BETA


2021/0107(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the metal manufacturing industry in Germany

Progress:

RoleCommitteeRapporteurShadows
Lead BUDG GEIER Jens (icon: S&D S&D) HOHLMEIER Monika (icon: EPP EPP), KÖRNER Moritz (icon: Renew Renew), KUHS Joachim (icon: ID ID), VANA Monika (icon: Verts/ALE Verts/ALE), RZOŃCA Bogdan (icon: ECR ECR), PAPADIMOULIS Dimitrios (icon: GUE/NGL GUE/NGL)
Committee Opinion EMPL ZDECHOVSKÝ Tomáš (icon: EPP EPP)
Lead committee dossier:

Events

2021/06/07
   EP - Decision by Parliament
2021/06/02
   EP - Budgetary report tabled for plenary, 1st reading
Documents
2021/06/02
   EP - Budgetary report tabled for plenary
Documents
2021/05/31
   EP - Vote in committee
2021/05/27
   EP - Specific opinion
Documents
2021/05/18
   EP - ZDECHOVSKÝ Tomáš (EPP) appointed as rapporteur in EMPL
2021/05/12
   EP - Amendments tabled in committee
Documents
2021/05/05
   EP - Committee draft report
Documents
2021/04/29
   EP - Committee referral announced in Parliament
2021/04/29
   EP - GEIER Jens (S&D) appointed as rapporteur in BUDG
2021/04/27
   EC - Non-legislative basic document published
Details

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to help Germany facing redundancies in the metal sector.

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

CONTENT: on 15 December 2020, Germany submitted an application for a financial contribution from the EGF, in respect of redundancies in the company GMH Guss GmbH in Germany.

Following the examination of this application, the Commission concluded, in accordance with all relevant provisions of the EGF Regulation, that the conditions for a financial contribution from the EGF have been met.

Grounds for the application

Germany submitted the application under the intervention criterion of Article 4(1)(a) of the EGF Regulation, which requires at least 500 workers to be made redundant over a reference period of four months in an enterprise in a Member State.

The application concerns 585 workers made redundant by four subsidiaries of GMH Guss GmbH. This enterprise operates in the manufacture of basic metals sector. The redundancies occurred in the NUTS 2 regions of Düsseldorf and Arnsberg. These sites are located in the Ruhr area, the traditional industrial region of North Rhine-Westphalia.

The four-month reference period runs from 31 July 2020 to 30 November 2020.

Link between the redundancies and a global financial and economic crisis

Germany argues that the German foundry industry is facing profound challenges such as changes in international trade in goods and services, as well as the relocation of activities to third countries.

While in 2019 it was the largest producer of foundry products in the EU, producing more than twice as much as Italy and three times as much as France, Germany had only a 5% share of global production, behind China (45.5%), India (11%) and the US (8.8%).

In the automotive industry, which is one of the main customers of German metal foundries, Asia is now largely dominant, with a 54% market share of global car production in 2019. For the first time in their history, German car manufacturers produced more cars in China than in Germany. Overall, car production in 2019 fell to its lowest level since 1996.

In addition, in the European market, the entire car industry is tending to relocate production or parts of the supply chain to Eastern Europe, including to non-EU countries.

As far as truck manufacturers are concerned, production of vehicles over 3.5 tonnes in Germany has roughly halved from 256 131 vehicles in 2008 to 133 997 in 2019. China now dominates the world market, with a 40% market share of global production.

Lastly, in the shipbuilding industry, annual production in Europe has halved in the period 2011-2019 compared to the period 2002-2010.

These globalisation-related challenges have put the metal casting industry under severe pressure and led to an 8.9% decline in the total production of foundry products in Germany between 2018 and 2019.

The facts behind the redundancies are the insolvency proceedings against GMH Guss. While one subsidiary, Dieckerhoff Guss GmbH, has been fully closed, the others have been partially closed and are currently subject to insolvency proceedings.

The redundancies are expected to have a significant negative effect on the local economy. Between September 2019 and September 2020, the unemployment rate in North Rhine-Westphalia rose from 6.5% to 7.9% and from 9% to 10.7% in the Ruhr region. The Covid-19 pandemic has further aggravated the consequences for the labour market.

Beneficiaries

Of the 585 eligible persons, an estimated 476 redundant workers are expected to participate in the measures.

The personalised services to be provided to the redundant workers include the following actions: (i) upskilling measures, including German language courses which can be provided to participants with a migratory background; (ii) peer groups and discussion workshops; (iii) business start-up assistance; (iv) job search assistance; (v) guidance counselling and vocational orientation; (vi) international job counselling; (vi) follow-up mentoring; and (vii) training allowance.

The proposed actions are active labour market measures and do not substitute for passive social protection measures.

The total estimated cost amounts to EUR 1 802 845, including EUR 1 730 731 for personalised services and EUR 72 114 for preparation, management, information and publicity, monitoring and reporting.

