BETA


2021/0115(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the air transport sector in the Netherlands

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead BUDG VANA Monika (icon: Verts/ALE Verts/ALE) NOVAKOV Andrey (icon: EPP EPP), GUALMINI Elisabetta (icon: S&D S&D), ŞTEFĂNUȚĂ Nicolae (icon: Renew Renew), LAPORTE Hélène (icon: ID ID), RZOŃCA Bogdan (icon: ECR ECR), PAPADIMOULIS Dimitrios (icon: GUE/NGL GUE/NGL)
Committee Opinion EMPL ZDECHOVSKÝ Tomáš (icon: EPP EPP)
Lead committee dossier:

Events

2021/06/24
   Final act published in Official Journal
2021/06/07
   EP - Decision by Parliament
Details

The European Parliament adopted 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 (EGF), following an application from the Netherlands - EGF/2020/004 NL/KLM.

Parliament approved the proposal for a decision to mobilise the EGF in order to provide a financial contribution of EUR 5 019 218 in commitment and payment appropriations from the Union budget for the financial year 2021 in response to the application submitted by the Netherlands, which is facing redundancies in the air transport sector.

This contribution represents 60% of the total cost of EUR 8 365 364, corresponding to expenditure on personalised services of EUR 8 030 750 and expenditure on preparatory, management, information and publicity, monitoring and reporting activities of EUR 334 614.

Link between the redundancies and a global financial and economic crisis

The resolution noted that the COVID-19 pandemic has profoundly affected the airline industry due to travel restrictions that caused international air traffic to fall by 98.9% in April 2020 compared to April 2019, while 64% of aircraft were grounded worldwide. International passenger demand fell by 75.6% in 2020 compared to 2019 levels.

As a result of the pandemic, the number of passengers carried by KLM Royal Dutch Airlines fell by 68% and KLM's revenue fell by 53.8% in 2020 compared to 2019. This has resulted in KLM making an operating loss of EUR 1 154 million in 2020 compared to a profit of EUR 714 million in 2019 and forced its management to announce a restructuring plan reducing the workforce by around 5 000 full-time equivalents.

Eligible beneficiaries

The application covers a total of 1 851 redundant workers from KLM Royal Dutch Airlines , but only 1 201 eligible beneficiaries are expected to participate in the measures.

The social consequences of the redundancies are expected to be considerable, given that KLM is the second largest private employer in the Netherlands, with more than 33 000 workers in 2019. Members recalled that the redundancies took place in a context of rising unemployment rates in Noord-Holland, which increased by 1.5 percentage points to reach 4.8 % in the fourth quarter of 2020 compared to the same quarter of 2019.

Personalised services

The personalised services to be provided to workers include the following: professional orientation, career guidance, job search assistance in specific sectors, training, coaching and/or education and financial advice.

Members noted that the Netherlands has decided not to offer income support to redundant workers through the EGF. The KLM group has applied for the NOW benefit ( Noodmaatregel Overbrugging voor Werkgelegenheid ), a generic wage support benefit for all companies whose turnover is affected by more than 20% due to the COVID-19 crisis. KLM has already received advances amounting to EUR 683 million and is expected to receive a further EUR 488 million.

Parliament welcomed the authorities' commitment to retraining workers to facilitate their transition to labour-scarce sectors such as education, healthcare, logistics, technology and information management. It called on the Netherlands to ensure the inclusion of the most vulnerable people , who are likely to face the most difficulties in the labour market, without any form of discrimination.

Members welcomed the fact that the coordinated package of personalised services has been put in place by the Netherlands in consultation with stakeholders and social partners.

Documents
2021/06/03
   CSL - Draft budget approved by Council
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
2021/05/20
   EP - Amendments tabled in committee
Documents
2021/05/18
   EP - ZDECHOVSKÝ Tomáš (EPP) appointed as rapporteur in EMPL
2021/05/17
   EP - Committee referral announced in Parliament
2021/05/07
   EP - Committee draft report
Documents
2021/05/06
   EC - Non-legislative basic document published
Details

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to help the Netherlands facing redundancies in the air transport sector.

