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/2010/007 AT/Steiermark and Niederösterreich from Austria)
Date: 2011-06-10
Institutions: European Commission
Subjects: Austria, European Globalisation Adjustment Fund, commitment of expenditure, dismissal, economic recession, financial aid, globalisation, metals

EUROPEAN COMMISSION 

Brussels, 10.6.2011 
COM(2011) 340 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/2010/007 AT/Steiermark and Niederösterreich 
from Austria) 

 
 
  
 
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  09  March  2010,  Austria  submitted  application  EGF/2010/007  AT/Steiermark  and 
Niederösterreich  for  a  financial  contribution  from  the  EGF,  following  redundancies  in  54 
enterprises operating in the NACE Revision 2 Division 24 ('Manufacture of basic metals')3 in 
the  NUTS II  regions  of  Steiermark  (Styria,  AT22)  and  Niederösterreich  (Lower  Austria, 
AT12) in Austria. 

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 
Enterprises concerned 

NUTS II regions 

NACE Revision 2 Division 

Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
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/2010/007 
Austria 
(b) 
54 
Steiermark (AT22) 
Niederösterreich(AT12)  
24 ('Manufacture of basic 
metals') 
1.4.2009 – 31.12.2009 
1.4.2009 
9.3.2010 
1 180 
356 
12 266 158 
479 855 
3,8 
12 746 013 
8 284 908 

1 
2 
3 

4 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific statistical domains (OJ L 
393, 30.12.2006, p. 1). 
In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

EN 

1 

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1. 

2. 

The  application  was  presented  to  the  Commission  on  9  March  2010  and 
supplemented by additional information up to 22 February 2011. 

The application meets the conditions for deploying the EGF as set out in Article 2(b) 
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. 

4. 

5. 

In order to establish the link between the redundancies and the global financial and 
economic crisis, Austria argues that the global drop in demand for metal as a result 
of the crisis had a particularly heavy impact on Austria's metal exports (ferrous and 
non-ferrous)  and  thus  on  the  country's  metal output and employment. According to 
Eurostat and Statistik Austria figures quoted in the application, close to 80 % of the 
Austrian  metal  production  is  exported,  and  metal  accounts  for  almost  9 %  of 
Austria's total export volume, a higher share than the EU-27 average (6,1 %). 

Before  the  crisis,  the  Austrian  metal  sector  was  dynamic,  achieving  a  clear  trade 
surplus thanks to strong export activities, particularly in the iron and steel (ferrous) 
product group. This had helped to successfully counterbalance globalisation-related 
forces, such as increased metal imports from third countries.  

The sector's previous growth stopped abruptly in the fourth quarter of 2008, leading 
to a 38,6 % drop in metal exports in the period January - July 2009 compared to the 
previous year. The drop in export activities was less accentuated for Austria's other 
goods  (-24 %  for  the  total  export  volume).  Quoting  Eurostat  input-output  tables, 
Austria  also  emphasises  the  high  degree  of  interdependence  among  enterprises 
within the metal sector and with some of the industries most affected by the crisis, 
such as the construction, engineering and automobile industries. 

A working paper of the European Commission services issued in April 2009 and in 
October  20095  stated  that  the  crisis  impacted  fiercely  on  all  the  largest  steel 
producing  countries  of  the  EU.  Over  the  year  to  the  first  quarter  of  2009,  the 
production of crude steel in the EU-27 fell by 43,8 %, compared with a contraction in 
world steel output by 22,8 % over the same period. Many European steel companies 
have reduced the number of days of production or mothballed capacity, and close to 
32 800  redundancies  were  announced  by  major  steel  groups,  according  to  figures 
from  EUROFER,  the  European  Confederation  of  Iron  and  Steel  Industries.  All  this 
demonstrates the severe adverse impact of the crisis on the European metal sector. 

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

6. 

5 

Austria  submitted  this  application  under  the  intervention  criteria  of  Article  2(b)  of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 
nine-month period in enterprises operating in the same NACE Revision 2 Division in 
one region or two contiguous regions at NUTS II level in a Member State. 

Impact of the economic crisis on key industrial sectors of the EU – the case of the manufacturing and 
construction  industries:  http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=4040  (4/2009) 
and http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=5509 (10/2009). 

EN 

2 

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7. 

