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/2011/011 AT/Soziale Dienstleistungen from Austria)
Date: 2012-10-19
Institutions: European Commission
Subjects: Austria, European Globalisation Adjustment Fund, care of people with disabilities, collective dismissal, commitment of expenditure, economic recession, employment aid, general budget (EU), payment appropriation, reintegration into working life

EUROPEAN 
COMMISSION 

Brussels, 19.10.2012  
COM(2012) 621 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/2011/011 AT/Soziale Dienstleistungen from 
Austria) 

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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. 

application  EGF/2011/011  AT/Soziale 
On  21 December 2011,  Austria 
Dienstleistungen  from  Austria  for  a  financial  contribution  from  the  EGF,  following 
redundancies in 105 enterprises operating in the NACE Revision 2 Division 88 ('Social work 
activities without accommodation')3 in the NUTS II region of Steiermark (AT22) in Austria. 

submitted 

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 region 

NACE Revision 2 Division 

Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundant workers expected to participate in the measures 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF4 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

EGF/2011/011 
Austria 
(b) 
105 
Steiermark (AT22) 
88 ('Social work activities 
without accommodation') 
1.4.2011 - 15.12.2011 
1.10.2011 
21.12.2011 
1 050 
350 
7 850 500 
150 500 
1,88 
8 001 000 
5 200 650 

1. 

1 
2 
3 

4 

The  application  was  presented  to  the  Commission  on  21 December 2011  and 
supplemented by additional information up to 25 June 2012. 

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. 

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2. 

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. 

6. 

5 
6 

7 

In order to establish the link between the redundancies and the global financial and 
economic crisis, Austria argues that the dismissals in Styria's mobile social services 
sector  (provision  of  mobile  social  services  for  people  with  handicaps  and  mobile 
youth assistance) occurred as a result of reductions in the social budget implemented 
by  Styria  with  a  view  to  consolidating  their  overall  budget  (as  part  of  their 
contribution  to  Austria's  stability  and  consolidation  commitments  under  the  2010-
2014 Stability Programme5). 

Reacting to the negative impacts of the crisis and in order to consolidate the regional 
budget by 2013, Styria's newly elected government decided in 2010 to cut the overall 
expenses of the Land by 25 % (in comparison to the 2010 budget) over the two-year 
period 2011/2012. The budget reductions also concerned the social sector, including 
contractually  laid  down  disbursements  (vertraglich  vereinbarte  Pflichtleistungen) 
paid by Styria for youth welfare and support for the handicapped (Jugendwohlfahrt, 
Behindertenhilfe).  These  services  are  carried  out  in  Styria  by  welfare  providers6, 
organised  as  not-for-profit  organisations,  limited  liability  companies  as  well  as 
(small) private enterprises. 

The  Styrian  providers  of  mobile  social  services  for  handicapped  people  (mobile 
Behindertenhilfe)  and  mobile  youth  work  (mobile  Jugendarbeit)  were  among  those 
directly  affected  by  the  cuts  in  the  social  budget.  Following  a  review  of  the  legal 
frameworks  governing  the  mobile  services  for  these  two  groups  of  people,  the 
catalogue  of  services  was  reduced,  and  the  fees  paid  by  Styria  to  the  service 
providers  lowered  with  effect  from  July  2011  (mobile  Behindertenhilfe)  and  June 
2011 (mobile Jugendarbeit)7.  

In  reaction  to  the  budget  cuts,  Styria's  social  services  providers  first  reduced  their 
activities (i.e. shorter working times for staff) and, subsequently, started dismissing 
workers  from  mid-2011  onwards.  Hardest  hit  were  /  are  small  service  providers 
specialising only in one or few social assistance area(s) as they depend exclusively 
on  the  payments  from  the  Land  and  the  municipalities  (while  larger  welfare 
providers working in several areas dispose of various means of financing, including 
revenue from fund-raising campaigns or Federal funding). 

http://ec.europa.eu/europe2020/documents/related-document-type/index_en.htm 
Freie Wohlfahrtsträger für die Erbringung sozialer Dienstleistungen zur Unterstützung Hilfsbedürftiger 
(öffentliche Wohlfahrtsaufgaben). 
This should be seen against the background that Styria's expenses for social services helping these two 
groups of people had increased since the start of the economic crisis in 2008 up to 2011 (constituting 
together about 50% of Styria's social budget). 

