled and adaptable to the labour market.
The Committee on Budgets adopted the report by Victor NEGRESCU (S&D, RO) 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 442 293 in commitment and payment appropriations in order to assist Ireland in dealing with redundancies in its aviation maintenance sector.
Members 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 or of the global financial and economic crisis and to assist their reintegration into the labour market.
Irish application : Ireland submitted application EGF/2015/006 IE/PWA International for a financial contribution from the EGF following 108 redundancies in PWA International Ltd (PWAI), operating in the NACE Rev. 2 division 33 ('Repair and installation of machinery equipment') in the NUTS level 2 region of Southern and Eastern Ireland. All redundant workers are expected to participate in the measures.
Given that the application does not fulfil the traditional eligibility criteria set down by the EGF Regulation in terms of number of redundancies and is submitted under the intervention criteria of Article 4(2) of that Regulation, which allows for derogation under exceptional circumstances, Ireland is entitled to a financial contribution under that Regulation.
Nature of the redundancies : Members noted that Ireland specialised in the Maintenance Repair and Overhaul (MRO) sector in the 1990's, which served it well at that time, but made it particularly vulnerable to the recent trend to locate MRO activity near centres of global aviation expansion, i.e. Asia. Members also noted that although the South Dublin unemployment rate (11.61 %) is only slightly higher than the national average (10.83 %), these figures conceal pockets of considerable local disadvantage and that the closure of PWAI has had a serious impact on employment and on the local, regional or national economy.
According to members, the EGF should be reformed to either clarify the derogation criteria set out in Article 4(1) of the EGF Regulation, or lower the threshold of 500 workers being made redundant.
A package of personalised services : Members welcomed the fact that, in order to provide workers with speedy assistance, the Irish authorities decided to initiate the implementation of the personalised services to the affected workers on 22 May 2015, well ahead of the decision on the granting of EGF support for the proposed coordinated package. They noted that Ireland is planning five types of measures for redundant workers covered by this application:
guidance and career planning and development, EGF Training Grants, Training and Further Education Programmes, Higher Education Programmes, Time Limited Allowances.
They noted that 24.81% of the costs will be used for time limited allowances, which remains much below the maximum allowed 35% of all costs.
They 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. Members expected the training on offer in the coordinated package to be adapted not only to the needs of the dismissed workers but also to the actual business environment.
They also noted that the Irish authorities confirm that the eligible actions do not receive assistance from other Union financial instruments.
Smallest number of laid off workers : Members regretted that the EGF mobilisation is proposed for only 108 redundant employees. They observed that this proposal aims to mobilise the EGF with effectively the smallest number of laid off workers proposed so far. Lastly, Members pointed out that all 108 redundancies are in the economic sector classified as "repair and installation of machinery and equipment", and more specifically aviation jet engines, which renders the workers skilled and adaptable to the labour market.
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in order to assist Ireland in dealing with redundancies in its aviation maintenance 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 is not to exceed a maximum annual amount of EUR 150 million (2011 prices).
The rules applicable to financial contributions from the European Globalisation Adjustment Fund (EGF) are laid down in Regulation (EU) No 1309/2013 of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006.
In this context, the Commission has assessed the application for the mobilisation of the EGF in order to assist Finland, and has concluded as follows:
Ireland: EGF/2015/006 IE/PWA International : on 19 June 2015, Ireland submitted application EGF/2015/006 IE/PWA International Ltd for a financial contribution from the EGF, following redundancies in PWA International (PWAI) and one supplier in Ireland.
Ireland submitted its application within 12 weeks of the date on which the intervention criteria were met. The deadline expired on 6 November 2015.
In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Ireland argues that the closure of PWAI, a Maintenance Repair and Overhaul (MRO) enterprise and a joint venture between United Technologies Corporation's Pratt & Whitney (P&W) and Singapore Airlines Engineering Company (SIAEC), was made to consolidate the company’s operations in North America and Asia by the phased transfer from PWAI to other repair facilities within the P&W network, namely P&W PSD based in Arkansas (USA) and Eagle Services Asia based in Singapore.
Over the past 10 years Asia-based customers have accounted for approximately 50 % of PWAI’s business e.g. Japan Airlines (JAL), JAL Aeroparts , All Nippon Airways (ANA) and Mitsubishi Heavy Industries (MHI). Another 40 % of PWAI’s business has been with USA-based customers, like United Airlines, and just 10 % with European customers e.g. SR Technics in Switzerland and Lufthansa in Germany.
Technological shifts towards new generation aircraft also help to explain the reduced demand for activity by PWAI at an Irish location and the migration of such activity outside the EU. The future world aircraft fleet is likely to be dominated by single aisle / narrow-body aircraft typical of Airbus 32. This growth is predicted to emanate from Asia, where the aviation sector is expanding and there is a requirement to replace older aircraft types with narrow body types.
