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MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

Mobilisation of the European Globalisation Adjustment Fund: application EGF/2024/001 BE/Match-Smatch

on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers (application from Belgium – EGF/2024/001 BE/Match-Smatch)

Committee on Budgets

(COM(2024)0275 – C100101/2024 – 2024/0226(BUD))

PE763.160

European Parliament resolution of 22 October 2024 on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers (application from Belgium – EGF/2024/001 BE/Match-Smatch) (COM(2024)0275 – C10-0101/2024 – 2024/0226(BUD))

– having regard to the Commission proposal to the European Parliament and the Council (COM(2024)0275 – C100101/2024),

– having regard to Regulation (EU) No 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013(“EGF1309/2013(’EGF Regulation”),Regulation’),

– having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 as amended by Regulation (EU, Euratom) 2024/765, and in particular Article 8 thereof,

C. whereas the application relates to 444 displacements within the reference period for the application whose activity has ceased in Match-Smatch;

D. whereas the application relates to 69 displacements whose activity ceased before or after the reference period of four months, where a clear causal link can be established with the event that triggered the cessations of activity of the displaced workers during the reference period as required by Article 6(2)6, second paragraph of the EGF Regulation;

E. whereas the application is based on the intervention criteria of Article 4(2), point (a), of the EGF Regulation, 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, including workers displaced in suppliers and downstream producers and/or self-employed persons whose activity has ceased;

F. whereas the Belgian food retail sector recorded a significant decline in volumes sold in 2023, due to the energy and inflationary crisis, and increased cross-border shopping and e-commerce;

G. whereas the Match-Smatch faced a difficult economic situation for several years and eventually reported a gross operating loss of EUR 36,5 million in 2022,2a and2022,and in order to prevent a further accumulation of losses, the Match-Smatch accepted the Colruyt Group’s offer to acquire 57 of the 84 stores in September 2023, also taking over the stores' staff (1 069 people); whereas eight additional stores went to Carrefour, Delhaize, Intermarche and Delfood;

H. whereas as a result a total of 513 employees were subject to a collective redundancy procedure; 339 employees of the 19 stores for which no buyer could be found, as well as the 174 employees of the Match-Smatch headquarters;

K. 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;

L. whereas the multiannual financial framework (MFF) revision reduces the maximum annual amount of the EGF from EUR 186 million to EUR 30 million (in 2018 prices), as laid down in Article 8 of Regulation (EU, Euratom) 2020/2093 as amended by Regulation (EU, Euratom) 2024/765; whereas the Commission should closely monitor the implementation of the EGF and all institutions should take any and all necessary measures to ensure that, despite these cuts, workers made redundant can count on EUUnion solidarity via support of the EGF;

1. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Belgium is entitled to a financial contribution of EUR 2 661 564 under that Regulation, which represents 85 % of the total cost of EUR 3 131 252, comprising expenditure for personalised services of EUR 3 009 752 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 121 500;

3. Notes that the application relates to 513 displaced workers whose activity has ceased in Match-Smatch; notes further that 365 displaced workers in total will be targeted beneficiaries and are expected to participate in the measures;

4. Notes that Belgium applied for EGF co-financing solely to support former Match-Smatch workers living in Wallonia given the situation on the regional labour market (2023 unemployment rate of 8,2%)8,2 %) and because more than 70 % of the layoffs are concentrated in Wallonia;

5. Notes that half of the Match-Smatch redundant workers (46 %) are aged fifty or older, an age group that faces more barriers to employmentemployment, and that in the last quarter of 2023,2023 there was a difference of 18,3 percentage points between the employment rate for the 20-54 age group (76,8 %) and the employment rate for the 55+ age group (58,5 %) at national level; stresses that reskilling and upskilling the workers in line with labour-market demand for qualified jobs will thus pose a challenge, all the more considering the large number of people dismissed at the same time;