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

7. 

8. 

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. 

The application cites 1 050 redundancies in 105 enterprises operating in the NACE 
Revision  2  Division  88  ('Social  work  activities  without  accommodation')  in  the 
NUTS II region of Steiermark (AT22) during the reference period from 1 April 2011 
to 15 December 2011. Of these, 888 were calculated in accordance with the second 
indent  of  the  second  paragraph  of  Article  2  of  Regulation  (EC)  No  1927/2006  and 
162 were calculated in accordance with the first indent of the same paragraph.  

Explanation of the unforeseen nature of those redundancies 

9. 

The  Austrian  authorities  argue  that  the  redundancies  were  unforeseen  since  they 
occurred as a result of the decision by Styria's regional government (in early 2011) to 
reduce the public funding to assist handicapped people and to carry out youth work. 
These cuts in the social budget came as a surprise for the mobile service providers, 
all the more so since the contractual agreements between Styria and service providers 
had  in  previous  years  been  renewed  without  renegotiation,  and  as  the  financial 
resources made available for assisting these two groups of people had even increased 
during previous years.  

Identification of the dismissing enterprises and workers targeted for assistance 

10. 

The  application  relates  to  1 050  redundancies  in  105  enterprises  during  a  reference 
period  of  8,5  months,  of  whom  350  workers  (33,3 %)  are  targeted  for  assistance. 
These  will  receive  personalised  assistance  within  a  regional  labour  foundation 
(Regionalstiftung) as defined in Federal Directive AMF/23-20118. According to the 
Austrian  authorities,  the  remaining  dismissed  workers  (700)  have  either  found  new 
work at their own initiative and / or with the help of the public employment services 
(AMS)  or  they  were  not  interested  in  receiving  training  and  other  assistance  in  the 
framework of the labour foundation set up for them. 

Enterprises and number of dismissals 

Alpha Nova Betriebsges.m.b.H. 
BAN - Sozialökonomische 
BetriebsgmbH 
BBRZ Kapfenberg 
Beatrix Preininger 
Beratungsstelle TARA 
Betriebshilfe für die Steirische 
Wirtschaft 
BUGLKRAXN, Verein 

18 

17 

2 
1 
1 

11 

6 

Lebenshilfe Bezirk Bruck/Mur 

Lebenshilfe Bezirk Judenburg 

Lebenshilfe Bezirk Muerzzuschlag 

Lebenshilfe Ennstal 
Lebenshilfe Feldbach 
Lebenshilfe Graz und Umgebung - 
Voitsberg 
Lebenshilfe Hartberg 

14 

6 

4 
4 
6 

31 

3 

8 

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. 

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Enterprises and number of dismissals 

Arbeitsintegration 

Sozialpädagog. Cafe Zum 
Safrangarten  
Caritas der Dioezese Graz-Seckau 
Chance B Sozialbetriebs GmbH 
EHLESO OG 
Eltern-Kind-Zentrum 
ErFA II  
Evang. Diakoniewerk Haus am 
Ruckerlberg 
FRATZ-GRAZ Freizeit u. 
Aktivitätsz.f. K. 

Gabriele Herrgesell 
Gemeinnuetzige 
Beschaeftigungsges.m.b.H. 
Gemeinnützige Arbeitsintegrations 
GmbH 
Gemeinnützige Dienstleistungsges. 
Weiz  
Ges. für steirische Kinderdörfer 
Gesellschaft zur Förderung 
seelischer Gesundh. 

