COMMISSION OF THE EUROPEAN COMVÏUNITIES 
C0M(93) 178 final 
Brussels, 28 ApriI 1993 
Information note concerning the implementation 
of the social measures 
for the restructuration of the steel industry (1993-1905) 
COMMISSION 
OF THE EUROPEAN 
COMMUNITIES Brussels, 28 April 1993 
Information note concerning the implementation 
of the social measures 
for the restructuration of the steel industry (1993-1995) 
Background 
In November 1992 the Commission decided to introduce a 
comprehensive programme with the aim of reinforcing the steel 
industry's competitiveness1*. In December the programme was 
endorsed in principle by the ECSC Consultative Committee2* and 
the Council gave its unanimous assent in February 19933*. It 
comprises social measures which the Commission intends to use to 
step up considerably its action to attenuate the consequences of 
the restructuring for workers and to spread the costs. 
According to the estimates available, arising from the survey of 
undertakings carried out by the Commission (the "BRAUN mission") 
and from information obtained from the national administrations, 
between 55 000 and 60 000 jobs are expected to be lost as a 
direct result of the restructuring: this figure exceeds the 
initial estimates made by the Commission in November 1992. Thus, 
the number of ECSC workers qualifying for Community aid under the 
social measures could be put at some 69 000. This estimate takes 
into account departures and internal transfers and has been 
checked with the relevant authorities in the Member States. 
The undertakings and the governments in the Member States will be 
making a major effort and introducing a range of measures to deal 
with the job losses. The Community, which is taking on clear-cut 
responsibilities in this restructuring, has to contribute to the 
effort, supplementing the national measures by additional 
assistance under these social measures, i.e. additional to the 
"traditional" ECSC aid. Within the context of these complementary 
moves, the plan is to link ECSC funds with funds from the ESF, 
with the scope naturally extending beyond assistance for the 
social consequences of closures pure and simple. Clearly, the 
effect of these social measures could be boosted by contributions 
from other Community instruments (more especially ERDF and 
reconversion loans). 
1) SEC(92) 2160 final. 
2) Meeting of 18 December 1992 
3) See conclusions of the Council of 25 February 1993. 
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Telephone: direct line 295.15.50 exchange 299.11.11 - Telex COMFU B 21877 - Telegrophic oddress COMEUR Brussels - Telefax 295.01.29 
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ECSC readaptation aid (Social measures) 
ECSC assistance under these social measures will supplement the 
"traditional" form of ECSC aid under bilateral agreements with 
the Member States. It will thus enable a more significant part of 
the costs to be covered, in some cases doubling the ECSC 
contribution for certain measures. 
In this way the ECSC financial assistance will respond more 
flexibly and rapidly to the needs resulting from application of 
the restructuring programme. 
The availability of the complementary contribution will depend on 
the Commission's appraisal in October 1993 of how the capacity 
reduction programme is progressing. 
2.1 EligibiIity 
In order to qualify, the worker's Job must be affected by a 
programme for the full or partial closure of production capacity 
or for a definitive reduction of activities under an agreement on 
specialization, merger or cooperation between undertakings 
ultimately leading to closures and approved by the Commission. 
As in the case of traditional aid, the ECSC assistance will be 
granted to both production workers and workers in the various 
related services. In addition, aid may be granted to workers who 
are indirectly affected, obliged to change job and/or adapt their 
skills on account of closures. 
2.2 Types of measures 
In recent years the structure of the workforce has changed 
considerably; in particular, the number of older workers has 
declined. Although early retirement will remain a significant 
factor, Member States are tending to strike a different balance 
between the various possible measures, reflecting a desire to 
make greater efforts to redeploy workers. 
While some priority should indeed be given to these two types of 
assistance, the social measures must be sufficiently broadly 
conceived to take into account the diverse social support 
practices in the Member States and also to cope with people left 
without employment and for whom the retirement option is not a 
v iable solut ion. 
(a) Early retirement 
In the context of early retirement, account will be taken of all 
measures designed to pension off older workers on an acceptable 
income. Thus the aid might cover early retirement proper, periods 
of dispensation from work and periods of long-term unemployment 
treated as early retirement. 
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The reference age for access to these measures will be laid down 
in national law or agreements. The expenditure to be covered may 
extend in particular to severance allowances, pensions and 
contributions under social security systems. 
(b) Redeployment 
In the Member States it is becoming increasingly clear that 
vocational training is not sufficient in itself to bring about a 
return to^-emfi+oymen^. On the contrary, successful redeployment 
usually results from a personalized combination of a range of 
measures, associating, for example, vocational training, job-
seeking, personal advice, individual monitoring and various 
initiatives taken by the steel firms for their staff. Thus, 
account will be taken in the context of redeployment of all 
measures contributing to actual reemployment inside or outside 
the undertaking, which may include training or retraining, income 
support, and assistance for transfers and reintegration and/or 
se If-employment. The expenditure to be covered may, in principle, 
concern all these special measures. 
(c) Unemployment 
In some cases, because of the shortage of suitable opportunities 
for reemployment, it will be impossible to cut the workforce by 
means other than redundancies. Workers thus affected should still 
be covered by the social measures. The assistance for unemployed 
workers may include, where appropriate, benefits for short-time 
working in so far as this may enable the closures to be phased 
over time and increase the workers' chances of finding a stable 
situation (by reemployment or some other solution). Similarly, 
the Commission will agree to take into account new forms of work-
sharing involving reductions in working hours. 
