# EUR-Lex - 52012PC0621 - EN

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# 52012PC0621

**Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2011/011 AT/Soziale Dienstleistungen from Austria) /* COM/2012/0621 final */**

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EXPLANATORY MEMORANDUM

Point 28 of the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[1] allows for the mobilisation of
the European Globalisation Adjustment Fund (EGF) through a flexibility
mechanism, within the annual ceiling of EUR 500 million over and
above the relevant headings of the financial framework.

The rules applicable to the contributions
from the EGF are laid down in Regulation (EC) No 1927/2006 of the European
Parliament and of the Council of 20 December 2006 on establishing the European
Globalisation Adjustment Fund[2].

On 21 December 2011, Austria submitted application EGF/2011/011
AT/Soziale Dienstleistungen from Austria for a financial
contribution from the EGF, following redundancies in 105 enterprises operating in the NACE Revision 2 Division 88 ('Social
work activities without accommodation')[3] in the NUTS II region of Steiermark (AT22) in Austria.

After a thorough
examination of this application, the Commission has concluded in accordance
with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a
financial contribution under this Regulation are met.

SUMMARY OF THE APPLICATION AND ANALYSIS

Key data: ||

EGF Reference no. || EGF/2011/011

Member State || Austria

Article 2 || (b)

Enterprises concerned || 105

NUTS II region || Steiermark (AT22)

NACE Revision 2 Division || 88 ('Social work activities without accommodation')

Reference period || 1.4.2011 - 15.12.2011

Starting date for the personalised services || 1.10.2011

Application date || 21.12.2011

Redundancies during the reference period || 1 050

Redundant workers expected to participate in the measures || 350

Expenditure for personalised services (EUR) || 7 850 500

Expenditure for implementing EGF[4] (EUR) || 150 500

Expenditure for implementing EGF (%) || 1,88

Total budget (EUR) || 8 001 000

EGF contribution (65 %) (EUR) || 5 200 650

1.           The application was
presented to the Commission on 21 December 2011 and supplemented by
additional information up to 25 June 2012.

2.           The
application meets the conditions for deploying the EGF as set out in Article
2(b) of Regulation (EC) No 1927/2006, and was submitted within the deadline of
10 weeks referred to in Article 5 of that Regulation.

Link between the redundancies and major structural changes in world trade patterns due to globalisation or the global financial and economic crisis

3.           In order to establish the link between the redundancies and the
global financial and economic crisis, Austria argues that the dismissals
in Styria's mobile social services
sector (provision of mobile social services for people with handicaps and
mobile youth assistance) occurred as a result of reductions in the social
budget implemented by Styria with a view to consolidating their overall budget
(as part of their contribution to Austria's stability
and consolidation commitments under the 2010-2014 Stability Programme[5]).

4.           Reacting to the negative
impacts of the crisis and in order to consolidate
the regional budget by 2013, Styria's newly elected government decided in 2010 to cut the overall expenses of the Land by 25 % (in comparison
to the 2010 budget) over the two-year period 2011/2012. The budget reductions
also concerned the social sector, including contractually laid down disbursements
(vertraglich vereinbarte Pflichtleistungen) paid by Styria for youth
welfare and support for the handicapped (Jugendwohlfahrt, Behindertenhilfe).
These services are carried out in Styria by welfare providers[6], organised as not-for-profit
organisations, limited liability companies as well as (small) private enterprises.

5.           The Styrian providers of
mobile social services for handicapped people (mobile Behindertenhilfe)
and mobile youth work (mobile Jugendarbeit) were among those directly
affected by the cuts in the social budget. Following a review of the legal frameworks governing the mobile services for
these two groups of people, the catalogue of
services was reduced, and the fees paid by Styria to the service providers
lowered with effect from July 2011 (mobile Behindertenhilfe) and June
2011 (mobile Jugendarbeit)[7].

6.           In reaction to the budget
cuts, Styria's social services providers
first reduced their activities (i.e. shorter working times for staff) and,
subsequently, started dismissing workers from mid-2011 onwards. Hardest hit were / are small service providers specialising only in
one or few social assistance area(s) as they depend exclusively on the payments
from the Land and the municipalities (while larger welfare providers working in
several areas dispose of various means of financing, including revenue from fund-raising
campaigns or Federal funding).

