Proposal for a 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/2010/031 BE/General Motors Belgium from Belgium)
Date: 2011-04-14
Institutions: European Commission
Subjects: Belgium, EU aid, budgetary procedure, commitment of expenditure, dismissal, financial management, fund (EU), globalisation, interinstitutional agreement, reintegration into working life

EN 

EN 

   EN 

 
EUROPEAN COMMISSION 

Brussels, 14.4.2011 
COM(2011) 212 final 

Proposal for a 

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/2010/031 BE/General Motors Belgium from 
Belgium) 

EN 

   EN 

 
 
  
EXPLANATORY MEMORANDUM 

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 
management1  allows  for  the  mobilisation  of  the  European  Globalisation  Adjustment  Fund 
(EGF)  through  a  flexibility  mechanism,  within  the  annual  ceiling  of  EUR 500 million over 
and above the relevant headings of the financial framework. 

The rules applicable to the contributions from the EGF are laid down in Regulation (EC) No 
1927/2006  of  the  European  Parliament  and  of  the  Council  of  20  December  2006  on 
establishing the European Globalisation Adjustment Fund2. 

On  20  December  2010,  Belgium  submitted  application  EGF/2010/031  BE/General  Motors 
Belgium for a financial contribution from the EGF, following redundancies in General Motors 
Belgium3 and four of its suppliers in Belgium. 

After  a  thorough  examination  of  this  application,  the  Commission  has  concluded  in 
accordance  with  Article  10  of  Regulation  (EC)  No  1927/2006  that  the  conditions  for  a 
financial contribution under this Regulation are met. 

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 
EGF Reference no. 
Member State 
Article 2 
Primary enterprise 
Suppliers and downstream producers 
Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundancies before and after the reference period 
Total eligible redundancies 
Redundant workers targeted for support 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF4 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

EGF/2010/031 
Belgium 
(a) 
General Motors Belgium 
4 
14.6.2010 – 14.10.2010 
14.06.2010 
20.12.2010 
1 336 
1 498 
2 834 
2 834 
14 324 894,84 
435 000,00 
2,95 
14 759 894,84 
9 593 931 

1. 

The  application  was  presented  to  the  Commission  on  20  December  2010  and 
supplemented by additional information up to 24 January 2011. 

1 
2 
3 
4 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
Generally referred to as 'Opel Antwerp' 
In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

EN 

2 

   EN 

 
                                                 
2. 

The application meets the conditions for deploying the EGF as set out in Article 2(a) 
of  Regulation  (EC)  No  1927/2006,  and  was  submitted  within  the  deadline  of  10 
weeks referred to in Article 5 of that Regulation. 

Link  between  the  redundancies  and  major  structural  changes  in  world  trade  patterns 
due to globalisation or the global financial and economic crisis 

3. 

In order to establish the link between the redundancies and the global financial and 
economic  crisis,  Belgium  argues  that  due  to  the  crisis  the  production  of  motor 
vehicles  (cars,  lorries  and  busses)  in  Europe  dropped  dramatically  in  2009:  a 
decrease of 17,3 % compared to 2008 and 23 % compared to the pre-crisis situation 
of  2007.  The  production  of  motor vehicles  in  Belgium  followed  the  same  trend.  In 
2009 the assembly of motor vehicles decreased by 23,8 % compared to 2008, for the 
assembly of passenger cars the decrease reached even 34,8 %. 

4. 

Belgium argues that the financial and economic crisis impacted upon the automotive 
industry in the following way: 

–  Firstly, through a significant drop in demand for passenger cars and commercial 
vehicles  as  a  result  of  more  stringent  conditions  governing  access  to  consumer 
credits, low consumer confidence and a decrease of consumer purchasing power; 

–  Secondly, financing difficulties in different parts of the automotive industry, lack 
of  liquidity  and  the  inertia  of  money  flows  through  the  supply  chain,  which  is 
particularly relevant for small suppliers; 

–  Thirdly, the highly competitive environment which requires continuous reduction 

of production costs and improvement of internal efficiency. 

Demonstration  of  the  number  of  redundancies  and  compliance  with  the  criteria  of 
Article 2(a) 

5. 