GIP Neue Lebensräume GmbH 
Herbert Stöckl 
Hilfswerk Steiermark Gmbh 
HOME SERVICE Volkshilfe 
Steiermark  

Isop Innovative Sozialprojekte 

IST - Soziale Dienstleistungs 
Ges.m.b.H. 
Jugend am Werk Steiermark GmbH 
JWF Sozialmanagement GmbH 
Kinderfreunde Steiermark 

Köflacher Kinder- Betreuungsstelle 
Kohlbacher-Sinko GmbH 
KOMPETENZ – Ber. u soz. 
Kompetenzz. 
Kulturwerkstatt GesbR 
L.I.F.F.T. - Verein 
Lebenshilfe Ausseerland  
Lebenshilfe Bad Radkersburg 
Gaestehaus 
Lebenshilfe Bad Radkersburg 
Tageswerkst. 
SOEBSA, Sozial-Oeko-u. 
Beschäftigungsserv. 
SOS - Kinderdorf 

10 

110 
40 
1 
2 
82 

7 

1 

1 

10 

5 

25 

2 

1 

5 
3 
1 

3 

19 

2 

74 
9 
18 

3 
1 

6 

1 
4 
2 

2 

1 

10 

10 

5 

Lebenshilfe Judenburg gemeinnützige 
GmbH 
Verein Krisun - Kolpingsfamilie 
Lebenshilfe Leibnitz 
Lebenshilfe Projekt SPZ 
Lebenshilfe Radkersburg 
Lebenshilfe Steiermark Feldbach 
Lebenshilfe Steiermark Sektion 
Fuerstenfeld 
Lebenshilfe Steiermark Sektion 
Hartberg 
Lebenshilfe Steiermark f. g u. mehrf. 
Beh. M. 

Lebenshilfe Trofaiach 

Lebenshilfe Weiz GmbH 

Lebenshilfe Wohn-u.Tagesheim 

6 

3 
8 
7 
5 
1 

3 

5 

20 

4 

1 

1 

Lebenshilfe, Graz und Umgebung - 

17 

Leib & Soel - Verein 

LEO Lern- und Entwicklungswerkstätte 

LOGO jugendmanagement gmbh 
MAFALDA 
Mit uns- Verein f. Heilpäd. 
Entwicklungsf. 

Mosaik GmbH 

Neue Lebensräume GmbH 

Odilien- Blinden-Institut 
OEKO-Service GmbH 
Oesterr.Gesellschaft Rettet das Kind 
Oesterr.Kinderfreunde Ortsgruppe 
Leonhard 
Oesterr.Kinderrettungsw.Steiermark 

Oesterreichische Kinderfreunde 

Pflegeelternverein Stmk. 
pro mente Steiermark 
Pronegg-Schleich Soziale Dienste KG 
Psychosoziales Zentrum Voitsberg 
GmbH 

Region Gleisdorf Jugend und Kind KG 

Verein f. Psy. u.Soz. Lebensberatung 

6 

4 

1 
2 

4 

31 

1 

11 
13 
6 

2 

1 

11 

26 
10 
1 

1 

6 

5 

Verein für Beschäftigungsprojekte 

97 

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Enterprises and number of dismissals 

Sozial- u. Heilpädag. Förderinstitut 
Stmk. 
Sozial- und Begegnungszentren Graz 
Sozialbetriebsgesellschaft Birkfelder 
Raum 
Soziale Dienste Ennstal Egartner-
Schloemicher 
Sozialmanagement Steiermark 
sozKom GmbH & Co KG 
Steingruber Rita & Peter, 
Frühförderstelle 
Tagesmütter Graz-Steiermark 
Therapeutische Gemeinsch. 
Steiermark 
Ubuntu Verein z. sozialen 
Integration 
Verein Die Bruecke 
Verein f. Opfer v.Gewalt 
u.Menschenrechtsverl. 
Verein f.psy. u. soziale 
Lebensberatung 
Verein Frauenplattform Bezirk 
Voitsberg 
Verein Frauenservice Graz  
Total enterprises: 105  