6. Welcomes the fact that the co-ordinated package of personalised services has been drawn up by Belgium in consultation with targeted beneficiaries, their representatives and the social partners to make the affected areas, and the overall labour market, more sustainable and resilient in the future;

9. Recalls that the Belgian authorities shall acknowledge the origin and ensure the visibility of the Union funding and highlight the Union added value of the intervention, by providing coherent, effective and targeted information to multiple audiences, including targeted information to beneficiaries, local and regional authorities, the social partners, the media and the public;

10. Welcomes the fact that aiming to prepare a sound package of tailored measures to support the Match-Smatch workers’ efforts to return to work, the Regional Public Employment and Vocational Training Service of Wallonia (Le Forem), trade unions (FGTB and CSC), and other partners met on on several occasion in 2024,2024 to better understand workers' retraining needs, that the social counsellors who accompanied the workers after their dismissal were also consulted, and that these meetings resulted in a coordinated package of EGF measures that complies with Article 7(4) of the EGF Regulation;

11. 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/Swissport),BE/Swissport) as part of the Regional Public Employment and Vocational Training Service (Forem) standard training offer, which will be co-financed by the European Social Fund Plus (ESF+); reiterates in this context the important role the Union should play in providing the necessary qualifications for the twin transformation; strongly supports the fact that, during the 2021-2027 MFF period, the EGF will continue to show solidarity with persons affected and maintain the focus on the impact of restructuring on workers; calls for future applications to maximise policy coherence;

12. Considers it a social responsibility of the Union to provide these workers made redundant with the necessary qualifications for the digital and green transformation of the Union industry and economy, which will also have an effect on the labour market; calls, therefore, for special attention to be paid to qualified and relevant education, including vocational training;

15. Stresses that the Belgian authorities have confirmed that the eligible actions do not receive assistance from other Union funds or financial instruments, and that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation;

16. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies,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; recalls that the Member States applying for funding support from the EGF must ensure that the requirements laid down in national and Union law concerning collective redundancies have been complied with and that the company concerned has provided for its workers accordingly;

17. Approves the decision annexed to this resolution;

19. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Belgium – EGF/2024/001 BE/Match-Smatch

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

(The text of this annex is not reproduced here since it corresponds to the final act, Decision (EU) 2024/2854.)

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013, and in particular Article 15(1), first subparagraph, thereof,

Having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, and in particular point 9 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) The European Globalisation Adjustment Fund for Displaced Workers (EGF) aims to demonstrate solidarity and promote decent and sustainable employment in the Union by providing support for workers made redundant and self-employed persons whose activity has ceased in the case of major restructuring events and assisting them in returning to decent and sustainable employment as soon as possible.

(2) The EGF is not to exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093, amended by Council Regulation (EU, Euratom) 2024/765, and Article 16 of Regulation (EU) 2021/691.

(3) On 3 June 2024, Belgium submitted an application to mobilise the EGF in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of worker’s displacements in Match-Smatch (Match SA. and Profi SA.) in Belgium. It was supplemented by additional information provided in accordance with Article 8(5) of Regulation (EU) 2021/691. That application is considered to comply with the conditions for providing a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on the basis of the assessment made by the Commission in the Proposal for a mobilisation decision of the European Parliament and of the Council.

(4) The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 2 661 564 in respect of the application submitted by Belgium.

(5) In order to minimise the time taken to mobilise the EGF, this decision should apply from the date of its adoption,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the Union for the financial year 2024, the European Globalisation Adjustment Fund for Displaced Workers shall be mobilised to provide the amount of EUR 2 661 564 in commitment and payment appropriations.

Article 2

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption]⁕.

Done at,

For the European Parliament For the Council

The President The President

EXPLANATORY STATEMENT

I. Background

The European Globalisation Adjustment Fund (EGF) was created to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

In accordance with point 9 of the Interinstitutional Agreement of 16 December 2020, the Commission is required, following the positive assessment of an application, to submit a proposal to mobilise the Fund to the budgetary authority and to complement it with a corresponding request for transfer to the relevant budget lines.