6. 

Belgium submitted this application under the intervention criteria of Article 2(a) of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 
four-month  period  in  an  enterprise  in  a  Member  State,  including  workers  made 
redundant in its suppliers and downstream producers. 

The application cites 1 336 redundancies in General Motors Belgium and three of its 
suppliers  during the  four-month reference period  from  14 June 2010 to 14 October 
2010 and a further 1 498 redundancies after the reference period in General Motors 
Belgium  and  two  of  its  suppliers.  All  of  these  redundancies  were  calculated  in 
accordance with the first indent of the second paragraph of Article 2 of Regulation 
(EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

7. 

The Belgian authorities argue that the main production in General Motors Belgium 
was  the  Opel  Astra  model.  The  decision  taken  by  the  management  of  the  General 
Motors mother company to close the production line of the Opel Astra at its plant in 
Antwerp  was  unforeseen.  As  a  result  of  the  economic  and  financial  crisis,  which 
could equally not be foreseen, General Motors was not in a position to invest in the 
establishment of a production line for a new Opel model at its Belgian plant.  

EN 

3 

   EN 

Identification of the dismissing enterprises and workers targeted for assistance 

8. 

The application relates to a total of 2 834 redundancies, of which 2 593 occurred in 
General  Motors  Belgium  and  241  in  four  of  its  suppliers:  18  in  Wissan 
Produktionservice  GMBH,  Antwerp,  26  in  Dussman,  Antwerp,  21  in  SCA  Service 
Center  Antwerpen  and  176  in  Johnson  Controls  automotive,  Antwerp.  All  of  these 
redundant workers are targeted for assistance. 

9. 

The break-down of the targeted workers is as follows: 

Category 
Men 
Women 
EU citizens 
Non EU citizens 
15-24 years old 
25-54 years old 
55-64 years old 
> 64 years old 

Number
2 430
404
2 693
141
11
2 717
105
1

Percent 
85,8 
14,2 
95,0 
5,0 
0,4 
95,9 
3,7 
0,04 

10. 

There  are  42  workers  (1,5 %)  with  a  longstanding  health  problem  or  disability 
included in the categories above. 

11. 

In terms of professional categories, the break-down5 is as follows: 

Category 
Production worker 
Forklift operator 
Assistant metal worker 
Warehouse worker 
Fitter of metal pieces 
Maintenance mechanic 
Responsible for production 
Quality controller 
Administrative clerks 
Electro-mechanical technician 
Fitter of motor vehicles 
Salesman 
Executive clerk 
Accomplices (semi-heavy work) 
Driver carrier service 
Others 

Number
470
188
160
122
99
83
79
70
53
52
44
38
34
31
30
1 281

Percent* 
16,6 
6,6 
5,7 
4,3 
3,5 
2,9 
2,8 
2,5 
1,9 
1,8 
1,6 
1,4 
1,2 
1,1 
1,1 
45,2 

* Total does not tally due to roundings. 

The category 'others' covers all professional categories that represent less than 1 % of 
the  total  number  of  targeted  workers.  This  is  the  case  for  i.a.  engineers,  welder, 
motor vehicle mechanic, maintenance electrician etc. It further includes 5,5 % where 
the professional category is not known by the applicant Member State. 

5 

This breakdown is based on an extrapolation of the known relative shares of each category for 2 354 
dismissed workers to the whole population of targeted workers. 

EN 

4 

   EN 

                                                 
12. 

In  accordance  with  Article  7  of  Regulation  (EC)  No  1927/2006,  Belgium  has 
confirmed  that  a  policy  of  equality  between  women  and  men  as  well  as  non-
discrimination has been applied, and will continue to apply, during the various stages 
of the implementation of and, in particular, in access to the EGF. 

Description of the territory concerned and its authorities and stakeholders 

13. 

14. 

The province of Antwerp (NUTS II region BE21) is most concerned by the closure 
of  the  General  Motors  Belgium  plant  located  in  Antwerp.  The  four  supplier 
companies are also located in the province of Antwerp. 

