31.10.87 Official Journal of the European Communities NoC291/ll 
Specific Community programme of accompanying social measures — Proposal for a Council 
Regulation instituting a specific Community programme of accompanying social measures to 
assist workers in the shipbuilding industry who are made redundant or threatened with 
redundancy 
COM(87) 275 final 
(Submitted by the Commission to the Council on 31 July 1987) 
(87/C 291/09) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community and, in particular, Article 235 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the shipbuilding industry is suffering from a 
fundamental structural crisis; 
Whereas structural change aimed at improving the 
competitiveness of the Community shipbuilding industry 
and reducing distortions in intra-Community trade will 
best be achieved by the concentration of orders on the 
most competitive of the Community's shipyards and on 
products with the greatest technological content; 
Whereas by adopting the Directive 87/167/EEC of 
26 January 1987 on aid to shipbuilding ('), the Council 
has introduced a tighter and more selective aid policy 
designed to support the present trend in production 
towards ships with a higher technological content and 
ensure fair and uniform conditions for intra-Community 
competition; whereas the said Directive provides parti­
cularly in Article 4 for the fixing of a common maximum 
ceiling for aid applicable not only to all forms of 
production aid — whether under sectoral, general or 
regional aid schemes — granted directly to the yards but 
also to aid to shipowners or to third parties where such 
aid is actually used for the building or conversion of 
ships in Community shipyards; 
Whereas the situation of employment in the shipbuilding 
industry is one of quantitative and qualitative mismatch; 
whereas the imbalance in the field of employment is 
accentuated by the specific problems of the labour 
market in those declining industrial areas where 
shipbuilding is a major industry and unemployment has 
already reached very high levels; whereas the said 
imbalance is also exacerbated by the time-lapse between 
immediate total or partial closures of certain yards and the longer-term beneficial effects of industrial measures 
on the most efficient shipyards and of measures taken in 
the context of employment and regional policies; 
Whereas the structural changes upheld by Directive 
87/167/EEC are such that a' great number and a high 
proportion of shipbuilding workers will be or may be 
forced to change job, acquire new skills or move to 
another part of the Community, or, in the case of the 
more elderly workers, to retire early from working life; 
Whereas, in view of the employment situation, it is 
imperative that a Community programme of new 
accompanying social measures be adopted to assist 
shipbuilding workers who are made redundant or 
threatened with redundancy; 
Whereas the said new specific measures must encourage 
the absorption into economic life, socio-occupational 
integration and geographical mobility of workers made 
redundant or threatened with redudancy, as well as faci­
litate the transition to permanent retirement from 
working life of elderly workers who are no longer 
considered as being in search of employment; whereas 
the said measures must complement the measures 
qualifying for assistance under the European Social Fund 
and the European Regional Development Fund; 
Whereas when adopting the said Directive, the Council 
has also acknowledged that additional measures should 
be adopted in order to alleviate the social and regional 
consequences of the restructuring of the shipbuilding 
sector; for this purpose, the Commission has submitted 
to the Council and the European Parliament a communi­
cation on the industrial, social and regional aspects of 
shipbuilding (2); 
Whereas the Fund shall assist in the implemention of 
policies designed to equip the workforce with the skills 
required for stable employment and to generate 
employment opportunities; whereas the tasks of the 
European Social Fund are defined in Council Decision 
83/516/EEC and whereas the types and limits of 
expenditure which may qualify for assistance from the 
Fund are defined in Article 1 of Council Regulation 
(EEC) No 2950/83; 
(l) OJNo L69, 12. 3. 1987. (2) COM(86) 553 final of 15. 10. 1986. 
