ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)676
Vol.1980/0216

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COMMISSION OFTHEEUROPEAN COMMUNITIES
I
COM (80)676 final
Brussels .29th October 1980
ΝΛÅ \ r®
-ΪΓ' /ί3/
C A­^an :
•.ay
COMMUNICATION FROM THE COMMISSION TOTHE COUNCIL
ONALLOWANCES AND ADDITIONAL BUDGET RESOURCES
FOR WORKERS INTHE STEEL INDUSTRY
COM (80)676 final

COMMUNICATION FROMTHECOMMISSION TOTHECOUNCILONALLOWANCES .ANDADDITIONAL
BUDGETRESOURCES FORWORKERSINTHESTEELINDUSTRY
A.TYPESOP_AirSPROPOSED
1.On5May1979\theCommissionsenttheCouncilacommunication onthe
socialaspectsoftherestructuring ofthesteelindustry,inwhichit
proposedthatworkersinthesteelindustrybegrantedthefollowingallowances
(a)anearlyretirementallowanceattheageof55and,forsomecategories
ofworkers,atanevenearlierage;
(b)ashort-timework(partialunemployment )allowancewithaviewtomaking
itpossibletospreadoutjoblossesovertime;
{c)anallowanceforimprovingtheworkcycle;
(d)anallowanceforearningscompensationintheeventofreductionin
overtime#
Theseproposalswerefollowedby.aproposalof20June1979withregardto
contributions tobegrantedtotheECSCoutoftheGeneralBudgetofthe
EuropeanCommunities^.
2.Furthermore,theCommissionsenttotheCouncilon^October1980,in
connectionwithitsrequestforapplicationofArticle58oftheECSCTreaty,
2acommunication ontheSocialAspectsoftheIronandSteelPolicy,in
whichitcalledontheCounciltoadoptforthwithearlyretirementand
short-timeworkingallowancesforworkersinthesteelindustry.
'However,theCommissionwouldpointoutthatinthiscommunication short-
timeworkingallowancesdonotentirelyfallwithinthesamecategoryasthe
earlyretirementallowances.Thepurposeofearlyretirementallowances
is-asintheCommission'sproposalof5May1979-tomitigatetheeffects
uponworkersoftherestructuring ofthesteelindustry.
?DocumentC0M(79]199final,amendedon20.7.1979byDoc.C0M(79)436final.
^DocumentC0M(80)587final.*
DocumentCOM(79;345final,amendedon25»3»1980byDoc.C0M(80)134final.

Theseallowances need,tobegranted,forafairlylongperiod*Itbecomes
apparentlaterinthisdocumentthattheCommissionisproposingthatthey
b9grantedforaperiodofthreeyears„
Asfortheshort–timeworkingallowances ,theCommissiontakestheview
thattheirdurationshouldbestrictlylimited.Theirsolepurpose
shouldbetomakeitpossibletohelpworkersobligedtoworkshort-time
asaresultofthepresentsituationonthesteelmarket0
BoRECENTREQU5STSFORAIDS
3oTheFrench,UoK*andBelgianGovernments havesubmittedapplications for
helpforworkersinthesteelindustry.Theapplications bytheFrenchand
UoK„Governments areforCommunitycontributions of300mEUAand140mEUA
respectively oTheymainlyconcernearlyretirement ;allowances s
ToerequestbytheBelgianGovernment formspartofanoverallprogrammeand
doesnotspecifytheamountofCommunityaidrequired .,Itinvolvesearly
retirament andshort-'tiiaeworkingallowances „
4®Itmustalso "bestressedthataspartoftherestructuring -measuresto
whichitiscontributing atpresent,theCommissionhasintervened onbehalf
ofworkersinthesteelindustryinthreecasesofearlyretirementin
Luxembourg ,FranceandtheUnitedKingdom,,
5«TheCoomiasionrecallsthataspartofECSCoperations ,examination of
comparablerequestsmade"byMemberStatesiscarriedout0x1thebasisofthe
followingcriteria ?
(a)theCommunity'scontribution tothecostsofthemeasuresisgranted
foramaximumofthreeyearsperworker;
(b)ea5rlypensionstowhichtheCommunitymaycontributearegrantedto
workersfromtheageof55«Exceptionally ,certainspecialcategories
suchasworkerswithmo:PSthantenyearsofshiftworkbehindthem,
invalidedworkers,etc*,maybeconsidered whentheyreachtheageof
50;

