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/2012/006 FI/Nokia Salo from Finland)
Date: 2012-10-19
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, Finland, collective dismissal, commitment of expenditure, general budget (EU), payment appropriation, telecommunications industry

EUROPEAN 
COMMISSION 

Brussels, 19.10.2012  
COM(2012) 619 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/2012/006 FI/Nokia Salo from Finland) 

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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  4  July  2012,  Finland  submitted  application  EGF/2012/006  FI/Nokia  Salo  for  a  financial 
contribution from the EGF, following redundancies in Nokia plc (Salo) in Finland. 

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 expected to participate in the 
measures 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF3 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (50 %) (EUR) 

EGF/2012/006 
Finland 
(a) 
Nokia plc (Salo) 
0 
1.3.2012 – 1.7.2012 
29.2.2012 
4.7.2012 
1 000 
0 
1 000 

1 000 

10 273 000 
419 000 
3,92 
10 692 000 
5 346 000 

1. 

2. 

1 
2 
3 

The application was presented to the Commission on 4 July 2012 and supplemented 
by additional information up to 21 August 2012. 

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. 

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

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Link  between  the  redundancies  and  major  structural  changes  in  world  trade  patterns 
due to globalisation 

3. 

4. 

5. 

6. 

7. 

In order to establish the link between the redundancies and major structural changes 
in  world  trade  patterns  due  to  globalisation,  Finland  argues  that  the  current 
difficulties  of  Nokia,  Nokia  Siemens  Networks,  almost  all  subcontractors  and  the 
affected  regions  go  back  to  February  2011.  At  that  time  Nokia  announced  a 
significant change in the company's strategy and launched an extensive cooperation 
with  Microsoft  with  regard  to  the  use  of  Microsoft  Windows  Phone  as  its  primary 
smartphone operating system, while keeping Nokia's own Symbian operating system 
as a software platform in lower priced phones until the end of 2016. The demand for 
Symbian  phones  has  meanwhile  dropped  considerably,  and  the  development  and 
maintenance operations based on the Symbian system will therefore be discontinued. 

The  intention  was  to  keep  the  Nokia  Salo  plant  operational  while  reducing  the 
company's personnel by some 12 % in offices all around the world. This  led to the 
closure  of  the  plant  in  Cluj,  Romania  (September  2011),  for  which  another  EGF 
application  was  presented4.  Nokia  Siemens  Networks  also  announced  major 
redundancies  (November  2011).  On  22  March  2012,  redundancies  in  Nokia  Salo 
were  announced,  numbering  1 000  workers  out  of  a  total  of  1 700.  Further 
redundancies are already planned, and a follow-up application from Finland for the 
next wave of redundancies is expected. 

The primary reason for the redundancies is the transfer of functions within the sector 
to third countries outside Europe. Assembly of mobile phones, previously carried out 
in  Salo  and  Cluj,  has  been  offshored  to  Asia  (China,  South  Korea,  India  and 
Vietnam, where a new Nokia plant is under construction). Component manufacture 
and subcontracted production had already been transferred out of Europe. Following 
the direction already taken by production, both design and product development have 
been, or are being, offshored. 

Nokia's plan is to transfer the assembly of devices to its Asian plants, where most of 
the component suppliers operate. The purpose of the transfer of assembly operations 
to Asia is to expedite the entry of devices into the market. By working closer to the 
subcontractors, it  will  be  able  to  bring new  innovations  to  the  market  more  rapidly 
and improve its competitiveness. At present, Nokia is losing its position in its most 
important markets of China and India, where several companies manufacturing cheap 
phones are increasing their market shares. 

At  its  height,  the  electronics  and  electrotechnical  industry  provided  employment  to 
more than 60 000 people in Finland, but by the end of 2012, this number will have 
fallen  to  50 000.  At  the  same  time,  the  number  of  personnel  in  third-country 
subsidiaries  of  the  companies  in  this  industry  has  grown,  constituting  a  clear 
statement about offshoring of functions to Asia in particular. 