5 

2 

1 

1 

1 
1 

1 

9 

1 

5 

3 

1 

1 

2 

1 

Verein Humanistische Initiative 

Verein IKEMBA 

Verein PFIFF - Mit- und Füreinander 

Verein Sozialmanagement Steiermark 

Verein Sozialtherapeut. Betreuung. 
Volkshilfe Steiermark 

Verein VIDEF 

WENDEPUNKT-LEOBEN 

Wohnplattform Stmk 

Youth - 4U KG 

3 

1 

1 

1 

1 
87 

2 

1 

1 

2 

Total dismissals: 1 050 

11. 

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
100
250
330
20
75
260
15
0

Percent 
28,6 
71,4 
94,3 
5,7 
21,4 
74,3 
4,3 
0.0 

. 

12. 

13. 

14. 

There are 153 workers (43,7 % of the targeted workers) with a longstanding health 
problem or disability included in the categories above.  

In terms of occupational categories, all the workers concerned by this application are 
personal care workers (ISCO-08 category 5). 

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. 

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Description of the territory concerned and its authorities and stakeholders 

15. 

16. 

The  territory  concerned  by  the  redundancies  is  the  Land  of  Steiermark  (Styria, 
AT22),  one  of  Austria's  nine  federal  provinces.  Steiermark  belongs  to  Austria's 
industrial  regions,  together  with  Niederösterreich,  Oberösterreich  and  Vorarlberg. 
The Land shares a border with Slovenia, and its provincial capital, Graz, is Austria's 
second largest city after Vienna. 

The  main  stakeholders  are  Styria's  regional  public  employment  services  (regionale 
Geschäftsstelle  des  Arbeitsmarktservice  /  AMS),  Styria's  provincial  government 
(Steiermärkische Landesregierung), Styria's Economic Chamber (Wirtschaftskammer 
Steiermark),  the  trade  union  of  private  sector  employees,  printing,  journalism,  and 
paper (Gewerkschaft der Privatangestellten, Druck, Journalismus, Papier), which is 
under  the  umbrella  of  Austria's  Federation  of  Trade  Unions  (Österreichischer 
Gewerkschaftsbund / ÖGB) as well as the two umbrella organisations Die Steirische 
Behindertenhilfe  and  Dachverband  der  Steirischen  Jugendwohlfahrtsträger 
representing the social welfare providers for the two client groups. 

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

17. 

18. 

19. 

20. 

9 

10 
11 

12 

In November 2011, Styria's unemployment rate was higher than that of Austria as a 
whole:  6,2 %  compared  to  4,1 %.  Particularly  high  increases  of  unemployment 
among women were registered in this month (6,0 % increase since November 2010), 
partially  reflecting  the  high  share  of  women  dismissed  in  the  social  services  sector 
covered by this application9. Just a few months later (March 2012), Styria's overall 
unemployment rate was by 9 % higher than a year before (March 2011), representing 
the  highest  increase  of  unemployment  among  Austria's  nine  Federal  provinces 
(average 4,4 % increase for Austria as a whole during the same period). 

According to the Austrian authorities, Styria's health and social sector was hit harder 
by the economic and financial crisis and its consequences than other industrial areas 
in  the  province  (increase  of  7,5 %  in  unemployment  in  March  2012  compared  to 
March  2011,  a  rate  topped  only  by  the  construction  sector  where  the  increase  in 
unemployment at 10,6 % during the same period was even more pronounced). 

Austria  estimates  that  more  social  services  workers  will  lose  their  jobs  in  2012 
following the cuts in regional funds for assisting handicapped people and for mobile 
youth  work.  The  total  number  of  dismissals  in  the  mobile  social  services  sector  in 
Styria will be significantly higher than initially thought by the social partners. 