2.3 Amount of aid 
It is proposed to set the average ceilings for assistance under 
these various types of measures at ECU 5 000 for early 
retirement, ECU 4 000 for redeployment and ECU 2 000 for 
unemployment. These amounts take into account both the relative 
significance of the total cost of the measures and the priority 
to be given to the different measures in accordance with their 
potential for ensuring stability for workers. Lastly, these 
amounts will ensure that the Community assistance has a 
significant, visible impact: the Community contribution 
(supplementary aid and "traditional" aid combined) will thus 
account for up to between 15 and 20% of the total cost. 
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Given the degree of uncertainty concerning the budget, the 
Commission will reserve the right to make appropriate changes to 
the various aid instalments. 
In accordance with Article 56 of the ECSC Treaty, the total 
amount of aid effectively granted will not exceed the Member 
State's total special contribution. 
The period of assistance during which the ECSC may cofinance the 
expenditure for workers will be restricted to four years from the 
start of the operation, the assistance being over and above the 
"traditional" aid. Advances may be paid on up to 50% of the 
amount granted, as soon as the measures are launched, at the 
Member State's request. 
The Commission mentioned in its comprehensive programme for the 
steel industry that it wanted the ECSC aid to help bring down the 
costs of the social measures resulting from Job losses borne by 
the undertakings in particular. The Commission will be 
particularly attentive to the details which Member States are 
required to give in their applications of any agreements 
concluded on this matter. 
2.4 Other procedures 
The expenditure covered will relate to the programmes implemented 
from 1 January 1993. As a general rule, the procedures and 
conditions for administering assistance other than those 
expressly laid down in this memorandum will be taken over from 
the bilateral agreements on the granting of traditional forms of 
aid. 
Applications for assistance for 1993 should be submitted by 30 
September. Applications for final payment for all the programmes 
assisted under the social measures should be submitted at the 
latest by 31 March of the sixth year following the decision to 
grant assistance. 
3. Assistance from the European Social Fund 
In the context of the social measures for 1993-95, the European 
Social Fund will be able to assist steel workers and, more 
generally, workers in employment areas affected by the 
consequences of restructuring in the steel industry. It will be 
able to help with vocational training and employment aid for 
unemployed workers and workers at risk of unemployment, 
particularly in cases resulting from rationalization and 
modernization operations. During that period, some of these 
measures will be extended and gradually take the place of certain 
aids granted until now under Article 56(2)(b) of the ECSC Treaty. 
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For 1993 the ESF assistance will have to be consistent with 
Objectives 1, 2, 3 and 4 and with the Fund's current rules. 
However, it is for the Member States to amend, if they so wish, 
their priorities for providing assistance under ongoing 
operational programmes jointly financed by the Commission. They 
may then, in the context of monitoring the operations and in 
conjunction with the Commission, reallocate any unused 
appropriations. It will therefore be necessary to determine, 
within the operational programmes, possibilities for assisting 
^teel workers-and^nore generally persons in tne employment areas 
concerned. 
From 1994, if the Commission's proposals for amending the 
Structural Fund regulations are taken on board by the Council and 
Parliament, further ESF assistance will be available for steel 
workers and persons in the employment areas concerned following 
the redefinition of Objective 3 and the definition of the new 
Objective 4. Within that framework the Commission will be able to 
extend its aid to workers experiencing the consequences of 
industrial changes and changes in production systems. 
Regarding the management of ECSC and ESF assistance, any dual 
financing of one and the same measure will clearly have to be 
excluded. Here again, the collaboration of the Member States will 
be essent ial. 
Aid for the conversion of steel-producing areas 
It will also be possible to use assistance from the Regional 
Development Fund and ECSC conversion loans to make a significant 
contribution to measures designed to support employment and 
revitalize the economies of these areas. 
OveraI I proposa Is 
An integrated approach might be adopted, with the assistance from 
the different Funds associated in carrying through these social 
measures, by combining assistance for income support, aid for 
vocational training and employment, and investment aid. 
From 1994 the assistance under the different instruments should 
in principle be incorporated into an overall proposal, presented 
if possible in the framework of the "plans" submitted by the 
Member States and spelling out their priorities for Structural 
Fund assistance. 
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6. Financial aspects 
The Commission plans to allocate to this programme an overall 
indicative appropriation of ECU 240 million to be charged to the 
ECSC operating budget over the period 1993 - 1995. The actual 
budget will be fixed annually under the normal budget procedure. 
The Commission will however, have to confirm this overall total 
in the light of the capacity reduction programmes to be 
specified by the steel industry by the end of September 1993. 
The Commission proposes to maintain, for the first three years, 
the forecast of ECU 60 million earmarked in the 1993 budget, with 
priority being given in 1994 to any programmes which cannot be 
financed in 1993. 
Additional amounts could be financed from the ESF, should the 
Member States come up with the requisite proposals. 

ISSN 0254-1475 
COM (93) 178 final 
DOCUMENTS 
EN 04 05 
Catalogue number : CB-CO-93-215-EN-C 
ISBN 92-77-55592-0 
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