4 

EGF/2011/014 RO/Nokia. 

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Personnel in Finland 
 Personnel in subsidiaries abroad 

8. 

To date, the mobile phone sector has been the subject of several EGF applications, 
all of which based on trade related globalisation5.  

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

9. 

10. 

Finland  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 1 000 redundancies in Nokia plc (Salo) during the four-month 
reference period from 1 March 2012 to 1 July 2012. More redundancies are expected 
in  both  Nokia  and  its  subcontractors;  a  separate  application  will  be  presented  for 
them. 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 

11. 

12. 

The  Finnish  authorities  argue  that  the  redundancies  at  the  Salo  plant  were 
unforeseen,  as  this  had  been  explicitly  exempt  when  Nokia  announced  major 
redundancies in Finland in February 2011. At the time, the role of the Salo plant was 
expected to be the production of smartphones based on the Windows Phone platform. 

At  the  end  of  November  2011,  when  the  plant  closure  in  Cluj  (Romania)  was 
announced, Nokia also announced that it was reconsidering the role of the Salo plant 
and that some personnel reductions could be expected in 2012. On 22 March 2012, 
the  reduction  of  the  Salo  staff  by  1 000  was  announced,  to  be  implemented  by  the 
end of June. This was unforeseen after the assurances given only a year earlier, and 
in  the  light  of  the  fact  that  this  was  the  first  Nokia  production  plant  with  product 

5 

Regular updates here : http://ec.europa.eu/social/BlobServlet?docId=4558&langId=en. 

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development  operations  and  the  place  where  Nokia  usually  launched  the  assembly 
and assembly-learning process for new and important telephone models. In addition, 
sizeable staff reductions had already been carried out in Finland, and further cuts of 
this size were not expected. 

Identification of the dismissing enterprises and workers targeted for assistance 

13. 

The  application  relates  to  1 000  redundancies  all  of  which  occurring  in  Nokia  plc 
(Salo). All 1 000 workers are targeted for the measures described further below. 

14. 

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
365
635
944
56
28
803
169
0

Percent 
36,5 
63,5 
94,4 
5,6 
2,8 
80,3 
16,9 
0,0 

15. 

16. 

Among these workers, there are 20 with longstanding health problems or a disability. 

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

Category 
Legislators, senior officials and managers 
Professionals 
Technicians and associated professionals 
Clerks 
Craft and related trade workers 
Plant and machine operators and 
assemblers 
Elementary occupations 

Number
15
14
64
49
104
713

Percent 
1,5 
1,4 
6,4 
4,9 
10,4 
71,3 

41

4,1 

17. 

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

18. 

The Salo area is part of the province of South-West Finland, which is one of the most 
export-driven  provinces  of  the  country  (over  60 %  of  its  industrial  output  is 
exported). The region rose to its highly productive status during the 1990s, with the 
strong growth of Nokia, which was then becoming the world's leading mobile phone 
manufacturer. As Nokia's position weakened and the global financial and economic 
crisis  struck,  the  situation  in  Salo  deteriorated  in  terms  of  employment  and 
production, and it suffered more than other regions of Finland. 

19. 

The economic structure of the Salo area has been exceptionally specialised since the 
late  1990s,  with  the  information  and  communications  sector  accounting  for  more 

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20. 

21. 

22. 

than 50 % of added value in 2008. As Nokia declined, it was initially the suppliers 
that  suffered,  with  electronic  components,  plastic  parts  and  other  support  sectors 
being reduced. It is only in the second phase that Nokia cut back its own production 
and finally its own workforce. 

Salo is on the coast of South-West Finland, some 50 km from the provincial centre 
Turku, and 100 km from Helsinki. Workers mostly live locally, but some commute 
from Turku and an even smaller number from Helsinki. 

The main stakeholders are the Southwest Finland Centre for Economic Development, 
Transport and the Environment; the Salo Region Employment and Economic Office; 
the City of Salo; and the City of Somero. 