Demonstration of the number of
redundancies and compliance with the criteria of Article 2(b)

7.           Austria submitted this
application under the intervention criteria of Article 2(b) of Regulation (EC)
No 1927/2006, which requires at least 500 redundancies over a nine-month period
in enterprises operating in the same NACE Revision 2 Division in one region or
two contiguous regions at NUTS II level in a Member State.

8.           The application cites
1 050 redundancies in 105 enterprises operating in the NACE Revision 2
Division 88 ('Social work activities without
accommodation') in the NUTS II
region of Steiermark (AT22) during the reference period
from 1 April 2011 to
15 December 2011. Of these, 888 were calculated in accordance with
the second indent of the second paragraph of Article 2 of Regulation (EC) No
1927/2006 and 162 were calculated in accordance with the first indent of the
same paragraph.

Explanation of the unforeseen nature
of those redundancies

9.           The Austrian authorities
argue that the redundancies were unforeseen since they occurred as a result of
the decision by Styria's regional government (in early 2011) to reduce the
public funding to assist handicapped people and to carry out youth work. These
cuts in the social budget came as a surprise for the mobile service providers,
all the more so since the contractual agreements between Styria and service
providers had in previous years been renewed without renegotiation, and as the
financial resources made available for assisting these two groups of people had
even increased during previous years.

Identification of the dismissing
enterprises and workers targeted for assistance

10.         The application relates to
1 050 redundancies in 105 enterprises during a reference period of 8,5
months, of whom 350 workers (33,3 %) are targeted for assistance. These
will receive personalised assistance within a regional labour foundation (Regionalstiftung) as defined in Federal Directive AMF/23-2011[8]. According to the Austrian authorities, the remaining dismissed
workers (700) have either found new work at their own initiative and / or with
the help of the public employment services (AMS) or they were not interested in receiving training and other
assistance in the framework of the labour foundation set up for them.

Enterprises and number of dismissals

Alpha Nova Betriebsges.m.b.H. || 18 || Lebenshilfe Bezirk Bruck/Mur || 14

BAN - Sozialökonomische BetriebsgmbH || 17 || Lebenshilfe Bezirk Judenburg || 6

BBRZ Kapfenberg || 2 || Lebenshilfe Bezirk Muerzzuschlag || 4

Beatrix Preininger || 1 || Lebenshilfe Ennstal || 4

Beratungsstelle TARA || 1 || Lebenshilfe Feldbach || 6

Betriebshilfe für die Steirische Wirtschaft || 11 || Lebenshilfe Graz und Umgebung - Voitsberg || 31

BUGLKRAXN, Verein Arbeitsintegration || 6 || Lebenshilfe Hartberg || 3

Sozialpädagog. Cafe Zum Safrangarten || 10 || Lebenshilfe Judenburg gemeinnützige GmbH || 6

Caritas der Dioezese Graz-Seckau || 110 || Verein Krisun - Kolpingsfamilie || 3

Chance B Sozialbetriebs GmbH || 40 || Lebenshilfe Leibnitz || 8

EHLESO OG || 1 || Lebenshilfe Projekt SPZ || 7

Eltern-Kind-Zentrum || 2 || Lebenshilfe Radkersburg || 5

ErFA II || 82 || Lebenshilfe Steiermark Feldbach || 1

Evang. Diakoniewerk Haus am Ruckerlberg || 7 || Lebenshilfe Steiermark Sektion Fuerstenfeld || 3

FRATZ-GRAZ Freizeit u. Aktivitätsz.f. K. || 1 || Lebenshilfe Steiermark Sektion Hartberg || 5

Gabriele Herrgesell || 1 || Lebenshilfe Steiermark f. g u. mehrf. Beh. M. || 20

Gemeinnuetzige Beschaeftigungsges.m.b.H. || 10 || Lebenshilfe Trofaiach || 4

Gemeinnützige Arbeitsintegrations GmbH || 5 || Lebenshilfe Weiz GmbH || 1

Gemeinnützige Dienstleistungsges. Weiz || 25 || Lebenshilfe Wohn-u.Tagesheim || 1

