Progress: Awaiting Parliament's position on the draft budget
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | BUDG |
VANA Monika ( Verts/ALE)
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NOVAKOV Andrey ( EPP),
GUALMINI Elisabetta ( S&D),
ŞTEFĂNUȚĂ Nicolae ( Renew),
LAPORTE Hélène ( ID),
RZOŃCA Bogdan ( ECR),
PAPADIMOULIS Dimitrios ( GUE/NGL)
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| Committee Opinion | EMPL |
ZDECHOVSKÝ Tomáš ( EPP)
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Lead committee dossier:
Subjects
Events
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.
Documents
- Budgetary report tabled for plenary, 1st reading: A9-0187/2021
- Budgetary report tabled for plenary: A9-0187/2021
- Specific opinion: PE692.907
- Amendments tabled in committee: PE692.947
- Committee draft report: PE692.741
- Non-legislative basic document published: COM(2021)0226
- Non-legislative basic document published: EUR-Lex
- Committee draft report: PE692.741
- Amendments tabled in committee: PE692.947
- Specific opinion: PE692.907
- Budgetary report tabled for plenary, 1st reading: A9-0187/2021
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 #
PPE
The Left
NI| Amendments | Dossier |
| 9 |
2021/0115(BUD)
2021/05/20
BUDG
9 amendments...
Amendment 1 #
Motion for a resolution Recital D a (new) D a. Whereas the Commission acknowledged that the COVID-19 health crisis generated an economic crisis and pushed for a Relaunch Plan that underlines the key role played by the EGF in assisting redundant workers;
Amendment 2 #
Motion for a resolution Recital E a (new) E a. Whereas this is one of the first mobilisations of the EGF due to the COVID-19 crisis, following the inclusion in its resolution of 18 June 2020 on the proposal of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (EGF/2020/000 TA 2020 - Technical Assistance at the initiative of the Commission)1 of the mention that the EGF could be mobilised to support permanently dismissed workers and the self-employed in the context of the global crisis caused byCOVID-19 without amending Regulation (EU) No 1309/2013; ______ Textxs adopted, P9_TA(2020)0141.
Amendment 3 #
Motion for a resolution Paragraph 2 a (new) 2 a. Regrets the lengthy process in such difficult circumstances and calls the Commission to accelerate the process of assessment, ensuring that the dismissed workers can benefit from the Union's support in a timely manner;
Amendment 4 #
Motion for a resolution Paragraph 3 a (new) 3 a. Notes that the Netherlands has decided not to offer income support to the dismissed workers through the EGF; takes note that the Dutch government had launched a generic wage support grant for all companies whose turnover is affected by more than 20 % by the COVID-19 crisis and that KLM Group applied for NOW-grant (Noodmaatregel Overbrugging voorWerkgelegenheid); takes note that KLM Group applied for the entire period covered by the NOW grant and has already received advance payments of EUR 683 million and should receive an additional EUR 488 million;
Amendment 5 #
Motion for a resolution Paragraph 3 b (new) 3 b. Notes that it is for the Member State to decide how many of the eligible workers should be targeted to benefit of the support, therefore calls on the Netherlands to focus on the most vulnerable groups that are likely to face most difficulties on the job market;
Amendment 6 #
Motion for a resolution Paragraph 4 a (new) 4 a. Underlines the need for all employees, without discrimination and independently of their nationality, to be integrated and supported by the measures included in this EGF mobilisation;
Amendment 7 #
Motion for a resolution Paragraph 10 a (new) Amendment 8 #
Motion for a resolution Paragraph 10 c (new) 10 c. Calls for further reduction of administrative burden throughout the application process and significant simplification of final reporting requirements, especially with regard to beneficiaries;
Amendment 9 #
Motion for a resolution Paragraph 10 d (new) 10 d. Calls for further communication efforts with regard to the measures supported by the Union budget through the EGF; underlines the importance to disseminate information on the Union added value and the support to vulnerable sectors and workers, especially in the wake of the COVID-19 fallout;
source: 692.947
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History
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Awaiting Parliament's position on the draft budget
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