A widely representative working group has been set up on the reorganisation of the 
activities  of  the  Nokia  Salo  operations.  Various  sub-groups  deal  with  a  range  of 
topics,  including  services,  well-being,  studies,  new  jobs  outside  Nokia,  and 
entrepreneurship.  A  local  co-operation  group  is  set  up  specifically  to  help  white-
collar workers. Another group, named Invest in Salo, strives to match the supply of 
labour to the labour needs of interested companies. 

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

23. 

24. 

Before the start of the recession in 2008, the unemployment rate in the Salo region 
was about 6 %. This had doubled to 12 % by the end of 2009 and has seen a slightly 
rising trend since then. With the current redundancies and the expected second wave, 
there is a risk that the unemployment rate may rise to approximately 15 - 17 % by the 
end of 2012. 

The situation of Salo differs significantly from that in other parts of Finland where 
Nokia has cut back its operations. Most of the staff in Nokia Salo have traditionally 
been employed in assembly and similar tasks, whereas the emphasis at other units in 
Finland has been on research and design functions. Therefore the present and future 
redundancies  in  Nokia  Salo  concern  mostly  blue-collar  workers.  Looking  at  the 
educational background of the workers, where some 40 % have basic education only 
these  redundancies  will 
and  another  39 %  have  secondary-level  education, 
significantly  increase  the  proportion  of  the  lower  educated  among  the  unemployed 
population of Salo. The vocational qualifications held by these workers are in most 
cases from sectors other than technology or technical work. They date back too long, 
and the workers have not acquired any experience in these areas, so they cannot build 
on their qualifications. 

25. 

The financial situation of the city of Salo is weak, and the redundancies at Nokia will 
impact the tax revenues of the municipality. As an employer, the city will probably 
have  to  lay  off  a  number  of  its  own  employees,  and  it  will  not  be  able  to  help  the 
redundant Nokia workers by offering jobs to any of them. 

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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 

26. 

The measures for the Nokia Salo workers are aimed at either helping them to transfer 
to a new job / to start their own businesses, or to commit themselves to some further 
training or education (or both). They include the following : 

–  Job-search  counselling  :  Following  personal  guidance  sessions  provided  to  all 
workers to be dismissed (these sessions are not part of the EGF application), more 
in-depth  counselling  started  on  the  Nokia  premises,  while  the  workers  were  still 
serving  out  their  period  of  notice.  It  continues  with  individual  and  group 
counselling,  organisation  of  and  participation  in  job  fairs,  information  about  the 
local  labour  market  and  the  jobs  required,  enhancing  job-seeking  skills, 
particularly for those who had not been out of work for many years. The duration 
of job-search counselling varies between 5 and 20 days, depending on the needs 
of the workers. It is estimated that some 600 workers will wish to take up this in-
depth counselling, at a cost of around EUR 450 each. The remaining 400 workers 
will  not  need  further  counselling  once  they  have  taken  the  initial  personal 
guidance sessions. 

–  Training  and  retraining  :  There  are  two  main  areas  here  :  preparatory  labour 
market training for those persons who may not yet have plans for a future career, 
and  vocational  re-education  for  those  who  know  their  objective  but  need  the 
necessary  qualifications.  The  preparatory  labour  market  training  is  the  logical 
continuation  of  the  job-search  counselling  that  will  have  preceded  it.  Some  170 
workers are expected to take up this offer, at a cost of about EUR 2 700 each. As 
regards 
this  can  either  build  on  previous 
qualifications and experience, or help the job seeker to start into a new direction. 
In certain conditions, completion of a higher education degree is possible. A wide 
range of courses are on offer to the workers made redundant by Nokia Salo. Some 
550 workers are expected to take up this option, at a cost of EUR 6 880 each. 

the  vocational  re-education, 

–  Steering  towards  entrepreneurship  and  services  for  new  entrepreneurs  :  For  this, 
the  Finnish  authorities  will  use  Protomo  operations  based  at  Yrityssalo,  a 
development centre wholly owned by the city of Salo to provide business services 
including  start-up  support.  Protomo  is  an  environment  for  open  innovation, 
allowing  participants  to  process  ideas  into  prototypes,  work  in  teams  with  pilot 
projects, develop new kinds of products and services and start up new businesses 
with new jobs. Protomo brings new ideas and innovative people together. During 
the implementation of this EGF case, three people (based in Salo and Turku) will 
be  employed  full-time  in  rented  premises  to  provide  Protomo  services  to  the 
targeted workers. The cost of providing this service to the estimated 240 workers 
will be EUR 450 000. 