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

CONTENT: on 22 December 2020, the Netherlands submitted an application for a financial contribution from the EGF, following redundancies in KLM Royal Dutch Airlines in the Netherlands.

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

The Netherlands submitted the application under the intervention criterion of Article 4(1)(a) of the EGF Regulation, which requires at least 500 redundancies over a reference period of four months in an enterprise in a Member State, including employees and self-employed persons made redundant or made redundant in its suppliers and downstream producers.

The application concerns 1851 workers made redundant at KLM Royal Dutch Airlines. The redundancies took place in the NUTS 2 region of Noord-Holland. KLM made 650 workers redundant during the four-month reference period from 15 August 2020 to 15 December 2020.

Link between redundancies and a global financial and economic crisis

The Netherlands reports that KLM has been hit hard by the effects of the COVID-19 pandemic. Before the pandemic, KLM's financial results increased steadily between 2015 and 2019. However, the crisis has undermined KLM's good results in recent years. By mid-March 2020, KLM's operations were largely crippled, while their operating costs remained at the same level.

KLM carried 11.2 million passengers in 2020, a massive 68% drop from the previous year. The passenger load factor fell to 52.2%, compared to 89.4% in 2019. In 2020, KLM's revenues fell by 53.8% year-on-year to EUR 5 120 million. As a result of the sharp decline in revenues, KLM accumulated an operating loss of EUR 1 154 million in 2020, compared to a profit of EUR 714 million in 2019.

On 31 July 2020, KLM management announced a restructuring plan to reduce costs. This resulted in a reduction of the workforce by approximately 5 000 full-time equivalents (from 33 000 to 28 000 full-time equivalents).

The redundancies have a serious impact on the national economy. KLM is the second largest private employer in the Netherlands. The unemployment rate in the province of Noord-Holland increased by 1.5 percentage points to 4.8% in the fourth quarter of 2020 compared to the same quarter of 2019.

KLM management expects a return to pre-crisis flight movements by 2024.

Beneficiaries

Of the 1851 eligible persons, an estimated 1201 redundant workers and self-employed persons are expected to participate in EGF measures.

The personalised services to be provided to the redundant workers include the following actions: (i) career guidance; (ii) professional assistance to move to sectors with labour shortages such as education, health care, logistics, technology and information management; (iii) training, coaching and/or education; and (iv) financial advice for the affected employees.

The proposed actions constitute active labour market measures and do substitute for passive social protection measures.

The total cost is estimated at EUR 8 365 364, corresponding to the expenditure for personalised services (EUR 8 030 750) and the financing of preparation, management, information and publicity, monitoring and reporting activities (EUR 334 614).

Budget proposal

The annual allocation to the EGF does not exceed EUR 186 million (in 2018 prices), as foreseen in the 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 5 019 218, representing 60% of the total cost of the proposed actions, in order to provide a financial contribution for the application.

2021/04/30
   EP - VANA Monika (Verts/ALE) appointed as rapporteur in BUDG

Documents

Votes

Mobilisation du Fonds européen d’ajustement à la mondialisation - demande EGF/2020/004 NL/KLM - Pays Bas - Mobilisation of the European Globalisation Adjustment Fund: application EGF/2020/004 NL/KLM - Netherlands - Inanspruchnahme des Europäischen Fonds für die Anpassung an die Globalisierung infolge des Antrags der Niederlande – EGF/2020/004 NL/KLM - A9-0187/2021 - Monika Vana - Vote unique #

2021/06/07 Outcome: +: 657, -: 32, 0: 7
IT FR DE 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
75
78
96
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: 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: ID ID
71

Netherlands ID

1
3

Czechia ID

For (1)

Against (1)

2

Denmark ID

Against (1)

1

Finland ID

2

Estonia ID

Against (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
9 2021/0115(BUD)
2021/05/20 BUDG 9 amendments...
source: 692.947