The  application  cites  1 180  redundancies  in  54  enterprises  operating  in  the  NACE 
Revision  2  Division  24  ('Manufacture  of  basic  metals')  in  the  contiguous  NUTS II 
regions  of  Steiermark  (AT22)  and  Niederösterreich  (AT12)  during  the  nine-month 
reference period from 1 April 2009 to 31 December 2009. All of these redundancies 
were  calculated  in  accordance  with  the  second  indent  of  the  second  paragraph  of 
Article 2 of Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

8. 

9. 

The Austrian authorities argue that the global crisis with its impact on the basic metal 
sector  could  not  be  foreseen,  citing  radical  downward  revisions  of  the  forecasts 
concerning real GDP growth made by international and national bodies since the end 
of 2007,  such as  the  European  Commission,  the OECD  and  the Austrian economic 
research  institutes  WIFO  (Österreichisches  Institut  für  Wirtschaftsforschung)  and 
IHS (Institut für höhere Studien). Having forecast in autumn 2008 a slight growth of 
0,9 %  and  1,2 %,  the  two  national  institutes  had  to  adjust  their  prognoses  for  2009 
downward to -3,4 % and -3,8 % in September 2009. Although the metal industry is 
generally  subject  to  cyclical  fluctuations,  the  speed  and  intensity  of  the  decline 
provoked by the crisis was not foreseeable and came as a surprise for the sector. 

WIFO  survey  results  also  reported  sharp  falls  of  confidence  among  Styrian  and 
Lower Austrian metal firms in the first 2009 months: compared to an average 21 % 
in the years up to 2008, a high 83 % of the interrogated firms qualified the volume of 
their export orders as not sufficient by July 2009. 

Identification of the dismissing enterprises and workers targeted for assistance 

10. 

The  application  cites  a  total  of  1 180  redundancies  in  54  enterprises  during  a  nine-
month  reference  period  out  of  which  356  workers  (30,2 %)  are  targeted  for 
assistance.  All  356  workers  entered  Voest-Alpine  steel  foundation  ('Voest-Alpine-
Stahlstiftung'), a labour foundation of the enterprise type ('Unternehmensstiftung') as 
defined  in  federal  directive  AMF/18-20106.  Of  the  remaining  workers  who  did  not 
enter  the  foundation,  about  76,2 %  found  new  work,  some  17,8 %  participated  in 
AMS  training  measures  outside  the  foundation  and  about  6 %  retired  or  were 
planning to retire. 

Enterprises and number of dismissals 

Alufix-
Folienverarbeitungsgesellschaft 
m.b.H. 

Augusta Metalltechnik GmbH 

Becker & Co Ges.m.b.H. & Co KG 

Benda-Lutz Werke GmbH 

Biedermann 
Böhler Bleche GmbH & Co KG 

6 

Icon Anlagenbau GmbH 

11 

1 

11 

1 
47 

IPA Produktions- & 
Vertriebsgesellschaft m.b.H. 
Isoplus Fernwärmetechnik 
Gesellschaft m.b.H. 
Johann Nemetz & Co Gesellschaft 
m.b.H. 
Karl Fink Ges.m.b.H. 
Kunstguss Wagner Gesellschaft 

3 

9 

32 

13 

30 
1 

6 

Austrian labour foundations are an active labour market policy instrument in Austria to improve the 
labour market position of job seekers. They are based on Arbeitslosenversicherungsgesetz (§ 18) and on 
implementing directives issued by the labour market service (AMS). Latest AMS directive: 
http://www.ams.at/_docs/001_ast_RILI.pdf. 

EN 

3 

   EN 

 
                                                 
Enterprises and number of dismissals 

m.b.H. 

Böhler Edelstahl GmbH & Co KG 
Böhler Schweisstechnik Austria 
Böhler-Uddeholm Precision Strip 
GmbH & Co KG 
Böhler-Ybbstal Profil GmbH 
Breitenfeld Edelstahl AG Stahlwerk 
und Schmiede 
Buntmetall Amstetten Gesellschaft 
m.b.H. 
Dynacast Österreich Gesellschaft 
m.b.H. 
EGM-Industrieguss GmbH 
ELSA Edelmetall-Legier-und 
Scheideanstalt Gesellschaft m.b.H. 
Enzesfeld-Caro Metallwerke 
Aktiengesellschaft 

FM Flanschenwerk Ges.m.b.H. 