Ges. für steirische Kinderdörfer || 2 || Lebenshilfe, Graz und Umgebung - || 17

Gesellschaft zur Förderung seelischer Gesundh. || 1 || Leib & Soel - Verein || 6

GIP Neue Lebensräume GmbH || 5 || LEO Lern- und Entwicklungswerkstätte || 4

Herbert Stöckl || 3 || LOGO jugendmanagement gmbh || 1

Hilfswerk Steiermark Gmbh || 1 || MAFALDA || 2

HOME SERVICE Volkshilfe Steiermark || 3 || Mit uns- Verein f. Heilpäd. Entwicklungsf. || 4

Isop Innovative Sozialprojekte || 19 || Mosaik GmbH || 31

IST - Soziale Dienstleistungs Ges.m.b.H. || 2 || Neue Lebensräume GmbH || 1

Jugend am Werk Steiermark GmbH || 74 || Odilien- Blinden-Institut || 11

JWF Sozialmanagement GmbH || 9 || OEKO-Service GmbH || 13

Kinderfreunde Steiermark || 18 || Oesterr.Gesellschaft Rettet das Kind || 6

Köflacher Kinder- Betreuungsstelle || 3 || Oesterr.Kinderfreunde Ortsgruppe Leonhard || 2

Kohlbacher-Sinko GmbH || 1 || Oesterr.Kinderrettungsw.Steiermark || 1

KOMPETENZ – Ber. u soz. Kompetenzz. || 6 || Oesterreichische Kinderfreunde || 11

Kulturwerkstatt GesbR || 1 || Pflegeelternverein Stmk. || 26

L.I.F.F.T. - Verein || 4 || pro mente Steiermark || 10

Lebenshilfe Ausseerland || 2 || Pronegg-Schleich Soziale Dienste KG || 1

Lebenshilfe Bad Radkersburg Gaestehaus || 2 || Psychosoziales Zentrum Voitsberg GmbH || 1

Lebenshilfe Bad Radkersburg Tageswerkst. || 1 || Region Gleisdorf Jugend und Kind KG || 6

SOEBSA, Sozial-Oeko-u. Beschäftigungsserv. || 10 || Verein f. Psy. u.Soz. Lebensberatung || 5

SOS - Kinderdorf || 10 || Verein für Beschäftigungsprojekte || 97

Sozial- u. Heilpädag. Förderinstitut Stmk. || 5 || Verein Humanistische Initiative || 3

Sozial- und Begegnungszentren Graz || 2 || Verein IKEMBA || 1

Sozialbetriebsgesellschaft Birkfelder Raum || 1 || Verein PFIFF - Mit- und Füreinander || 1

Soziale Dienste Ennstal Egartner-Schloemicher || 1 || Verein Sozialmanagement Steiermark || 1

Sozialmanagement Steiermark || 1 || Verein Sozialtherapeut. Betreuung. || 1

sozKom GmbH & Co KG || 1 || Volkshilfe Steiermark || 87

Steingruber Rita & Peter, Frühförderstelle || 1 || Verein VIDEF || 2

Tagesmütter Graz-Steiermark || 9 || WENDEPUNKT-LEOBEN || 1

Therapeutische Gemeinsch. Steiermark || 1 || Wohnplattform Stmk || 1

Ubuntu Verein z. sozialen Integration || 5 || Youth - 4U KG || 2

Verein Die Bruecke || 3 || ||

Verein f. Opfer v.Gewalt u.Menschenrechtsverl. || 1 || ||

Verein f.psy. u. soziale Lebensberatung || 1 || ||

Verein Frauenplattform Bezirk Voitsberg || 2 || ||

Verein Frauenservice Graz || 1 || ||

Total enterprises: 105 || Total dismissals: 1 050 ||

11.         The break-down of the
targeted workers is as follows:

Category || Number || Percent

Men || 100 || 28,6

Women || 250 || 71,4

EU citizens || 330 || 94,3

Non EU citizens || 20 || 5,7

15-24 years old || 75 || 21,4

25-54 years old || 260 || 74,3

55-64 years old || 15 || 4,3

> 64 years old || 0 || 0.0

.

