Progress:
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | BUDG | SARVAMAA Petri ( EPP) | LARROUTUROU Pierre ( S&D), CHASTEL Olivier ( Renew), VANA Monika ( Verts/ALE), RZOŃCA Bogdan ( ECR), PAPADIMOULIS Dimitrios ( GUE/NGL) |
Committee Opinion | EMPL | TOMC Romana ( EPP) | |
Committee Opinion | REGI |
Lead committee dossier:
Subjects
Events
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to support Belgium in the face of redundancies in the retail sector at Makro Cash & Carry Belgium NV.
PROPOSED ACT: Decision of the European Parliament and of the Council.
CONTENT: on 3 July 2023, Belgium submitted application EGF/2023/002 BE/Makro for a financial contribution from the EGF, in respect of redundancies in Makro Cash & Carry Belgium NV (Makro) and in Belgium.
Following the examination of this application, the Commission has concluded, in accordance with all the relevant provisions of the EGF Regulation, that the conditions for a financial contribution from the EGF have been met.
Reasons for the application
Belgium submitted the application under the intervention criteria of Article 4(2), point (a), of Regulation (EU) 2021/691, which requires the cessation of activity of at least 200 displaced workers over a reference period of four months in an enterprise in a Member State.
The application relates to 1 431 displaced workers whose activity has ceased in Makro. The redundancies are located in the NUTS 2 regions of Provincie Antwerpen (BE21), Provincie Oost-Vlaanderen (BE23), Provincie Vlaams-Brabant (BE25), Province Hainaut (BE32), and Province Liège (BE33). The reference period of four months for the application runs from 10 January 2023 to 10 May 2023.
Description of the events that led to the displacements and cessation of activity
In 1970, Makro Cash &Carry Belgium NV opened stores for self-employed, liberal profession practitioners, and hospitality professionals selling food and non-food products. In 2017, after about ten years of financial difficulties, the enterprise decided to open access of its Makro shops also to general customers, whilst its Metro shops remained limited to food and beverage services professionals (hotels, restaurants, and caterers).
Despite the decision, the losses amounted to EUR 67 million in the financial year 2018/2019 and EUR 44 million in 2019/2020. Makro's sales continued to decline.
During the pandemic, the hospitality sector stopped activity for several months, affecting Makro's sales line for food and beverage services professionals. Makro's sales line for general customers was affected as well, because of mandatory closures of non-food stores and non-food aisles in supermarkets, which led to a drop in sales and an increased use of ecommerce, that has continued after the restrictive measures were lifted.
On 1 September 2022, Makro applied for judicial reorganisation by transfer of undertakings under judicial authority to the Antwerp Business Court. A tender process for the enterprise started.
Makro’s sale line for general customers (branded as Makro) consisted in 6 stores. The receivers rejected the only offer for the Makro stores because it did not meet the bidding requirements and was not sound. Makro was declared bankrupt on 10 January 2023 and 1 431 workers were made redundant.
Makro stores for general customers were in Flanders (four stores) and in Wallonia (two stores). Due to the differences between the Flemish and the Walloon labour markets, the territorial impact of the redundancies varies.
In the first quarter of 2023, the employment rate in Flanders was 77.3%. The employment rate in Wallonia was 65% (12.3% lower than in Flanders). In the Walloon labour market, the registered job seekers aged fifty or more represent about 25% of the total job seekers in March 2023. Two out of three Makro redundant workers (65%) are over 50 years old. Makro workforce is essentially made up of cashiers and warehouse workers. For these workers, it is more difficult to re-integrate into employment.
Beneficiaries
An estimated 421 redundant workers are expected to participate in the measures (189 men and 232 women).
The personalised services to be provided to redundant workers include the following measures: (i) information services, career guidance and outplacement assistance; (ii) training, retraining and vocational training; (iii) business start-up assistance; (iv) business start-up contribution; (iv) incentives and allowances (job search and training allowances, bonus for improving IT and language skills, allowance for returning to education).
The total estimated cost is EUR 3 327 322 . This includes expenditure on personalised services amounting to EUR 3 233 822 and expenditure on preparatory, management, information and publicity activities, as well as monitoring and reporting activities, amounting to EUR 93 500.
Budget proposal
The EGF should not exceed a maximum annual amount of EUR 186 million (in 2018 prices), in accordance with Article 8 of Council Regulation (EU, Euratom) No 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027.
Following examination of the application, the Commission proposes to mobilise the EGF to provide a financial contribution of EUR 2 828 223 , representing 85% of the total cost of the proposed measures.
Documents
- Budgetary text adopted by Parliament: T9-0414/2023
- Decision by Parliament: T9-0414/2023
- Budgetary report tabled for plenary, 1st reading: A9-0351/2023
- Budgetary report tabled for plenary: A9-0351/2023
- Amendments tabled in committee: PE754.987
- Specific opinion: PE754.835
- Committee draft report: PE754.729
- Non-legislative basic document published: COM(2023)0470
- Non-legislative basic document published: EUR-Lex
- Committee draft report: PE754.729
- Specific opinion: PE754.835
- Amendments tabled in committee: PE754.987
- Budgetary report tabled for plenary, 1st reading: A9-0351/2023
- Budgetary text adopted by Parliament: T9-0414/2023
Votes
Mobilisation of the European Globalisation Adjustment Fund – application EGF/2023/002 BE/Makro – Belgium – A9-0351/2023 – Petri Sarvamaa – Proposal for a decision #
Amendments | Dossier |
6 |
2023/0352(BUD)
2023/10/27
BUDG
6 amendments...
Amendment 1 #
Motion for a resolution Recital G a (new) G a. whereas financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into decent and sustainable employment within or outside their initial sector of activity, while preparing them for a greener and more digital European economy;
Amendment 2 #
Motion for a resolution Paragraph 2 a (new) 2 a. Notes that Makro's parent company, METRO AG, achieved an EBITDA of EUR 1.389 billion in the 2021/2022 fiscal year; notes that the EBITDA for the 2022/2023 fiscal year is forecast to exceed EUR 1 billion; regrets that METRO AG is not obliged to cover the entire cost of the laying off of the 1 431 workers;
Amendment 3 #
Motion for a resolution Paragraph 3 a (new) 3 a. Deeply regrets the incomprehensible decision by the Flemish authorities to refuse European support under the EGF that could further support the redundant workers;
Amendment 4 #
Motion for a resolution Paragraph 6 6. Recalls that personalised services to be provided to the workers and self- employed persons consist of the following actions: information services, occupational guidance and outplacement assistance, training, retraining and vocational training, support towards and contribution to business creation, as well as incentives and allowances; welcomes that particular attention will be paid to vulnerable people in a situation of psychological distress, indebtedness, or disability through professionals specialised in assisting these groups;
Amendment 5 #
Motion for a resolution Paragraph 6 a (new) 6 a. welcomes the inclusion of a module on circular economy and efficient use of resources that was developed for former Swissport workers (EGF/2020/005 BE), as part of the Regional Public Employment and Vocational Training Service (Forem) standard training offer, which will be co-financed by the ESF+; reiterates in this context the important role the Union should play in providing the necessary qualifications for the just transformation in line with the European Green Deal; strongly supports the fact that, during the 2021-2027 MFF period, 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 6 #
Motion for a resolution Paragraph 10 10. 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;
source: 754.987
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