Official Journal of the European Union

P8_TA(2016)0366

Mobilisation of the European Globalisation Adjustment Fund: application EGF/2016/001 FI/Microsoft

European Parliament resolution of 4 October 2016 on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (application from Finland — EGF/2016/001 FI/Microsoft) (COM(2016)0490 — C8-0348/2016 — 2016/2211(BUD))

(2018/C 215/41)

The European Parliament,

having regard to the Commission proposal to the European Parliament and the Council (COM(2016)0490 — C8-0348/2016),

having regard to Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006 (1) (EGF Regulation),

having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (2) , and in particular Article 12 thereof,

having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (3) (IIA of 2 December 2013), and in particular point 13 thereof,

having regard to the trilogue procedure provided for in point 13 of the IIA of 2 December 2013,

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

having regard to the letter of the Committee on Regional Development,

having regard to the report of the Committee on Budgets (A8-0273/2016),

whereas, while globalisation generally creates economic growth, such growth should also be used to alleviate the situation of people facing negative effects of globalisation;

whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns or of the global financial and economic crisis and to assist their reintegration into the labour market;

whereas the Union’s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible;

whereas Finland submitted application EGF/2016/001 FI/Microsoft for a financial contribution from the EGF under the intervention criteria set out in Article 4(1)(a) of the EGF Regulation, following 2 161 redundancies in Microsoft Mobile Oy and 8 of its suppliers and downstream producers in Finland, operating in the NACE Revision 2 division 62 (Computer programming, consultancy and related activities);

whereas the application fulfils the eligibility criteria established by the EGF Regulation;

whereas the financial control of the actions supported by the EGF is the responsibility of the Member State concerned, as laid down in Article 21(1) of the EGF Regulation;

Agrees with the Commission that the conditions set out in Article 4(1)(a) of the EGF Regulation are met and that, therefore, Finland is entitled to a financial contribution of EUR 5 364 000 under that Regulation, which represents 60 % of the total cost of EUR 8 940 000;

Notes that Finland submitted the application for a financial contribution from the EGF on 11 March 2016, and that following additional information provided by Finland, its assessment was finalised by the Commission on 29 July 2016, thereby respecting the deadline of 12 weeks from receipt of the completed application, who concluded that the conditions for awarding a financial contribution from the EGF had been met;

Notes that the main reason behind the redundancies at Microsoft is the declining market share of its phones using the Microsoft Windows operating system from over 50 % in 2009 to 0,6 % in the second quarter of 2016;

Recalls that the Union share in global ICT sector employment has decreased in recent years, and that ICT plays a key role in the Finnish economy, with 6,7 % of employees working in the ICT sector in 2014, the highest percentage amongst all Member States; considers that the redundancies in Microsoft are linked with the trend that has affected the entire Finnish electronics industry since the decline of Nokia in its country of origin and for which four previous applications have been presented; concludes that those events are directly linked to structural changes in world trade patterns due to globalisation;

Recalls that the software industry is highly international and that competition within the sector is global, meaning all market players can compete for the same customers and the location and cultural background of personnel has limited significance;

Recognises that this application continues a series of cases revolving around the decline of Nokia in Finland and that two further related applications for workers being made redundant in the ICT sector are expected to follow;

Notes that redundancies are concentrated in NUTS 2 regions Helsinki-Uusimaa (FI1B), Etelä-Suomi (FI1C) and Länsi-Suomi, (FI197) and concern workers with highly varying competencies, 89 % of them between 30 and 54 years of age; is concerned about the already difficult unemployment situation of highly skilled and educated people whose employment prospects would otherwise be traditionally good, especially women, who face a greater challenge in finding employment, taking into consideration that they represent almost half of the targeted beneficiaries;

Notes that, to date, the Computer programming, consultancy and related activities sector has been the subject to two previous EGF applications, both based on the globalisation criterion (EGF/2013/001 FI/Nokia and EGF/2015/005 FI/Computer programming);

