# CE2004084EN.01056901.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/569 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/569

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(2004/C 84 E/0646)

WRITTEN QUESTION E-0297/04

by Theodoras Bouwman (Verts/ALE) to the Commission

(6 February 2004)

Subject:   Compliance with EU law of Spanish mining company Uminsa and possible frauds

Subject:

In the last few weeks the mining company Uminsa has dismissed 16 miners, eight of whom are shop stewards for the Spanish trade unions ‘Comisiones Obreras’ and ‘Unión General de Trabajadores’. The company has justified the dismissals with allegations such as having illegally called for a strike, and a belief that these employees may have been working whilst on sick leave. Uminsa is a major beneficiary of state aid, from both the Spanish State and the European Union, despite not respecting the current Coal Plan (Plan del Carbón)'s labour agreement, which provides that the company would create four new job places for 11 retirements, and forcing the miners to carry out unpaid overtime.

All evidence suggests that these are the first dismissals from a longer list with the objective of restructuring the company's workforce; all of it done in an irregular fashion, especially if we take into account the fact that they are dismissing workers with less than three months left before they become eligible for early retirement.

Uminsa's mine where the 16 dismissed employees worked is located in Velilla del Rio Carrión, in the Province of Palencia, Castilla-León, Spain.

We believe that Uminsa's behaviour is unacceptable and that the European institutions must exercise their stewardship of jobs, especially in a deprived area receiving Objective 1 funding, by not granting or authorising public money to companies such as Uminsa that do not carry out their labour or social duties. Uminsa has in fact received since 1998 substantial public subventions through the ECSC Treaty (see answer to question E-0342/02 (1), 27 March 2002).

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Can the European Commission assess whether Uminsa's actions comply with European labour law?

Furthermore, can the Commission investigate whether this might be a case of fraud on public funds, as the company is not fulfilling the objectives agreed to in the concession of such EU funds?

Can the Commission investigate whether the public money which has been allocated so far to Uminsa has been properly used? Can it make sure that Uminsa has not used the same aid for the same objective twice?

Answer given by Mrs de Palacio on behalf of the Commission

(16 March 2004)

(16 March 2004)

Coal subsidies are assessed on the basis of Council Regulation (EC) No 1407/2002 of 23 July 2002 on State aid to the coal industry (2), which entered into force after the expiry of the European Coal and Steel Community Treaty. This Regulation lays down rules for the granting of State aid to the coal industry with the aim of contributing to the restructuring of the coal industry. The rules take account of the social and regional aspects of the sector's restructuring and the need for maintaining, as a precautionary measure, a minimum quantity of indigenous coal production to guarantee access to reserves. The restructuring process of the coal industry has to be continued, given that, in the future, most Community coal is likely to remain uncompetitive in relation to imported coal. The restructuring of the coal industry has major social and regional effects. Therefore mines can benefit, temporarily, from aid to alleviate the social and regional consequences of the restructuring. This enables Member States to implement adequate measures for the social and economic development of the areas affected by the restructuring.

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In this respect the task of the Commission is to ensure that normal conditions of competition are established, maintained and complied with. The evidence provided by the Honourable Member, is not however sufficient at this stage to conclude the illegal use of EU or national funds.

The Commission is currently examining the compatibility of aid in favour of coal industry in the region where Uminsa is located (3), as well as the compatibility of a long-term restructuring plan for the period 2003 to 2006 of the Spanish coal industry. The examination of all relevant state aid aspects will be carried out in light of Council Regulation 1407/2002.

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(1)  OJ C 205 E, 29.8.2002, p. 122.

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(2)  OJ L 205, 2.8.2002.

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(3)  OJ C 105, 1.5.2003.

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