Franz Steininger Gesellschaft m.b.H. 
Georg Fischer Eisenguss GmbH 
Georg Fischer Fittings GmbH 
Georg Fischer GmbH & Co KG 
Georg Fischer Kokillenguss GmbH 
Georg Fischer Moessner GmbH Nfg 
& Co KG 

GF Druckguss GmbH 

GLS Tanks International GmbH 

G-MAG Europe GmbH 
Hammerschied Ernstbrunner 
Eisengiesserei GmbH & Co KG 
Total no. of enterprises: 54 

37 
10 

133 

45 

32 

10 

14 

5 

1 

21 

3 

4 
6 
15 
4 
59 

10 

14 

28 

12 

4 

Martin Miller GmbH 
Metallguss Katz GmbH 
Neuman Aluminium Strangpresswerk 
GmbH 
O. St. Feinguss- Gesellschaft m.b.H. 

Schlieper Gesellschaft m.b.H. 

Schoeller-Bleckmann Edelstahlrohr 
GmbH 

Sonderstahlwerk Breitenfeld GmbH 

Stahl Judenburg Gesellschaft m.b.H. 
Stahl- und Walzwerk Marienhuette 
Ges. m.b.H. 

Teich Aktiengesellschaft 

Ternitz Druckguss Gesellschaft 
m.b.H. 
TIP Formenbau GmbH 
VAEE Eisenbahnsysteme GmbH 
Voestalpine Austria Draht GmbH 
Voestalpine Giesserei Traisen GmbH 
Voestalpine Krems GmbH 

Voestalpine Schienen GmbH 

Voestalpine Stahl Donawitz GmbH & 
Co KG 
Voestalpine Tubulars GmbH & Co 
KG 
Welser Profile AG 
Wuppermann Austria Gesellschaft 
m.b.H 
Total no. of dismissals: 1 180 

9 
3 

99 

12 

20 

24 

1 

16 

5 

10 

1 

3 
11 
29 
32 
56 

2 

14 

166 

14 

21 

11. 

The break-down of the 356 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 
343 
13 
354 
2 
96 
246 
14 
0 

Percent
96,3
3,7
99,4
0,6
27,0
69,1
3,9
0,0

12. 

There  are  11  workers  (or  3,1 %)  with  a  longstanding  health  problem  or  disability 
included in the categories above. 

13. 

In terms of occupational categories, the break-down is as follows: 

Category 
Managers 

Number 
2 

Percent
0,6

EN 

4 

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Technicians 
Clerical support workers 
Craft and related trades workers 
Plant and machine operators and assemblers 
Elementary occupations 

31 
22 
75 
42 
184 

8,7
6,2
21,1
11,8
51,7

14. 

In  accordance  with  Article  7  of  Regulation  (EC)  No  1927/2006,  Austria  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 

15. 

16. 

17. 

The territories concerned by the redundancies are the Land of Steiermark (AT22) and 
the Land of Niederösterreich (AT12), two of Austria's nine federal provinces. Both 
provinces  belong  to  Austria's  industrial  regions,  together  with  Oberösterreich  and 
Vorarlberg.  Niederösterreich  is  Austria's  largest  federal  province,  surrounding 
Vienna, the Austrian capital, which itself also has province status. It shares a border 
with  the  Czech  Republic  and  Slovakia,  and  its  provincial  capital  is  Sankt  Pölten. 
Steiermark shares a border with Slovenia, and its provincial capital, Graz, is Austria's 
second largest city after Vienna. 

The  Austrian  authorities  explained  that  both  provinces  continue  to  suffer  from 
structural  weaknesses  with  gross  regional  products  (regional  GDPs)  below  the 
national  average  (2006  figures).  The  unemployment  rate  in  Steiermark  is  generally 
above the national average, in particular around the city of Graz and the Western and 
Eastern parts of the province, whereas unemployment in Niederösterreich is roughly 
at the same level as for Austria as a whole. Long-term unemployment (more than a 
year) is above the national average in both provinces, and both experience significant 
differences  in  income  within  their  regions,  which  reflects  the  diversity  of  their 
territories in terms of geography, character and economic structure. Reasons for the 
relatively unfavourable situation are the late effects of the structural crises in the late 
1980s  in  Steiermark  which  had  led  to  early  retirement  schemes  and  a  low 
employment  rate  of  women,  particularly  in  the  rural  areas.  Niederösterreich  is 
the  challenge  of  matching 
experiencing  structural  changes  and 
qualifications with jobs. 