No C 291/12 Official Journal of the European Communities 31.10. 87 
Whereas the European Regional Development Fund 
contributes to the correction of the principal regional 
imbalances within the Community by participating in the 
development and structural adjustment of regions whose 
development is lagging behind, and in the conversion of 
declining industrial regions; whereas a specific 
Community regional development measure, contributing 
to overcoming contraints on the development of new 
economic activities in certain zones affected by 
restructuring of the shipbuilding industry, was instituted 
by means of Council Regulation (EEC) No 2617/80, as 
amended by Council Regulations (EEC) No 217/84 and 
(EEC) No 3635/85; whereas the Commission has 
submitted a proposal to the Council for a Regulation 
(EEC) instituting a Community programme for the 
redevelopment of shipbuilding areas (x); 
Whereas, however, the provisions relating to assistance 
from the European Social Fund and the European 
Regional Development Fund respond only in part to the 
specific problems of workers made redundant or 
threatened with redundancy in the shipbuilding industry; 
whereas the range of measures qualifying for assistance 
from the European Social Fund which could be used to 
assist workers affected by restructuring is limited in 
particular by the terms of Article 1 of Council Regu­
lation (EEC) No 2950/83; whereas the operations 
backed by the European Regional Development Fund 
which, mainly through software measures to assist small 
and medium-sized enterprises, are designed to create an 
environment favourable to the development of new 
economic activities, are limited to certain geographical 
areas; whereas, moreover, the workers affected by the 
restructuring of traditional industries have difficulty in 
moving to available jobs and in responding to changes in 
the demand for labour; whereas the adoption of new 
accompanying social measures of direct and immediate 
benefit to all shipbuilding workers made redundant or 
threatened with redundancy in the European Community 
is the most appropriate approach to solving this specific 
problem of the labour market; 
Whereas the proposed new accompanying social 
measures comply with the guidelines contained in the 
Council resolution of 22 December 1986 concerning an 
action programme for employment growth; 
Whereas to improve the impact of assistance, it is 
necessary to ensure, on a trial basis, that the new 
resources are used in the form of programmes; 
Whereas the Treaty has not provided the necessary 
specific power, 
HAS ADOPTED THIS REGULATION: 
Article 1 
A specific Community programme of accompanying 
social measures is hereby instituted to assist workers in 
(') See page 8 in this Official Journal the merchant shipbuilding and ship-repair yards of the 
Community who are made redundant or threatened with 
redundancy under a restructuring plan adopted by the 
firm, group of undertakings or, public authorities which 
entails the termination, reduction or conversion of the 
activities of the shipyards as a consequence of basic 
structural changes in demand. 
Article 2 
1. The Community programme shall encourage the 
absorption into economic life, socio-occupational 
integration and geographical mobility of workers made 
redundant or threatened with redundancy as well as faci­
litate the transition to permanent retirement from 
working life of elderly workers who, from the point of 
view of their national legislation, are no longer 
considered as being in search of employment. 
2. The Community programme is intended to assist 
shipbuilding workers made redundant or threatened with 
redundancy with effect from 1 January 1987. 
3. The duration of the Community programme shall 
be three years as from 1 January 1988. 
Article 3 
1. Assistance under the Community programme shall 
be granted for measures which form part of a 
programme which is defined at national level, is designed 
for the categories of workers, economic branch, groups 
of undertakings or geographical areas concerned and is 
intended to remedy the causes of the imbalances 
affecting employment and encourage social cohesion. 
2. The implementation of the programme shall be the 
subject of a programme contract between the 
Commission and the Member State concerned. 
3. The Member States shall be responsible for 
ensuring the proper implementation of the measures. 
Article 4 
1. Assistance under the Community programme may 
be granted for measures to encourage the absorption of 
workers into economic life and their socio-occupational 
integration which are designed to promote the recruit­
ment by firms, particularly small and medium-sized 
undertakings and local employment initiatives, of 
workers made redundant or threatened with redundancy 
on condition that their new employment contract is of a 
duration of not less than one year. 
2. Assistance under the Community programme may 
be granted for measures to encourage the absorption of 
workers into economic life and their socio-occupational 
integration which are designed to maintain their incomes 
by compensating for any wage difference between the 
old and new jobs of newly recruited workers on 
condition that the new employment contracts of such 
workers are of a duration of not less than one year. 
^u.to.^ official journal of the European Communities ^oCP2^B^ 
o. Assistance under the Community programme may 
he grantedfor measures toencouragetheahsorptionof 
workers into economiclife andtheir socio^occupational 
integration which are designed to help workers made 
redundant or threatened with redundancy to set up a 
firm or createanewselPemployed activity. 
^. Assistance under the Community programme may 
he granted for measures to encou^agetheahsorptionof 
workers into economiclife and their socioDoccupational 
integration which are designed to promote the use hy 
workers made redundant or threatened with redundancy 
of servicesoffereddirectly tothemhy localcounselling 
hodies whose tasks consist mainly in helping workers to 
set upafirm, create selPemployed activities or take part 
inalocal employment initiative. 
