Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | BUDG |
GONZÁLEZ PONS Esteban ( PPE)
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| Committee Opinion | EMPL | ||
| Committee Opinion | REGI |
Lead committee dossier:
Subjects
Events
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) for EUR 3 957 918 to assist Sweden in respect of redundancies in telecommunications sector.
NON-LEGISLATIVE ACT: Decision (EU) 2016/1858 of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (following an application from Sweden — EGF/2016/002 SE/Ericsson).
CONTENT: under this Decision, the European Parliament and the Council decided to mobilise EUR 5 364 000 in commitment and payment appropriations under the European Globalisation Adjustment Fund in the framework of the 2016 budget.
This amount shall assist Sweden financially in respect of redundancies in Ericsson (Telefonaktiebolaget LM Ericsson).
Given that the application complies with the requirements for determining a financial contribution from the EGF as laid down in Regulation (EU) No 1309/2013 , the European Parliament and the Council have responded by granting the above-mentioned amount.
In brief, 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 provides that the EGF is not to exceed a maximum annual amount of EUR 150 million .
ENTRY INTO FORCE: the Decision shall enter into force on 20.10.2016 and shall apply from 11.10.2016.
The European Parliament adopted by 594 votes to 71, with 10 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 3 957 918 in commitment and payment appropriations to assist Sweden affected by redundancies in the telecommunications sector.
Parliament recalled that the Union has 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.
Swedish application : Sweden submitted application EGF/2016/002 SE/Ericsson for a financial contribution from the EGF, following redundancies in the economic sector classified under the NACE Revision 2 Division 26 (Manufacture of computer, electronic and optical products) mainly in the NUTS level 2 regions of Stockholm, Östra Mellansverige, Sydsverige and Västsverige. 918 out of 1556 redundant workers eligible for the EGF contribution are expected to participate in in the measures.
T he application was submitted under the intervention criteria of point (a) of Article 4(1) 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 and/or self-employed persons whose activity has ceased.
Therefore, Sweden is eligible for a financial contribution.
Nature of the redundancies : Parliament revealed that the IT and telecommunication industries are dominated by Asian manufacturers which have become an outsourcing destination. Ericsson has gradually been cutting staff in Sweden (from 21 178 in 2005 to 17 858 in 2014), but in the meantime been growing tremendously worldwide (from 56 055 in 2005 to 118 055 in 2014).
It also emphasised that the regions affected are faced with a relatively large group of older workers with similar backgrounds who have been made redundant at the same time and that most of them, particularly those located in Kista, the town with the highest number of redundancies, do not possess the skills sought by the local labour market.
A package of personalised services : Parliament recalled the diversity of employees, both blue- and white-collar, affected by the redundancies. It is concerned that some workers face a labour market with rather low demand in traditional manufacturing industries. It recognised that most of the affected white-collar workers are engineers, some of whom are specialised in niches that are unique to Ericsson.
It also recognised that most of the affected white-collar workers are engineers, some of whom are specialised in niches that are unique to Ericsson. They noted that the EGF co-funded personalised services for the redundant workers include:
counselling and career guidance; sheltered and supported employment and rehabilitation measures; education and training; job search allowances.
It welcomed the special emphasis that will be placed on participants aged 50 and above when providing motivational coaching and career planning.
It noted that the income support measures amount to 33.92 % of the overall package of personalised measures, close to the maximum 35 % set out in the EGF Regulation.
These actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities . Parliament called on the Commission to further set out, in future proposals, the sectors in which the workers are likely to find employment and if the training on offer is aligned to the future economic prospects and labour market needs in the regions concerned by the dismissals.
It noted that the Swedish authorities have confirmed that the proposed actions will not receive financial support from other Union funds or financial instruments, that any double financing will be prevented and that those actions are complementary to actions funded by the Structural Funds.
It also 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.
Lastly, Parliament reiterated that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements nor of measures for restructuring companies or sectors.
The Committee on Budgets adopted the report by Esteban GONZÁLEZ PONS (EPP, ES) 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 3 957 918 in commitment and payment appropriations to assist Sweden affected by redundancies in the telecommunications sector.