is  facing 

der  maschinen- 

The  main  stakeholders  are  the  Styrian  and  Lower  Austrian  regional  public 
employment services (regionale Geschäftsstellen des Arbeitsmarktservice/AMS), the 
Engineering  and  Metalworking  Association  of  the  Austrian  Economic  Chamber 
(Fachverband 
der 
Wirtschaftskammer Österreich), the Mining and Iron Producing Industry Association 
of 
(Fachverband  der  Bergwerke  und 
eisenerzeugenden  Industrie  der  Wirtschaftskammer  Österreich),  the  metal-textile-
food  trade  union  (Gewerkschaft  Metall-Textil-Nahrung)  and  the  trade  union  of 
private  sector  employees,  printing,  journalism,  and  paper  (Gewerkschaft  der 
Privatangestellten, Druck, Journalismus, Papier), both under the umbrella of Austria's 
Federation of Trade Unions (Österreichische Gewerkschaftsbund /ÖGB). 

the  Austrian  Economic  Chamber 

und  metallverarbeitenden 

Industrie 

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5 

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

18. 

19. 

20. 

The figures quoted in the application illustrate the importance of the metal industry 
for  both  provinces'  employment  situation:  in  2008  the  sector  represented  2,1 %  of 
employment  in  Steiermark  (highest  share  in  Austria,  against  1 %  for  the  whole 
country) and in Niederösterreich this share was 1,5 % (third highest share in Austria). 

Quoting  figures  of  Statistik  Austria  and  Austrian  research  institutes,  the  Austrian 
authorities explained that overall unemployment increased sharply in 2009: +39,9 % 
in  Steiermark  and  +31,3 %  in  Niederösterreich,  compared  to  a  lower  +29,3 %  for 
Austria as a whole (2nd quarter 2009). The decline in demand for metal had a strong 
negative impact on the Styrian and Lower Austrian labour markets, as the job losses 
in their metal enterprises were higher than elsewhere in Austria. In addition to this, 
the  number  of  workers  on  short  time  working  schemes  (Kurzarbeit)  increased:  in 
November 2009, Niederösterreich had the highest number of workers in this scheme 
among all Austrian provinces, and Steiermark had the third highest number. 

Almost 60 % of the redundancies which are the subject of this application occurred 
in  Niederösterreich  (704  workers  in  33  companies)  and  more  than  40 %  of  the 
redundancies (476 workers in 21 companies) occurred in Steiermark. Steiermark has 
already  been  accepted  for  EGF  support  in  a  previous  case:  EGF/2009/009 
AT/Steiermark  (automotive  sector)  with  744  dismissed  workers  in  a  nine-month 
period. 

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 

21. 

The  following  types  of  measures  are  proposed,  all  of  which  combine  to  form  a 
coordinated package of personalised services aimed at re-integrating the 356 targeted 
workers into employment. 

The measures will be provided to the workers through Voest-Alpine steel foundation 
('Voest-Alpine-Stahlstiftung'),  an  enterprise-type  labour  foundation  established  in 
1987-88  to  alleviate  the  adverse  impacts  of  the  restructuring  in  the  steel  sector.  In 
2010  the  foundation  has  a  membership  of  more  than  80  companies,  i.e.  enterprises 
active in the metal sector. About two thirds of the member companies belong to the 
voestalpine Group, the other third is constituted by companies external to the Group7. 
As  a  result  of  the  crisis,  the  number  of  foundation  participants,  i.e.  unemployed 
workers  in  training,  education  and  re-integration  programmes,  has  doubled  (March 
2010,  in  comparison  to  the  previous  year).  The  356  people  targeted  by  this 
application  are  former  workers  of  companies  belonging  to  the  voestalpine  Group 
who entered the labour foundation between 1 April 2009 and 31 December 2009. 

The measures for the 356 targeted workers enrolled in the foundation are agreed with 
and  controlled  by  the  public  employment  services  ('AMS,  Arbeitsmarktservice')  of 
Steiermark and Niederösterreich. The meaningfulness of each measure for the labour 

http://www.voestalpine.com/group/static/sites/default/downloads/en/share/share/Annual_Report_2009-
10.pdf 

22. 