-3-
(o)theCommunity'scontributionisonlyforsumspaidoverandabove
theminimumunemployment benefitspaidoutbythenationalauthorities .
ThemaximumCommunitycontributionis5^ofsuchsums;
(d)asregardsseverancepayments,adistinction mustbemadebetween
variouscategories.Bothworkersreceivinganearlyretirement
allowanceandthosereceivingseverancepaymentsmayqualifyfora
Communitycontribution ,,Furthermore ,alimitedcontribution may
begrantedtocoverexpenditurerelatedtothepaymentofpensions
andsocialbenefits }
(e)insomecases.,ceilingshavebeenfixedfortheseinterventions .,
6.TheCommissionbasnotyethadanopportunitytoexaminethedetails
togetherwiththeMemberStatesofthebilateralagreements whichshould
bedrat«iuptodealwiththeapplications Whichhavebeenmade.The
arrangementscontainedintheseagreementswillnodoubtbeinspiredby
th©principlessatoutinparagraph 5andbythewishtoprovidean
adequatelybalanced "responsetotheapplications whichhavebeenmade,
takingaccountofth®specificfeaturesofthevariousnationalsystems,,
C.LEGALBAS!S
7®TheUKandFrenchapplications weremadeonthebasisofArticle5^(2)(b)0
TheBelgianapplication wasmadeonthebasisofArticle56(2)(b)and
Article95'oftheECSGTreaty,,
Th©proposalsubmittedtotheCouncilon5fey1979,whichintroduced
fourallowancesforworksrsinthesisalindustry(seeparagraphl),was
basedonArticle95°
«
however,theGcffimissionwealdliketostressthatitintendstotakea
pragmaticattitudeinthisoonrtection,ItisaskingtheCouncilto,
decideontwof+.be?e-sjBsasuressearlyretire®antallowancesandshort-time
workingallvv^m Shouldthere "beaconsensuswithintheCouncilin
favourcftheseras&suresonArticle56(2){b)viaageneral
ofz!:^iri'iel9sth©CoaaissionwouldsupportBuoha
p-osiiicn.

D.EFFECTSONTHEBUDGET
8.Aspointedoutinparagraph 3PPrancehasaskedforaCommunity
contribution of300mEUAStheUnitedKingdomhasaskedfor140mEUA,
whileBelgium'srequirements havenotbeenspecified.
Anexamination ofthethreeapplications onthebasisofthecriteriaset
outinparagraph 5resultsinanestimateof157®EUAasthetotalamount
oftheCommunitycontribution inrespectofthesethreerecpiests ,,The
EGSObudgetaryprocedurerequiresthataidsinvolvingaformalcommitment
totherecipientmustb®coverediatheirentirety,nevertheless ,since
only112mEUAoatofthetotalof157mEUAmilhavetobepaidout
in1981,theCommissionco-aidagree«■»inviewofthespecialimportance
ofthismatter «■»tohavingonlythissuaof112mEUAenteredinChapter54
oftheI98.IGeneralBudget,Thiswouldleaveabalancewhichwouldhave
tobeoovsrsdl&terwithinthe-frarosworkoftheannua.!budgetaryprocedure ,,
9»Thesefigurestakeaccountonlyofthoseapplications sofarsubmitted
totheCommiesion0Itislikelythatfurtherapplications willreach
theCoffisnigsionduringtheco.miagmonths~>eitherfromMemberStateswhich
havenotyetsubmittedapplications orfromMaaberStataswhereafurther
effortwilltoemadetoreducethework–forceinthesteelindustries ,
10oTheCommissionremindstheCouncilthattheECSCBudgetprovides
for75»EWAforreada.ptationinthe1981financialyear.Thissum
ismadeupof15mEUAtocoverreadaptation operationslaunchedinI98O5
butforwhichEG3GresourcesforI98Owereiae,dequats ?andof60mEUA
forreadaptation operationsan.noun.cadbytheMemberStates -underbilateral,
agreementswiththeCommission ,,Theresourcesneededin1981tocover
theapplications referredtoinparagraph8abovewillthushavetobe
raisedbya.transferfromChapter54ofthe1981GeneralBudgettothe
ECS3Budgetforreadaptation appropriations#

H•*
11.The Commission tpices -theview that the stun of112 mEUA should be
entered inChapter 54ofthe1931 General Budget . .
Furthermore ,theCouncil will have togiv6 aruling ontheprocedure for
transferring from theGeneral Budget totheSCSC Budget ,astheCommission
proposed inthe document sreferred toinparagraph 1.
E. CONCLUSIONS
TheCommission therefore requests that theCouncil should ?
(i)state itsposition onthelegal basis tobeadopted asjustification
forthegranting ofearly retirement andshort–time working
allowances toworkers inthe steel industry ;
(li)provide forthemmof112mEUAinChapter 54ofthe1981 General Budget ,
bearing inmind that .157®SUAareneeded tooover theapplications
already submitt ed$ ' * ■
(iii)decide ontheprocod-vu'c fortransfer from theGeneral Budget tothe
SCSC Budget ont.&9 >asis ofArti.ole 235oftheEECTreaty .