Opinion on Mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Germany – EGF/2025/002 DE/Goodyear 2

8.9.2025

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Germany – EGF/2025/002 DE/Goodyear 2 (2025/0245(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. At its meeting of 2 September 2025, the committee 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 8 September 2025. At that meeting, it decided to submit the opinion set out below to the Committee on Budgets, as the committee responsible.

Yours sincerely,

Li Andersson

OPINION

A. Whereas, on 10 March 2025, Germany submitted an application to mobilise the European Globalisation Adjustment Fund for Displaced Workers (EGF) in accordance with Article 8(1) of Regulation (EU) 2021/691 (EGF Regulation), following displacements in Goodyear (Goodyear Germany GmbH) in Germany; whereas the enterprise operated in the economic sector classified under the NACE Revision 2 Division 22 (Manufacture of rubber and plastic products); whereas the redundancies are located in the NUTS 2 regions of Kassel (DE73) and Darmstadt (DE71), concerning job displacements in Goodyear’s production sites in Fulda and Hanau;

B. Whereas Germany 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 this case from from 1 September 2024 to 1 January 2025) in an enterprise in a Member State, including workers displaced in suppliers and downstream producers and / or self-employed persons whose activity has ceased; whereas, 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;

C. Whereas the application relates to 1 171 displaced workers whose activity has ceased;

D. Whereas on 26 August 2025, the Commission submitted a proposal for a decision on the mobilisation of the EGF in favour of Germany to support the reintegration in the labour market of 915 targeted beneficiaries to the Parliament and the Council;

E. Whereas the events giving rise to these displacements are the closure of one of the Goodyear's production sites in Germany and the partial closure of another, both due to globalisation; whereas the Goodyear Tire & Rubber Company is one of the world’s leading tyre manufacturers with its German headquarters are located in Hanau; whereas at the end of 2017, Goodyear had to shut down its production site in Philippsburg, which was subject of EGF application EGF/2017/008 DE/Goodyear; whereas, as part of a further restructuring process, the current application follows the closure of the production site in Fulda, and a partial shut-down of production facilities in Hanau; whereas other plants in Germany are located in Fürstenwalde, Wittlich and Riesa; whereas the rapid decline in demand in the tyre sector, combined with strong pressure from cheap imports from Asia and ongoing cost increases (energy, wages) led to structural overcapacity, particularly in Germany; whereas, therefore, in June 2024, Goodyear decided to shut down production at the Fulda site, leading to its closure, and to reduce staff at other sites, in particular in Hanau;

F. Whereas the Commission stressed that finding new employment would be a tremendous challenge for most Goodyear workers and will require significant action, whereas in many cases, their qualifications are outdated, and the conventional rubber-working skills profiles of these workers are greatly at odds with the employment needs in regions concerned;

H. Whereas Germany has indicated that a work agreement between the employer and the works council was concluded on 24 June 2024 to set up a transfer company; whereas, according to the German authorities, there is no obligation on the part of the dismissing enterprise to create or contribute towards the creation of a transfer company; whereas, without the participation of the dismissing enterprise, no transfer company would be set up; whereas, however, if the dismissing enterprise offers to participate, and if the social partners agree to the creation of a transfer company, German social law sets the legal frame; whereas, entry into these transfer companies takes place in several waves, based on the tripartite agreements signed between Goodyear Germany GmbH, the employees, and PMB International GmbH, the service provider chosen to manage the transfer company;

I. 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) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 amended by Council Regulation (EU, Euratom) 2024/765 of 29 February 2024.

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 and supporting 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 Germany is entitled to a financial contribution of is EUR 3 085 166 under that Regulation, which represents 60 % of the total cost of EUR 5 141 944, comprising expenditure for personalised services of EUR 4 936 274 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 205 670;

3. Notes that low skilled and older workers have far fewer opportunities to re-enter the labour market in the region and that the redundancies in Goodyear hit these vulnerable groups the hardest; recalls the profile of the redundant workers, with more that two in five dismissed workers is over 50 years old and more than half have secondary education or less, and outdated skills, and considers that, along with the downward trend in vacancies and its geographical distribution, the workers will need additional tailored support, particularly targeted assistance focusing on upskilling and retraining, to help them succeed the transition to employment;

4. Notes that as of 20 February 2025, a total of 915 tripartite contracts have been concluded between Goodyear, the employees, and PMB International GmbH, the service provider chosen to manage the transfer company, with 781 entries scheduled for Fulda and 134 for Hanau; welcomes the indication that these numbers are expected to increase as more agreements are signed;

3. Notes the fact that Germany has provided all necessary assurances that the principles of equality of treatment and non-discrimination will be respected in access to the proposed measures and their implementation, that the requirements laid down in national and EU legislation concerning collective redundancies have been complied with, that Goodyear Germany GmbH, which has continued its activities after the lay-offs, has complied with its legal obligations and provided for its workers accordingly, that any double financing will be prevented, and that the financial contribution from the EGF will comply with the procedural and material Union rules on State aid;

5. Stresses that Germany 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) upskilling measures, (b) guidance counseling and vocational orientation / activation measures, (c) business start-up advisory services, (d) business start-up grants, (e) job search assistance, (f) upskilling incentives, (g) further incentives (i.e., a bonus for taking up employment during the duration of the transfer company, etc.), (h) training allowance; welcomes the fact that digital basic skills (Digitale Grundqualifizierung) trainings will be offered based on individual prior knowledge; stresses that, given the age and educational profile of the targeted beneficiaries, 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; welcomes the fact that the package’s ICT training and additional support foreseen within the outplacement services includes such skills in particular a digital skills assessment and provisions for workers to borrow a laptop, receive training on how to use it and get answers to their digital questions;

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.