7 

EN 

6 

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market  is  assessed,  and  compliance  with  the  foundation  rules  ('Stiftungsordnung') 
and  other  applicable  sets  of  laws  is  assured.  The  development  of  the  individual 
workers  is  monitored  to  ensure  that  the  plans  agreed  in  the  initial  phases  of  the 
programme  are  pursued.  In  line  with  §  18  of  Arbeitslosenversicherungsgesetz 
(ALVG) and depending on each person's former work time pattern, the workers must 
involve themselves full-time. 

–  Preliminary consultation: All 356 dismissed workers engage in this after entering 
the  labour  foundation.  It  includes  the  development  of  career  perspectives  and 
goals. 

–  Occupational orientation: All 356 dismissed workers follow this after entering the 
foundation. The duration is limited to six weeks with the possibility of extending 
it  to  a  maximum  of  12  weeks  in  particular  cases.  An  individual  occupational 
pathway plan and an alternative plan is agreed upon and signed by the worker, the 
representatives  of  the  steel  foundation  and  the  responsible  regional  AMS.  This 
forms the basis for the worker's subsequent activities within the labour foundation. 

–  Individual  training:  Training  courses  are  planned  for  174 workers  and  cover 
classical upskilling in the workers' previous fields (e.g. foreman training, welding 
and  other  technical  courses)  as  well  as  initial  vocational  training  to  prepare  a 
change of career to areas such as the social, health and service fields (proposed for 
approximately  half  of  the  174  workers).  Lower  skilled  workers  can  receive 
vocational  training  to  obtain  a  formal  qualification  (roughly  a  quarter  of  the 
participants). A part of the vocational training will not need to be co-financed by 
the  EGF  because  it  is  delivered  free  of  charge  within  the  Austrian  educational 
system. In cases where an agreed training programme takes longer than the EGF 
implementation  period,  the  additional  financing  will  be  provided  by  the 
foundation8. 

–  Practical  corporate  internships  for  a  period  of  up  to  three  months  per  enterprise 
and  entrepreneurship  training  for  those  interested  in  setting  up  their  own 
businesses  is  also  offered  in  the  catalogue  of  measures.  Those  having 
accomplished  entrepreneurship  training  within  the  foundation  will  later  on  have 
the 
the  possibility 
Arbeitsmarktservice  which  is  financed  outside  the  EGF.  Before  entering  this 
specific  programme  of  the  AMS,  the  worker's  participation  in  the  labour 
foundation is ended. 

the  Enterprise  Foundation  Programme  of 

join 

to 

–  Continuous consultation & active job search: The foundation makes available the 
required infrastructure and provides advice and support to the 356 workers in their 
efforts to find a new job. This includes activities such as discussions with a coach, 
training  on  how  to  apply  for  a  job,  peer  groups  to  promote  networking 
capabilities.  The  active  job  search  can  either  start  directly  after  the  orientation 
phase or on completion of the individual training path. The normal duration of this 
measure  is  limited  to  14  weeks,  renewable  to  22  weeks  in  particular  cases  (for 

8 

According  to  §  18  of  Arbeitslosenversicherungsgesetz  (ALVG),  a  worker's  participation  in  the 
foundation  is  limited  to  156  weeks  (three  years)  with  the  possibility  to  extend  it  to  209  weeks  (four 
years) in particular cases (people aged over 50 or people on longer qualification programmes). 

EN 

7 

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participants  aged  over  50  or  for  people  with  a  reduced  working  capacity). 
Reasonable job offers from the AMS must be accepted by the participants during 
the active job search phase. 

–  Training  and  job  search  allowance9:  This  allowance  is  paid  to  all  356  workers 
only for the duration of their participation in the training and active re-integration 
measures  within  the  labour  foundation.  The  basic  rate  is  between  EUR 150  and 
EUR 450  per  person  and  month  (14  months/year),  supplemented  by  EUR 75  / 
EUR 40  for  sole  earners  with  or  without  children  (12  months/year).  This 
allowance, combined with the subsistence allowance, may not exceed a worker's 
unemployment  benefit  assessment  basis.  Unemployment  benefits  are  interrupted 
during the period these training allowances are granted. 

–  Subsistence  allowance  while  on  training  and  on  job  search  measures10:  This 
allowance  is  granted  to  353  dismissed  workers  only  for  the  duration  of  their 
participation  in  the  training  and  active  re-integration  measures  within  the  labour 
foundation. It permits a serious full-time involvement of each dismissed worker in 
the  measures.  The  authorities  estimate  that  60  people  will  participate  in  the 
training  and  re-integration  measures  during  6,1  months,  138  people  during  15 
months,  51  people  during  30  months  and  104  people  during  33,2  months.  The 
costs per worker/month amount to EUR 1 031. This allowance, combined with the 
training  and  job  search  allowance,  may  not  exceed  a  worker's  unemployment 
benefit  assessment  basis.  Unemployment  benefits  are  interrupted  during  the 
period these subsistence allowances are granted. 