Members recalled that the Union has 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.
Swedish application : Sweden submitted application EGF/2016/002 SE/Ericsson for a financial contribution from the EGF, following redundancies in the economic sector classified under the NACE Revision 2 Division 26 (Manufacture of computer, electronic and optical products) mainly in the NUTS level 2 regions of Stockholm, Östra Mellansverige, Sydsverige and Västsverige. 918 out of 1556 redundant workers eligible for the EGF contribution are expected to participate in in the measures.
T he application was submitted under the intervention criteria of point (a) of Article 4(1) 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 and / or selfemployed persons whose activity has ceased.
Therefore, Sweden is eligible for a financial contribution.
Nature of the redundancies : Members revealed that the IT and telecommunication industries are dominated by Asian manufacturers which have become an outsourcing destination. Ericsson has gradually been cutting staff in Sweden (from 21 178 in 2005 to 17 858 in 2014), but in the meantime been growing tremendously worldwide (from 56 055 in 2005 to 118 055 in 2014).
Members emphasised that the regions affected are faced with a relatively large group of older workers with similar backgrounds who have been made redundant at the same time and that most of them, particularly those located in Kista, the town with the highest number of redundancies, do not possess the skills sought by the local labour market.
A package of personalised services : Members recognised that most of the affected white-collar workers are engineers, some of whom are specialised in niches that are unique to Ericsson. They noted that the EGF co-funded personalised services for the redundant workers include:
counselling and career guidance; sheltered and supported employment and rehabilitation measures; education and training; job search allowances.
They welcomed the special emphasis that will be placed on participants aged 50 and above when providing motivational coaching and career planning.
Members noted that the income support measures amount to 33.92 % of the overall package of personalised measures, close to the maximum 35 % set out in the EGF Regulation.
These actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities . Members called on the Commission to further set out, in future proposals, the sectors in which the workers are likely to find employment and if the training on offer is aligned to the future economic prospects and labour market needs in the regions concerned by the dismissals.
They noted that the Swedish authorities have confirmed that the proposed actions will not receive financial support from other Union funds or financial instruments, that any double financing will be prevented and that those actions are complementary to actions funded by the Structural Funds.
They also 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.
Lastly, Members reiterated that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements nor of measures for restructuring companies or sectors.
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Sweden in respect of redundancies in telecommunications 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 Sweden and expressed its position as follows:
Sweden : EGF/2016/002 SE/Ericsson : on 31 March 2016, Sweden submitted an application EGF/2016/002 SE/Ericsson for a financial contribution from the EGF, following redundancies in Ericsson in Sweden.
Sweden submitted application EGF/2016/002 SE/Ericsson within 12 weeks of the date on which the intervention criteria set out the EGF Regulation. This deadline expires on 5 September 2016.
In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Sweden argues that the redundancies occurred in the telecom hardware production business line of Ericsson.
In the past years, Ericsson has concentrated most of its hardware production and development facilities in Asia, where not only the strongest growth markets are located, but also equivalent quality can be delivered at lower costs.
According to data published by Ericsson, the company has gradually been cutting staff in Sweden (from 21 178 in 2005 to 17 858 in 2014), but in the meantime been growing tremendously worldwide (from 56 055 in 2005 to 118 055 in 2014), India currently being the country with the largest number of employees.
The events giving rise to these redundancies are the partial or entire closure of wireless telecom hardware production lines at various Ericsson sites (Borås, Karlskrona, Kista/Stockholm, Kumla, Linköping and Gothenburg) in Sweden, and the closure of an entire plant in the city of Katrineholm.
Facing stagnating growth and simultaneously facing harder competition with Asian producers, Ericsson has been scaling down telecom hardware production, a process that started almost two decades ago. The company sold its entire mobile phone development and production line to competitor Sony in February 2012. Ericsson is concentrating its remaining hardware production lines at production sites in Asia.
To date, the NACE 2 Division 26 sector has been the subject of another 14 EGF applications, 11 of which based on trade related globalisation and 3 on the global financial and economic crisis.
