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 following an application from Belgium – EGF/2024/002 BE/Limburg machinery and paper

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

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 following an application from Belgium – EGF/2024/002 BE/Limburg machinery and paper(COM(2024)0370 – C100166/2024 – 2024/0286(BUD))

The European Parliament,

– having regard to the Commission proposal to the European Parliament and the Council (COM(2024)0370 – C100166/2024),

– 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 (“EGF 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,

– 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 opinion of the Committee on Employment and Social Affairs,

– having regard to the report of the Committee on Budgets (A10-0000/2024),

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;

B. whereas Belgium submitted application EGF/2024/002 BE/Limburg machinery and paper for a financial contribution from the European Globalisation Adjustment Fund (EGF), following 681 redundancies in the economic sector classified under the NACE Revision 2 division 17 (Manufacture of paper and paper products) and 28 (Manufacture of machinery and equipment) in the region of Provincie Limburg within a reference period for the application from 31 December 2023 to 30 April 2024;

C. whereas the application relates to 567 workers made redundant in the company Sappi Lanaken NV (paper) and 114 workers in the company Purmo Group Belgium NV (machinery);

D. whereas the application is based on the intervention criteria of Article 4(2), point (c), of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in in enterprises operating in the same or different economic sectors and located in the same region;

E. whereas the COVID-19 pandemic and the Russian war of aggression against Ukraine have reduced economic competitiveness and have a negative impact on economic growth in Belgium;

F. whereas Sappi Lanaken was specialised in the production of woodfree coated paper (WCP); whereas the declining demand for graphics products resulting from increased digitalisation has led to a growing overcapacity of the European WCP industry; whereas the production at Sappi Lanaken could not be shifted to other paper products more in demand without heavy investments and the Sappi Group therefore decided to stop production in Lanaken and close the plant, as no suitable buyer could be identified, because of structural overcapacity in the industry;

G. whereas Purmo Group’s production volume of panel radiators has been steadily declining over the period 2018-2023, from 820 000 units in 2018 to 320 000 in 2023 (-60 %); whereas when comparing the production costs of the various Purmo Group’s plants in Europe, the site in Zonhoven is at a disadvantage, as its costs are 17 % to 35 % higher; whereas the Purmo Group decided to stop production of 50 mm panel radiators in its Zonhoven plant and close the relevant production line; whereas following the unexpected situation regarding gas availability and prices, resulting from the Russian war of aggression against Ukraine, and Union legislation benefiting low-temperature heating systems to the detriment of panel radiators, demand recovery is unlikely as the panel radiator market will increasingly be limited to replacing units in use;

H. whereas the two companies, in compliance with Belgian law, followed the mandatory procedure for informing and consulting workers' representatives and have set up an employment unit, whose purpose is to provide workers laid off in the context of collective redundancies with outplacement services;

I. 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;

J. whereas the EGF shall not exceed a maximum annual amount of 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;

1. Agrees with the Commission that the conditions set out in Article 4(2), point (c), of the EGF Regulation are met and that Belgium is entitled to a financial contribution of EUR 704 135 under that Regulation, which represents 60 % of the total cost of EUR 1 173 559, comprising expenditure for personalised services of EUR 1 126 559 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 47 000;

2. Notes that the Belgian authorities submitted the application on 19 July 2024, and that, following the provision of additional information by Belgium, the Commission finalised its assessment on 5 November 2024 and notified it to Parliament on the same day;

3. Notes that the application relates to 567 workers made redundant in the company Sappi Lanaken and 114 workers in Purmo Group Belgium; notes further that 632 workers will be targeted beneficiaries in total, almost exclusively men;

4. Underlines that Lanaken’s and Zonhoven’s labour markets are at disadvantage when compared to Limburg as a whole or to Flanders with a ratio of the working population to available jobs significantly lower than in Limburg as a whole or in Flanders; highlights that the number of industrial jobs available in Limburg decreased by 15 % in 2023;

