# CE2014068EN.01010902.xml

| 7.3.2014 | EN | Official Journal of the European Union | CE 68/109 |
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7.3.2014

EN

Official Journal of the European Union

CE 68/109

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Tuesday 23 October 2012European Globalisation Adjustment Fund: application EGF/2012/002 DE/manroland

P7_TA(2012)0382

European Parliament resolution of 23 October 2012 on the proposal for a decision of the European Parliament and of the Council on 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/2012/002 DE/manroland from Germany) (COM(2012)0493 – C7-0294/2012 – 2012/2230(BUD))

2014/C 68 E/24

The European Parliament,

The European Parliament

| — | having regard to the Commission proposal to the European Parliament and the Council (COM(2012)0493 – C7-0294/2012), |
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having regard to the Commission proposal to the European Parliament and the Council (COM(2012)0493 – C7-0294/2012),

| — | 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 (1) (IIA of 17 May 2006), and in particular point 28 thereof, |
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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 (1) (IIA of 17 May 2006), and in particular point 28 thereof,

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| — | having regard to 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) (EGF Regulation), |
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having regard to 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) (EGF Regulation),

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| — | having regard to the trilogue procedure provided for in point 28 of the IIA of 17 May 2006, |
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having regard to the trilogue procedure provided for in point 28 of the IIA of 17 May 2006,

| — | having regard to the letter of the Committee on Employment and Social Affairs, |
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having regard to the letter of the Committee on Employment and Social Affairs,

| — | having regard to the report of the Committee on Budgets (A7-0346/2012), |
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having regard to the report of the Committee on Budgets (A7-0346/2012),

| A. | whereas the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market, |
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A.

whereas the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market,

| B. | whereas the scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis, |
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B.

whereas the scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis,

| C. | whereas the Union’s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible, in accordance with the Joint Declaration of the European Parliament, the Council and the Commission adopted during the conciliation meeting on 17 July 2008, and having due regard for the IIA of 17 May 2006 in respect of the adoption of decisions to mobilise the EGF, |
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C.

whereas the Union’s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible, in accordance with the Joint Declaration of the European Parliament, the Council and the Commission adopted during the conciliation meeting on 17 July 2008, and having due regard for the IIA of 17 May 2006 in respect of the adoption of decisions to mobilise the EGF,

| D. | whereas Germany has requested assistance for 2 284 redundancies, 2 103 of which are targeted for assistance, in printing machinery manufacturer manroland AG and two of its subsidiaries as well as one supplier in Germany, |
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D.

whereas Germany has requested assistance for 2 284 redundancies, 2 103 of which are targeted for assistance, in printing machinery manufacturer manroland AG and two of its subsidiaries as well as one supplier in Germany,

| E. | whereas the application fulfils the eligibility criteria set up by the EGF Regulation, |
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E.

whereas the application fulfils the eligibility criteria set up by the EGF Regulation,

| 1. | Agrees with the Commission that the conditions set out in Article 2(a) of the EGF Regulation are met and that, therefore, Germany is entitled to a financial contribution under that Regulation; |
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1.

Agrees with the Commission that the conditions set out in Article 2(a) of the EGF Regulation are met and that, therefore, Germany is entitled to a financial contribution under that Regulation;

| 2. | Notes that the German authorities submitted the application for EGF financial contribution on 4 May 2012 and that its assessment was made available by the Commission on 13 September 2012; welcomes the speedy evaluation process; |
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2.

Notes that the German authorities submitted the application for EGF financial contribution on 4 May 2012 and that its assessment was made available by the Commission on 13 September 2012; welcomes the speedy evaluation process;

| 3. | Notes these redundancies concern three different regions of Germany - Augsburg (Bavaria), Offenbach (Hessen) and Plauen (Saxony), with other neighbouring major towns also being affected by the closure and the redundancies, including Aschaffenburg, Wiesbaden, Darmstadt and Frankfurt / Main; notes that the weakest of the regions is Plauen, located in the eastern part of Germany, with a small population but a high dependency on social welfare payments; notes that the insolvency of manroland removes the third largest employer of the area (700 workers prior to the closure) and one of only three that were of a sufficient size to have collective wage agreements with their workers; |
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3.