The application relates to 1 556 workers made redundant in Ericsson (Telefonaktiebolaget LM Ericsson). Ericsson operates primarily in the economic sectors classified under the NACE Revision 2 Division 26 (Manufacture of computer, electronic and optical products) and 62 (Computer programming, consultancy and related activities). The redundancies made by Ericsson are mainly located in the NUTS level 2 regions of Stockholm (SE11) and Östra Mellansverige (SE12), but also in Sydsverige (SE22) and Västsverige (SE23).
Basis of the Swedish application : Sweden 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. The reference period of four months for the application runs from 11 September 2015 to 11 January 2016.
The redundancies concern 1 244 workers made redundant in Ericsson. In addition to the workers already referred to, the eligible beneficiaries include 312 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 11 September 2015.
The Swedish authorities declared that these redundancies were all part of the same redundancy procedure, but some redundancies were only announced after the end of the reference period. The total number of eligible beneficiaries is therefore 1 556 .
The Commission proposes to mobilise the EGF for the amount of EUR 3 957 918 .
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 3 957 918, 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 2016/1858
- Final act published in Official Journal: OJ L 284 20.10.2016, p. 0025
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T8-0367/2016
- Budgetary report tabled for plenary: A8-0272/2016
- Amendments tabled in committee: PE589.293
- Committee draft report: PE587.430
- Non-legislative basic document published: COM(2016)0554
- Non-legislative basic document published: EUR-Lex
- Committee draft report: PE587.430
- Amendments tabled in committee: PE589.293
Activities
- Lars ADAKTUSSON
- Tim AKER
- Marina ALBIOL GUZMÁN
- Jean ARTHUIS
- Marie-Christine ARNAUTU
- Jonathan ARNOTT
- Zigmantas BALČYTIS
- Hugues BAYET
- Xabier BENITO ZILUAGA
- José BLANCO LÓPEZ
- Marie-Christine BOUTONNET
- Renata BRIANO
- Steeve BRIOIS
- Alain CADEC
- Nicola CAPUTO
- Salvatore CICU
- Alberto CIRIO
- Jane COLLINS
- Therese COMODINI CACHIA
- Andi CRISTEA
- Pál CSÁKY
- Javier COUSO PERMUY
- Edward CZESAK
- Michel DANTIN
- Rachida DATI
- Gérard DEPREZ
- Marielle DE SARNEZ
- Norbert ERDŐS
- Georgios EPITIDEIOS
- Edouard FERRAND
- Lorenzo FONTANA
- Doru-Claudian FRUNZULICĂ
- Ildikó GÁLL-PELCZ
- Francisco de Paula GAMBUS MILLET
- Elena GENTILE
- Beata GOSIEWSKA
- Tania GONZÁLEZ PEÑAS
- Brian HAYES
- Marian HARKIN
- Hans-Olaf HENKEL
- 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
- Monica MACOVEI
- Vladimír MAŇKA
- Ivana MALETIĆ
- Andrejs MAMIKINS
- Dominique MARTIN
- Notis MARIAS
- Jean-Luc MÉLENCHON
- Louis MICHEL
- Bernard MONOT
- Marlene MIZZI
- Sophie MONTEL
- Elisabeth MORIN-CHARTIER
- József NAGY
- Momchil NEKOV
- Liadh NÍ RIADA
- Franz OBERMAYR
- Margot PARKER
- Florian PHILIPPOT
- Marijana PETIR
- Pavel POC
- Salvatore Domenico POGLIESE
- Franck PROUST
- Julia REID
- Sofia RIBEIRO
- Claude ROLIN
- Fernando RUAS
- Lola SÁNCHEZ CALDENTEY
- Ricardo SERRÃO SANTOS
- Jill SEYMOUR
- Maria Lidia SENRA RODRÍGUEZ
- Siôn SIMON
- Branislav ŠKRIPEK
- Monika SMOLKOVÁ
- Davor ŠKRLEC
- Igor ŠOLTES
- Beatrix von STORCH
- Patricija ŠULIN
- Eleftherios SYNADINOS
- Adam SZEJNFELD
- Dubravka ŠUICA
- Hannu TAKKULA
- Claudia ȚAPARDEL
- Pavel TELIČKA
- Mylène TROSZCZYNSKI
- Kazimierz Michał UJAZDOWSKI
- Ángela VALLINA
- Marie-Christine VERGIAT
- Miguel VIEGAS
- Pablo ZALBA BIDEGAIN
- Jana ŽITŇANSKÁ
Votes
A8-0272/2016 - Esteban González Pons - Résolution #
S&D
ALDE
GUE/NGL
Verts/ALE
ENF
NI
ECR
EFDD| Amendments | Dossier |
| 17 |
2016/2214(BUD)
2016/09/16
BUDG
17 amendments...
