BETA

Awaiting Parliament 1st reading / single reading / budget 1st stage



2017/2098(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the ICT sector in Finland
Next event: Vote in plenary scheduled 2017/09/13
RoleCommitteeRapporteurShadows
Lead BUDG SARVAMAA Petri (EPP)
Opinion EMPL
Opinion REGI
Lead committee dossier: BUDG/8/10272

Activites

  • 2017/09/13 Vote in plenary scheduled
  • 2017/09/01 Budgetary report tabled for plenary, 1st reading
    • A8-0278/2017 summary
  • 2017/08/30 Vote in committee, 1st reading/single reading
  • #3556
  • 2017/07/17 Council Meeting
  • 2017/07/03 Committee referral announced in Parliament, 1st reading/single reading
  • 2017/06/21 Non-legislative basic document published
    • COM(2017)0322 summary
    • DG {'url': 'http://ec.europa.eu/info/departments/employment-social-affairs-and-inclusion_en', 'title': 'Employment, Social Affairs and Inclusion'}, THYSSEN Marianne

Documents

History

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

activities/4/docs/0/text
  • The Committee on Budgets adopted the report by Petri SARVAMAA (EPP, FI) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation to provide the sum of EUR 3 520 080 in commitment and payment appropriations to assist Finland in respect of redundancies in the mobile phone sector using Microsoft technology.

    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.

    Finnish application: Finland submitted application EGF/2017/002 FI/Microsoft 2 for a financial contribution from the EGF under the intervention criteria of point (a) of Article 4(1) of the EGF Regulation following 1 248 redundancies in Microsoft Mobile Oy and 11 suppliers and downstream producers in Finland operating in the economic sector classified under the NACE Revision 2 Division 62 (Computer programming, consultancy and other activities).

    Members agreed that the conditions set out in point (a) of Article 4(1) of the EGF Regulation are met and that Finland is entitled to a financial contribution of EUR 3 520 080.

    Nature of redundancies: the main reason for the redundancies at Microsoft Mobile Oy is the worldwide competition in the mobile phone sector and the consequent loss of market share by Microsoft Mobile Oy and its Windows based operating system. They are also linked to the shift of manufacturing of mobile devices to lower wage countries.

    The affected regions of Helsinki-Uusimaa, Länsi-Suomi and EteläSuomi have already experienced extensive redundancies by firms in the electronics and software sectors and that Länsi-Suomi and Etelä-Suomi have high regional unemployment rates. 1 000 out of 1 248 redundant workers eligible for the EGF contribution are expected to participate in the measures. 92.5% of the targeted beneficiaries are 30-54 years old who for the most part are highly educated.

    Package of personalised services: given that unemployment rates of highly educated people have increased considerably in all three regions, Members welcomed that Finland is planning six types of measures:

    • coaching measures and other preparatory measures;
    • employment and business services;
    • training;
    • start-up grants;
    • pay subsidy;
    • allowances for travel and accommodation.

    The report noted that the income support measures correspond to 26.74 % of the overall package of personalised measures, below the maximum 35 % set out in the EGF Regulation.

    In addition, Members noted that the Finnish authorities have provided assurances 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 they will be complementary with actions funded by the Structural Funds.

    Lastly, they 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 measures for restructuring companies or sectors.

activities/0/commission/0
DG
Commissioner
THYSSEN Marianne
other/0
body
EC
dg
commissioner
THYSSEN Marianne
activities/4/docs
  • url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2017-0278&language=EN type: Budgetary report tabled for plenary, 1st reading title: A8-0278/2017
activities/4
date
2017-09-01T00:00:00
body
EP
type
Budgetary report tabled for plenary, 1st reading
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament 1st reading / single reading / budget 1st stage
activities/3
date
2017-08-30T00:00:00
body
EP
type
Vote in committee, 1st reading/single reading
committees
procedure/Modified legal basis
Rules of Procedure of the European Parliament EP 150
activities/0/docs/0/text
  • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Finland in respect of redundancies in the mobile phone sector using Microsoft technology.

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

    CONTENT: 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 background, the Commission examined the application to mobilise the EGF to assist Finland and made the following comments:

    Finland: EGF/2017/002 FI/Microsoft 2: on 1 February 2017, Finland submitted application EGF/2017/002 FI/Microsoft 2 for a financial contribution from the EGF following redundancies at Microsoft (Microsoft Mobile Oy) and 11 suppliers and downstream producers.

    Finland submitted its application within the 12-week period laid down in the Regulation. The deadline by which the Commission should finalise its assessment of the application's compliance with the conditions for providing a financial contribution will expire on 21 June 2017.

    In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Finland argues that the main reason behind the workforce reductions is the worldwide competition in the mobile phone sector and the consequent loss of market share by Microsoft Mobile Oy (and its Windows based operating system).

    After the acquisition of the mobile phone business of Nokia by Microsoft (US), Microsoft Mobile Oy was established in 2014, with its headquarters in Espoo, Finland. Approximately 4 700 Nokia employees were transferred to Microsoft Mobile Oy in Finland.

    However, Microsoft's Windows operating system has seen its market share collapse, accounting for only 0.8 % in 2016, while Android and iOS (Apple) operating systems market share will increase by up to 82.2 % and 14.6 % respectively in 2016. In addition, the competitors offer cheaper hardware and operating system products, which are very attractive to new customers in the emerging markets and also in Europe.

    In May 2016, Microsoft announced the reduction of up to 1 350 jobs at Microsoft Mobile Oy in Finland. 550 employees lost their job in the Helsinki-Uusimaa region, 500 in the Pirkanmaa area (Länsi-Suomi region) and 300 in Salo (Etelä-Suomi region).

    Basis of the Finnish application: 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 and downstream producers.

    The reference period runs from 12 July 2016 to 12 November 2016.

    The total number of eligible beneficiaries is 1 248.

    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 3 520 080, 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 requested.

    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.

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2017-07-17T00:00:00
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2017-09-12T00:00:00
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2017-09-13T00:00:00
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2017-07-03T00:00:00
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2017-09-12T00:00:00
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Indicative plenary sitting date, 1st reading/single reading
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  • date: 2017-06-21T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2017/0322/COM_COM(2017)0322_EN.pdf celexid: CELEX:52017PC0322:EN type: Non-legislative basic document published title: COM(2017)0322 type: Non-legislative basic document published body: EC commission:
committees
  • body: EP responsible: True committee: BUDG date: 2017-06-26T00:00:00 committee_full: Budgets rapporteur: group: EPP name: SARVAMAA Petri
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: Regional Development committee: REGI
links
other
    procedure
    reference
    2017/2098(BUD)
    title
    Mobilisation of the European Globalisation Adjustment Fund: redundancies in the ICT sector in Finland
    geographical_area
    Finland
    stage_reached
    Preparatory phase in Parliament
    subtype
    Mobilisation of funds
    type
    BUD - Budgetary procedure
    subject