The  Protomo  concept  works  like  a  matching  service  for  new  entrepreneurs.  The 
Protomo  database  is  a  collection  of  promising  ideas  proposed  by  individuals  or 
enterprises  of  the  region.  Protomo-appointed  tutors  then  help  small  groups  of 
redundant workers to respond to the ideas in the form of a new enterprise that could 
either produce the goods or services for which there appears to be a need, or enable 
them to join the generator of the idea and work on it from the inside of an existing 

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enterprise. The Protomo team provide the facilities and advice for this group work, 
and  they  assess  the  feasibility  of  the  proposal  as  well  as  providing  the  necessary 
experts  where  required.  The  cost  of  providing  experts  and  access  to  equipment  is 
estimated at EUR 360 000 for the 240 participants. Protomo works with groups of 4 
to 6 persons, of which it intends to set up 60, and it is expected that more than half of 
these groups could grow into viable new enterprises. 

Potential  new  entrepreneurs  are  helped  with  advice,  relevant  training,  counselling, 
consultation  and  support,  and  some  start-up  grants  are  also  provided.  The  start-up 
grants  will  support  the  new  entrepreneur  with  a  subsistence  allowance  during  the 
early months of the new enterprise. The cost of the necessary training is estimated at 
EUR 240 000  for  the  240  workers.  Protomo  will  also  be  able  to  provide  external 
experts  with  special  know-how  for  the  aspiring  entrepreneurs;  this  service  is 
estimated at EUR 120 000 for the 240 workers concerned. 

–  Support  for  starting  independent  business  operations  :  This  is  a  start-up  grant, 
assuring  an  income  for  an  aspiring  entrepreneur  for  up  to  18  months  of  initial 
operation.  The  basic  allowance  consists  of  EUR 31,36  per  day.  A  variable 
supplement is added to this, which may not exceed 60 % of the basic allowance. It 
is  estimated  that  some  60  persons  will  qualify  for  this  allowance,  and  that  the 
average  paid  out  to  them  over  the  course  of  the  implementation  period  will  be 
EUR 6 000.  During  this  phase,  the  beneficiaries  will  continue  to  receive 
counselling and support from Protomo. 

–  Mobility  assistance  :  This  provides  both  for  travel  expenses  and  removal 
expenses. Job seekers may not be able to find new employment in the immediate 
area, so may need to travel to attend job interviews, and may need to move to a 
new place to take up vacancies. Travel expenses are calculated on a mileage basis, 
with accommodation reimbursed if necessary. Removal expenses are reimbursed 
up to EUR 700. 

–  Employment  services  at  the  Service  Point  :  The  workers  from  Nokia  Salo  are 
provided with a Service Point which takes care of them during the implementation 
phase. Originally started inside the Nokia premises, the Service Point sets out to 
advise  the  affected  workers  from  the  outset  by  providing  a  much  more  personal 
and in-depth service to them than the public employment office would normally 
be able to deliver. Special attention is paid to ensuring that none of the workers 
slip  into  long-term  unemployment.  Following  the  intensive  initial  effort  of  the 
Service Point, it remains available to guide the workers as they proceed with their 
individual  measures.  The  cost  of  maintaining  the  Service  Point  for  all  1 000 
targeted workers is estimated at EUR 900 000. 

