Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | BUDG |
NEGRESCU Victor ( S&D)
|
SARVAMAA Petri ( PPE),
KÖLMEL Bernd ( ECR),
PAET Urmas ( 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) to assist Sweden in respect of redundancies in the manufacture of commercial vehicles.
NON-LEGISLATIVE ACT: Decision (EU) 2016/618 of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (application from Sweden — EGF/2015/009 SE/ Volvo Trucks ).
CONTENT: with this Decision, the European Parliament and the Council decided to mobilise EUR 1 793 710 in commitments and payments under the European Globalisation Adjustment Fund in the framework of the 2016 budget.
This amount shall assist Sweden in respect of redundancies in the manufacture of commercial vehicles.
On 16 September 2015, Sweden submitted an application EGF/2015/009 SE/Volvo Trucks for a financial contribution from the EGF, following redundancies in Volvo Trucks (Volvo Group Truck Operation, EMEA) and four suppliers and downstream producers in Sweden. It was supplemented by additional information provided in accordance with Article 8(3) of Regulation (EU) No 1309/2013.
Given that the application complies with the requirements for determining a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) No 1309/2013 ( EGF Regulation 2014-2020 ), the European Parliament and the Council decided to mobilise the amount requested.
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.
The EGF is not to exceed a maximum annual amount of EUR 150 million , as laid down in Council Regulation (EU, Euratom) No 1311/2013 .
The EGF should, therefore, be mobilised in order to provide the requested financial contribution in respect of the application submitted by Sweden.
ENTRY INTO FORCE: 21.04.2016. This Decision shall apply retroactively from 13 April 2016.
The European Parliament adopted by 585 votes to 82, with 7 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 1 793 710 in commitment and payment appropriations to assist Sweden, which is affected by redundancies in its vehicle manufacturing 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.
Swedish application : Sweden submitted application EGF/2015/009 SE/Volvo Trucks following redundancies in the economic sector classified under the NACE Revision 2 Division 29 (Manufacture of motor vehicles, trailers and downstream producers) mainly in the NUTS level 2 region of Upper Norrland (SE33). The application concerns 647 redundant workers 470 of whom were made redundant in Volvo Group Truck Operation EMEA following reductions in its Umeå plant, and 177 others in 4 suppliers and downstream producers (IL Logistics AB, Lemia, Caverion and Isringhausen).
Members noted that the conditions set out in Article 4(1)(a) of the EGF Regulation are met. Therefore, Sweden is entitled to a financial contribution under that Regulation.
Nature of the redundancies : Parliament pointed out that the redundancies represent a challenge in the region of the county of Västerbotten (of which Umeå is the capital) as the region's job vacancies are in highly qualified fields while most of the targeted workers have only secondary education. It noted that the application refers to a recent report claiming that 40 000 new workers will be needed in the Västerbotten region. It also noted that the manufacture of commercial vehicles is no longer dominated by European and North American manufacturers, and that the heavy truck production in the Union decreased in 2014, due to newly emerging Asian truck manufacturers.
A package of personalised services : Parliament welcomed the fact that the Swedish authorities started providing the personalised services to the affected workers on 30 January 2015, well ahead of the decision on the granting of EGF support for the proposed coordinated package. It also noted that Sweden is planning nine types of measures for redundant workers covered by this application:
1. in-depth assessment and individual planning;
2. various job-search activities and coaching;
3. motivation and health measures;
4. entrepreneurship and business creation;
5. education and training;
6. validation of competences;
7. job-search assistance with private service providers;
8. travel expenses and related costs;
9. job search allowances.
Members welcomed the measures targeting motivation and health of the workers, which provide help for those whose health was damaged by being made redundant.
They noted that young people not in employment, education or training (NEETs) are not included in the application, because this region is not eligible for such intervention under the Youth Employment Initiative.
Parliament also noted that, to date, the manufacture of motor vehicles, trailers and semi-trailers sector has been the subject of 22 EGF applications, including this one, 12 of which were based on trade related globalisation and 10 on the global financial and economic crisis.
Complementary measures : Parliament awaited the answer from the Commission confirming that the proposed job search allowance is not a substitute for the obligation of the Member State with regard to active labour market or social protection measures. It expected, furthermore, an analysis of the complementarity of the measures supported by the EGF.
Lastly, Parliament reminded the Commission of its responsibility and obligation to provide in due time detailed information confirming that the proposed job search allowance does not provide a substitute the Member State’s responsibilities with regard to active labour market or social protection measures.