Budget proposal

The annual allocation to the EGF does not exceed EUR 186 million (in 2018 prices), as foreseen in Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021-2027.

Following the assessment of the application, the Commission proposes to mobilise the EGF for an amount of EUR 1 081 706, representing 60% of the total cost of the proposed actions, in order to provide a financial contribution for the application.

Documents

Votes

Mobilisation du Fonds européen d’ajustement à la mondialisation - demande EGF/2020/003 DE/ GMH Guss - Allemagne - Mobilisation of the European Globalisation Adjustment Fund: application EGF/2020/003 DE/GMH Guss - Germany - Inanspruchnahme des Europäischen Fonds für die Anpassung an die Globalisierung: Antrag EGF/2020/003 DE/GMH Guss – Deutschland - A9-0189/2021 - Jens Geier - Vote unqiue

2021/06/07 Outcome: +: 670, -: 22, 0: 4
DE FR IT ES PL RO NL PT HU AT EL BG BE SK IE HR LT CZ DK FI SI SE LV MT CY LU EE
Total
96
78
75
59
49
33
29
21
20
19
21
17
21
14
13
12
11
21
14
13
8
20
7
6
6
6
7
icon: PPE PPE
175

Hungary PPE

1

Denmark PPE

For (1)

1

Latvia PPE

2

Malta PPE

2
2

Luxembourg PPE

2

Estonia PPE

For (1)

1
icon: S&D S&D
143

Greece S&D

2

Lithuania S&D

2

Czechia S&D

For (1)

1

Finland S&D

1

Slovenia S&D

2

Latvia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1

Estonia S&D

2
icon: Renew Renew
98

Italy Renew

2

Hungary Renew

2

Austria Renew

For (1)

1

Ireland Renew

2

Croatia Renew

For (1)

1

Lithuania Renew

1

Finland Renew

3

Slovenia Renew

2

Sweden Renew

3

Latvia Renew

For (1)

1

Luxembourg Renew

2

Estonia Renew

3
icon: Verts/ALE Verts/ALE
73

Spain Verts/ALE

3

Poland Verts/ALE

For (1)

1

Netherlands Verts/ALE

3

Portugal Verts/ALE

1

Austria Verts/ALE

3

Belgium Verts/ALE

3

Ireland Verts/ALE

2

Lithuania Verts/ALE

2

Czechia Verts/ALE

3

Denmark Verts/ALE

2

Finland Verts/ALE

3

Sweden Verts/ALE

3

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: ID ID
71

Netherlands ID

Against (1)

1
3

Czechia ID

For (1)

Against (1)

2

Denmark ID

Against (1)

1

Finland ID

2

Estonia ID

Abstain (1)

1
icon: ECR ECR
59

Romania ECR

Abstain (1)

1

Greece ECR

1

Bulgaria ECR

2

Slovakia ECR

Abstain (1)

1

Croatia ECR

For (1)

1

Lithuania ECR

1
3

Latvia ECR

For (1)

1
icon: The Left The Left
39

Netherlands The Left

For (1)

1

Belgium The Left

For (1)

1

Czechia The Left

1

Denmark The Left

1

Finland The Left

For (1)

1

Sweden The Left

For (1)

1

Cyprus The Left

2
icon: NI NI
38

Netherlands NI

Against (1)

