P7_TA(2012)0490

European Globalisation Adjustment Fund: application EGF/2011/013 DK/Flextronics

European Parliament resolution of 12 December 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/2011/013 DK/Flextronics from Denmark) (COM(2012)0623 — C7-0362/2012 — 2012/2278(BUD))

(2015/C 434/38)

The European Parliament,

having regard to the Commission proposal to Parliament and the Council (COM(2012)0623 — C7-0362/2012),

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,

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),

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,

having regard to the report of the Committee on Budgets (A7-0417/2012),

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

whereas the scope of the European Globalisation Adjustment Fund (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,

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,

whereas Denmark has requested assistance for 303 redundancies, 153 of which are targeted for assistance, in Flextronics International Denmark A/S during the four month reference period from 1 July 2011 to 31 October 2011, including 87 redundancies outside the reference period, but related to the same collective redundancy procedure,

whereas the application fulfils the eligibility criteria laid down by the EGF Regulation,

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

Notes that the Danish authorities submitted the application for EGF financial contribution on 21 December 2011, supplemented by additional information up to 23 August 2012, and that its assessment was made available by the Commission only on 19 October 2012; regrets the lengthy evaluation periods and enquires as to why this particular Danish application required 10 months of assessment; urges the Commission to speed up the evaluation process;

Welcomes the fact that, in order to provide workers with immediate assistance, the Danish authorities decided to start the implementation of the measures on 21 March 2012 , ahead of the final decision about granting EGF support for the proposed coordinated package;

Welcomes the Danish application; deplores, however, the fact that, despite several successful Danish mobilisations of the EGF under both the trade-related criteria and the crisis related criteria, Denmark is among the countries undermining the future of the EGF after 2013 and is blocking the extension of the crisis derogation; it is of concern, furthermore, that Denmark is applying for the mobilisation of the EGF fund on behalf of the Flextronics International Denmark, established by the Singapore-registered Flextronics International Ltd, which is moving its facilities to Asia;

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

Calls for reciprocity in trade between the Union and third countries as an essential condition for EU companies to gain access to new non-European markets;

Highlights the fact that lessons should be learned from the preparation and implementation of this application and other applications involving the mass dismissal of workers;

Notes that the Danish authorities noted in their assessment that only 153 of 303 workers dismissed would choose to participate in the measures; calls on the Danish authorities to use the EGF support to its full potential;

Requests that the institutions involved make the necessary efforts to improve procedural and budgetary arrangements 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 the Commission's assessment on the eligibility of an EGF application, along with the proposal to mobilise the EGF, to the budgetary authority; 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;

Notes that the region of Midtjylland, where the municipality of Skive is located, has already benefited from the EGF support by means of two applications, namely EGF/2010/017 Midtjylland Machinery and EGF/2012/003 Vestas;

Recalls the institutions’ commitment to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing once-off, time-limited individual support which is geared towards 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;

Notes that the Danish authorities propose an expensive, coordinated package of personalised services (EUR 12 891 per worker); welcomes, however, the fact that the package consists of measures that are additional and innovative, compared to those regularly offered by employment agencies, and the package is adapted to assist different groups of workers in terms of skills and experience, so that they can cope with the difficult local labour market;

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 only co-finance 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;

Welcomes the fact that vocational training courses target new areas of possible growth and that the design of the coordinated package is based on an in-depth research of the local labour market and of the features of the dismissed workers;

Notes that information provided about the coordinated package of personalised services to be funded from the EGF includes information about how it complements 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;

Welcomes the fact that the coordinated package of personalised services also offers courses to start a new business, which is foreseen for 20 workers; notes that no financial incentive is proposed for business start-ups;

Welcomes the fact that, following requests from Parliament, the 2012 budget shows payment appropriations of EUR 5 0 0 00 000 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 therefore deserves a dedicated allocation, which will avoid transfers to the extent possible from other budget lines, as has happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF;

Notes, however, the subsistence allowance of EUR 4 439 per worker for the participation in the measures and considers it as too high an allowance; recalls that the EGF should, in future, be primarily allocated to training and job searches, as well as occupational orientation programmes and its financial contribution to allowances should always be of an additional nature and in parallel with what is available to dismissed workers by virtue of national law or collective agreements;

Regrets the decision of the Council to block the extension of the ‘crisis derogation’, which allows for the provision of 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 allows for an increase in the rate of Union co-financing to 65 % of the programme costs for applications submitted after the 31 December 2011 deadline; calls on the Council to reintroduce this measure without delay;

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;

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

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

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

ANNEX

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/2011/013 DK/Flextronics from Denmark)

(The text of this annex is not reproduced here since it corresponds to the final act, Decision 2013/14/EU.)