The trend towards locating MRO activity near centres of global aviation expansion, and the adverse impacts of global trade deals, has seriously affected Europe and in particular Ireland. To date, the "repair and installation of machinery and equipment" sector has been the subject of these three EGF applications, two of which based on trade related globalisation ( EGF/2014/0161E/ Lufthansa Technik and the current application) and one ( EGF/2009/021 IE/SR Technics ) on the global financial and economic crisis.
The application relates to 108 workers made redundant in PWA International Ltd . and one supplier. The primary enterprise operated in the economic sector classified under the NACE Revision 2 Division 33 (Repair and installation of machinery and equipment). The redundancies made by the enterprises are mainly located in the NUTS5 level 2 region of Southern and Eastern (IE 02).
Eligibility of the Irish application : Ireland submitted the application under the intervention criteria of Article 4(2) derogating from the criteria of Article 4(1)(a) of the EGF Regulation, which requires at least 500 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.
The redundancies during the reference period are 61 workers made redundant by PWA International Ltd and 47 workers made redundant before or after the reference period of four months. These workers were all made redundant after the general announcement of the projected redundancies on 10 October 2013. The total number of eligible beneficiaries is therefore 108.
It is proposed to contribute to all personalised services the total of EUR 442 293 .
BUDGETARY IMPLICATIONS: having examined the application in respect of the conditions set out in Article 13(1) of the EGF Regulation, and having taken into account the number of targeted beneficiaries, the proposed actions and the estimated costs, the Commission proposes to mobilise the EGF for the amount of EUR 442 293, representing 60 % of the total costs of the proposed actions, in order to provide a financial contribution for the application.
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.
At the same time as it presents this proposal for a decision to mobilise the EGF, the Commission will present to the European Parliament and to the Council a proposal for a transfer to the relevant budgetary line for the amount of EUR 442 293.
Furthermore, at the same time as it adopts this proposal for a decision to mobilise the EGF, the Commission will adopt a decision on a financial contribution, by means of an implementing act, which will enter into force on the date on which the European Parliament and the Council adopt the proposed decision to mobilise the EGF.
Documents
- Final act published in Official Journal: Decision 2015/2458
- Final act published in Official Journal: OJ L 339 24.12.2015, p. 0046
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T8-0454/2015
- Budgetary report tabled for plenary: A8-0363/2015
- Amendments tabled in committee: PE573.025
- Committee draft report: PE571.687
- Non-legislative basic document published: COM(2015)0555
- Non-legislative basic document published: EUR-Lex
- Committee draft report: PE571.687
- Amendments tabled in committee: PE573.025
Activities
- Tim AKER
- Louis ALIOT
- Marina ALBIOL GUZMÁN
- Marie-Christine ARNAUTU
- Jonathan ARNOTT
- Zigmantas BALČYTIS
- Hugues BAYET
- Xabier BENITO ZILUAGA
- José BLANCO LÓPEZ
- Renata BRIANO
- Steeve BRIOIS
- Gianluca BUONANNO
- Alain CADEC
- James CARVER
- Nicola CAPUTO
- Salvatore CICU
- Therese COMODINI CACHIA
- Pál CSÁKY
- Javier COUSO PERMUY
- Daniel DALTON
- Michel DANTIN
- Rachida DATI
- Gérard DEPREZ
- Mireille D'ORNANO
- Norbert ERDŐS
- Georgios EPITIDEIOS
- Edouard FERRAND
- Lorenzo FONTANA
- Doru-Claudian FRUNZULICĂ
- Ildikó GÁLL-PELCZ
- Francisco de Paula GAMBUS MILLET
- Arne GERICKE
- Sylvie GODDYN
- Tania GONZÁLEZ PEÑAS
- Antanas GUOGA
- Takis HADJIGEORGIOU
- Brian HAYES
- Marian HARKIN
- Hans-Olaf HENKEL
- Cătălin Sorin IVAN
- Diane JAMES
- Marc JOULAUD
- Ivan JAKOVČIĆ
- Philippe JUVIN
- Barbara KAPPEL
- Afzal KHAN
- Giovanni LA VIA
- Marine LE PEN
- Sander LOONES
- Vladimír MAŇKA
- Ivana MALETIĆ
- Andrejs MAMIKINS
- Dominique MARTIN
- Notis MARIAS
- Barbara MATERA
- David MARTIN
- Jean-Luc MÉLENCHON
- Miroslav MIKOLÁŠIK
- Louis MICHEL
- Marlene MIZZI
- Sophie MONTEL
- Franz OBERMAYR
- Rolandas PAKSAS
- Margot PARKER
- Florian PHILIPPOT
- Marijana PETIR
- Andrej PLENKOVIĆ
- Salvatore Domenico POGLIESE
- Franck PROUST
- Julia REID
- Claude ROLIN
- Fernando RUAS
- Lola SÁNCHEZ CALDENTEY
- Jill SEYMOUR
- Maria Lidia SENRA RODRÍGUEZ
- Siôn SIMON
- Monika SMOLKOVÁ
- Davor Ivo STIER
- Catherine STIHLER
- Richard SULÍK
- Patricija ŠULIN
- Kay SWINBURNE
- Neoklis SYLIKIOTIS
- Eleftherios SYNADINOS
- Dario TAMBURRANO
- Claudia ȚAPARDEL
- Pavel TELIČKA
- László TŐKÉS
- Mylène TROSZCZYNSKI
- Ramon TREMOSA i BALCELLS
- Miguel VIEGAS
- Inês Cristina ZUBER
Votes
A8-0363/2015 - Victor Negrescu - Résolution #
PPE
GUE/NGL
ENF
NI| Amendments | Dossier |
| 16 |
2015/2295(BUD)
2015/12/07
BUDG
16 amendments...