Notes these redundancies concern three different regions of Germany - Augsburg (Bavaria), Offenbach (Hessen) and Plauen (Saxony), with other neighbouring major towns also being affected by the closure and the redundancies, including Aschaffenburg, Wiesbaden, Darmstadt and Frankfurt / Main; notes that the weakest of the regions is Plauen, located in the eastern part of Germany, with a small population but a high dependency on social welfare payments; notes that the insolvency of manroland removes the third largest employer of the area (700 workers prior to the closure) and one of only three that were of a sufficient size to have collective wage agreements with their workers;

| 4. | Welcomes the fact that social partners adopted a social plan for the redundancies in Manroland and that two transfer companies will design and manage the coordinated package of personalised services; |
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4.

Welcomes the fact that social partners adopted a social plan for the redundancies in Manroland and that two transfer companies will design and manage the coordinated package of personalised services;

| 5. | Notes that manroland before its insolvency employed 6,500 workers and that it was a modern manufacturer of machinery with modern know-how and attractive pay rates; considers that the break-up of this enterprise (with a loss of one third of its workforce) will cause a loss of skills, potentially affecting other employers and the regions concerned; considers that workers finding a new job will have to accept a lower wage level, which will in turn reduce their purchasing power and the cash-flow within the local economy; considers that the three regions will in addition lose one of the most influential employers, with no immediate prospect of an equivalent successor arising in the near future; |
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5.

Notes that manroland before its insolvency employed 6,500 workers and that it was a modern manufacturer of machinery with modern know-how and attractive pay rates; considers that the break-up of this enterprise (with a loss of one third of its workforce) will cause a loss of skills, potentially affecting other employers and the regions concerned; considers that workers finding a new job will have to accept a lower wage level, which will in turn reduce their purchasing power and the cash-flow within the local economy; considers that the three regions will in addition lose one of the most influential employers, with no immediate prospect of an equivalent successor arising in the near future;

| 6. | Notes that more than half of the EGF support will be spent on allowances - 2001 workers are said to receive during their active participation in the measures a short-time allowance (estimated cost EUR 2 727,67 per worker over 6 to 8 months) to complement a subsistence allowance paid by the public employment services on the basis of the net salary earned; further notes that the application includes a lump sum between EUR 4 000 and EUR 1 000 as activation premium for 430 workers who accept a work contract with a lower salary than the one in their previous job; |
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6.

Notes that more than half of the EGF support will be spent on allowances - 2001 workers are said to receive during their active participation in the measures a short-time allowance (estimated cost EUR 2 727,67 per worker over 6 to 8 months) to complement a subsistence allowance paid by the public employment services on the basis of the net salary earned; further notes that the application includes a lump sum between EUR 4 000 and EUR 1 000 as activation premium for 430 workers who accept a work contract with a lower salary than the one in their previous job;

| 7. | Welcomes the fact that the implementation of the coordinated package of personalised services started on 1 August 2012 - well ahead of the decision to grant EGF support by the budgetary authority; notes that redundant workers have also benefitted to from the ESF support before participating in the EGF measures; notes that the German authorities confirmed that necessary precautions have been taken to avoid double financing from Union funds; |
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7.

Welcomes the fact that the implementation of the coordinated package of personalised services started on 1 August 2012 - well ahead of the decision to grant EGF support by the budgetary authority; notes that redundant workers have also benefitted to from the ESF support before participating in the EGF measures; notes that the German authorities confirmed that necessary precautions have been taken to avoid double financing from Union funds;

| 8. | Recalls that that the EGF support should primarily be allocated to job search and training programs instead of contributing directly to financial allowances; believes that, if included in the package, EGF support should be of complementary nature and never replace allowances under the responsibility of Member States or companies by virtue of national law or collective agreements; |
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8.

Recalls that that the EGF support should primarily be allocated to job search and training programs instead of contributing directly to financial allowances; believes that, if included in the package, EGF support should be of complementary nature and never replace allowances under the responsibility of Member States or companies by virtue of national law or collective agreements;

| 9. | Recalls the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career; expects the training on offer in the coordinated package to be tailored not only to the needs of the dismissed workers, but also to the actual business environment; |
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9.