1

Slovakia NI

2

Lithuania NI

1
AmendmentsDossier
8 2021/0107(BUD)
2021/05/17 BUDG 8 amendments...
source: 692.809

History

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

events/4
date
2021-06-07T00:00:00
type
Decision by Parliament
body
EP
procedure/stage_reached
Awaiting Parliament's position on the draft budget
forecasts
  • date: 2021-06-07T00:00:00 title: Vote in plenary scheduled
docs/3
date
2021-06-02T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0189_EN.html title: A9-0189/2021
type
Budgetary report tabled for plenary, 1st reading
body
EP
events/3
date
2021-06-02T00:00:00
type
Budgetary report tabled for plenary
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0189_EN.html title: A9-0189/2021
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament's position on the draft budget
events/2
date
2021-05-31T00:00:00
type
Vote in committee
body
EP
procedure/Other legal basis
Rules of Procedure EP 159
docs/2/docs/0/url
https://www.europarl.europa.eu/doceo/document/EMPL-AL-692905_EN.html
docs/0
date
2021-04-27T00:00:00
docs
type
Non-legislative basic document
body
EC
docs/2
date
2021-05-27T00:00:00
docs
title: PE692.905
committee
EMPL
type
Specific opinion
body
EP
events/0/summary
  • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to help Germany facing redundancies in the metal sector.
  • PROPOSED ACT: Decision of the European Parliament and of the Council.
  • CONTENT: on 15 December 2020, Germany submitted an application for a financial contribution from the EGF, in respect of redundancies in the company GMH Guss GmbH in Germany.
  • Following the examination of this application, the Commission concluded, in accordance with all relevant provisions of the EGF Regulation, that the conditions for a financial contribution from the EGF have been met.
  • Grounds for the application
  • Germany submitted the application under the intervention criterion of Article 4(1)(a) of the EGF Regulation, which requires at least 500 workers to be made redundant over a reference period of four months in an enterprise in a Member State.
  • The application concerns 585 workers made redundant by four subsidiaries of GMH Guss GmbH. This enterprise operates in the manufacture of basic metals sector. The redundancies occurred in the NUTS 2 regions of Düsseldorf and Arnsberg. These sites are located in the Ruhr area, the traditional industrial region of North Rhine-Westphalia.
  • The four-month reference period runs from 31 July 2020 to 30 November 2020.
  • Link between the redundancies and a global financial and economic crisis
  • Germany argues that the German foundry industry is facing profound challenges such as changes in international trade in goods and services, as well as the relocation of activities to third countries.
  • While in 2019 it was the largest producer of foundry products in the EU, producing more than twice as much as Italy and three times as much as France, Germany had only a 5% share of global production, behind China (45.5%), India (11%) and the US (8.8%).
  • In the automotive industry, which is one of the main customers of German metal foundries, Asia is now largely dominant, with a 54% market share of global car production in 2019. For the first time in their history, German car manufacturers produced more cars in China than in Germany. Overall, car production in 2019 fell to its lowest level since 1996.
  • In addition, in the European market, the entire car industry is tending to relocate production or parts of the supply chain to Eastern Europe, including to non-EU countries.
  • As far as truck manufacturers are concerned, production of vehicles over 3.5 tonnes in Germany has roughly halved from 256 131 vehicles in 2008 to 133 997 in 2019. China now dominates the world market, with a 40% market share of global production.
  • Lastly, in the shipbuilding industry, annual production in Europe has halved in the period 2011-2019 compared to the period 2002-2010.
  • These globalisation-related challenges have put the metal casting industry under severe pressure and led to an 8.9% decline in the total production of foundry products in Germany between 2018 and 2019.
  • The facts behind the redundancies are the insolvency proceedings against GMH Guss. While one subsidiary, Dieckerhoff Guss GmbH, has been fully closed, the others have been partially closed and are currently subject to insolvency proceedings.
  • The redundancies are expected to have a significant negative effect on the local economy. Between September 2019 and September 2020, the unemployment rate in North Rhine-Westphalia rose from 6.5% to 7.9% and from 9% to 10.7% in the Ruhr region. The Covid-19 pandemic has further aggravated the consequences for the labour market.
  • Beneficiaries
  • Of the 585 eligible persons, an estimated 476 redundant workers are expected to participate in the measures.
  • The personalised services to be provided to the redundant workers include the following actions: (i) upskilling measures, including German language courses which can be provided to participants with a migratory background; (ii) peer groups and discussion workshops; (iii) business start-up assistance; (iv) job search assistance; (v) guidance counselling and vocational orientation; (vi) international job counselling; (vi) follow-up mentoring; and (vii) training allowance.
  • The proposed actions are active labour market measures and do not substitute for passive social protection measures.
  • The total estimated cost amounts to EUR 1 802 845, including EUR 1 730 731 for personalised services and EUR 72 114 for preparation, management, information and publicity, monitoring and reporting.
  • Budget proposal
  • The annual allocation to the EGF does not exceed EUR 186 million (in 2018 prices), as foreseen in Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021-2027.
  • Following the assessment of the application, the Commission proposes to mobilise the EGF for an amount of EUR 1 081 706, representing 60% of the total cost of the proposed actions, in order to provide a financial contribution for the application.
committees/0/shadows/5
name
PAPADIMOULIS Dimitrios
group
The Left group in the European Parliament - GUE/NGL
abbr
GUE/NGL
forecasts/0/title
Old
Indicative plenary sitting date
New
Vote in plenary scheduled
committees/1/rapporteur
  • name: ZDECHOVSKÝ Tomáš date: 2021-05-18T00:00:00 group: Group of European People's Party abbr: EPP
docs/2/docs/0/url
https://www.europarl.europa.eu/doceo/document/BUDG-AM-692809_EN.html
docs/2
date
2021-05-12T00:00:00
docs
title: PE692.809
type
Amendments tabled in committee
body
EP
commission
  • body: EC dg: Employment, Social Affairs and Inclusion commissioner: SCHMIT Nicolas
docs/1
date
2021-05-05T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/BUDG-PR-692655_EN.html title: PE692.655
type
Committee draft report
body
EP
docs/1
date
2021-04-30T00:00:00
docs
title: PE692.655
type
Committee draft report
body
EP
events/1
date
2021-04-29T00:00:00
type
Committee referral announced in Parliament
body
EP
procedure/dossier_of_the_committee
  • BUDG/9/05928
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision