Next event: Indicative plenary sitting date 2022/06/22
Progress: Awaiting committee decision
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | BUDG | KELLER Fabienne ( Renew) | WINZIG Angelika ( EPP), NEGRESCU Victor ( S&D), VANA Monika ( Verts/ALE), RZOŃCA Bogdan ( ECR), OMARJEE Younous ( GUE/NGL) |
Committee Opinion | EMPL | ||
Committee Opinion | REGI | OMARJEE Younous ( GUE/NGL) |
Lead committee dossier:
Subjects
Events
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist France to deal with displaced workers in the air transport sector.
PROPOSED ACT: Decision of the European Parliament and of the Council.
CONTENT: on 21 January 2022, France submitted an application for a financial contribution from the EGF, following displacements in Air France in France.
Following the assessment of this application, the Commission concluded, in accordance with all the relevant provisions of the EGF Regulation, that the conditions for a financial contribution from the EGF are met.
Grounds for the application
The French application is based on the intervention criterion of Article 4(2)(b) of the EGF Regulation, which requires the cessation of at least 200 displaced workers, over a reference period of four months in an enterprise in a Member State, including workers displaced in suppliers and downstream producers and/or self-employed persons whose activity has ceased.
The application relates to 282 displaced workers whose activity has ceased in Air France. The redundancies in Air France are located in 12 French NUTS level 2 regions in mainland France and four French NUTS level 2 regions overseas. The reference period of four months for the application runs from 1 July 2021 to 1 November 2021.
Events leading to the displacements and cessation of activity
The events leading to the redundancies were the consequence of the unforeseen global economic crisis caused by the pandemic . The COVID-19 crisis severely and abruptly affected Air France, as it did all other airlines, forcing it to reduce its flight offer due to the closure of borders and the decrease in air traffic.
In France, GDP fell by 8% in 2020 and, despite 7% growth in 2021, it has not yet returned to pre-pandemic levels. Recovery in air transport is expected to be slow and uncertain. Air France does not expect to reach 95% of its pre-pandemic flight capacity until 2023.
At the beginning of the crisis, Air France was losing EUR 450 million of cash flow every month. The enterprise would have been in insolvency and would no longer have been able to pay salaries if it had not obtained EUR 7 billion in State-guaranteed loans. However, the loans alone would not have been sufficient to overcome the situation without additional measures, which led to reductions in staff.
The region Île de France has been the most affected by the redundancies in Air France, as 57% of the displacements occurred in this territory.
Beneficiaries
In addition to the 282 redundant workers, the eligible beneficiaries include 1,298 redundant workers whose activity ceased before or after the four-month reference period. The total number of eligible beneficiaries is 1 580 (695 men and 885 women).
The measures for which the French authorities are seeking EGF co-financing concern the extension of the duration of the outplacement leave, beyond the legal obligation of the company.
The personalised services to be provided to the redundant workers include the following actions: (i) advisory and career guidance; (ii) training for skills enhancement or retraining or for business creation; (iii) business creation grants of up to EUR 15 000; (iv) hiring benefits for SMEs that hire a former Air France worker on a permanent contract or on a fixed-term contract of at least 6 months; (v) quick reemployment allowance; (vi) salary top-ups, a measure to encourage acceptance of a new job, even if the salary is lower than that of the previous job.
France reported that Air France regularly offers trainings for its staff in which attention is paid to digital skills and skills required in a resource-efficient economy, as part of it 'Skills Development Plan'.
The estimated total costs are EUR 20 873 656 , comprising expenditure for personalised services only. France decided to cover expenditure for preparatory, management, information and publicity, control and reporting activities with their own resources.
Budget proposal
The EGF shall not exceed a maximum annual amount of EUR 186 million (in 2018 prices), as laid down in Council Regulation (EU, Euratom) No 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027.
Having examined the application, the Commission proposes to mobilise the EGF for EUR 17 742 607 , representing 85 % of the total costs of the proposed measures, in order to provide a financial contribution for the application.
