Awaiting Parliament 1st reading / single reading / budget 1st stage
Role | Committee | Rapporteur | Shadows |
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Lead | BUDG | SARVAMAA Petri (EPP) | |
Opinion | EMPL | ||
Opinion | REGI |
Activites
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2016/10/04
Vote in plenary scheduled
- 2016/09/29 Budgetary report tabled for plenary, 1st reading
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2016/09/28
Vote in committee, 1st reading/single reading
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2016/09/12
Committee referral announced in Parliament, 1st reading/single reading
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2016/07/29
Non-legislative basic document published
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COM(2016)0490
summary
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Finland in respect of redundancies in the information and communications technology sector (in particular, the mobile phone 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. Against this backdrop, the Commission examined the application to mobilise the EGF to assist Finland and expressed its position as follows: Finland: EGF/2016/001 FI/Microsoft: on 11 March 2016, Finland submitted an application EGF/2016/001 FI/Microsoft for a financial contribution from the EGF, following redundancies in Microsoft (Microsoft Mobile Oy) and 8 suppliers and downstream producers in Finland. Finland submitted its application within the 12 week deadline set out in the EGF Regulation. The deadline of 12 weeks of the receipt of the complete application within which the Commission should finalise its assessment of the application's compliance with the conditions for providing a financial contribution expires on 29 July 2016. In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Finland argues that in recent years the distribution of ICT sector employment between the EU and other economies has developed to the detriment of the EU share. These effects were particularly felt in Finland, where the ICT sector plays a key role in the economy. In 2014, the number of people employed by technology businesses in Finland decreased by 2 %, i.e. by over 5 000 employees. During the same period, the share of China and the United States in the ICT sector personnel of the developed countries increased, while the share of Europe decreased. The mobile phone markets have developed under constant competition between different operating systems. During the first decade of the 2000s Nokia dominated the markets. Since then the Android operating system rapidly achieved a strong market position, while Microsoft failed to achieve a significant market share. This has led to growing imports into the Union. Thus, the main reason behind the workforce reductions at Microsoft is the declining market share of its phones (Lumia) with the Microsoft Windows operating system. Android and iOS, the two US-designed operating systems used by various Asian based manufacturers, have risen to dominate the market in recent years. The current application is the continuation of a series of previous applications from Finland, all revolving around the decline of Nokia in its country of origin. To date, the NACE Divison 62 sector has been the subject of two previous EGF applications, both based on trade related globalisation (EGF/2013/001 FI/Nokia and EGF/2015/005 FI/Computer programming). Basis of the Finnish request: Finland submitted the application under the intervention 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. The reference period of four months for the application runs from 11 September 2015 to 11 January 2016. There were 2 035 redundancies within this reference period. The redundancies during the reference period are as follows: 1 889 workers made redundant by Microsoft, 146 workers made redundant by eight suppliers and downstream producers. In addition to the 2 035 workers already referred to, the eligible beneficiaries include 126 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 8 July 2015. The total number of eligible beneficiaries is therefore 2 161. The Commission proposes to mobilise the EGF for the amount of EUR 5 364 000. FINANCIAL 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 5 364 000, 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 Inter-institutional 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.
- DG {'url': 'http://ec.europa.eu/dgs/budget/', 'title': 'Budget'}, GEORGIEVA Kristalina
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COM(2016)0490
summary
Documents
- Non-legislative basic document published: COM(2016)0490
- Budgetary report tabled for plenary, 1st reading: A8-0273/2016
Amendments | Dossier |
21 |
2016/2211(BUD)
2016/09/16
BUDG
21 amendments...