History

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

docs/4
date
2021-06-07T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0267_EN.html title: T9-0267/2021
type
Budgetary text adopted by Parliament
body
EP
events/4
date
2021-06-07T00:00:00
type
Decision by Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0267_EN.html title: T9-0267/2021
events/4
date
2021-06-03T00:00:00
type
Draft budget approved by Council
body
CSL
events/5
date
2021-06-07T00:00:00
type
Decision by Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0267_EN.html title: T9-0267/2021
events/5/summary
  • The European Parliament adopted 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 (EGF), following an application from the Netherlands - EGF/2020/004 NL/KLM.
  • Parliament approved the proposal for a decision to mobilise the EGF in order to provide a financial contribution of EUR 5 019 218 in commitment and payment appropriations from the Union budget for the financial year 2021 in response to the application submitted by the Netherlands, which is facing redundancies in the air transport sector.
  • This contribution represents 60% of the total cost of EUR 8 365 364, corresponding to expenditure on personalised services of EUR 8 030 750 and expenditure on preparatory, management, information and publicity, monitoring and reporting activities of EUR 334 614.
  • Link between the redundancies and a global financial and economic crisis
  • The resolution noted that the COVID-19 pandemic has profoundly affected the airline industry due to travel restrictions that caused international air traffic to fall by 98.9% in April 2020 compared to April 2019, while 64% of aircraft were grounded worldwide. International passenger demand fell by 75.6% in 2020 compared to 2019 levels.
  • As a result of the pandemic, the number of passengers carried by KLM Royal Dutch Airlines fell by 68% and KLM's revenue fell by 53.8% in 2020 compared to 2019. This has resulted in KLM making an operating loss of EUR 1 154 million in 2020 compared to a profit of EUR 714 million in 2019 and forced its management to announce a restructuring plan reducing the workforce by around 5 000 full-time equivalents.
  • Eligible beneficiaries
  • The application covers a total of 1 851 redundant workers from KLM Royal Dutch Airlines , but only 1 201 eligible beneficiaries are expected to participate in the measures.
  • The social consequences of the redundancies are expected to be considerable, given that KLM is the second largest private employer in the Netherlands, with more than 33 000 workers in 2019. Members recalled that the redundancies took place in a context of rising unemployment rates in Noord-Holland, which increased by 1.5 percentage points to reach 4.8 % in the fourth quarter of 2020 compared to the same quarter of 2019.
  • Personalised services
  • The personalised services to be provided to workers include the following: professional orientation, career guidance, job search assistance in specific sectors, training, coaching and/or education and financial advice.
  • Members noted that the Netherlands has decided not to offer income support to redundant workers through the EGF. The KLM group has applied for the NOW benefit ( Noodmaatregel Overbrugging voor Werkgelegenheid ), a generic wage support benefit for all companies whose turnover is affected by more than 20% due to the COVID-19 crisis. KLM has already received advances amounting to EUR 683 million and is expected to receive a further EUR 488 million.
  • Parliament welcomed the authorities' commitment to retraining workers to facilitate their transition to labour-scarce sectors such as education, healthcare, logistics, technology and information management. It called on the Netherlands to ensure the inclusion of the most vulnerable people , who are likely to face the most difficulties in the labour market, without any form of discrimination.
  • Members welcomed the fact that the coordinated package of personalised services has been put in place by the Netherlands in consultation with stakeholders and social partners.
events/6
date
2021-06-24T00:00:00
type
Final act published in Official Journal
docs
procedure/final
title
Decision 2021/1022
url
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32021D1022
procedure/stage_reached
Procedure completed
docs/4
date
2021-06-07T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0267_EN.html title: T9-0267/2021
type
Budgetary text adopted by Parliament
body
EP
events/4
date
2021-06-07T00:00:00
type
Decision by Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0267_EN.html title: T9-0267/2021
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-9-2021-0187_EN.html title: A9-0187/2021
