Next event: Indicative plenary sitting date 2021/11/22
Progress: Awaiting committee decision
Role | Committee | Rapporteur | Shadows |
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Lead | BUDG | GARDIAZABAL RUBIAL Eider ( S&D) | FERNANDES José Manuel ( EPP), GARICANO Luis ( Renew), VANA Monika ( Verts/ALE), RZOŃCA Bogdan ( ECR) |
Committee Opinion | EMPL |
Lead committee dossier:
Subjects
Events
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to help Spain facing redundancies in the metal sector.
PROPOSED ACT: Decision of the European Parliament and of the Council.
CONTENT: on 25 June 2021, Spain submitted an application for a financial contribution from the EGF, following redundancies in the metal manufacturing sector (excluding machinery and equipment) in the Basque region in Spain .
Following the assessment of this application, the Commission has concluded, in accordance with all relevant provisions of the EGF Regulation, that the conditions for a financial contribution from the EGF are met.
Grounds for the application
The Spanish application is based on the intervention criteria of Article 4(2)(b) of the EGF Regulation, which requires the cessation of activity of at least 200 redundant workers, over a reference period of six months, in enterprises all operating in the same economic sector and located in one region or two contiguous regions at NUTS level 2 in a Member State
There were 491 redundant workers in the NUTS level 2 region of the Basque region in Spain. The six-month reference period for the application is from 2 June 2020 to 2 December 2020.
Events leading to the redundancies and cessation of activity
The event leading to the redundancies is the economic crisis caused by the COVID-19 pandemic. The strict lock down measures implemented by Spain in the second quarter of 2020 led to a slowdown in non-essential economic activities and services, which severely affected the metals sector.
In 2020 (compared to the previous year), production fell by more than 50% in 18% of metal companies . In 16% of companies, turnover also fell by more than 50%. One third of the metalworking companies experienced a fall in production and turnover of between 30% and 50%.
Despite the intensive use of partial unemployment, 14% of the companies in the metal sector made redundancies, affecting 10.6% of their workforce.
Given the high weight of the metal products manufacturing sector in the economy of the Spanish Basque Country (27.4% of the industry's gross added value), the difficulties it has encountered have had a significant impact on the economy and employment in the region. In August 2020, there were 25% more unemployed than six months earlier . Although the registered unemployment rate fell (6.21%) between January and May 2021, it remains 4.6% higher than before the pandemic.
Beneficiaries
Out of 491 redundant workers, it is estimated that 300 redundant workers should participate in the measures.
The personalised services to be provided to the redundant workers include the following actions: (i) general information on vocational counselling and training programmes and available incentives; (ii) vocational guidance; (iii) intensive job search assistance; (iv) support and contribution to business creation of up to EUR 8000; (v) training and (vi) participation, job search and training allowances.
The measures have been designed in line with the Spanish circular economy strategy. The training helps to stimulate the process of digital transformation of the industry.
The total estimated cost amounts to EUR 1 428 950 . It corresponds to the expenditure for personalised services, which amounts to EUR 1 384 950, and to the expenditure for financing the preparation, management, information and publicity activities, as well as to the expenditure for monitoring and reporting, amounting to EUR 44 000.
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 1 214 607 , representing 85% of the total cost of the proposed actions, in order to provide a financial contribution for the application.
Documents
- Amendments tabled in committee: PE699.240
- Specific opinion: PE699.070
- Committee draft report: PE698.965
- Non-legislative basic document published: EUR-Lex
- Non-legislative basic document published: COM(2021)0618
- Committee draft report: PE698.965
- Specific opinion: PE699.070
- Amendments tabled in committee: PE699.240
Amendments | Dossier |
8 |
2021/0316(BUD)
2021/10/29
BUDG
8 amendments...
Amendment 1 #
Motion for a resolution Citation 4 — having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management
Amendment 2 #
Motion for a resolution Recital C C. whereas the application relates to a total of 491 displaced workers whose activity has ceased, out of which 192 occurred in the course of collective redundancies that were notified to the authorities in six companies4
Amendment 3 #
Motion for a resolution Recital H H. whereas
Amendment 4 #
Motion for a resolution Paragraph 4 4. Recalls that the social impacts of the redundancies are expected to be important for workers in the Basque region, where the number of unemployed persons increased by 25 % between March and August 202011 , and where long-term unemployment represented 55,6 % of total unemployment in May 2021 (3,6 p.p. higher than in January 2021) and unemployed persons with basic education or less represented 60,8 %; recalls also that the wage gap between men and women is 22.6% and the temporary employment rate is 25.8% in the Basque region, 11.6 points above the Union average, which is 14.2%; _________________ 11Avance de los datos del mercado laboral del año 2020 (labor market data for 2020).
Amendment 5 #
Motion for a resolution Paragraph 4 4. Recalls that the social impacts of the redundancies are expected to be important for workers
Amendment 6 #
Motion for a resolution Paragraph 7 7. Recalls that personalised services
Amendment 7 #
Motion for a resolution Paragraph 9 9. Welcomes that the co-ordinated package of personalised services was drawn up by Spain in consultation with the social partners12 ; the involvement of certain social partners was ensured by their representation in Lanbide's governance board, which is made up of representatives of the regional government, trade unions and employer organisations; considers that the biggest trade unions and the cooperative ventures of the Basque region should have also been consulted, as they are essential social partners in the context of the social dialogue; _________________ 12The application was approved by Lanbide, the Basque public employment service (social partners are part of the governance board), on 2 July 2021. Meetings were also held on 19 January and 2 February 2021 with Federación Vizcaína de Empresas del Metal, (federation of metal enterprises of Biscay), Asociación de Empresas de Guipúzcoa - ADEGI
Amendment 8 #
Motion for a resolution Paragraph 11 11. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements as well as any allowances and/or rights of the targeted beneficiaries;
source: 699.240
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History
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https://www.europarl.europa.eu/doceo/document/BUDG-AM-699240_EN.html
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https://www.europarl.europa.eu/doceo/document/EMPL-AL-699070_EN.html
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