Amendment 1 #
Draft opinion Paragraph 1 1. Agrees with the Commission that the conditions set out in point (a) of Article 4(1) of the EGF Regulation are met and that, therefore, Sweden is entitled to a financial contribution of EUR 3 957 918 under that Regulation, which represents 60% of the total cost of EUR 6 596 531, that will help 918 targeted beneficiaries return to the labour market;
Amendment 10 #
Draft opinion Paragraph 6 b (new) 6 b. Recognises that most of the affected white-collar workers are engineers, some of whom are specialised in niches that are unique to Ericsson, but welcomes the confidence of the Swedish PES that a personalised package of training programmes and coaching will enable most of those redundant employees to find new jobs of high quality.
Amendment 11 #
Draft opinion Paragraph 7 7. Notes that
Amendment 12 #
Draft opinion Paragraph 7 a (new) 7 a. Notes that the income support measures amount to 33,92 % of the overall package of personalised measures, close to the maximum 35 % 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; considers this relatively high percentage to be justified in view of the significant proportion of older workers concerned and the provision of individual support to participants with learning disabilities;
Amendment 13 #
Draft opinion Paragraph 8 8. Notes that the coordinated package of personalised services has been drawn up in consultation with the targeted beneficiaries and their representatives as well as with local public actors, taking into consideration that 22 % of workers are female and 78 % male;
Amendment 14 #
Draft opinion Paragraph 10 10. 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 environment, in the targeted regions;
Amendment 15 #
Draft opinion Paragraph 10 a (new) 10 a. Welcomes the Swedish authorities’ assurance that special efforts will be undertaken to break traditional gender barriers, including encouraging male beneficiaries to find jobs in the health care sector, as well as the contribution the measures will make to the 16 Swedish Environmental Quality Objectives;
Amendment 16 #
Draft opinion Paragraph 12 12. Notes that
Amendment 17 #
Draft opinion Paragraph 14 14.
Amendment 2 #
Draft opinion Paragraph 2 2. Notes that Sweden submitted the application for a financial contribution from the EGF on 31 March 2016, and that the assessment of that application was finalised by the Commission on 5 September 2016 and notified to Parliament the
Amendment 3 #
Draft opinion Paragraph 2 2. Notes that Sweden submitted the application for a financial contribution from the EGF on 31 March 2016, and that
Amendment 4 #
Draft opinion Paragraph 3 3. Notes that the IT and telecommunication industries are dominated by Asian manufacturers which have become an outsourcing destination, due to the fact that the strongest growth markets are located there; points out that Ericsson has gradually been cutting staff in Sweden (from 21 178 in 2005 to 17 858 in 2014), but in the meantime been growing tremendously worldwide (from 56 055 in 2005 to 118 055 in 2014), with India being the country with the largest number of employees (22 541);
Amendment 5 #
Draft opinion Paragraph 4 4. Points out that a relatively large group of older workers with similar backgrounds have been made redundant at the same time, with most of these workers not possessing the skills sought after on the local labour market; notes also that the large number of newly arrived migrants puts additional pressure on the local labour market;
Amendment 6 #
Draft opinion Paragraph 4 4.
Amendment 7 #
Draft opinion Paragraph 5 5. Welcomes the fact that the Swedish
Amendment 8 #
Draft opinion Paragraph 5 5. Welcomes
Amendment 9 #
Draft opinion Paragraph 6 a (new) 6 a. Acknowledges Arbetsförmedlingen’s (the Swedish Public Employment Service) assessment that blue-collar workers have potential opportunities in public or private sector service industries, provided major retraining is offered to them;
source: 589.293
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