II. Belgium’s application and the Commission's proposal

On 3 June 2024, Belgium submitted an application EGF/2024/001 BE/Match-Smatch for a financial contribution from the EGF, following 513 redundancies at the company Match-Smatch (Match SA. and Profi SA.). This is the first application of 2024, and the first to be examined under the 2024 budget.

Following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.

On 16 September 2024, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Belgium for tailored measures to support the reintegration in the labour market of 365 targeted beneficiaries, i.e. Match-Smatch workers made redundant. In total, EUR 2 661 564 will be mobilised from the EGF for Belgium, representing 85 % of the total costs of the proposed actions.

The Commission deemed the Belgian application admissible under the intervention criteria of Article 4(2)(a) of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in an enterprise in a Member State, including workers made redundant by suppliers and downstream producers and/or self-employed persons whose activity has ceased.

EGF co-funding has been requested for the following five types of actions, to be provided to redundant workers:

(a) Information services, occupational guidance and outplacement assistance: This set of services expands the standard activities in support of Match-Smatch former workers carried out by Le Forem's employment unit on behalf of the dismissing enterprise. The standard offer will be extended beyond the mandatory period and additional specific services such as individual coaching, active job-search and job-matching will be proposed.

(b) Training, retraining and vocational training: Workers will have access to the standard training offer of Le Forem and its partners. In addition, after the profiling and agreement of individual projects with the vocational counsellor, EGF co-financed specific training will be offered to cater for the identified needs of the workers.

(c) Support towards business creation: The measure aims at workers who wish to launch their own business. It will include a diagnosis and guidance phase, awareness-raising actions on entrepreneurship, information sessions on the potential for business creation through territorial economic diagnoses and networking with relevant entrepreneurs and with certified coaches in business creation.

(d) Contribution to business creation: The workers who start a business or an activity as self-employed persons will receive a contribution up to EUR 15 000. The contribution will be paid in two installments, on the basis of evidence of the start and development of the business activity (supporting documents).

(e) Incentives and allowances: (1) Job-search and training allowances. Workers will receive EUR 2 per hour of effective participation in training or job-search activities. (2) Bonus for improving IT skills. Workers who follow both the module for access to digital autonomy and its complementary module will receive a lump sum of EUR 700 conditional on their active participation and completion of the training. The bonus aims to reduce digital illiteracy by encouraging workers to improve their IT skills. (3) Bonus for improving language skills. Workers who follow language training to improve their Dutch, English or German language skills as part of a specific job search, allowing them to reach a higher level of the Common European Framework of Reference for Languages will receive a lump sum of EUR 700. The same applies for the workers whose native tongue is not French and who improve their French skills to a higher level. The objective of this bonus is to encourage the development of cross-disciplinary language skills to facilitate workers’ reintegration into the job market. (4) Return-to-school allowance. A monthly allowance of EUR 350 will be granted to workers who embark on full-time secondary and tertiary studies, or qualifying training, regardless of their age. (5) Allowance towards business creation. To support workers while setting up their business, a monthly allowance of EUR 350 for a maximum of 12 months will be granted. (6) Hiring incentives. Enterprises recruiting former Match-Smatch workers aged 50+ will receive EUR 10 000 for full-time permanent contracts or fixed-term contracts up to 6 months followed by permanent contracts.

According to the Commission, the described measures constitute active labour market measures within the eligible actions set out in Article 7 of the EGF Regulation and do not substitute passive social protection measures.

Belgium provided the required information on actions that are mandatory for the enterprises concerned by virtue of national law or pursuant to collective agreements. They confirmed that a financial contribution from the EGF will not replace such actions.

Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 2 661 564 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).

According to an internal agreement within the Parliament, the Employment and Social Affairs Committee and the Committee on Regional Policy should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he has received input from the following entities or persons in the preparation of the report, prior to the adoption thereof in committee:

Entity and/or person

European Trade Union Confederation

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the concerned natural persons the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

3.10.2024

LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Belgium – EGF/2024/001 BE/Match-Smatch (2024/0226(BUD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Employment and Social Affairs has been asked to submit an opinion to your committee and decided to send the opinion in the form of a letter.