12.         There are 153 workers (43,7
% of the targeted workers) with a longstanding health problem or disability
included in the categories above.

13.         In terms of occupational categories,
all the workers concerned by this application are personal care workers (ISCO-08 category 5).

14.         In accordance with Article
7 of Regulation (EC) No 1927/2006, Austria has confirmed that a policy of
equality between women and men as well as non-discrimination has been applied,
and will continue to apply, during the various stages of the implementation of
and, in particular, in access to the EGF.

Description of the territory
concerned and its authorities and stakeholders

15.         The
territory concerned by the redundancies is the Land of Steiermark (Styria,
AT22), one of Austria's nine federal provinces. Steiermark belongs to Austria's industrial regions, together with Niederösterreich, Oberösterreich and
Vorarlberg. The Land shares a border with Slovenia, and its provincial capital,
 Graz, is Austria's second largest city after Vienna.

16.         The
main stakeholders are Styria's regional public employment services (regionale
Geschäftsstelle des Arbeitsmarktservice / AMS), Styria's provincial
government (Steiermärkische Landesregierung), Styria's Economic Chamber
(Wirtschaftskammer Steiermark), the trade union of private sector
employees, printing, journalism, and paper (Gewerkschaft der
Privatangestellten, Druck, Journalismus, Papier), which is under the umbrella
of Austria's Federation of Trade Unions (Österreichischer Gewerkschaftsbund
/ ÖGB) as well as the two umbrella organisations Die
Steirische Behindertenhilfe and Dachverband der Steirischen
Jugendwohlfahrtsträger representing the social welfare providers for the
two client groups.

Expected impact of the redundancies
as regards local, regional or national employment

17.         In November 2011, Styria's
unemployment rate was higher than that of Austria as a whole: 6,2 % compared
to 4,1 %. Particularly high increases of unemployment among women were
registered in this month (6,0 % increase since November 2010), partially
reflecting the high share of women dismissed in the social services sector
covered by this application[9].
Just a few months later (March 2012), Styria's overall unemployment rate was by
9 % higher than a year before (March 2011), representing the highest
increase of unemployment among Austria's nine Federal
provinces (average 4,4 % increase for Austria as a
whole during the same period).

18.         According to the Austrian
authorities, Styria's health and social sector was hit harder by the economic
and financial crisis and its consequences than other industrial areas in the
province (increase of 7,5 % in unemployment in March 2012 compared to
March 2011, a rate topped only by the construction sector where the increase in
unemployment at 10,6 % during the same period was even more pronounced).

19.         Austria estimates that more
social services workers will lose their jobs in 2012 following the cuts in
regional funds for assisting handicapped people and for mobile youth work. The
total number of dismissals in the mobile social services sector in Styria will
be significantly higher than initially thought by the social partners.

20.         Styria
was also affected by other mass redundancies for which EGF applications were
submitted to the Commission: 744 redundancies in a nine-month period related to
the automotive sector[10], 476 redundancies in a
nine-month period related to the basic metal sector[11] and 167 redundancies in a
four-month period related to an enterprise specialising in electronic equipment[12].

21.         All this, in combination
with other factors (first and foremost the dramatic increase in future demand for healthcare and social services - white
jobs - as a result of Europe's ageing population) makes an upgrading of qualifications and a sustainable reintegration of
this specialised workforce so important.

22.         The savings in Styria's
social budget are being implemented despite a controversial debate between the
mobile assistance providers and the regional government. The debate about
integration, social justice for disadvantaged groups and their families and the
possible impacts of the reductions and dismissals on the regional and local economy
is still ongoing in 2012. In reply to a query from the European Commission
services, Austria responded that, even after the implementation of the savings,
Styria continues to consider itself as Austria's pioneer with regard to
disability policies, and that the province remains committed to fulfilling the
United Nations Convention on the Rights of Persons with Disabilities, which Austria had ratified in 2008. The Styrian regional government will table an action plan in
2012 providing guidelines for Styria's disability strategy 2012-2020 on the
basis of the UN Convention. The guidelines will cover areas such as
accessibility, employment, awareness and training, self-determined life, data
and statistics.