The main authority concerned is the ESF Agency Vlaanderen. Relevant stakeholders 
are  the  Flemish  vocational  training  and  employment  service  (Vlaamse  Dienst  voor 
Arbeidsbemiddeling  en  Beroepsopleiding  or  VDAB),  as  social  partners  for  the 
workers'  side:  the  three  representative  trade  unions  -  ABVV  (Algemeen  Belgisch 
Vakverbond),  ACLVB  (Algemene  Centrale  der  Liberale  Vakbonden  van  België), 
ACV  (Algemeen  Christelijk  Vakverbond),  and  for  the  employers'  side:  Flemish 
Network  for  Enterprises  (Vlaams  netwerk  van  ondernemingen  or  VOKA)  and  the 
Union of independent entrepreneurs (Unie van zelfstandige ondernemers or Unizo), 
the government of the Province of Antwerp and the Flemish Minister for Labour. 

Expected impact of the redundancies as regards local, regional or national employment 

15. 

('arrondissement')  of  Antwerp:  about  75 %  of 

The Belgian authorities argue that the region most affected by the redundancies is the 
administrative  district 
the 
redundancies occurred in this region and about 66 % of the redundant workers lives 
in  this  region.  The  Belgian  authorities  further  state  that  the  redundancies  will  also 
impact the employment situation in the administrative districts of Dendermonde and 
Sint-Niklaas,  where  a  relevant  share  of  the  redundant  workers  live.  Whilst  the 
number  of  job  seekers  in  the  period  October  2009  –  October  2010  decreased  by 
1,64 %  in  Flanders,  in  the  administrative  districts  of  Antwerp,  Dendermonde  and 
Sint-Niklaas  it  increased  respectively  by  2,39 %,  2,71 %  and  4,05 %.  For  the  same 
period 
the 
the  unemployment  rate  for  Flanders  decreased  by  0,21 %, 
administrative district of Antwerp it increased by 0,10 %. 

in 

Co-ordinated  package  of  personalised  services  to  be  funded  and  a  breakdown  of  its 
estimated  costs,  including  its  complementarity  with  actions  funded  by  the  Structural 
Funds 

16. 

The  following  types  of  measures  are  proposed,  all  of  which  combine  to  form  a 
coordinated package of personalised services aimed at re-integrating the workers into 
the labour market: 

–  A first series of measures concerns Job-search assistance: These include as a first 
measure  an  initial  interview  and  a  limited  screening  of  workers'  profiles  and 
comparison  with  available  job  vacancies.  A  second  measure  covers  individual 
accompaniment when searching for a job comprising an in depth screening of the 
possibilities  and  aspirations  of  the  dismissed  workers  and  establishment  of  a 
trajectory towards finding a new job. A third measure relates to the provision of 
social  intervention  advisers  of  the  VDAB  to  assist  the  dismissed  workers  with 
information  sessions,  to  provide  a  contact  point  in  the  dismissing  enterprise.  A 
fourth  measure  concerns  the  provision  of  vocational  guidance  to  the  dismissed 

EN 

5 

   EN 

workers. A fifth measure concerns the organisation of job fairs which will bring 
together  the  dismissed  workers  and  representatives  of  companies  offering 
vacancies that correspond to the profiles of the dismissed workers. 

–  A  second  series  of  measures  concerns  Training  and  re-training:  This  covers 
various types of vocational training organised by the VDAB, by training providers 
following  a  procurement  procedure  or  by  the  Fund  for  the  Metal  sector  in 
Antwerp  (FTMA).  It  further  covers  training  on  the  various  techniques  required 
when applying for a job. As a third measure there is individual vocational training 
(Individuele  Beroepsopleiding  or  IBO)  for  an  average  duration  of  three  months 
aimed at offering to dismissed workers lasting employment in a different sector or 
a different function. 

–  Outplacement assistance: This covers three months of outplacement assistance to 
dismissed workers younger than 45 years. For workers older than 45 years this is a 
legal  obligation  for  the  dismissing  enterprise  and  falls  therefore  outside  the 
package of measures eligible for EGF support. 

–  Aid for self-employment: This fits into the project 'Ondernemen werkt' ('It works 
to become an entrepreneur'). It relates to the selection of potential candidates, the 
provision  of  training  for  entrepreneurship,  assistance  for  the  establishment  of  a 
business  plan  and  a  feasibility  study  as  well  as  support  with  administrative 
requirements.  Each  candidate-entrepreneur  follows  an  individual  development 
plan and is mentored closely. 