Emphasises the importance of the ICT sector to employment in the regions of Helsinki-Uusimaa, Etelä-Suomi and Länsi-Suomi and the potential for the redundant workers to contribute to the industry if they receive sufficient support through further education, training and plans to take up entrepreneurship;

Welcomes the fact that the Finnish authorities started providing the personalised services to the affected workers on 11 September 2015, well ahead of the application for the EGF support for the proposed coordinated package, since such actions are eligible for co-funding from the EGF;

Welcomes the high percentage (close to 80 %) of the overall package being used for personalised services;

Notes that Finland is planning six types of measures for the redundant workers covered by this application: (i) coaching measures and other preparatory measures; (ii) employment and business services; (iii) vocational labour training; (iv) pay subsidised; (v) start-up grants; and (vi) allowances for travel, overnight and removal costs; notes that sufficient funds have been allocated to control and reporting;

Notes that the pay subsidies mentioned in paragraph 12 will be between 30 and 50 % of the worker’s payroll costs and will be given for a period of 6 to 24 months; calls on Member States to pay strict attention when using pay subsidies to ensure that redundant workers hired with a subsidy are not replacing, in whole or in part, a position held previously by another employee at the company concerned; is pleased that the Finnish authorities have given assurances that this is the case;

Notes that the income support measures amount to 16,64 % of the overall package of personalised measures, well below the 35 % limit set by the EGF Regulation and that those actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities;

Invites the Commission to evaluate and provide information about the impact of the income support measures over a period of several years, to ensure that they are supporting high-quality employment and not being used to subsidise short-term, low-cost contracts;

Notes that the coordinated package of personalised services has been drawn up in consultation with the representatives of the targeted beneficiaries, social, national and regional partners;

Recalls the importance of improving the employability of all workers; expects the training on offer to be adapted to the needs, skills and competences of the dismissed workers, and to the actual business environment;

Notes that the Microsoft case will cooperate with Labour Mobility in Europe 2014–2020, which is a national EURES service development project; notes that international recruitment events will be organised regionally in cooperation with EGF and EURES services; welcomes such measures and the fact that the Finnish authorities are encouraging the redundant workers to fully benefit from their right to free movement;

Notes that a national package of measures entitled ‘Models between the recruiting company and the retrenching company’ has been launched within the European Social Fund; notes that this package of measures will produce results that may be useful for the implementation of projects under this EGF application; welcomes the efforts of the Finnish authorities to search for synergies with other actions funded by national or Union funds;

Recalls that, in line with Article 7 of the EGF Regulation, the design of the coordinated package of personalised services should anticipate future labour market perspectives and required skills and should be compatible with the shift towards a resource-efficient and sustainable economy;

Notes that in previous EGF cases providing face-to-face services for redundant workers has proven to be extremely useful;

Notes that the Finnish authorities have confirmed that the proposed actions will not receive financial support from other Union funds or financial instruments, that any double financing will be prevented and that such actions are complementary to actions funded by the Structural Funds; reiterates its call to the Commission to present an annual comparative evaluation of those data to ensure full respect of the existing regulations and that no duplication of Union-funded services can occur;

Welcomes Finland’s assurance that a financial contribution from the EGF will not replace actions the enterprise concerned is required to take by virtue of national law or pursuant to collective agreements;

Appreciates the improved procedure put in place by the Commission, following the Parliament's request for the accelerated release of grants; notes the time pressure that the new timetable implies and the potential impact on the effectiveness of case instruction;

Approves the decision annexed to this resolution;

Official Journal of the European Union

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

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

(1) OJ L 347, 20.12.2013, p. 855.

(2) OJ L 347, 20.12.2013, p. 884.

(3) OJ C 373, 20.12.2013, p. 1.

ANNEX

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Globalisation Adjustment Fund (following an application from Finland — EGF/2016/001 FI/Microsoft)

(The text of this annex is not reproduced here since it corresponds to the final act, Decision (EU) 2016/1857.)