^. Assistance under the Community programme may 
he granted for measurestoencouragetheahsorptionof 
workersintoeconomiclifeandtheirsocioDoccupational 
integration which are designed to promote employment 
in projects fulfilling collective needs and entailing the 
creation ofiohsofaminimum duration of one year. 
D. Assistance under the Community programme may 
hegrantedfor measures to encouragethe ahsorptionof 
workers into economiclife andtheirsocioDoccupational 
integration which are designed to maintain, for a 
maximum period of n2 months, the same level of 
earnings for workers who have lost their joh and are 
awaiting training oranew^oh. 
Assistance under the Community programme may he 
granted for measures to encourage geographical mobility 
intendedtofacilitatethemovement of workers who are 
made redundant or threatened with redundancy and are 
obliged tochange their placeofresidencetotakeupa 
new^ob or take part in a trainingcourse as well as of 
members of their family. 
Articled 
Assistance under the Community programme may be 
granted for measures to facilitate the transition to 
permanent retirement from working life of elderly 
workers who are made redundant and, from the point of 
view of their national legislation, are no longer 
considered as being in search of employment. 
A^c^B 
P In the case of the measures defined in Article^^t^ 
only expenditure intended to cover the granting of 
recruitment aid foraperiod of not more than t2 months 
per person shall qualify for assistance under the 
community programme. 2. Assistance under the Community programme may 
be granted atarate of ^^Bo of the average gross wage 
of industrial workers in the member ^tate concerned. 
The amounts of assistance to be granted per person and 
per unit of time, for each member ^tate, shall be as 
determined by the commission in the decision for the 
year in question taken in accordance with Article2^of 
Council Regulation ^EEC^o2^0B^. 
P In the case of the measures defined in Article^^, 
only expenditure intended to cover the granting of an 
incomemaintenance allowance foraperiod of not more 
than t2 months per person shall qualify for assistance 
under the Community programme. 
2. ^ithinthemeaningof this Article, ancomemain 
tenance^ shallbe understood as the maintenance of the 
gross wage and any payments necessary in order to 
retain any connected statutory and nonstatutory 
entitlements enjoyed by the worker in question for a 
normal wage period in his former job. 
0. Assistance under the community programme shall 
be granted atarate of ^^o of the average gross wage 
of industrial workers in the member ^tate concerned. 
The amounts of assistance to be granted per person and 
per unit of time, for each member ^tate, shall be as 
determined by the commission in the decision for the 
year in question taken in accordance with Article2^of 
Council Regulation ^EEC^o2^0B^ 
ArrA^^ 
In the case of the measures defined in Ardcle^^,only 
expenditure intended to cover, foraperiod of not more 
than t2 months per person, the administrative costs 
linkedtothesettingupof afirmandthecreationof a 
new self-employed activity as well as rental costs but 
excluding other operating costs shall qualify for 
assistance under the community programme. 
In the case of the measures defined in Article^^,only 
expenditure intended to cover, foraperiod of not more 
than t2 months per person,the cost of services supplied 
directly to workers by counselling bodies shall qualify for 
assistance under the community programme. 
Arr^^ 
1. In the case of the measures defined in Article^^, 
only e^penditureintendedtocover,foraperiodof not 
more than t2 months per person, the granting of 
recruitment aid for projects aimed at the creation of jobs 
and fulfilling collective needs shall qualify for assistance 
under the community programmed the said jobs must be 
No C 291/14 Official Journal of the European Communities 31.10.87 
stable or likely to provide additional training or 
experience with a vocational content giving access to the 
labour market and facilitating employment in a stable 
job. 
2. Assistance under the Community programme shall 
be granted at a rate of 15 % of the average gross wage 
of industrial workers in the Member State concerned. 
The amounts of assistance to be granted per person and 
per unit of time, for each Member State, shall be as 
determined by the Commission in the decision for the 
year in question taken in accordance with Article 2 (2) of 
Council Regulation (EEC) 2950/83. 
Article 12 
1. In the case of the measures defined in Article 4 (6), 
only expenditure intended to cover, for a maximum 
period of 12 months per person, of a tiding-over 
allowance designed to ensure the same level of earnings 
for redundant workers registered with an official 
employment office and calculated on the basis of the 
difference between unemployment benefit and the 
former level of earnings, shall be eligible for assistance 
under the Community programme. 
