Information note on procedures concerning the supplementary social measures in connection with the restructuring of the coal industry (2001-2002)
Date: 2000-09-15
Institutions: European Commission
Subjects: ECSC operating budget, EU programme, coal industry, industrial restructuring, welfare

C 265/2

EN

Official Journal of the European Communities

15.9.2000

Information note on procedures concerning the supplementary social measures in connection
with the restructuring of the coal industry (2001-2002)

(2000/C 265/02)

1. Introduction

Since the early 1990s, the restructuring of the coal industry has
continued at a steady pace with the aim,
in some Member
States, of bringing production activities to a close.

these, approximately 17 500 are likely to be affected by restruc-
turing measures or closures during the period in which the
programme will apply. However, given the rules governing
intervention currently in force in the Member States, only
approximately 13 000 will be eligible under this programme.

the coal

industries ((cid:145)traditional aid(cid:146))

industry (1994-1997 and 1998-2000) (2),

Social aid for workers affected by the restructuring of the coal
and the steel
is available under
Article 56 of the ECSC Treaty. In recent years, through the
Rechar programme (1990-1993) (1) and the social measures
the
for
Commission has provided supplementary social aid for coal-
workers. The Commission has now decided to make this
supplementary aid available for the years 2001 and 2002 (to
23 July 2002, the date of expiry of the ECSC Treaty). The
estimated total cost of the programme over the 19 months
for which it will apply is EUR 51 million.

The new programme is a continuation of
the programme
currently applying, which provides for an increased level of
ECSC support to coalworkers affected by early retirement, rede-
ployment and unemployment measures. No changes are being
made either to the levels of aid currently available or to the
implementing conditions.

2. Justification of the measure

Production costs in the Union’s coal industry are, in general,
this, mining
well above world market prices.
companies have for many years been involved in the process
of restructuring and rationalisation. Following the closure of
the last Portuguese mine in 1995, there are now only four
Member States producing coal, namely Germany, Spain,
France and the United Kingdom.

In view of

In Germany, which in terms of production and workforce is
now the main coal producer in the Union, a restructuring plan
has recently been agreed by the coal industry, the trade unions
involve
and the local and federal governments. This will
significant closures and job losses. A similar plan is
in
operation in Spain whereas,
it has been agreed
that all mining will cease in 2005. In the United Kingdom,
most of the restructuring in the sector has been carried out
and production costs are now substantially lower
than
elsewhere in the Union. The British coal
industry still faces
problems in selling its coal, however, particularly given the
increased use of natural gas, the low price of coal on the
international market and the continuing strength of the pound.

in France,

The coal
employs around 95 000 workers.

industry in Germany, Spain and France currently
is estimated that, of

It

(1) OJ C 185, 26.7.1990, p. 18.
(2) OJ C 108, 16.4.1994, p. 3, and OJ C 198, 28.6.1997, p. 6.

A further 13 500 workers are currently employed in the coal
industry in the United Kingdom. It is not foreseen that any of
these workers whose jobs are affected by restructuring will
benefit from the aid provided for in this programme, as the
absence of the special national aid required by Article 56 of the
ECSC Treaty will render them ineligible (see 3.3 below).

3. Assistance procedures

The ECSC aid granted under this programme will supplement
the traditional aid granted under Article 56 of the ECSC Treaty.
This will make it possible to assume a greater proportion of
the cost of the social measures.

3.1. Eligibility

All coalworkers who are eligible for traditional aid under
Article 56(2)(b) and (1)(c) of the ECSC Treaty will also be
eligible for aid under the supplementary programme. The
detailed eligibility criteria for traditional aid are defined in
the bilateral conventions between the Commission and the
Member States.

3.2. Types of measures

In general, the ECSC will co-finance all social measures for
coalworkers in the Member States which fall under one of
the following categories:

3.2.1. Early retirement

Measures to pension off older workers on an acceptable
labour
thereby removing them from the
income,
market.
retirement
Part-time or progressive
measures may also be co-financed.

early

3.2.2. Redeployment

it. A wide

Redeployment may be within the mining company or
range of measures may be
outside
co-financed, as may a combination of these (compen-
sation for loss of wages, severance grants, geographical
mobility payments,
is
however excluded as, since the end of 1994, the ECSC
has not contributed to retraining schemes.

etc.). Vocational

retraining

15.9.2000

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Official Journal of the European Communities

C 265/3

3.2.3. Unemployment

In some coalmining areas, given the shortage of oppor-
tunities for re-employment and the fact that age-related
measures may have been exploited to the full, cuts in
the workforce may lead to unemployment for certain
categories of workers.
In this context, aid under the
supplementary programme may cover many types of
assistance
particularly
unemployed workers,
tide-over allowances and severance grants.

to

3.3. Amounts of aid

The average ceiling for aid is set at EUR 4 000 per person for
early retirement and EUR 2 000 for redeployment and unem-
ployment. In accordance with the provisions of Article 56 of
the ECSC Treaty, the total amount of ECSC aid granted (tradi-
tional aid plus supplementary aid) may not exceed the Member
State’s special contribution to the measures.

3.4. Period of assistance

The period of assistance during which the ECSC may
co-finance expenditure for a worker will be limited to a
maximum of 36 months,
the
reckoned from the date
aid
measure
supplementary
The
begins.
the
programme may either
reinforce Community intervention
during the traditional aid period or cofinance the cost of the
measures during an additional period of no more than 18
months (early retirement) or 12 months (redeployment and
unemployment).

under

mented from 1 January 2001. However, applications for aid
may also relate to measures
implemented in 2000 for
workers who have lost their jobs or whose jobs have been
affected during that year and who have not been included in
the applications for supplementary aid for 2000. As a general
rule, the procedures and conditions governing aid, other than
those specifically set out
in this document, will be those
included in the bilateral agreements for granting traditional aid.

the Member State concerned, subject

Advances of up to 50 % of the amount granted may be paid at
the request of
to its
certifying that the measures have begun and its confirmation
of the number of workers included. Where this number is
lower than forecast, there will be a proportional reduction in
the amount to be paid.

Final requests for payment must be submitted by 31 March of
the fifth year following the decision to grant aid. Unpaid
balances will be automatically cancelled on 30 June of the
same year.

In accordance with the rules governing the plurality of ECSC
and ESF aid, a worker may receive combined aid from the two
Community instruments for non-simultaneous measures with
different aims. Thus, for example, a vocational training course
co-financed by the ESF may be preceded or followed by a
period giving rise to the co-financing of tide-over allowances
by the ECSC.

5. Financial aspects

4. Other procedures

In principle, the expenditure to be co-financed will be that
relating to the programmes of social measures to be imple-

The cost of the programme to the ECSC budget is likely to be
around EUR 29 million in 2001 and EUR 22 million in 2002.
These figures are indicative and the final allocations will be
decided during the annual budgetary procedure.