Co-ordinated package of personalised
services to be funded and a breakdown of its estimated costs, including its
complementarity with actions funded by the Structural Funds

23.         The following measures are
proposed, all of which combine to form a coordinated package of personalised
services aimed at reintegrating an estimated 350 former
social services workers into employment. The measures
will be provided to the 350 workers through a regional
labour foundation (approved by the public employment service on 30.9.2011 and
operational from 1.10.2011 up to 30.9.2016; latest possible entry date for
workers: 30.9.2012). Verein Wirtschaftsoffensive (WOF)
in Voitsberg / Köflach will be responsible for the delivery of the measures
within the labour foundation. This regional development association already
managed Austria's first EGF case, in the automotive sector10.

24.         The
350 people to be assisted within the labour foundation will benefit from a coordinated programme comprising a methodological case management
and a comprehensive training offer, tailored to the
profiles and needs of the social service workers. The measures are agreed with
and controlled by the public employment services (AMS, i.e. Arbeitsmarktservice) of Styria which
assesses the usefulness of the upskilling and training
measures for both the current and future labour markets (when the requirements
will be different as a result of demographic changes).

25.         In line with § 18 of
Arbeitslosenversicherungsgesetz (ALVG) and depending on each person's previous
work time pattern, the workers must involve themselves full-time. The minimum involvement
cannot be lower than 20 hours per week. Compliance with the foundation rules
(Stiftungsordnung) and other applicable laws is assured.

–
Case management: The
two case management modules are available to all 350 targeted workers (counsellor
/ participant quota: 1:12):

–
Module 1 - Occupational orientation and
activation;

–
Module 2 - Active job search.

After having entered the labour foundation,
workers follow the first module (duration limited to six weeks, with the
possibility of extension to a maximum of 12 weeks in particular cases). An
individual occupational pathway plan is developed for each participant
reflecting the present and future needs of the labour market and each worker's
possibilities and personal career prospects. The pathway plan is signed by the
worker, the representatives of the labour foundation and the responsible
regional AMS and forms the basis for the worker's subsequent activities within
the labour foundation. Workers aged over 50 receive intensified assistance to
improve their chances on the labour market. This module also includes the
possibility for the workers to spend one week in an enterprise to try out a new
post.

The second module provides the workers with
personalised assistance to help them find new jobs. This includes techniques on
how to approach the labour market, how to prepare for job interviews and
selection tests, etc. Depending on each worker's profile and situation, the
active job search can either start directly after the occupational orientation
or on completion of the individual training path. Styria aims to upskill or
retrain as many workers as possible before they start looking for new jobs in
order to prepare for the region's future employment
challenges (e.g. response to demographic ageing, greener and knowledge-based
economy etc.). The normal duration of this module is
limited to 14 weeks, renewable for an additional 14 weeks in specific cases
(for participants aged over 50 or for people with a reduced working capacity).

–
Individual training: Training measures are budgeted for all 350 targeted workers.
The labour foundation will provide training for the dismissed workers to
upgrade their skills and knowledge in preparation for future jobs with a growth
potential: specialised health and social services professions requiring higher /
academic qualifications (probably about half of the participants), but also
jobs in the green industries and in the metal, electronics, trade and tourism
sectors. The qualification options proposed to the workers vary according to their
education levels and experience - for instance, lower skilled workers can
receive vocational training to obtain a formal qualification or catch up with
previously interrupted apprenticeships, people with specific technical
qualifications will receive possibilities to obtain higher degrees. A part of
the vocational training will not need to be co-financed by the EGF because it
is delivered free of charge within the Austrian educational system. In cases
where an agreed training programme takes longer than the EGF
implementation period, the additional funding will be provided by the labour
foundation[13].

–
Training allowance[14]: This allowance has been budgeted for all 350 workers and will be
payable only for the duration of their participation in the training measures
within the labour foundation. The rate is EUR 200 per person / month and
was budgeted for 18 months. It permits the worker to
cover travel expenses and the cost of learning
materials. This allowance, combined with the subsistence allowance, may not
exceed a worker's unemployment benefit assessment basis. Unemployment benefits
are interrupted during the period while these training allowances are granted.