Recalls the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career; expects the training on offer in the coordinated package to be tailored not only to the needs of the dismissed workers, but also to the actual business environment;

| 10. | Welcomes the fact that the relevant social partners and stakeholders have been involved in the planning and implementation of the EGF application from the outset; |
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10.

Welcomes the fact that the relevant social partners and stakeholders have been involved in the planning and implementation of the EGF application from the outset;

| 11. | Welcomes the fact that the coordinated package of personalised measures seeks to enhance transborder mobility by supporting international job-search; |
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11.

Welcomes the fact that the coordinated package of personalised measures seeks to enhance transborder mobility by supporting international job-search;

| 12. | Highlights the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals; |
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12.

Highlights the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals;

| 13. | Notes that according to the German authorities the EGF coordinated package of personalised services constitutes a significant added value to the measures available under national and ESF funds; |
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13.

Notes that according to the German authorities the EGF coordinated package of personalised services constitutes a significant added value to the measures available under national and ESF funds;

| 14. | Requests the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF; appreciates the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF; hopes that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (2014–2020) and that greater efficiency, transparency and visibility of the EGF will be achieved; |
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14.

Requests the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF; appreciates the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF; hopes that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (2014–2020) and that greater efficiency, transparency and visibility of the EGF will be achieved;

| 15. | Recalls the institutions’ commitment to ensuring a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing one-off, time-limited individual support geared to helping workers who have been made redundant as a result of globalisation and the financial and economic crisis; emphasises the role that the EGF can play in the reintegration of workers made redundant into the labour market; |
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15.

Recalls the institutions’ commitment to ensuring a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing one-off, time-limited individual support geared to helping workers who have been made redundant as a result of globalisation and the financial and economic crisis; emphasises the role that the EGF can play in the reintegration of workers made redundant into the labour market;

| 16. | Stresses that, in accordance with Article 6 of the EGF Regulation, it should be ensured that the EGF supports the reintegration of individual redundant workers into employment; further stresses that the EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment; reiterates that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors; deplores the fact that the EGF might provide an incentive for companies to replace their contractual workforce with a more flexible and short-term one; |
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16.

Stresses that, in accordance with Article 6 of the EGF Regulation, it should be ensured that the EGF supports the reintegration of individual redundant workers into employment; further stresses that the EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment; reiterates that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors; deplores the fact that the EGF might provide an incentive for companies to replace their contractual workforce with a more flexible and short-term one;

| 17. | Notes that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds; reiterates its call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect of the existing regulations and that no duplication of Union-funded services can occur; |
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17.

Notes that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds; reiterates its call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect of the existing regulations and that no duplication of Union-funded services can occur;

| 18. | Welcomes the fact that following requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and that it therefore deserves a dedicated allocation, which will avoid transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF; |
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18.

Welcomes the fact that following requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and that it therefore deserves a dedicated allocation, which will avoid transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF;

| 19. | Regrets the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65 % of the programme costs, for applications submitted after the 31 December 2011 deadline, and calls on the Council to reintroduce this measure without delay; |
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19.

Regrets the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65 % of the programme costs, for applications submitted after the 31 December 2011 deadline, and calls on the Council to reintroduce this measure without delay;

| 20. | Approves the Decision annexed to this resolution; |
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20.

Approves the Decision annexed to this resolution;

| 21. | Instructs its President to sign the decision with the President of the Council and to arrange for its publication in the Official Journal of the European Union; |
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21.

Instructs its President to sign the decision with the President of the Council and to arrange for its publication in the Official Journal of the European Union;

Official Journal of the European Union

| 22. | Instructs its President to forward this resolution, including its annex, to the Council and the Commission. |
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22.

Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

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(1)  OJ C 139, 14.6.2006, p. 1.

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(2)  OJ L 406, 30.12.2006, p. 1.

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Tuesday 23 October 2012ANNEX

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/2012/002 DE/manroland from Germany).

(The text of this annex is not reproduced here since it corresponds to the final act, Decision 2012/732/EU.)

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