Documents
- Specific opinion: PE732.654
- Specific opinion: PE732.792
- Amendments tabled in committee: PE732.684
- Committee draft report: PE732.540
- Non-legislative basic document published: COM(2022)0201
- Committee draft report: PE732.540
- Amendments tabled in committee: PE732.684
- Specific opinion: PE732.792
- Specific opinion: PE732.654
Amendments | Dossier |
15 |
2022/0143(BUD)
2022/05/31
BUDG
15 amendments...
Amendment 1 #
Motion for a resolution Recital A A. whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of globalisation and of technological and environmental changes, such as changes in world trade patterns, trade disputes, significant changes in the trade relations of the Union or the composition of the internal market and financial or economic crises, as well as the transition to a low- carbon economy, or as a consequence of digitisation or automation; whereas it is necessary to facilitate mobility at a low cost;
Amendment 10 #
Motion for a resolution Paragraph 7 a (new) 7 a. Reiterates in that context the important role the Union should play in providing the necessary qualifications for the just transition in line with the European Green Deal; strongly supports that in 2021-2027 the EGF will continue to show solidarity with persons affected, while shifting the focus from the cause of restructuring to its impact and calls for future applications to maximise policy coherence;
Amendment 11 #
Motion for a resolution Paragraph 8 a (new) 8 a. Points out that a first version of the redundancy plan concerning HOP was invalidated by the French labour authority;
Amendment 12 #
Motion for a resolution Paragraph 10 10. Points out that Air France regularly offers trainings for its staff in which attention is paid to digital skills and skills required in a resource-efficient economy, as part of it 'Skills Development Plan' and welcomes that those trainings remain available to the displaced workers for the duration of their participation in the EGF measures; stresses the importance of preparing workers for a green and digital European economy and therefore hastening the twin transitions;
Amendment 13 #
Motion for a resolution Paragraph 10 a (new) 10 a. Notes that the digital and green transformation will also have an effect on the labour market especially in the aviation sector; therefore special attention should be paid to qualified education, including vocational training and promoting the so-called dual apprenticeship system, which has proven to be effective in other Member States such as Austria or Germany;
Amendment 14 #
Motion for a resolution Paragraph 12 12. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements; or any allowances or rights of the displaced workers, to ensure full additionality of the allocation;
Amendment 15 #
Motion for a resolution Paragraph 12 12. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements; recalls that support measures must not be part of a disguised strategy of outsourcing;
Amendment 2 #
Motion for a resolution Recital F a (new) F a. whereas even before the COVID- 19 crisis, the Air France restructuring of its regional subsidiaries into Hop raised social concerns;
Amendment 3 #
F b. whereas even during the pandemic, while Air France decided to sharply diminish the capacity of its regional subsidiary Hop both in terms of staff and aircrafts, its low-cost subsidiary Transavia benefited from routes transfers and continued hiring new staff due to promising perspectives in the near future on that same market;
Amendment 4 #
Motion for a resolution Recital H a (new) H a. whereas airline companies in Europe have faced severe problems and challenges due to global competition and whereas measures are needed to strengthen the airline industry’s capacity and the protection rights of airline workers at European level;
Amendment 5 #
Motion for a resolution Recital I a (new) Amendment 6 #
Motion for a resolution Paragraph 4 4. Recalls that the social impacts of the redundancies are expected to be important for France, in particular in the region Île-de-France, where 57 % of the displacements took place; notes that the French labour administration specified that Air France’s restructuring affected the employment balance in the territories concerned; emphasizes that volatile economic areas require an integrated response;
Amendment 7 #
Motion for a resolution Paragraph 4 4. Recalls that the social impacts of the redundancies are expected to be important for France, in particular in the region Île-de-France, where 57 % of the displacements took place; notes that the French labour administration specified that
Amendment 8 #
Motion for a resolution Paragraph 7 7. Recalls that personalised services to be provided to the workers consist of the following actions: advisory services and vocational guidance, training, including horizontal competencies, re- skilling, up-skilling, internships and vocational training, contribution to business creation, business creation grants, hiring benefits, quick reemployment allowance
Amendment 9 #
Motion for a resolution Paragraph 7 7. Recalls that personalised services to be provided to the workers consist of the following actions: advisory services and vocational guidance, training, contribution to business creation, hiring benefits, quick reemployment allowance and salary top- ups; stresses the necessity of reintegration of qualified workers within the Union;
source: 732.684
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