17. 

The expenditure for implementing the EGF, which is included in the application in 
accordance  with  Article  3  of  Regulation  (EC)  No  1927/2006,  covers  preparatory, 
management and control activities as well as information and publicity. 

The  personalised  services  presented  by  the  Belgian  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No  1927/2006.  The  Belgian  authorities  estimate  the  total  costs  of  these  services  at 
EUR 14 324 894,84 and the expenditure for implementing the EGF at EUR 435 000 
(2,95 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 9 593 931 (65 % of the total costs). 

Actions 

Estimated 
number of 
workers 
targeted 

Estimated 
cost per 
worker 
targeted 
(EUR) 

Total costs 
(EGF and 
national 
cofinancing) 
(EUR) 

Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006) 

Job search assistance 
1. Initial interview ('gesprekken voor eerste 
opvang') 

2. Individual accompaniment when searching 
for a job ('individuele begeleiding in zoektocht 
naar een baan) 

2 834

16,00 

45 344,00

1 750

1 000,00 

1 750 000,00

EN 

6 

   EN 

 
3. Provision of social intervention advisers 
(('SIA werking') 

4. Provision of vocational guidance 
('beroepskeuzevoorlichting') 

2 834

3,96 

11 222,64

16

1 095,88 

17 534,00

5. Jobfair ('Jobbeurs') 

1 000

42,00 

42 000,00

Training and re-training 
6.a&b. training by the VDAB or through 
procurement ('opleidingen in eigen beheer of 
uitbesteding') 

6.c. Training by the Fund for the Metal sector 
in Antwerp ('opleiding door FTMA') 

7. Application training ('sollicitatietraining') 

8. Employment through individual vocational 
training ('tewerstelling via IBO') 

Outplacement assistance 
('outplacementbegeleiding) 

500

12 708,80 

6 354 400,00

577

610,00 

351 970,00

500

250

1 955,20 

977 600,00

4 300,00 

1 075 000,00

1 253

2 873,76 

3 600 824,20

Aid for self-employment ('ondersteuning naar 
zelfstandige beroepsactivteit') 

90

1 100,00 

99 000,00

Sub total personalised services 

  14 324 894,84

Expenditure  for  implementing  EGF  (third  paragraph  of  Article  3  of  Regulation  (EC)  No 
1927/2006) 

Preparatory activities 

Management 

Information and publicity 

Control activities 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

10 000,00

130 000,00

270 000,00

25 000,00

435 000,00

14 759 894,84

9 593 931

18. 

Belgium confirms that the measures described above are complementary with actions 
funded by the Structural Funds. Continuous follow-up of funding through EGF and 
Structural Funds will be ensured through the data bases of the ESF Agency Flanders 
as well as through the Flemish client follow up system (ClientVolgSysteem or light 
CVS) that contains the data for each individual participant. 

EN 

7 

   EN 

 
 
 
 
 
 
 
 
Date(s)  on  which  the  personalised  services  to  the  affected  workers  were  started  or  are 
planned to start 

19. 

Belgium started the personalised services to the affected workers included in the co-
ordinated package proposed for co-financing to the EGF on 14 June 2010. This date 
therefore represents the beginning of the period of eligibility for any assistance that 
might be awarded from the EGF. 

Procedures for consulting the social partners 

20. 

21. 

The  Belgian  authorities  confirmed  the  package  of  measures  proposed  for  EGF 
support  was established in consensus with  the social partners and that all measures 
included in the package are supported by the social partners. 

The  Belgian  authorities  confirmed  that  the  requirements  laid  down  in  national  and 
EU legislation concerning collective redundancies have been complied with. 

Information  on  actions  that  are  mandatory  by  virtue  of  national  law  or  pursuant  to 
collective agreements 

22. 

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the 
Belgian authorities in their application: 

•  confirmed that the financial contribution from the EGF does not replace measures 
which are the responsibility of companies by virtue of national law or collective 
agreements; 

•  demonstrated that the actions provide support for individual workers and are not 

to be used for restructuring companies or sectors; 

•  confirmed  that  the  eligible  actions  referred  to  above  do  not  receive  assistance 

from other EU financial instruments. 