Amendment 1 #
Draft opinion Paragraph 1 1. Agrees with the Commission that the conditions set out in Article 4(1)(a) of the EGF Regulation are met and that, therefore, Finland is entitled to a financial contribution of EUR 5 364 000 under that Regulation, representing 60 % of the total cost of EUR 8 940 000;
Amendment 10 #
Draft opinion Paragraph 5 b (new) 5 b. Emphasises the importance of the ICT sector to employment in the regions of Helsinki-Uusimaa, Etelä-Suomi and Länsi-Suomi and the potential for the redundant workers to contribute to the industry if they receive sufficient support through further education, training and plans to take up entrepreneurship;
Amendment 11 #
Draft opinion Paragraph 6 6. Welcomes the fact that the Finnish authorities started providing the personalised services to the affected workers on 11 September 2015, well ahead of the application for the EGF support for the proposed coordinated package, since these actions are eligible for co-funding from the EGF;
Amendment 12 #
Draft opinion Paragraph 6 a (new) 6 a. Welcomes the high percentage (close to 80 %) of the overall package being used for personalised services;
Amendment 13 #
Draft opinion Paragraph 7 a (new) 7 a. Notes that the pay subsidy mentioned in paragraph 7 is between 30 and 50 % of the worker’s payroll costs and will be given for a period of 6 to 24 months; calls on Member States to pay strict attention when using pay subsidies to ensure that redundant workers hired with a subsidy are not replacing, in whole or in part, a position held previously by another employee at the company concerned; is pleased the Finnish authorities have given assurances that this is the case;
Amendment 14 #
7 b. Notes that the income support measures amount to 16,64 % of the overall package of personalised measures, well below the 35 % limit set by the EGF Regulation and that these actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities;
Amendment 15 #
Draft opinion Paragraph 7 c (new) 7 c. Invites the Commission to evaluate and provide information about the impact of these income support measures over a period of several years, to ensure that they are supporting high-quality employment and not being used to subsidise short- term, low-cost contracts;
Amendment 16 #
Draft opinion Paragraph 9 a (new) 9a. Notes that the Microsoft case will cooperate with Labour Mobility in Europe 2014–2020, which is a national EURES service development project; notes that international recruitment events will be organised regionally in cooperation with EGF and EURES services; welcomes such measures and the fact that the Finnish authorities are encouraging the redundant workers to fully benefit from their right to free movement;
Amendment 17 #
Draft opinion Paragraph 9 b (new) 9b. Notes that a national package of measures entitled "Models between the recruiting company and the retrenching company" has been launched within the European Social Fund; notes that this package of measures will produce results that may be useful for the implementation of projects under this EGF application; welcomes the efforts of the Finnish authorities to search for synergies with other actions funded by national or Union funds;
Amendment 18 #
Draft opinion Paragraph 9 c (new) 9 c. Recalls that, in line with Article 7 of the EGF Regulation, the design of the coordinated package of personalised services should anticipate future labour market perspectives and required skills and should be compatible with the shift towards a resource-efficient and sustainable economy.
Amendment 19 #
Draft opinion Paragraph 11 11.
Amendment 2 #
Draft opinion Paragraph 2 2. Notes that Finland submitted the application for a financial contribution from the EGF on 11 March 2016, and that following additional information provided by Finland, its assessment was finalised by the Commission on 29 July 2016, thereby respecting the deadline of 12 weeks from receipt of the completed application;
Amendment 20 #
Draft opinion Paragraph 12 12.
Amendment 21 #
Draft opinion Paragraph 13 a (new) 13a. Notes that it is foreseeable that Finland submits, in the near future, two further related applications for redundant workers in the ICT sector;
Amendment 3 #
Draft opinion Paragraph 2 2. Notes that Finland submitted the application for a financial contribution from the EGF on 11 March 2016, and that following additional information provided by Finland, its assessment was finalised by the Commission on 29 July 2016 who concluded that the conditions for awarding a financial contribution from the EGF had been met;
Amendment 4 #
Draft opinion Paragraph 3 3. Notes that the main reason behind the redundancies at Microsoft is the declining market share of its phones using the Microsoft Windows operating system from over 50 % in 2009 to 0,6 % in the second quarter of 2016;
Amendment 5 #
Draft opinion Paragraph 4 4. Recalls that the Union share in global ICT sector employment has decreased in recent years, and that ICT plays a key role in Finnish economy, with 6,7 % of employees working in the ICT sector in 2014, the highest percentage amongst all Member States; considers that the redundancies in
Amendment 6 #
Draft opinion Paragraph 4 a (new) 4a. Recalls that the software industry is highly international and that competition within the sector is global, meaning all market players can compete for the same customers and the location and cultural background of personnel has limited significance;
Amendment 7 #
Draft opinion Paragraph 4 b (new) 4 b. Recognises that this application continues a series of cases revolving around the decline of Nokia in Finland and that two further related applications for workers being made redundant in the ICT sector are expected to follow;
Amendment 8 #
Draft opinion Paragraph 5 5. Notes that redundancies are concentrated in NUTS 2 regions Helsinki- Uusimaa (FI1B), Etelä-Suomi (FI1C) and Länsi-Suomi, (FI197) and concern workers with highly varying competencies, 89% of them between 30 and 54 years of age; is concerned about the already difficult unemployment situation of highly skilled and educated people whose employment prospects would otherwise be traditionally good, especially women, who face a greater challenge in finding employment, taking into consideration that they represent almost half of the targeted beneficiaries;
Amendment 9 #
Draft opinion Paragraph 5 a (new) 5a. Notes that, to date, the 'Computer programming, consultancy and related activities' sector has been the subject to two previous EGF applications, both based on the globalisation criterion (EGF/2013/001 FI/Nokia and EGF/2015/005 FI/Computer programming);
source: 589.289
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History
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