–
Subsistence allowance while on training and
on job search measures[15]: This allowance has been budgeted for all 350 workers and will be
payable only for the duration of their participation in the training and active
re-integration measures within the labour foundation. It permits a serious full-time involvement of each dismissed worker in the measures. The rate is EUR 1 000 per person / month and was budgeted
for 11 months (average figures, as the actual amounts depend on each worker's
salary prior to the dismissal and the period during which each worker remains
in the active measures). This
allowance, combined with the training allowance, may not exceed a worker's
unemployment benefit assessment basis. Unemployment benefits are interrupted
during the period while these subsistence allowances are granted.

26.         The expenditure for
implementing the EGF, which is included in the application in accordance with
Article 3 of Regulation (EC) No 1927/2006, covers preparatory,
information and publicity as well as control activities and the management
of the regional labour foundation. The foundation management costs (EUR
75 000) are calculated on a flat rate basis. All partners involved in the
measures are committed to communicating the EGF support.

27.         The personalised services
presented by the Austrian authorities are active labour market measures within
the eligible actions defined by Article 3 of Regulation (EC) No 1927/2006. The
Austrian authorities estimate the total costs of these services at EUR 7 850 500 and the expenditure for
implementing the EGF at EUR 150 500 (1,88 % of the total
amount). The total contribution requested from the EGF is EUR 5 200 650
(65 % of the total costs).

Actions || Estimated number of workers targeted || Estimated cost per worker targeted (EUR) || Total costs (EGF and national cofinancing) (EUR)

Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006)

Case management (2 modules):  Occupational orientation and activation  Active job search (Maßnahmen der Betreuung, Orientierung und Aktivierung) || 350 || 1 030 || 360 500

Individual training, including internships and entrepreneurship training (Ausbildungsmaßnahmen) || 350 || 7 000 || 2 450 000

Training allowance (Ausbildungsbedingte Zuschussleistung / Stipendien) || 350 || 3 600 || 1 260 000

Subsistence allowance while on training and job search (Schulungsarbeitslosengeld) || 350 || 10 800 || 3 780 000

Sub total personalised services || || 7 850 500

Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006)

Preparatory activities || || 10 500

Management || || 75 000

Information and publicity || || 25 000

Control activities || || 40 000

Sub total expenditure for implementing EGF || || 150 500

Total estimated costs || || 8 001 000

EGF contribution (65 % of total costs) || || 5 200 650

28.         According to Austria, the measures described above are complementary with actions funded by the Structural
Funds. The Austrian ESF Operational Programme under objective 2 focuses on the
long-term unemployed, whereas the EGF aims to help workers immediately after
their lay-offs. Hence, there is no overlapping between the two funds.
Furthermore, Austria has put in place certification of costs procedures to
exclude any risk of double financing.

Date(s) on which the personalised
services to the affected workers were started or are planned to start

29.         Austria started the
personalised services to the affected workers included in the co-ordinated
package proposed for co-financing to the EGF on 1 October 2011. This
date therefore represents the beginning of the period of eligibility for any
assistance that might be awarded from the EGF.

Procedures for consulting the social
partners

30.         On 26.9.2011 and on
27.9.2011, the Styrian Economic Chamber (Wirtschaftskammer Steiermark)
and Austria's Federation of Trade Unions (Österreichischer Gewerkschaftsbund
/ ÖGB) agreed to establish a regional labour foundation in support of the
dismissed workers. The agreement of the partners was a prerequisite for the
recognition of the labour foundation "Soziale Dienstleistungen
Steiermark" by the AMS which was notified on 30.9.2011. The two umbrella
organisations Die Steirische Behindertenhilfe and Dachverband der
Steirischen Jugendwohlfahrtsträger were also involved in the discussions.

31.         Austrian social partnership
cooperation is a voluntary arrangement of mostly informal nature and is not
regulated by law[16].
Only when enterprises decide to participate in specific labour market policy
measures are they subject to the applicable public employment service (AMS)
rules.

32.         The Austrian authorities
confirmed that the requirements laid down in national and EU legislation
concerning collective redundancies have been complied with. Given the small
size of the social services providers concerned, only a few of them were
obliged to announce the planned redundancies according to the Austrian Frühwarnsystem
(early warning system) in accordance with § 45a of the
Arbeitsmarktförderungsgesetz /AMFG.

Information on actions that are
mandatory by virtue of national law or pursuant to collective agreements

33.         As regards the criteria
contained in Article 6 of Regulation (EC) No 1927/2006, the Austrian authorities
in their application:

· confirmed that the financial contribution from the EGF does not
replace measures which are the responsibility of companies by virtue of
national law or collective agreements;

· confirmed that the actions provide support for individual workers
and are not to be used for restructuring companies or sectors;

· confirmed that the eligible actions referred to above do not receive
assistance from other EU financial instruments.

Management and control systems

34.         Austria has notified the Commission that
the Land of Styria and Styria's public employment
services AMS will provide the 35 % national
co-financing and are pre-financing the actions. The former will take on
25,5 % of the national co-financing and the latter 74,5 %.

35.         Austria confirmed that the
financial contribution will be managed by the same body that manages the ESF: unit VI/INT/9 within
the Federal Ministry for Labour, Social Affairs and Consumer Protection (BMASK Bundesministerium für Arbeit, Soziales und
Konsumentenschutz) will act as managing authority
and as payment service. The financial control authority
for the EGF is different from that of the ESF: unit VI/S/5a within BMASK will take
on this function for the EGF.

36.         The coordinated package of
personalised measures is implemented by Regionalstiftung Soziale
Dienstleistungen managed by Verein Wirtschaftsoffensive (WOF) with offices in
the cities of Graz and Köflach, and is monitored by the public employment
service (AMS). Furthermore, the BMASK is supported by a technical assistance
provider who will also act as first level control. All major arrangements and
obligations are laid down in written agreements.

Financing

37.         On the basis of the
application from Austria, the proposed contribution from the EGF to the coordinated
package of personalised services (including expenditure
to implement EGF) is EUR 5 200 650,
representing 65 % of the total cost. The Commission's proposed allocation
under the Fund is based on the information made available by Austria.

38.         Considering the maximum
possible amount of a financial contribution from the EGF under Article 10(1) of
Regulation (EC) No 1927/2006, as well as the scope for reallocating
appropriations, the Commission proposes to mobilise the EGF for the total
amount referred to above, to be allocated under heading 1a of the financial
framework.

39.         The proposed amount of
financial contribution will leave more than 25 % of the maximum annual
amount earmarked for the EGF available for allocations during the last four
months of the year, as required by Article 12(6) of Regulation (EC) No
1927/2006.

40.         By presenting this proposal
to mobilise the EGF, the Commission initiates the simplified trialogue
procedure, as required by Point 28 of the Interinstitutional Agreement of 17
May 2006, with a view to securing the agreement of the two arms of the
budgetary authority on the need to use the EGF and the amount required. The
Commission invites the first of the two arms of the budgetary authority that
reaches agreement on the draft mobilisation proposal, at appropriate political
level, to inform the other arm and the Commission of its intentions. In case of
disagreement by either of the two arms of the budgetary authority, a formal
trialogue meeting will be convened.

41.         The Commission presents
separately a transfer request in order to enter in the 2012 budget specific
commitment appropriations, as required in Point 28 of the Interinstitutional
Agreement of 17 May 2006.

Source of payment appropriations

42.         The amount of payment
appropriations initially entered on the budget line 04 05 01 in 2012 will be
fully consumed after the adoption by the two arms of the budgetary authority of
the proposals submitted to date for mobilising the EGF and therefore
insufficient to cover the amount needed for the present application. A
reinforcement of the payment appropriations of the EGF budget line will be
requested either through a transfer, in case a source of available
appropriations can be identified, or an Amending budget. Appropriations from
this budget line will be used to cover the amount of EUR 5 200 650
needed for the present application.

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

on the mobilisation of the European
Globalisation Adjustment Fund in accordance with point 28 of the
Interinstitutional Agreement of 17 May 2006 between the European Parliament,
the Council and the Commission on budgetary discipline and sound financial
management (application EGF/2011/011 AT/Soziale Dienstleistungen from Austria)

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 the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[17], and in particular point 28
thereof,

Having regard to Regulation (EC) No
1927/2006 of the European Parliament and of the Council of 20 December 2006
establishing the European Globalisation Adjustment Fund[18], and in particular Article
12(3) thereof,

Having regard to the proposal from the
European Commission[19],

Whereas:

(1)       The European Globalisation
Adjustment Fund (EGF) was established to provide additional support for workers
made redundant as a result of major structural changes in world trade patterns
due to globalisation and to assist them with their reintegration into the
labour market.

(2)       The scope of the EGF was
broadened for applications submitted from 1 May 2009 to 30 December 2011 to
include support for workers made redundant as a direct result of the global
financial and economic crisis.

(3)       The Interinstitutional
Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual
ceiling of EUR 500 million.

(4)       Austria submitted an
application to mobilise the EGF, in respect of redundancies in 105 enterprises
operating in the NACE Revision 2 Division 88 ('Social work activities without accommodation') in the NUTS II region of Steiermark (AT22), on 21 December 2011 and supplemented it by additional information up to 25 June 2012. This application complies with the requirements for
determining the financial contributions as laid down in Article 10 of
Regulation (EC) No 1927/2006. The Commission, therefore,
proposes to mobilise an amount of EUR 5 200 650.

(5)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by Austria.

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the European
Union for the financial year 2012, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 5 200 650 in
commitment and payment appropriations.

Article 2

This Decision shall be published in the Official
Journal of the European Union.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

[1]               OJ C 139, 14.6.2006, p. 1.

[2]               OJ L 406, 30.12.2006, p. 1.

[3]               Regulation (EC) No 1893/2006 of the European
Parliament and of the Council of 20 December 2006 establishing the statistical
classification of economic activities NACE Revision 2 and amending Council
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific
statistical domains (OJ L 393, 30.12.2006, p. 1).

[4]               In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006.

[5]               http://ec.europa.eu/europe2020/documents/related-document-type/index_en.htm

[6]               Freie Wohlfahrtsträger für die Erbringung sozialer
Dienstleistungen zur Unterstützung Hilfsbedürftiger (öffentliche
Wohlfahrtsaufgaben).

[7]               This should be seen against the background that
Styria's expenses for social services helping these two groups of people had increased
since the start of the economic crisis in 2008 up to 2011 (constituting together
about 50% of Styria's social budget).

[8]               Austrian
labour foundations are an active labour market policy instrument in Austria to improve the labour market position of job seekers. They are based on
Arbeitslosenversicherungsgesetz (§ 18) and on implementing directives issued by
the labour market service (AMS). Latest AMS directive: http://www.ams.at/_docs/001_ast_RILI.pdf.

[9]               In Austria, the share of women working in the social
sector (about 80 %) is higher than in other sectors such as tourism (about
68 %) or construction (about 15 %).

[10]             EGF/2009/009 AT/Steiermark,
approved by the Budgetary Authority in 2009, OJ L 347, 24.12.2009.

[11]             EGF/2010/007 AT/Steiermark and
Niederösterreich, approved by the Budgetary Authority in 2011, OJ L 263,
7.10.2011.

[12]             EGF/2010/008 AT/AT&S,
approved by the Budgetary Authority in 2011, OJ L 263, 7.10.2011.

[13]             According to § 18 of Arbeitslosenversicherungsgesetz
(ALVG), a worker's participation in the foundation is limited to 156 weeks
(three years) with the possibility of extending it to 209 weeks (four years) in
particular cases (people aged over 50 or people on longer qualification
programmes).

[14]             Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG).

[15]             Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG).

[16]             ÖGB website http://www.sozialpartner.at/sozialpartner/Sozialpartnerschaft_mission_en.pdf

[17]             OJ C 139, 14.6.2006, p. 1.

[18]             OJ L 406, 30.12.2006, p. 1.

[19]             OJ C [...], [...], p. [...].