Styria  was  also  affected  by  other  mass  redundancies  for  which  EGF  applications 
were submitted to the Commission: 744 redundancies in a nine-month period related 
to  the  automotive  sector10,  476  redundancies  in  a  nine-month  period  related  to  the 
basic  metal  sector11  and  167  redundancies  in  a  four-month  period  related  to  an 
enterprise specialising in electronic equipment12. 

In Austria, the share of women working in the social sector (about 80 %) is higher than in other sectors 
such as tourism (about 68 %) or construction (about 15 %). 
EGF/2009/009 AT/Steiermark, approved by the Budgetary Authority in 2009, OJ L 347, 24.12.2009. 
EGF/2010/007 AT/Steiermark and Niederösterreich, approved by the Budgetary Authority in 2011, OJ 
L 263, 7.10.2011. 
EGF/2010/008 AT/AT&S, approved by the Budgetary Authority in 2011, OJ L 263, 7.10.2011. 

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21. 

22. 

All this, in combination with other factors (first and foremost the dramatic increase 
in  future  demand  for  healthcare  and  social  services  -  white  jobs  -  as  a  result  of 
Europe's ageing population) makes an upgrading of qualifications and a sustainable 
reintegration of this specialised workforce so important. 

The savings in Styria's social budget are being implemented despite a controversial 
debate  between  the  mobile  assistance  providers  and  the  regional  government.  The 
debate  about  integration,  social  justice  for  disadvantaged  groups  and  their  families 
and the possible impacts of the reductions and dismissals on the regional and local 
economy is still ongoing in 2012. In reply to a query from the European Commission 
services, Austria responded that, even after the implementation of the savings, Styria 
continues to consider itself as Austria's pioneer with regard to disability policies, and 
that the province remains committed to fulfilling the United Nations Convention on 
the  Rights  of  Persons  with  Disabilities,  which  Austria  had  ratified  in  2008.  The 
Styrian  regional  government  will  table  an action  plan  in  2012  providing  guidelines 
for  Styria's  disability  strategy  2012-2020  on  the  basis  of  the  UN  Convention.  The 
guidelines  will  cover  areas  such  as  accessibility,  employment,  awareness  and 
training, self-determined life, data and statistics. 

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 

23. 

24. 

25. 

The  following  measures  are  proposed,  all  of  which  combine  to  form  a  coordinated 
package  of  personalised  services  aimed  at  reintegrating  an  estimated  350  former 
social services workers into employment. The measures will be provided to the 350 
workers  through  a  regional  labour  foundation  (approved  by  the  public  employment 
service on 30.9.2011 and operational from 1.10.2011 up to 30.9.2016; latest possible 
entry date for workers: 30.9.2012). Verein Wirtschaftsoffensive (WOF) in Voitsberg 
/  Köflach  will  be  responsible  for  the  delivery  of  the  measures  within  the  labour 
foundation.  This  regional  development  association  already  managed  Austria's  first 
EGF case, in the automotive sector10. 

The  350  people  to  be  assisted  within  the  labour  foundation  will  benefit  from  a 
coordinated  programme  comprising  a  methodological  case  management  and  a 
comprehensive training offer, tailored to the profiles and needs of the social service 
workers.  The  measures  are  agreed  with  and  controlled  by  the  public  employment 
services (AMS, i.e. Arbeitsmarktservice) of Styria which assesses the usefulness of 
the  upskilling  and  training  measures  for  both  the  current  and  future  labour  markets 
(when the requirements will be different as a result of demographic changes). 

In line with § 18 of Arbeitslosenversicherungsgesetz (ALVG) and depending on each 
person's previous work time pattern, the workers must involve themselves full-time. 
The  minimum  involvement  cannot  be  lower  than  20  hours  per  week.  Compliance 
with the foundation rules (Stiftungsordnung) and other applicable laws is assured. 

–  Case management: The two case management modules are available to all 

350 targeted workers (counsellor / participant quota: 1:12): 

– 

Module 1 - Occupational orientation and activation; 

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– 

Module 2 - Active job search. 