Amendment 1 #
Motion for a resolution Paragraph 2 a (new) 2a. Points out that the derogation from point (a) of Article 4(1) of the EGF Regulation in this case relates to a number of redundancies which is significantly lower than the threshold of 500 redundancies; accepts the argument of the Irish authorities for this derogation and welcomes that the application includes an equal number of NEETs to be supported by the measures;
Amendment 10 #
Motion for a resolution Paragraph 14 a (new) 14a. Calls on the Commission to ensure that trade policy decisions are examined from the aspect of their potential impact on the Union labour market;
Amendment 11 #
Motion for a resolution Paragraph 14 b (new) 14b. Regrets that EGF mobilisation is proposed for only 108 redundant employees who are to benefit from the instrument and points out that wider interpretation of Article 4(1) of the EGF Regulation may not be appropriate;
Amendment 12 #
Motion for a resolution Paragraph 14 c (new) 14c. Observes that this proposal aims to mobilise the EGF with effectively the smallest number of laid off workers proposed so far;
Amendment 13 #
Motion for a resolution Paragraph 14 d (new) 14d. Notes that almost 80 % of the redundant employees are aged 30-54 and therefore they represent a highly employable group with lower risk of long- term unemployment;
Amendment 14 #
Motion for a resolution Paragraph 14 e (new) 14e. Points out that all 108 redundancies are in the economic sector classified as "Repair and installation of machinery and equipment", and more specifically aviation jet engines, which renders the employees skilled and adaptable to the labour market;
Amendment 15 #
Motion for a resolution Paragraph 14 f (new) 14.e. Underlines that the redundancies took place in Rathcoole, which is located in the vicinity of Dublin, an economic and industrial hub where decreasing unemployment, increased business activity and overall economic growth are observed;
Amendment 16 #
Motion for a resolution Paragraph 14 g (new) 14g. Draws attention to the fact that any reference to application EGF/2009/021 IE/SR Technics is too far reaching as the case in question dates back to 2009;
Amendment 2 #
Motion for a resolution Paragraph 4 a (new) 4a. Points out that PWAI could have been negatively affected by the lack of a provision of the EU-Korea Free Trade Agreement (FTA) which would exempt repaired goods from customs duties on re- entry; draws attention to a similar provision in the US-Korea FTA, which results in preferential conditions for US companies which could also contribute to the market loss of PWAI as compared to US enterprises operating in the same sector;
Amendment 3 #
Motion for a resolution Paragraph 4 b (new) 4b. Notes that since the redundancies of PWAI occurred later than those of Lufthansa Technik, which operated in the same sector, those workers could not have been involved in a sectoral application covering the dismissals in the two enterprises together; considers therefore that those redundancies can only be addressed in this separate application;
Amendment 4 #
Motion for a resolution Paragraph 5 a (new) 5a. Notes that the EU-Korea agreement could have negatively affected PWAI by exempting repaired goods from customs duties on re-entry; therefore, calls on the Commission to ensure that Union trade policy does not impact negatively on the Union labour market;
Amendment 5 #
6. Agrees that the pre-existing difficult situation in the area, combined with the cumulative effect of three major closures in the MRO sector within a short period, and the fact that no employers in this sector remain in Ireland
Amendment 6 #
Motion for a resolution Paragraph 9 a (new) 9a. Welcomes the variety of training measures to be provided to the beneficiaries; notes that the enterprise and self-employment support measures will only be available to a limited number of beneficiaries;
Amendment 7 #
Motion for a resolution Paragraph 9 b (new) 9b. Notes that the authorities estimate that 24,81 % of the costs will be used for time limited allowances, which remains much below the maximum allowed 35 % of all costs;
Amendment 8 #
Motion for a resolution Paragraph 11 11. Recalls that
Amendment 9 #
Motion for a resolution Paragraph 13 a (new) 13a. Calls on the Commission to bear in mind, in view of the upcoming EGF revision, that EGFs should ensure new and sustainable employment opportunities for the beneficiaries;
source: 573.025
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