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 1 793 710 in commitment and payment appropriations to assist Sweden, which is affected by redundancies in its vehicle manufacturing 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 and to assist their reintegration into the labour market.
Swedish application : Sweden submitted application EGF/2015/009 SE/Volvo Trucks for a financial contribution from the EGF, following redundancies in the economic sector classified under the NACE Revision 2 Division 29 (Manufacture of motor vehicles, trailers and downstream producers) mainly in the NUTS level 2 region of Upper Norrland (SE33). The application concerns 647 redundant workers 470 of whom were made redundant in Volvo Group Truck Operation EMEA following reductions in its Umeå plant, and 177 others in 4 suppliers and downstream producers (IL Logistics AB, Lemia, Caverion and Isringhausen).
Members noted that the conditions set out in Article 4(1)(a) of the EGF Regulation are met. Therefore, Sweden is entitled to a financial contribution under that Regulation
Nature of the redundancies : Members pointed out that the redundancies represent a challenge in the region of the county of Västerbotten (of which Umeå is the capital) as the region's job vacancies are in highly qualified fields while most of the targeted workers have only secondary education. It noted that the application refers to a recent report claiming that 40 000 new workers will be needed in the Västerbotten region. It also noted that the manufacture of commercial vehicles is no longer dominated by European and North American manufacturers, and that the heavy truck production in the Union decreased in 2014, due to newly emerging Asian truck manufacturers.
A package of personalised services : the report welcomed the fact that the Swedish authorities started providing the personalised services to the affected workers on 30 January 2015, well ahead of the decision on the granting of EGF support for the proposed coordinated package. It also noted that Sweden is planning nine types of measures for redundant workers covered by this application:
1. in-depth assessment and individual planning;
2. various job-search activities and coaching;
3. motivation and health measures;
4. entrepreneurship and business creation;
5. education and training;
6. validation of competences;
7. job-search assistance with private service providers;
8. travel expenses and related costs;
9. job search allowances.
Members welcomed the measures targeting motivation and health of the workers, which provide help for those whose health was damaged by being made redundant.
Complementary measures : Members awaited the answer from the Commission confirming that the proposed job search allowance is not a substitute for the obligation of the Member State with regard to active labour market or social protection measures. They expected, furthermore, an analysis of the complementarity of the measures supported by the EGF.
Lastly, the committee reminded the Commission of its responsibility and obligation to provide in due time detailed information confirming that the proposed job search allowance does not provide a substitute the Member State’s responsibilities with regard to active labour market or social protection measures.
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Sweden in respect of redundancies in the manufacture of commercial vehicles.
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 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 examined the application for mobilisation of the EGF to assist Sweden and concluded the following:
Sweden: EGF/2015/009 SE/Volvo Trucks : on 16 September 2015, Sweden submitted application EGF/2015/009 SE/Volvo Trucks for a financial contribution from the EGF, following redundancies in Volvo Group Truck Operation, EMEA and four suppliers and downstream producers in Sweden.
Sweden submitted the application within 12 weeks of the date on which the intervention criteria were met. This deadline expired on 3 February 2016.
In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Sweden argued that the manufacture of commercial vehicles, a relatively small segment within the large automotive industry, is no longer dominated by European and North American manufacturers. The newly emerging Asian truck manufacturers in China and India have gained access to new technology from joint ventures with established market leaders in the West.
China is now the leader in the global production of commercial vehicles with a share of 34.1 %. The US, the EU and China together account for more than 60% of total world commercial vehicle production.
A serious shift in EU trade was recorded in 2014 with EU manufacturers' exports declining and an increase in the import of vehicles. In 2014, EU commercial vehicle exports showed a decline by EUR 3.9 billion in light commercial vehicles (-12.5%) and EUR 6.3 billion in heavy commercial vehicles, buses and coaches (- 10 %). This led to an overall decline in EU exports (- 11 %).
There are some major trends that will affect and increase global competition within the commercial vehicle industry in coming years. Demographic change and increased urbanisation, regulatory issues such as tolls, taxes, barriers to trade through national legislation, environmental requirements, fuel efficiency, safety and security, etc. These are all factors that will drive up costs, in particular in development and R&D and will increase competition.
The Swedish authorities therefore argues that the partial relocation of the Volvo Umeå department is driven by the need to increase efficiency and decrease cost to meet existing and expected global competition.
The application relates to 470 workers made redundant in Volvo Trucks and 177 in 4 suppliers and downstream producers. The primary enterprise operates in the economic sector classified under the NACE Revision 2 Division 29 (Manufacture of motor vehicles, trailers and semi-trailers).