–  Ancillary  costs  while  on  training:  This  is  granted  only  to  the  174  foundation 
participants who are in training measures to cover travel expenses and the cost of 
learning materials. 

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, 
information and publicity as well as control activities and the management of Voest-
Alpine  steel  foundation.  All  partners  involved  in  the  measures  are  committed  to 
communicating  the  EGF  support.  The  foundation  management  costs  will  be 
calculated on a pro-rata basis for the actually supervised people and will not exceed 
EUR 954 per person. 

The  personalised  services  presented  by  the  Austrian  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Austrian authorities estimate the total costs of these services at 
EUR 12 266 158  and  the  expenditure  for  implementing  EGF  at  EUR 479 855 
(3,80 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 8 284 908 (65 % of the total costs). 

23. 

24. 

9 
10 

Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG). 
Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG). 

EN 

8 

   EN 

 
                                                 
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) 

Preliminary consultation ('Erstberatung') 

Occupational orientation 
('Berufsorientierung') 

Individual training, including internships 
and entrepreneurship training 
('Individuelle Qualifizierung') 

Continuous consultation & active job 
search ('laufende Beratung und aktive 
Jobsuche') 

Training and job search allowance 
('Zuschussleistung/Stipendium bei 
aktiver Beratung, Jobsuche oder 
Ausbildung') 

Subsistence allowance while on training 
and job search - 6,1 months 
('Schulungsarbeitslosengeld')  

Subsistence allowance while on training 
and job search - 15 months 
('Schulungsarbeitslosengeld')  

Subsistence allowance while on training 
and job search - 30 months 
('Schulungsarbeitslosengeld')  

Subsistence allowance while on training 
and job search - 33,2 months 
('Schulungsarbeitslosengeld')  

Ancillary costs while on training 
('Ausbildungsnebenkosten') 

Sub total personalised services 

356

356

49

1 022

17 444

363 832

174

3 052

531 048

356

1 056

375 936

356

9 307

3 313 292

60

6 308

378 480

138

15 456

2 132 928

51

30 886

1 575 186

104

34 240

3 560 960

174

98

17 052

12 266 158

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

Preparatory activities 

EN 

9 

57 500

   EN 

 
 
Management of the Voest-Alpine steel 
foundation (outplacement foundation) 

Information and publicity 

Control activities 

Sub total expenditure for implementing 
EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

339 355

18 000

65 000

479 855

12 746 013

8 284 908

25. 

Austria  confirmed  that  the  measures  described  above  are  complementary  with 
actions  funded  by  the  Structural  Funds  and  that  double  financing  is  excluded.  The 
Austrian  ESF  Operational  Programme  under  objective  2  focuses  on  the  long-term 
unemployed, whereas the EGF aims to help workers immediately after their lay-offs. 
Hence, there is no overlapping between the two funds. 

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

26. 

Austria started the personalised services to the affected workers included in the co-
ordinated package proposed for co-financing to the EGF on 1 April 2009, which is 
the  date  when  the  first  workers  entered  the  labour  foundation.  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 

27. 

28. 

The Austrian authorities explained that the dialogue with social partners on how to 
alleviate the effects of the job losses for the concerned workers was started when the 
companies notified the planned dismissals to the Austrian authorities, in line with the 
(§ 45a  of  Arbeitsmarkt-
Austrian 
förderungsgesetz/AMFG). 