–  Pay  subsidies  :  These  can  be  made  available  to  employers  willing  to  hire  the 
targeted  workers  in  the  full  knowledge  of  deficiencies  in  the  competence  or 
vocational skills of the person to be employed, and willing to ensure that they are 
given  every  support  and  the  necessary  on-the-job  training  as  they  settle  into 
unfamiliar jobs. The duration is fixed according to the needs of the worker, and it 
is estimated that it will amount to an average of EUR 7 500 per worker benefiting 
from this scheme. 

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–  Company based data acquisition scheme : This scheme enables the Employment 
and Economic Development Offices, the Centres for Economic Development, and 
the  Ministry  of  Employment  and  the  Economy  to  conduct  telephone  interviews 
with  companies  and  gather  up-to-date  information  on  the  enterprises'  personnel 
needs.  This  information  enables  the  offices  to  guide  the  workers  in  the  right 
direction and help them with their choices of training courses. The interviews are 
carried out in a centralised manner and the results made available to the actors in a 
sorted form. The cost of providing this service is estimated at EUR 120 000. 

–  Career  guidance,  and  vocational  and  competence  mapping  :  The  vocational 
competencies  and  educational  background  of  people  who  have  been  involved  in 
assembly work at Nokia for a long time vary greatly, and these can be assessed by 
means  of  vocational  and  competence  mapping.  With  a  view  to  individual 
guidance and creation of training plans, it is essential to know the starting point of 
each worker. Vocational and competence mapping serves as a counterpart to the 
information  on  the  personnel  needs  of  enterprises  received  through  reports  and 
statistics based on telephone interviews with enterprises. As a rule, the vocational 
and competence mappings are acquired from vocational education institutions as a 
contracted  service.  This  is  expected  to  be  taken  up  by  450  workers  at  a  cost  of 
EUR 500 each. 

–  Work-capacity evaluations :  Some of those dismissed  have certain limitations in 
their  work  capacity,  which  must  be  investigated  before  making  agreements  on 
new  plans  and  support  measures  concerning  employment.  For  the  purposes  of 
work-capacity  evaluations,  the  Employment  and  Economic  Development  Office 
can guide a job-seeker towards the necessary medical examinations. The cost of 
these is estimated to vary around an average of EUR 2 500 per person. 

The expenditure for implementing the EGF, which is included in the application in 
accordance with Article 3 of Regulation (EC) No 1927/2006, covers preparation and 
management  (setting  up  the  necessary  systems,  travel  expenses  and  translations), 
communication  (at  local,  regional  and  national  levels)  and  certification  and 
monitoring.  Communication  at  national  scale  was  already  undertaken  at  the  time 
when  an  EGF  application  was  first  considered,  and  again  at  the  time  when  it  was 
submitted to the Commission. The people made redundant by Nokia will be informed 
that  the  services  provided  to  them  are  co-funded  by  the  EGF.  Best  practices  in 
implementation  will  be  highlighted,  with  a  focus  on  the  people  who  benefited  and 
found new employment. 

The  personalised  services  presented  by  the  Finnish  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Finnish authorities estimate the total costs at EUR 10 692 000, of 
which  the  expenditure  for  personalised  services  at  EUR 10 273 000  and  the 
expenditure for implementing the EGF at EUR 419 000 (3,92 % of the total amount). 
The total contribution requested from the EGF is EUR 5 346 000 (50 % of the total 
costs). 

27. 

28. 

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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 counselling 

Training and retraining (vocational) 

Training and retraining (preparatory) 

Entrepreneurship promotion (Protomo 
operations) 

Entrepreneurship promotion (Protomo service 
procurement) 

Entrepreneurship promotion (Protomo training)

Entrepreneurship promotion (service 
procurement) 

Support for starting independent business 
operations 

Mobility assistance 

Employment services at the service point 

Pay subsidy 

Company based data acquisition system 

Career guidance and vocational competence 
mapping 

600

550

170

240

240

240

240

450 

270 000

6 880 

3 784 000

2 700 

1 875 

459 000

450 000

1 500 

360 000

1 000 

240 000

500 

120 000

60

6 000 

360 000

300

1 000

360

1 000

450

200 

900 

60 000

900 000

7 500 

2 700 000

120 

500 

120 000

225 000

Work capacity evaluations 

90

2 500 

225 000

Sub total personalised services 

10 273 000

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

Preparatory activities 

Management 

Information and publicity 

72 000

152 000

183 000

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Control activities 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (50 % of total costs) 

12 000

419 000

10 692 000

5 346 000

29. 