The redundancies made by the primary enterprise are mainly located in the NUTS level 2 region of SE33 (Upper Norrland).
Basis of the Swedish application : Sweden submitted the application under the intervention criteria of Article 4(1)(a), 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 and / or self-employed persons whose activity has ceased.
The application concerns redundancies of 647 workers during the 4 month reference period.
Having examined this application, the proposed contribution from the EGF to the coordinated package of personalised services is EUR 1 793 710 .
BUDGETARY IMPLICATION: 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 1 793 710, 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 requested amount.
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 at which the European Parliament and the Council adopt the proposed decision to mobilise the EGF.
Documents
- Final act published in Official Journal: Decision 2016/618
- Final act published in Official Journal: OJ L 105 21.04.2016, p. 0020
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T8-0111/2016
- Budgetary report tabled for plenary: A8-0077/2016
- Amendments tabled in committee: PE580.422
- Committee draft report: PE576.865
- Non-legislative basic document published: COM(2016)0061
- Non-legislative basic document published: EUR-Lex
- Committee draft report: PE576.865
- Amendments tabled in committee: PE580.422
Activities
- Lars ADAKTUSSON
- Louis ALIOT
- Marina ALBIOL GUZMÁN
- Jean ARTHUIS
- Marie-Christine ARNAUTU
- Jonathan ARNOTT
- Zigmantas BALČYTIS
- Hugues BAYET
- Xabier BENITO ZILUAGA
- José BLANCO LÓPEZ
- Renata BRIANO
- Steeve BRIOIS
- Gianluca BUONANNO
- James CARVER
- Nicola CAPUTO
- Alberto CIRIO
- Jane COLLINS
- Therese COMODINI CACHIA
- Andi CRISTEA
- Pál CSÁKY
- Javier COUSO PERMUY
- Edward CZESAK
- Daniel DALTON
- Michel DANTIN
- Rachida DATI
- Gérard DEPREZ
- Marielle DE SARNEZ
- Mireille D'ORNANO
- Norbert ERDŐS
- Edouard FERRAND
- Lorenzo FONTANA
- Doru-Claudian FRUNZULICĂ
- Ildikó GÁLL-PELCZ
- Francisco de Paula GAMBUS MILLET
- Elena GENTILE
- Arne GERICKE
- Tania GONZÁLEZ PEÑAS
- Takis HADJIGEORGIOU
- Brian HAYES
- Marian HARKIN
- Mike HOOKEM
- Cătălin Sorin IVAN
- Diane JAMES
- Marc JOULAUD
- Ivan JAKOVČIĆ
- Philippe JUVIN
- Barbara KAPPEL
- Afzal KHAN
- Giovanni LA VIA
- Marine LE PEN
- Paloma LÓPEZ BERMEJO
- Ivana MALETIĆ
- Andrejs MAMIKINS
- Dominique MARTIN
- Notis MARIAS
- Jean-Luc MÉLENCHON
- Miroslav MIKOLÁŠIK
- Louis MICHEL
- Bernard MONOT
- Marlene MIZZI
- Sophie MONTEL
- Elisabeth MORIN-CHARTIER
- Renaud MUSELIER
- József NAGY
- Liadh NÍ RIADA
- Franz OBERMAYR
- Margot PARKER
- Florian PHILIPPOT
- Marijana PETIR
- Pavel POC
- Miroslav POCHE
- Salvatore Domenico POGLIESE
- Franck PROUST
- Julia REID
- Sofia RIBEIRO
- Claude ROLIN
- Fernando RUAS
- Daciana Octavia SÂRBU
- Lola SÁNCHEZ CALDENTEY
- Maria Lidia SENRA RODRÍGUEZ
- Siôn SIMON
- Branislav ŠKRIPEK
- Monika SMOLKOVÁ
- Davor ŠKRLEC
- Catherine STIHLER
- Beatrix von STORCH
- Richard SULÍK
- Patricija ŠULIN
- Neoklis SYLIKIOTIS
- Eleftherios SYNADINOS
- Adam SZEJNFELD
- Dubravka ŠUICA
- Claudia ȚAPARDEL
- Pavel TELIČKA
- Mylène TROSZCZYNSKI
- Anneleen VAN BOSSUYT
- Miguel VIEGAS
- Jana ŽITŇANSKÁ
Votes
A8-0077/2016 - Victor Negrescu - Vote unique #
GUE/NGL
ENF
NI| Amendments | Dossier |
| 15 |
2016/2022(BUD)
2016/03/18
BUDG
15 amendments...
