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3.10.2024

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

Mr Johan Van Overtveldt

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)

Chair

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

Committee on Budgets

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

BRUSSELS

– havingSubject: regardOpinion toon Regulationproposal (EU)for Noa 2021/691decision of the European Parliament and of the Council of 28on Aprilthe 2021mobilisation onof the European Globalisation Adjustment Fund for Displaced Workers (EGF)following andan repealingapplication Regulationfrom (EU)Belgium No– 1309/2013(“EGFEGF/2024/001 Regulation”),BE/Match-Smatch (2024/0226(BUD))

– 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,

Dear Mr Chair,

– 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,

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.

– having regard to the opinion of the Committee on Employment and Social Affairs,

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.

– having regard to the opinion of the Committee on Regional Development,

Yours sincerely,

– having regard to the report of the Committee on Budgets (A100000/2024),

Li Andersson

A. whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns or of the global financial and economic crisis, and to assist their reintegration into the labour market; whereas this assistance is made through a financial support given to workers and the companies for which they worked;

OPINION

B.A. whereasWhereas, 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 adisplacements totalin numberMatch-Smatch supermarkets (Match SA. and Profi SA.) in Belgium; whereas, following its assessment of 513this displacementsapplication, the Commission has concluded, in accordance with all applicable provisions of the economicRegulation sector(EU) classified2021/691 under(EGF Regulation), that the NACEconditions Revisionfor 2awarding divisiona 47financial (Retailcontribution trade,from exceptthe ofEGF motorare vehiclesmet; andwhereas motorcycles)Belgium insubmitted the provincesapplication under the intervention criteria of HainautArticle (BE32),4(2)(a), Liègeof (BE33),the andEGF NamurRegulation, (BE35)which withrequires 444the displacementscessation withinof activity of at least 200 displaced workers over a reference period forof thefour applicationmonths from(in this case 11 December 2023 to– 11 April 2024,2024) in an enterprise in a Member State, including workers displaced in suppliers and 69downstream displacementsproducers beforeand/or orself-employed afterpersons thewhose referenceactivity period;has ceased;

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

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);

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) of the EGF Regulation;

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;

E. whereas the application is based on the intervention criteria of Article 4(2), point (a), of 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;

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;

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;

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;

G. whereas Match-Smatch faced a difficult economic situation for several years, with the closure of 15 stores and 140 redundancies in 2019, reported losses of EUR 11,9 million 2021, and in spite of an action plan in 2022 it reported a gross operating loss of EUR 36,5 million in 2022 and 9 shops had to close;

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;

H. whereas to prevent a further accumulation of losses, 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;

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;

I. 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;

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;

J. whereas the requirements laid down in national and Union legislation concerning collective redundancies have been complied with;

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:

K. whereas the economic crisis caused by the COVID-19 pandemic has accelerated the demand for more qualified workers in the Belgian labour market, making it more difficult for the former Match-Smatch workers to reintegrate into employment;

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;

L. 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;

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);

M. 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 all institutions need to ensure that, despite these cuts, workers made redundant can count on EU solidarity via support of the EGF;

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;

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;

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;

2. Notes that the Belgian authorities submitted the application on 3 June 2024, and that, following the provision of additional information by Belgium, the Commission finalised its assessment on 16 September 2024 and notified it to Parliament on the same day;

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

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;

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;

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%) and because more than 70 % of the layoffs are concentrated in Wallonia;

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;

5. Notes that half of the Match-Smatch redundant workers (46 %) are aged fifty or older, an age group that faces more barriers to employment and that in the last quarter of 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;

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.

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;

7. 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 and contribution towards business creation, as well as incentives and allowances;

8. 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), 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;

9. Notes that the digital and green transformation will also have an effect on the labour market; calls, therefore, for special attention to be paid to qualified education, including vocational training;

10. Notes that Belgium started providing the personalised services to the targeted beneficiaries on 1 January 2024 and that expenditure on the measures will therefore be eligible for a financial contribution from the EGF from 1 January 2024 until 24 months after the date of the entry into force of the financing decision;

11. Notes that Belgium started incurring the administrative expenditure to implement the EGF on 22 September 2023 and that expenditure for preparatory, management, information and publicity, control and reporting activities shall therefore be eligible for a financial contribution from the EGF from 22 September 2023 until 31 months after the date of the entry into force of the financing decision;

12. 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;

13. 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; 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;

14. Approves the decision annexed to this resolution;

15. Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

16. 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,

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

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.