Finland confirms that the measures described above are complementary with actions 
funded  by  the  Structural  Funds  and  that  measures  are  in  place  to  ensure  that  all 
double  financing  will  be  prevented.  A  co-ordination  group  to  address  sudden 
structural change is in operation in the area of South-West Finland, and has among 
its  responsibilities  to  agree  on  the  division  of  responsibilities  between  the  ESF  and 
the EGF. The steering group of this project is tasked with the management, steering 
and determination of strategic guidelines and goals for the activity. The project group 
on the other hand is responsible for the initiation of measures in the Salo region, and 
monitoring and assessment of the practical progress of structural change on the basis 
of  strategic  goals  set  by  the  steering  group.  Regional  actors,  including  the  social 
partners and the joint municipal authority for education, are widely represented in the 
working groups. 

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

30. 

Finland started the personalised services to the affected workers included in the co-
ordinated package proposed for co-financing to the EGF on 29 February 2012. 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 

31. 

32. 

The social partners have been, and continue to be, involved in the process from the 
outset. For further information, please see point 29 above. 

The  Finnish  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 

33. 

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the 
Finnish 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. 

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Management and control systems  

34. 

Finland has notified the Commission that the financial contribution will be managed 
by the Ministry of Employment and the Economy, which also manages ESF funds. 
The same Ministry also acts as the certifying authority. There is a strict separation of 
duties  and  of  reporting  relationships  between  the  departments  responsible  for  these 
two  functions.  The  management  functions  have  been  assigned  to  the  Employment 
and  Entrepreneurship  Department,  while  the  certifying  functions  are  within  the 
Human  Resources  and  Administration  Unit.  The  Ministry  has  prepared  a  manual 
setting out in detail the procedures to be followed. 

Financing 

35. 

36. 

37. 

38. 

On  the  basis  of  the  application  from  Finland,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  EGF)  is  EUR 5 346 000,  representing  50 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Finland. 

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. 

39. 

The Commission presents separately a transfer request in order to enter in the 2012 
budget  specific  commitment  appropriations,  as  required  in  Point  28  of  the 
Interinstitutional Agreement of 17 May 2006. 

Source of payment appropriations  

40. 

The amount of payment appropriations initially entered on the budget line 04 05 01 
in 2012 will be fully consumed after the adoption by the two arms of the budgetary 
authority  of  the  proposals  submitted  to  date  for  mobilising  the  EGF  and  therefore 
insufficient to cover the amount needed for the present application. A reinforcement 
of  the  payment  appropriations  of  the  EGF  budget  line  will  be  requested  either 
through a transfer, in case a source of available appropriations can be identified, or 

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an Amending budget. Appropriations from this budget line will be used to cover the 
amount of EUR 5 346 000 needed for the present application. 

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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/2012/006 FI/Nokia Salo from Finland) 

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 European Commission8, 

Whereas: 

(1) 

(2) 

(3) 

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

Finland  submitted  an  application  to  mobilise  the  EGF,  in  respect  of  redundancies  in 
the  enterprise  Nokia  plc  (Salo),  on  4  July  2012  and  supplemented  it  by  additional 
information  up  to  21  August  2012.  This  application  complies  with  the  requirements 
for  determining 
in  Article  10  of 
Regulation (EC) No 1927/2006.  The  Commission,  therefore,  proposes  to  mobilise  an 
amount of EUR 5 346 000. 

the  financial  contributions  as 

laid  down 

(4) 

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

6 
7 
8 

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

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HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2012,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 5 346 000 in commitment and payment appropriations. 

Article 2 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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