5. Points out that the profiles of the displaced workers, one third of which are aged 55 years or more and 30 % are with low education, translate into severe barriers on the labour market; stresses that taking into account the downward trend in vacancies and its geographical distribution, the workers will need additional tailored support to help them succeed the transition to employment;

6. Considers it as a social responsibility of the Union to provide the affected workers with the necessary qualifications for future employment, considering the digital and ecological transition having a significant impact on their sectors whilst leading to a reduction of demand; welcomes the fact that the co-ordinated package of personalised services was drawn up by Belgium in consultation with targeted beneficiaries, their representatives and social partners;

7. Stresses that the support provided by the EGF needs to be embedded in a larger strategy for the affected workers and the region, on all political levels, including by support of relevant funding instruments of the Union, with the aim to ensure that nobody gets left behind in the digital and climate transitions;

8. Recalls that personalised services to be provided to the workers consist of the following actions: social intervention advisor, guidance, counselling, and vocational orientation, active job-search support, training, retraining and vocational training, as well as training at the workplace;

9. Notes that Belgium started providing personalised services to the targeted beneficiaries on 26 December 2023 and that the period of eligibility for a financial contribution from the EGF will therefore be from that date until 24 months after the date of the entry into force of the financing decision;

10. Notes that Belgium started incurring administrative expenditure to implement the EGF on 20 November 2023 and that such expenditure shall therefore be eligible for a financial contribution from the EGF from that date until 31 months after the date of the entry into force of the financing decision;

11. Stresses that the Belgian authorities have confirmed that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation, and that any double financing will be prevented;

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;

13. Approves the decision annexed to this resolution;

14. 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;

15. 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/2024/002 BE-Limburg machinery and paper

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 19 July 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 the economic sectors classified under the NACE Revision 2 division 17 (Manufacture of paper and paper products) and division 28 (Manufacture of machinery and equipment) in the NUTS 2 region of Provincie Limburg (BE22) 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 704 135 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 704 135 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 19 July 2024, Belgium submitted an application EGF/2024/002 BE/Limburg machinery and paper for a financial contribution from the EGF, following 681 redundancies - 567 at the company Sappi Lanaken following the closure of this paper-producing site, and 114 at Purmo Group Belgium as the consequence of the stop of its production line of panel radiators at its Zonhoven site. This is the second such application of 2024.

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 5 November 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 632 targeted beneficiaries, i.e. workers made redundant by Sappi Lanaken and Purmo Group. In total, EUR 704 135 will be mobilised from the EGF for Belgium, representing 60 % of the total costs of the proposed actions.

The Commission deemed the Belgian application admissible under the intervention criteria of Article 4(2)(c) of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in in enterprises operating in the same or different economic sectors and located in the same region.

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

a) Social Intervention Advisor (SIA). A social intervention advisor is the first service provided to laid-off workers. The service begins by providing information about the support available to facilitate the workers' transition to employment. The SIA are a point of reference for workers throughout the process.

b) Guidance, counselling, and vocational orientation. Motivational and inspirational help. Support and information about developments on the job market and possible career paths. Encouragement to upgrade skills or to learn new skills and participate in training measures aimed at finding new employment. Support in job-search activities, assistance with the job application process, preparation for job interviews, etc. Reinforced career guidance is planned for workers with greater distance to the profiles requested in the available job vacancies or with poor command of Dutch.

c) Active job-search support. Among other support activities, this includes job scouting to locate potential job vacancies that are not yet published and which might suit eligible workers. Furthermore, a variety of job search events, like job fairs, will be organised.

d) Training, retraining and vocational training. Workers will have access to the standard training offer of the public employment services. In addition, upon agreement of individual projects with the vocational counsellor, specific training will be offered to cater for the identified needs.

e) Training at the workplace. Workers receive on-the-job training at the enterprise that will employ them after training. Depending on the needs of the worker, the training can last between 4 and 26 weeks. Training is followed by an employment contract, either permanent or fixed term of at least the same duration as the training.

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 704 135 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.