# CE2004084EN.01034201.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/342 |
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(2004/C 84 E/0401)

WRITTEN QUESTION E-0243/04

by Ilda Figueiredo (GUE/NGL) to the Commission

(2 February 2004)

Subject:   Relocation and unemployment

Yet another multinational in the textile sector — Brax Portuguesa, Fábrica de Confecções, Lda. — now appears likely to cease activity, raising the spectre of unemployment for over 400 workers, most of them women, at its plant in Vila Nova de Gaia (Portugal).

In view of the seriousness of this state of affairs, in a region and a Member State where unemployment is constantly rising, it is essential that the Commission and the Portuguese government take all possible measures to prevent yet another multinational from closing its operations in Portugal and, possibly, relocating to another European country.

Can the Commission answer the following questions:

| 1. | Were any Community funds received by the firm Brax Portuguesa, Fábrica de Confecções, Lda. of Aldeia Nova, Serzedo, Vila Nova de Gaia in Portugal? If so, can the Commission provide details? |
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| 2. | Was any financial support granted by the EU to the parent company or any of its branches? If so, can the Commission provide details? |
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| 3. | What measures does the Commission intend to take to put an end to the constant relocations of multinationals and the resulting unemployment? |
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Supplementary answer given by Mr Dimas on behalf of the Commission

(31 March 2004)

The Commission informs the Honourable Member that the company ‘Brax Portuguesa, Fábrica de Confecções, Lda.’ has received the following support.

| 1. | European Social Fund (ESF):
(in euros) Old fund
Ref. 891013 P1
Community Support Framework
(CSF) II PEDIP II( 1 )
Community Support Framework
(CSF) III POEFDS FSE
23 146,19
51 892,73
5 250,68 OSS
18 937,79
17 297,58
3 150,40 | (in euros) | | Old fund
Ref. 891013 P1 | Community Support Framework
(CSF) II PEDIP II( 1 ) | Community Support Framework
(CSF) III POEFDS | FSE | 23 146,19 | 51 892,73 | 5 250,68 | OSS | 18 937,79 | 17 297,58 | 3 150,40 |
| ---------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------- | --------------------------------------------- | ------------------------ | --------------------------------------------------- | --------------------------------------------- | --- | --------- | --------- | -------- | --- | --------- | --------- | -------- |
| (in euros) | | | | | | | | | | | | | | |
| | Old fund
Ref. 891013 P1 | Community Support Framework
(CSF) II PEDIP II( 1 ) | Community Support Framework
(CSF) III POEFDS | | | | | | | | | | | |
| FSE | 23 146,19 | 51 892,73 | 5 250,68 | | | | | | | | | | | |
| OSS | 18 937,79 | 17 297,58 | 3 150,40 | | | | | | | | | | | |

| 2. | European Regional Development Fund (ERDF) (CSF II):
Programme
Modernisation of the fabric of the economy Project
Diagnostics and Options for Development Date of approval
27.07.1995 Location
Vila Nova de Gaia Operator
Brax Portuguesa — Fabrica de Confecções LDA Total investment
EUR 20 340,60 Eligible investment
EUR 20 340,60 ERDF approved
EUR 10 171,57 ERDF paid( 2 )
EUR 10 196,2 | Programme | Modernisation of the fabric of the economy | Project | Diagnostics and Options for Development | Date of approval | 27.07.1995 | Location | Vila Nova de Gaia | Operator | Brax Portuguesa — Fabrica de Confecções LDA | Total investment | EUR 20 340,60 | Eligible investment | EUR 20 340,60 | ERDF approved | EUR 10 171,57 | ERDF paid( 2 ) | EUR 10 196,2 |
| ------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ------------------------------------------ | ------- | --------------------------------------- | ---------------- | ---------- | -------- | ----------------- | -------- | ------------------------------------------- | ---------------- | ------------- | ------------------- | ------------- | ------------- | ------------- | -------------- | ------------ |
| Programme | Modernisation of the fabric of the economy | | | | | | | | | | | | | | | | | | |
| Project | Diagnostics and Options for Development | | | | | | | | | | | | | | | | | | |
| Date of approval | 27.07.1995 | | | | | | | | | | | | | | | | | | |
| Location | Vila Nova de Gaia | | | | | | | | | | | | | | | | | | |
| Operator | Brax Portuguesa — Fabrica de Confecções LDA | | | | | | | | | | | | | | | | | | |
| Total investment | EUR 20 340,60 | | | | | | | | | | | | | | | | | | |
| Eligible investment | EUR 20 340,60 | | | | | | | | | | | | | | | | | | |
| ERDF approved | EUR 10 171,57 | | | | | | | | | | | | | | | | | | |
| ERDF paid( 2 ) | EUR 10 196,2 | | | | | | | | | | | | | | | | | | |

With specific regard to the ESF, the Commission would point out that funding for vocational training is not subject to requirements for the longevity of the businesses concerned but rather to the access and eligibility criteria laid down in the rules applying at the time for awarding ESF funding.

The Commission believes that any investment in human resources is very important at national and regional level. It must be underlined that ESF funding does not support a company as such, but provides an investment in human capital, so that the training measures from which individuals benefit improve their employability. Moreover, as far as the Commission knows, the business in question has not infringed the rules for support from the Structural Funds.

The Commission would also like, firstly, to point out that Council Directive 98/59/EC( 3 ) provides for information and consultation with the workers' representatives in cases where the employer is contemplating such redundancies. These consultations should be carried out in good time with a view to reaching agreement and cover, at least, ways and means of avoiding collective redundancies or reducing the number of workers affected as well as of mitigating the consequences by recourse to accompanying social measures. These measures aim, inter alia, at aid for redeploying or retraining workers made redundant.

More generally, the Commission advocates the idea that, when deciding on their relocation, enterprises should always take into account the effects that those decisions could have on their employees as well as on the social and regional context. This has recently been underlined in the Commission Communication concerning Corporate Social Responsibility (CSR) — A Business Contribution to Sustainable Development( 4 ).

Furthermore, the Commission invited the European social partners to engage in a dialogue on anticipating and managing change with a view to applying a dynamic approach to the social aspects of corporate restructuring. The social partners agreed to incorporate this issue in their recently adopted pluriannual work programme( 5 )
( 6 ).

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( 1 )  Specific programme for industrial development in Portugal.

( 2 )  The amount paid in euros is higher than the amount approved because of differences in the exchange rate between the time of approval and the time of payment.

( 3 )  Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies, OJ L 225, 12.8.1998.

( 4 )  COM(2002) 347 final.

( 5 )  As a strategic component of employment, training and social development policy.

( 6 )  Social Security's Budget.

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