Management and control systems  

23. 

Belgium has notified the Commission that the financial contribution will be managed 
and  controlled  by  the  same  body  that  manages  and  controls  the  ESF  in  Flanders 
('ESF-Agentschap Vlaanderen'). A monitoring committee will be created in order to 
monitor the implementation of the EGF contribution.  This committee will have the 
same  responsibilities  as  the  Flemish  monitoring  committee  for  ESF  Objective  2  in 
Flanders. 

Financing 

24. 

25. 

On  the  basis  of  the  application  from  Belgium,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  is  EUR 9 593 931, 
representing 65 % of the total cost. The Commission's proposed allocation under the 
Fund is based on the information made available by Belgium. 

Considering the maximum possible amount of a financial contribution from the EGF 
under  Article  10(1)  of  Regulation  (EC)  No  1927/2006,  as  well  as  the  scope  for 
reallocating  appropriations,  the  Commission  proposes  to  mobilise  the  EGF  for  the 

EN 

8 

   EN 

26. 

27. 

total  amount  referred  to  above,  to  be  allocated  under  heading  1a  of  the  financial 
framework. 

The  proposed  amount  of  financial  contribution  will  leave  more  than  25 %  of  the 
maximum annual amount earmarked for the EGF available for allocations during the 
last  four  months  of  the  year,  as  required  by  Article  12(6)  of  Regulation  (EC)  No 
1927/2006. 

By  presenting  this  proposal  to  mobilise  the  EGF,  the  Commission  initiates  the 
simplified  trialogue  procedure,  as  required  by  Point  28  of  the  Interinstitutional 
Agreement of 17 May 2006, with a view to securing the agreement of the two arms 
of the budgetary authority on the need to use the EGF and the amount required. The 
Commission invites the first of the two arms of the budgetary authority that reaches 
agreement on the draft mobilisation proposal, at appropriate political level, to inform 
the other arm and the Commission of its intentions. In case of disagreement by either 
of  the  two  arms  of  the  budgetary  authority,  a  formal  trialogue  meeting  will  be 
convened. 

28. 

The Commission presents separately a transfer request in order to enter in the 2011 
budget  specific  commitment  appropriations,  as  required  in  Point  28  of  the 
Interinstitutional Agreement of 17 May 2006. 

Source of payment appropriations  

29. 

The 2011 budget showing payment appropriations of EUR 47 608 950 on budget line 
04.0501 "European Globalisation Adjustment Fund (EGF)", this budget line will be 
used to cover the amount of EUR 9 593 931 needed for the present application. 

EN 

9 

   EN 

Proposal for a 

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/2010/031 BE/General Motors Belgium from 
Belgium) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

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 
management6, 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  establishing  the  European  Globalisation  Adjustment  Fund7, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the Commission8, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional support for workers made redundant as a result of major structural changes 
in world trade patterns due to globalisation and to assist them with their reintegration 
into the labour market. 

The scope of the 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. 

The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF 
within the annual ceiling of EUR 500 million. 

Belgium submitted an application to mobilise the EGF, in respect of redundancies in 
the enterprise General Motors Belgium and four of its suppliers, on 20 December 2010 
and supplemented it by additional information up to 24 January 2011. This application 
complies  with  the  requirements  for  determining  the  financial  contributions  as  laid 

6 
7 
8 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
OJ C […], […], p. […]. 

EN 

10 

   EN 

                                                 
down  in  Article  10  of  Regulation (EC) No 1927/2006.  The  Commission,  therefore, 
proposes to mobilise an amount of EUR 9 593 931. 

(5) 

The  EGF should,  therefore,  be mobilised in  order to provide a financial contribution 
for the application submitted by Belgium. 

HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2011,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 9 593 931 in commitment and payment appropriations. 

Article 2 

This Decision shall be published in the Official Journal of the European Union. 

Done at [Brussels/Strasbourg], 

For the European Parliament 
The President 

For the Council 
The President 

EN 

11 

   EN