'Frühwarnsystem'/early  warning 

system 

As concerns the role of Voest-Alpine steel foundation, the social partners' agreement 
in  principle  was  obtained  in  the  late  1980s,  when  the  labour  foundation  was 
established. The following social partners gave their agreement for this specific EGF 
application,  up  to  August  2009:  the  Engineering  and  Metalworking  Association  of 
und 
the  Austrian  Economic  Chamber 
metallverarbeitenden  Industrie  der  Wirtschaftskammer  Österreich),  the  Mining  and 
Iron  Producing  Industry  Association  of 
the  Austrian  Economic  Chamber 
(Fachverband der Bergwerke und eisenerzeugenden Industrie der Wirtschaftskammer 
trade  union  (Gewerkschaft  Metall-Textil-
Österreich), 
Nahrung) and the trade union of private sector employees, printing, journalism, and 
paper  (Gewerkschaft  der  Privatangestellten,  Druck,  Journalismus,  Papier),  both 
under  the  umbrella  of  Austria's  Federation  of  Trade  Unions  (Österreichische 
Gewerkschaftsbund /ÖGB). 

the  metal-textile-food 

der  maschinen- 

(Fachverband 

EN 

10 

   EN 

 
 
 
 
 
 
 
29. 

Austria  further  explained  that  the  Austrian  social  partnership  cooperation  is  a 
voluntary  arrangement  of  mostly  informal  nature  and  not  regulated  by  law11.  Only 
when  companies  decide  to  participate  in  specific  labour  policy  measures  are  they 
subject to the applicable public employment service (AMS) rules. The redundancies 
concerned  by  this  application  are  based  on  employer/works  council  agreements 
('Betriebsvereinbarungen'),  rather  than  collective  agreements  negotiated  for  the 
whole metal sector. 

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

30. 

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

•  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  

31. 

32. 

Austria has notified the Commission that Voest-Alpine steel foundation will provide 
the  35 %  national  co-financing.  The  labour  foundation  itself  is  financed  through 
solidarity  contributions  paid  by  the  employers  and  employees  of  current  member 
enterprises.  These  contributions  vary  and  are  regularly  reviewed  by  the  social 
partners. 

Austria confirmed that the financial contribution will be managed by the same body 
that manages the ESF: unit VI/INT/9 within the Federal Ministry for Labour, Social 
Affairs and Consumer Protection (BMASK Bundesministerium für Arbeit, Soziales 
und Konsumentenschutz) will act as managing authority and as payment service. The 
financial  control  authority  for  the  EGF  is  different  to  that  of  the  ESF:  unit  VI/S/5a 
within  BMASK  will  assure  this  function  for  the  EGF.  The  coordinated  package  of 
personalised measures is implemented by Voest-Alpine steel foundation, monitored 
by the public employment service (AMS). Furthermore, the BMASK is supported by 
a  technical  assistance  provider  who  will  also  act  as  first  level  control.  All  major 
arrangements and obligations are laid down in written agreements. 

Financing 

33. 

On the basis of the application from Austria, the proposed contribution from the EGF 
to  the  coordinated  package  of  personalised  services  is  EUR 8 284 908  representing 
65 %  of  the  total  cost.  The  Commission's  proposed  allocation  under  the  Fund  is 
based on the information made available by Austria. 

11 

ÖGB website http://www.sozialpartner.at/sozialpartner/Sozialpartnerschaft_mission_en.pdf 

EN 

11 

   EN 

 
                                                 
34. 

35. 

36. 

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 
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. 

37. 

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  

38. 

An  amount  of  EUR 16 808 313  remains  available  on  the  EGF  Budget  line  04.0501 
after adoption by both arms of the Budgetary Authority of two Decisions totalling an 
amount of EUR 777 390, and taking into account the three cases currently discussed 
by  the  Budgetary  Authority  for  a  total  amount  of  EUR 30 023 247.  This  available 
amount will be used to cover the amount of EUR 8 284 908 needed for the present 
application. 

EN 

12 

   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/2010/007 AT/Steiermark and Niederösterreich 
from Austria) 

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 
management12, 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  Fund13, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the Commission14, 

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. 

Austria submitted an application to mobilise the EGF, in respect of redundancies in 54 
enterprises  operating  in  the  NACE  Revision  2  Division  24  ('Manufacture  of  basic 
metals')  in  the  contiguous  NUTS II  regions  of  Steiermark  (Styria,  AT22)  and 
Niederösterreich  (Lower  Austria,  AT12)  in  Austria,  on  09 March  2010  and 
supplemented  it  by  additional  information  up  to  27  January  2011.  This  application 

12 
13 
14 

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

EN 

13 

   EN 

 
                                                 
complies  with  the  requirements  for  determining  the  financial  contributions  as  laid 
down  in  Article  10  of  Regulation (EC) No 1927/2006.  The  Commission,  therefore, 
proposes to mobilise an amount of EUR 8 284 908. 

(5) 

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

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 8 284 908 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 

14 

   EN