BETA


2023/0352(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the retail trade sector in Belgium

Progress:

RoleCommitteeRapporteurShadows
Lead BUDG SARVAMAA Petri (icon: EPP EPP) LARROUTUROU Pierre (icon: S&D S&D), CHASTEL Olivier (icon: Renew Renew), VANA Monika (icon: Verts/ALE Verts/ALE), RZOŃCA Bogdan (icon: ECR ECR), PAPADIMOULIS Dimitrios (icon: GUE/NGL GUE/NGL)
Committee Opinion EMPL TOMC Romana (icon: EPP EPP)
Committee Opinion REGI
Lead committee dossier:

Events

2023/11/22
   EP - Budgetary text adopted by Parliament
Documents
2023/11/22
   EP - Decision by Parliament
Documents
2023/11/09
   EP - Budgetary report tabled for plenary, 1st reading
Documents
2023/11/09
   EP - Budgetary report tabled for plenary
Documents
2023/11/07
   EP - Vote in committee
2023/10/26
   EP - Amendments tabled in committee
Documents
2023/10/25
   EP - Specific opinion
Documents
2023/10/16
   EP - Committee referral announced in Parliament
2023/10/13
   EP - Committee draft report
Documents
2023/10/12
   EC - Non-legislative basic document published
Details

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.

2023/10/12
   EP - TOMC Romana (EPP) appointed as rapporteur in EMPL
2023/10/03
   EP - SARVAMAA Petri (EPP) appointed as rapporteur in BUDG

Documents

Votes

Mobilisation of the European Globalisation Adjustment Fund – application EGF/2023/002 BE/Makro – Belgium – A9-0351/2023 – Petri Sarvamaa – Proposal for a decision #

2023/11/22 Outcome: +: 598, -: 28, 0: 4
IT FR DE ES PL RO PT NL EL AT BE BG HU IE SK HR DK LT CZ FI SI LV EE SE CY LU MT ??
Total
72
70
81
55
48
31
21
25
16
16
15
14
14
13
14
11
13
11
20
13
8
7
7
19
6
5
4
1
icon: PPE PPE
159

Belgium PPE

2

Denmark PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1

Cyprus PPE

2

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For (1)

1

Malta PPE

For (1)

1
icon: S&D S&D
126

Greece S&D

1

Belgium S&D

2

Slovakia S&D

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1

Lithuania S&D

2

Czechia S&D

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1

Slovenia S&D

2

Latvia S&D

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Estonia S&D

2
3

Cyprus S&D

2

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1
icon: Renew Renew
92

Poland Renew

1

Greece Renew

1

Belgium Renew

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Hungary Renew

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Ireland Renew

2

Croatia Renew

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Lithuania Renew

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Finland Renew

3

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1

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3

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3

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2
icon: Verts/ALE Verts/ALE
64

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3

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3

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1

Portugal Verts/ALE

1

Netherlands Verts/ALE

3

Austria Verts/ALE

3

Belgium Verts/ALE

3

Ireland Verts/ALE

2

Denmark Verts/ALE

For (1)

1

Lithuania Verts/ALE

2

Czechia Verts/ALE

3

Finland Verts/ALE

3

Sweden Verts/ALE

3

Luxembourg Verts/ALE

For (1)

1
icon: ECR ECR
65

Germany ECR

1

Romania ECR

1

Greece ECR

1

Bulgaria ECR

2

Slovakia ECR

Against (1)

1

Croatia ECR

1

Lithuania ECR

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2

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Sweden ECR

3
icon: NI NI
41

France NI

2

Germany NI

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3

Belgium NI

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Lithuania NI

Abstain (1)

1

Latvia NI

1
icon: ID ID
53
3

Belgium ID

2

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1

Czechia ID

Against (1)

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2

Estonia ID

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1
icon: The Left The Left
30

Germany The Left

3

Netherlands The Left

For (1)

1

Greece The Left

2

Belgium The Left

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Czechia The Left

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Sweden The Left

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Cyprus The Left

2

The Left

1
AmendmentsDossier
6 2023/0352(BUD)
2023/10/27 BUDG 6 amendments...
source: 754.987

History

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

docs/4
date
2023-11-22T00:00:00
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  • 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.
docs/3
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2023-10-26T00:00:00
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