2. Within the meaning of this Article, 'the same level 
of earnings' shall be understood as the maintenance of 
80 °/o of the gross wage plus any payments necessary in 
order to retain any connected statutory and non­
statutory entitlements enjoyed by a worker in respect of 
a normal wage period in his former job. 
3. Assistance under the Community programme shall 
be granted at a rate of 15 °/o of the average gross wage 
of industrial workers in the Member State concerned. 
The amounts of assistance to be granted per person and 
per unit of time, for each Member State, shall be as 
determined by the Commission in the decision for the 
year in question taking in accordance with Article 2 (2) 
of Council Regulation (EEC) No 2950/83. 
Article 13 
In the case of the measures defined in Article 5, only 
expenditure intended to cover the granting of a mobility 
premium intended to cover travel expenses, including 
those of dependents, and removal expenses shall be 
eligible for assistance under the Community programme 
on condition that the worker concerned can furnish 
proof of his new employment or participation in a 
training course and has made application for the said 
allowance within 12 months following the date of his 
redundancy or the end of his employment contract in 
shipbuilding. 
Article 14 
In the case of the measures defined in Article 6, only 
expenditure intended to cover the granting of an 
allowance for the permanent retirement from working 
life of elderly redundant workers who, from the point of 
view of their national legislation, are no longer in search 
of employment, regardless of whether they have entered early retirement, or are in receipt of a tiding-over 
allowance in the form of a bridging allowance 
supplementing unemployment benefit, shall qualify for 
assistance under the Community programme. 
Article 15 
1. Assistance under the Community programme 
towards eligible expenditure shall be calculated on the 
' basis of an amount per worker. 
The said amount may not exceed: 
— 2 500 ECU per worker in the case of the measures 
defined in Article 4, 
— 1 500 ECU per worker in the case of the measures 
defined in Article 5, 
— 5 000 ECU per worker in the case of the measures 
defined in Article 6. 
2. Assistance under the Community programme 
towards eligible expenditure in respect of the measures 
defined in Article 4 is limited to 2 500 ECU per worker 
regardless of whether the worker participates in one or 
more measures to encourage the absorption of workers 
into economic life and their socio-occupational 
integration. 
3. Assistance under the Community programme 
towards eligible expenditure in respect of the measures 
defined in Article 5 may be added together with 
assistance under the programme towards eligible ex­
penditure in respect of the measures defined in Article 4. 
4. Assistance under the Community programme shall 
not be granted in respect of expenditure which may be 
classed as eligible and priority expenditure, for assistance 
from the European Social Fund. 
5. Assistance under the Community programme to 
cover eligible expenditure may not exceed the amount of 
the financial contribution made by the public authorities 
of the Member State concerned. 
6. For the purpose of granting assistance under the 
Community programme, the Commission shall give its 
consideration to expenditure made by the Member State 
within the 12 months preceding the date on which the 
application for assistance is received by the Commission. 
Article 16 
1. When assistance under the Community programme 
is not used in conformity with the conditions set out in 
the decision of approval, the Commission may suspend, 
reduce or withdraw the aid after having given the 
relevant Member State an opportunity to comment. 
2. Sums paid which are not used in accordance with 
the conditions laid down in the decision of approval shall 
be refunded. The Member State concerned shall have 
secondary liability for the repayment of unwarranted 
payments. To the extent that a Member State repays to 
31.10.87 Official Journal of the European Communities NoC291/15 
the Community sums owed by the bodies financially 
responsible for an operation, the Community's rights in 
the matter are transferred to the Member State. 
Article 17 
1. Without prejudice to any contracts carried out by 
the Member State, the Commission may make on-the-
spot checks. 
2. Checks on the content of a payment claim may be 
made by representative sampling. Where the sample 
check leads to a reduction, this shall be applied pro­
portionally to the whole of the amount claimed, once the 
Member State has had an opportunity to submit its 
comments. 
3. The Member State shall ensure that the 
Commission has access to the information necessary to 
enable it to appraise both the aims and content of 
applications and of claims, and the progress, financing 
and results of operations. 4. The relevant Member State shall provide the 
Commission with any assistance necessary to carry out 
checks. The Commission shall give the Member State 
due notice of checks. Representatives of the Member 
State may participate in such checks. 
5. At the request of the Commission and with the 
agreement of the relevant Member State, checks may be 
carried out by the competent authorities of that State. 
Representatives of the Commission may participate in 
such checks. 
Article 18 
This Regulation shall enter into force on the day 
following its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.