The Committee on Employment and Social Affairs considered the matter at its meeting of 3 October 2024 and decided to call on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution.

Yours sincerely,

Li Andersson

OPINION

A. Whereas, on 3 June 2024, Belgium submitted an application EGF/2024/001 BE/Match-Smatch for a financial contribution from the European Globalisation Adjustment Fund for Displaced Workers (EGF), following displacements in Match-Smatch supermarkets (Match SA. and Profi SA.) in Belgium; whereas, following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the Regulation (EU) 2021/691 (EGF Regulation), that the conditions for awarding a financial contribution from the EGF are met; whereas Belgium submitted the application under the intervention criteria of Article 4(2)(a), of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers over a reference period of four months (in this case 11 December 2023 – 11 April 2024) in an enterprise in a Member State, including workers displaced in suppliers and downstream producers and/or self-employed persons whose activity has ceased;

B. Whereas the application relates to 513 displaced workers (eligible beneficiaries) whose activity has ceased in Match-Smatch (444 displaced workers in Match-Smatch during the reference period and 69 displaced workers whose activity ceased before or after the reference period); whereas this enterprise operates in the economic sector classified under the NACE Revision 2 division 47 (Retail trade, except of motor vehicles and motorcycles); whereas the redundancies are mainly located in the NUTS 2 regions of Province of Hainaut (BE32), Province of Liège (BE33), and Province of Namur (BE35);

C. Whereas on 16 September 2024, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Belgium to support the reintegration in the labour market of 365 targeted beneficiaries, i.e. workers made redundant as a result of the closure of Match-Smatch supermarkets in Belgium;

D. Whereas Match-Smatch faced a difficult economic situation for several years; whereas in 2019, a first restructuring led to the closure of 15 stores and 140 redundancies; whereas Match-Smatch again reported losses of EUR 11,9 million in 2021; whereas to prevent a further accumulation of losses, Match-Smatch accepted the Colruyt Group’s offer to acquire 57 of the 84 stores, also taking over the stores' staff (1 069 people); whereas eight additional stores went to Carrefour, Delhaize, Intermarché and Delfood; whereas the 339 employees of the 19 stores for which no buyer could be found, as well as the 174 employees of the Match-Smatch headquarters, were subject to a collective redundancy procedure;

E. Whereas the Match-Smatch redundancies concern all of Belgium; whereas, however, the territorial impact of the redundancies varies due to the differences between the Flemish and Walloon labour markets and because more than 70 % of the layoffs are concentrated in Wallonia; whereas in 2023, the unemployment rate for Belgium as a whole remained at 5,5 %, the same level as in 2022; whereas at the regional level, unemployment increased from 3,2 % to 3,4 % in Flanders and decreased from 8,4 % to 8,2 % in Wallonia, while the difference of approximately 5 percentage points (pp) in the unemployment rates persists; whereas at the end of 2023, the employment rate in Wallonia (66,7 %) was 10,3 % lower than in Flanders and about 9 % lower than the EU average;

F. Whereas Belgium applied for EGF co-financing solely to support former Match-Smatch workers living in Wallonia; whereas the Flemish regional authorities consider that there is no need to top-up the support available to former Match-Smatch workers living in Flanders with EU co-financing from the EGF, given the situation on the regional labour market;

G. Whereas Belgium has indicated that the co-ordinated package of personalised services has been drawn up in consultation with targeted beneficiaries, their representatives and the social partners, in compliance with Article 7(4) of the EGF Regulation;

H. Whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027;

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution:

1. Recalls that the objective of the EGF is to demonstrate solidarity with, and provide support to beneficiaries; considers that 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; stresses the importance of preparing workers for the urgently needed green and digital transitions of the European economy and society; reiterates in this context the important role the Union plays, including through the EGF, in contributing to the financing of necessary qualifications for the just transition in line with the European Green Deal;

2. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Belgium is entitled to a financial contribution of EUR 2 661 564 under that Regulation, which represents 85 % of the total cost of EUR 3 131 252 (comprising expenditure for personalised services of EUR 2 239 734 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 770 018);

3. Welcomes the fact that aiming to prepare a sound package of tailored measures to support the Match-Smatch workers’ efforts to return to work, the Regional Public Employment and Vocational Training Service of Wallonia (Le Forem), trade unions (FGTB and CSC), and other partners met on on several occasion in 2024, to better understand workers' retraining needs, that the social counsellors who accompanied the workers after their dismissal were also consulted, and that these meetings resulted in a coordinated package of EGF measures that complies with Article 7(4) of the EGF Regulation;

4. Notes that the Match-Smatch workforce is essentially made up of cashiers and warehouse workers with secondary or below education levels, while the economic crisis caused by the COVID-19 pandemic has accelerated the demand for more qualified workers in the Belgian labour market, therefore making it more difficult for the former Match-Smatch workers to reintegrate into employment; further notes that around half of the Match-Smatch redundant workers (46 %) are aged fifty or older and that the situation for older job-seekers is more difficult in Belgium particularly in the Walloon labour market, where they represent 25 % of the total job seekers as of March 2024;

5. Stresses that Belgium has confirmed that the measures supported by the EGF will not receive any financial contributions from other Union financial instruments;

6. Notes that personalised services to be provided to the workers consist of the following measures: (a) information services, occupational guidance and outplacement assistance, (b) training, retraining and vocational training, (c) support towards business creation, (d) contribution to business creation, and (e) incentives and allowances (job-search and training allowances, bonus for improving IT skills, bonus for improving language skills, return-to-school allowance, allowance towards business creation, hiring incentives to enterprises recruiting former Match-Smatch workers aged 50+); welcomes in particular the inclusion of measures to support improving IT skills and returning to education given the age and educational profile of the targeted beneficiaries and stresses the specific needs of these groups should be taken into account when providing personalised services;

7. Stresses in particular the importance of Article 7.2 of the EGF Regulation, which requires the coordinated package to anticipate future labour market perspectives and required skills, which are compatible with the shift towards a resource-efficient and sustainable economy and with a particular focus on the dissemination of skills required in the digital industrial age; highlights, that the foreseen training also includes a module on circular economy and efficient use of resources which is not budgeted in this proposal as it was previously developed for former Swissport workers (EGF/2020/005 BE/Swissport), and is now part of Le Forem's standard training offer co-financed by ESF+; welcomes the use of synergy effects and the responsible use of EGF resources in this context;

8. Recalls the possibility for special time-limited measures within the coordinated package including, inter alia, to pay childcare allowances, as provided in Article 7.2 b of the EGF regulation to facilitate job seekers’ participation in the activities proposed.

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted

14.10.2024

Result of final vote

+:

–:

0:

28

3

1

Members present for the final vote

Georgios Aftias, Rasmus Andresen, Isabel Benjumea Benjumea, Olivier Chastel, Tamás Deutsch, Thomas Geisel, Jean-Marc Germain, Andrzej Halicki, Alexander Jungbluth, Ondřej Kovařík, Giuseppe Lupo, Siegfried Mureşan, Victor Negrescu, Matjaž Nemec, João Oliveira, Karlo Ressler, Julien Sanchez, Hélder Sousa Silva, Nicolae Ştefănuță, Joachim Streit, Carla Tavares, Nils Ušakovs, Lucia Yar

Substitutes present for the final vote

Stine Bosse, Jonás Fernández, Michalis Hadjipantela, Rasmus Nordqvist, Jacek Protas, Jussi Saramo

Members under Rule 216(7) present for the final vote

Matthias Ecke, Marieke Ehlers, Virginie Joron

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

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