Friday, May 4, 2012
The EU wants to help Spanish workers through the European Globalisation Adjustment Fund (EGF)
350 footwear industry workers in the Valencia region might get a job back thanks to the European Commission’s proposal to provide Spain with 1 600 000 euro from the European Globalisation Adjustment Fund (EGF). Indeed, this money should enable 143 small enterprises to get back on track. The proposal now needs to be approved by the European Parliament and the EU’s Council.
EU Commissioner for Employment, Social Affairs and Inclusion László Andor commented: "Spanish shoe industry workers have been hit hard by rising global competition. This proposal for 1.6 million euros from Europe's Globalisation Fund would help them to get new jobs by training them in new skills."
The Spanish application relates to 876 workers made redundant in 143 small and medium sized footwear manufacturing enterprises in in the region of 'Comunidad Valenciana'. The dismissals were the result of increased competition from shoes produced elsewhere in the world and compounded by the current economic crisis. China and India increasingly dominate the world trade in footwear, with countries such as Vietnam and Indonesia continuing to increase their share of world production.
The EGF money proposed would target the 350 workers with the most difficulties finding a new job. The support package proposed is to help the workers by providing them with one-to-one counselling and guidance; skills assessment and outplacement; coaching; general training and re-training; individual vocational training; entrepreneurship promotion and support; job-search allowance and a contribution to commuting expenses.
The total estimated cost of the package is €2.5 million, to which the EGF would provide €1.6 million.
Imports of footwear from non-EU countries into the EU increased almost 6% during the period 2006-2009 while EU exports declined by 16.4% during the same period. As a direct consequence of the fall in exports, the number of footwear producers in the EU's 27 Member States decreased by 11.58% in 2008 compared to 2005 and 78 800 direct jobs - representing almost 20 % of the total - were lost in the sector during the period 2005-2008.
Imports of footwear into Spain have also increased, growing by almost 20% during the period 2006-2010. However, the impact of the imbalance between imports and exports in the Spanish footwear industry was bigger than in the EU as a whole: the number of manufacturers decreased by 35.96 % during 2006-2010 (or 24.27 % during the period 2006-2009), as the number of firms fell from 2 283 to 1 462. Employment contracted by 31.80 %, with 10 663 direct jobs lost, during the same period.
The employment situation in the affected area is particularly fragile, given the impact of the current economic crisis on various other sectors, such as construction, furniture, textiles, ceramics and toys, which under other circumstances could have offered alternative employment for former shoe manufacturing workers. The support of the EGF is therefore all the more essential, as it can help these workers to explore new and different opportunities.
There have been 97 applications to the EGF since the start of its operations in 2006. The Fund has paid out a total of some €451.4 million, helping nearly 89 000 workers. EGF applications are being presented to help a growing number of sectors, and by an increasing number of Member States.
More open trade with the rest of the world leads to overall benefits for growth and employment, but it can also cost some jobs, particularly in vulnerable sectors and affecting lower-skilled workers. This is why Commission President Barroso first proposed setting up a fund to help those adjusting to the consequences of globalisation. The EGF was established at the end of 2006 and was designed to demonstrate solidarity from the many who benefit from openness to the few who face the sudden shock of losing their jobs. In June 2009, the EGF rules were revised to strengthen the role of the EGF as an early intervention instrument forming part of Europe's response to the financial and economic crisis. The revised EGF Regulation entered into force on 2 July 2009 and applied to all applications received from1 May 2009 to 30 December 2011.
Building on the experience acquired with the EGF since 2007 and its value added for the assisted workers and affected regions, the Commission has proposed to maintain the Fund also during the 2014-2020 multiannual financial framework, while further improving its functioning.
More information László Andor's website
EGF - EUROPEAN GLOBALISATION ADJUSTMENT FUND :
Grants to support Member States in their social plans to support individual workers
The European commission has announced that the startup Trustev was the winner of the 2013 edition of the Tech All Stars Award.
Trustev was rewarded for its contribution to tech entrepreneurship, as it offers real time, online verific...
The winners of the 2013 public choice and Grand Prix winners were announced last night during the awards ceremony in Athens.
Organized jointly by the European Commission and Europa Nostra NGOs, this prize aims to reward projects and ...
The Bristol City was rewarded for her efforts to improve the environment and quality of life of its citizens while providing new opportunities for businesses by receiving Friday the European Green Capital Award for 2015 in Nantes, the cur...
The Commission has launched the fifth edition of the EU Health Prize for Journalists. This award aims to reward high quality items contributing to better information on health, care and patients' rights issues.
Journalists who w...
The European Environment Agency has just launched a new competition to reward project depicting waste in Europe.
There will be three categories in the prize: photography, cartoons and short films, permitting to raise awareness on the waste...
Need an advice?
Marine Rossi at
33 (0)1 42 54 60 64
19 June 2013 :
Trustev, winner of the Tech All Stars Awards 2013
18 June 2013 :
Winners of the prize for cultural heritage / europa nostra awards
17 June 2013 :
Bristol wins the European Green Capital Award
14 June 2013 :
Launching of the 2013 edition of the EU Health Prize for Journalists
13 June 2013 :
Waste-Smart: a new competition to select projects depicting waste
26 June 2013 :
ManagEnergy Event - Sustainable Energy Financing for Municipalities and Regions
19 August 2013 - 24 August 2013 :
Université d'été 2013 de l'Assemblée des Régions d'Europe
21 September 2013 :
European Cooperation Day
26 September 2013 - 27 September 2013 :
CONCORDi-2013: 4th European Conference on Corporate R&D and Innovation
06 October 2013 - 08 November 2013 :
ICT 2013: Create, Connect, Grow
Read quickly a call for proposal and gain in efficiency! :
Reading a call for proposal isn’t always easy for a non trained eye! In order to ...
Grant candidate's selection: ease the evaluator's work! :
Once submitted, all projects will reach the same stage: selection. It is therefor...
Grants and cash payments, beware! :
Grant Installments management is a core component of any project funded by the European...
Optimize your application to the European Social Fund (ESF)! :
The European Social Fund, created in 1957, is the European Union’s main financial...
How to access the Structural Funds ? :
European Structural Funds, known by the European Social Fund (ESF) and the European Dev...