Amendment 1 #
Motion for a resolution Recital B B. whereas the Union’s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible in order to facilitate the redeployment and reinsertion of workers made redundant, in accordance with the Joint Declaration of the European Parliament, the Council and the Commission adopted during the conciliation meeting on 17 July 2008, and having due regard to the IIA of 2 December 2013 in respect of the adoption of decisions to mobilise the European Globalisation Adjustment Fund (EGF);
Amendment 10 #
Motion for a resolution Paragraph 6 b (new) 6b. Notes the high amount to be spent on allowances and incentives; notes also that the funding of these actions is limited to a maximum amount of 35% of the total costs for the coordinated package of personalised measures, as set out in the EGF Regulation, and that these actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities;
Amendment 11 #
Motion for a resolution Paragraph 6 c (new) 6c. Awaits the answer from the Commission confirming that the proposed job search allowance does not substitute the obligation of the Member State with regard to active labour market or social protection measures as well as a detailed analysis showing the complementarity of the measures supported by the EGF;
Amendment 12 #
Motion for a resolution Paragraph 8 8. Re
Amendment 13 #
Motion for a resolution Paragraph 9 9. Recalls 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; expects 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 environmentand the prospected future of professional sectors;
Amendment 14 #
Motion for a resolution Paragraph 12 a (new) 12a. Calls on the Commission to carefully assess cases where EGF funding is requested for redundancies resulting from delocalisation strategies of enterprises and ensure that these enterprises fully complied with mandatory responsibilities towards the redundant workers, by virtue of national law or pursuant to collective agreements and that EGF is used as a complimentary measure;
Amendment 15 #
Motion for a resolution Paragraph 14 a (new) 14a. Reminds the Commission of its responsibility and obligation to provide in due time detailed information confirming that the proposed job search allowance does not substitute the obligation of the Member State with regard to active labour market or social protection measures and a detailed analysis showing the complementarity of these EGF measures;
Amendment 2 #
Motion for a resolution Recital E a (new) E a. whereas the financial control of the actions supported by the EGF is the responsibility of the Member State, as laid down in Article 21(1) of the EGF Regulation;
Amendment 3 #
Motion for a resolution Paragraph 2 a (new) 2a. Expresses its regret that the Commission was unable to comply with the deadline for the completion of the assessment of this application; notes that the reason for the delay was an exceptional shortage of staff; considers that if the delay is the result of recent staff cuts in the Commission, it should be recalled that in the interest of the beneficiaries, assistance should be made available as quickly and efficiently as possible; calls on Member States and the Union institutions involved in the EGF decision-making process to do their utmost to reduce processing time and simplify procedures so as to ensure the smooth and rapid adoption of decisions on the mobilisation of the EGF;
Amendment 4 #
Motion for a resolution Paragraph 3 3. Notes that the manufacture of commercial vehicles is no longer dominated by European and North American manufacturers, due to newly emerging Asian truck manufacturers; points out that the heavy truck production in the Union decreased in 2014, as well as exports of heavy commercial vehicles, buses and coaches (a decrease of EUR 6.3 billion, or - 11 %) while overall imports of commercial vehicles into the Union increased (+ 10 %); notes that the truck
Amendment 5 #
Motion for a resolution Paragraph 4 4. Points out that the redundancies represent a challenge in the region of the county of Västerbotten (of which Umeå is the capital) as the region's job vacancies are in highly qualified fields while most of the targeted workers have only secondary education; notes that the application refers to a recent report claiming that 40 000 new workers will be needed in the Västerbotten region; welcomes the measures targeting workers who regard their educational level as insufficient for the job vacancies identified in the region, which require specialised education;
Amendment 6 #
Motion for a resolution Paragraph 4 a (new) 4a. Calls on the Member States to prepare, together with the social partners, strategies to anticipate the projected labour market changes and to protect Union jobs and skills on the basis of comprehensive trade impact assessments made by the Commission for each trade agreement;
Amendment 7 #
Motion for a resolution Paragraph 4 a (new) 4a. Notes that young people not in employment, education or training (NEETs) are not included in the application, because this region is not eligible for such intervention under the Youth Employment Initiative;
Amendment 8 #
Motion for a resolution Paragraph 6 a (new) 6a. notes, in regard to the planned measures, that in its application Sweden does not allocate funds to the control of and reporting on those measures;
Amendment 9 #
Motion for a resolution Paragraph 6 a (new) 6a. Welcomes the measures targeting motivation and health of the workers; considers such actions necessary to strengthen motivation and provide help for those whose health was damaged by being made redundant; appreciates furthermore measures for the validation of competences of the participants;
source: 580.422
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