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-9-2021-0187_EN.html title: A9-0187/2021
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament's position on the draft budget
commission
  • body: EC dg: Employment, Social Affairs and Inclusion commissioner: SCHMIT Nicolas
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-692907_EN.html
docs/0
date
2021-05-06T00:00:00
docs
type
Non-legislative basic document
body
EC
docs/2
date
2021-05-27T00:00:00
docs
title: PE692.907
committee
EMPL
type
Specific opinion
body
EP
events/0/summary
  • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to help the Netherlands facing redundancies in the air transport sector.
  • PROPOSED ACT: Decision of the European Parliament and of the Council.
  • CONTENT: on 22 December 2020, the Netherlands submitted an application for a financial contribution from the EGF, following redundancies in KLM Royal Dutch Airlines in the Netherlands.
  • 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
  • The Netherlands submitted the application under the intervention criterion of Article 4(1)(a) of the EGF Regulation, which requires at least 500 redundancies over a reference period of four months in an enterprise in a Member State, including employees and self-employed persons made redundant or made redundant in its suppliers and downstream producers.
  • The application concerns 1851 workers made redundant at KLM Royal Dutch Airlines. The redundancies took place in the NUTS 2 region of Noord-Holland. KLM made 650 workers redundant during the four-month reference period from 15 August 2020 to 15 December 2020.
  • Link between redundancies and a global financial and economic crisis
  • The Netherlands reports that KLM has been hit hard by the effects of the COVID-19 pandemic. Before the pandemic, KLM's financial results increased steadily between 2015 and 2019. However, the crisis has undermined KLM's good results in recent years. By mid-March 2020, KLM's operations were largely crippled, while their operating costs remained at the same level.
  • KLM carried 11.2 million passengers in 2020, a massive 68% drop from the previous year. The passenger load factor fell to 52.2%, compared to 89.4% in 2019. In 2020, KLM's revenues fell by 53.8% year-on-year to EUR 5 120 million. As a result of the sharp decline in revenues, KLM accumulated an operating loss of EUR 1 154 million in 2020, compared to a profit of EUR 714 million in 2019.
  • On 31 July 2020, KLM management announced a restructuring plan to reduce costs. This resulted in a reduction of the workforce by approximately 5 000 full-time equivalents (from 33 000 to 28 000 full-time equivalents).
  • The redundancies have a serious impact on the national economy. KLM is the second largest private employer in the Netherlands. The unemployment rate in the province of Noord-Holland increased by 1.5 percentage points to 4.8% in the fourth quarter of 2020 compared to the same quarter of 2019.
  • KLM management expects a return to pre-crisis flight movements by 2024.
  • Beneficiaries
  • Of the 1851 eligible persons, an estimated 1201 redundant workers and self-employed persons are expected to participate in EGF measures.
  • The personalised services to be provided to the redundant workers include the following actions: (i) career guidance; (ii) professional assistance to move to sectors with labour shortages such as education, health care, logistics, technology and information management; (iii) training, coaching and/or education; and (iv) financial advice for the affected employees.
  • The proposed actions constitute active labour market measures and do substitute for passive social protection measures.
  • The total cost is estimated at EUR 8 365 364, corresponding to the expenditure for personalised services (EUR 8 030 750) and the financing of preparation, management, information and publicity, monitoring and reporting activities (EUR 334 614).
  • Budget proposal
  • The annual allocation to the EGF does not exceed EUR 186 million (in 2018 prices), as foreseen in the 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 5 019 218, 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
events/1
date
2021-05-17T00:00:00
type
Committee referral announced in Parliament
body
EP
forecasts/0/title
Old
Indicative plenary sitting date
New
Vote in plenary scheduled
procedure/dossier_of_the_committee
  • BUDG/9/05921
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
docs/2/docs/0/url
https://www.europarl.europa.eu/doceo/document/BUDG-AM-692947_EN.html
docs/2
date
2021-05-20T00:00:00
docs
title: PE692.947
type
Amendments tabled in committee
body
EP
committees/1/rapporteur
  • name: ZDECHOVSKÝ Tomáš date: 2021-05-18T00:00:00 group: Group of European People's Party abbr: EPP