After  having  entered  the  labour  foundation,  workers  follow  the  first  module 
(duration limited to six weeks, with the possibility of extension to a maximum of 12 
weeks in particular cases). An individual occupational pathway plan is developed for 
each participant reflecting the present and future needs of the labour market and each 
worker's possibilities and  personal  career  prospects. The  pathway plan is signed by 
the worker, the representatives of the labour foundation and the responsible regional 
AMS  and  forms  the  basis  for  the  worker's  subsequent  activities  within  the  labour 
foundation.  Workers  aged  over  50  receive  intensified  assistance  to  improve  their 
chances  on  the  labour  market.  This  module  also  includes  the  possibility  for  the 
workers to spend one week in an enterprise to try out a new post.  

The second module provides the workers with personalised assistance to help them 
find new jobs. This includes techniques on how to approach the labour market, how 
to  prepare  for  job  interviews  and  selection  tests,  etc.  Depending  on  each  worker's 
profile  and  situation,  the  active  job  search  can  either  start  directly  after  the 
occupational orientation or on completion of the individual training path. Styria aims 
to  upskill  or  retrain  as  many  workers  as  possible  before  they  start  looking  for  new 
jobs in order to prepare for the region's future employment challenges (e.g. response 
to  demographic  ageing,  greener  and  knowledge-based  economy  etc.).  The  normal 
duration of this module is limited to 14 weeks, renewable for an additional 14 weeks 
in specific cases (for participants aged over 50 or for people with a reduced working 
capacity). 

–  Individual 

training:  Training  measures  are  budgeted 

for  all  350 
targeted workers.  The  labour  foundation  will  provide  training  for  the 
dismissed workers to upgrade their skills and knowledge in preparation for 
future  jobs  with  a  growth  potential:  specialised  health  and  social  services 
professions requiring higher / academic qualifications (probably about half 
of  the  participants),  but  also  jobs  in  the  green  industries  and  in  the  metal, 
electronics, trade and tourism sectors. The qualification options proposed to 
the  workers  vary  according  to  their  education  levels  and  experience  -  for 
instance,  lower  skilled  workers  can  receive  vocational  training  to  obtain  a 
formal qualification or catch up with previously interrupted apprenticeships, 
people  with  specific  technical  qualifications  will  receive  possibilities  to 
obtain higher degrees. 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  funding 
will be provided by the labour foundation13. 

–  Training allowance14: This allowance has been budgeted for all 350 workers 
and will be payable only for the duration of their participation in the training 
measures  within  the  labour  foundation.  The  rate  is  EUR 200  per  person  / 
month  and  was  budgeted  for  18  months.  It  permits  the  worker  to  cover 
travel  expenses  and  the  cost  of  learning  materials.  This  allowance, 

13 

14 

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

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combined  with  the  subsistence  allowance,  may  not  exceed  a  worker's 
unemployment  benefit  assessment  basis.  Unemployment  benefits  are 
interrupted during the period while these training allowances are granted. 

–  Subsistence allowance while on training and on job search measures15: This 
allowance has been budgeted for all 350 workers and will be payable 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  rate  is 
EUR 1 000  per  person  /  month  and  was  budgeted  for  11  months  (average 
figures,  as  the  actual  amounts  depend  on  each  worker's  salary  prior  to  the 
dismissal  and  the  period  during  which  each  worker  remains  in  the  active 
measures). This allowance, combined with the training allowance, may not 
exceed a worker's unemployment benefit assessment basis. Unemployment 
benefits are interrupted during the period while these subsistence allowances 
are granted.  

26. 

27. 

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  the 
regional  labour  foundation.  The  foundation  management  costs  (EUR  75 000)  are 
calculated on a flat rate basis. All partners involved in the measures are committed to 
communicating the EGF support. 

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 7 850 500  and  the  expenditure  for  implementing  the  EGF  at  EUR 150 500 
(1,88 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 5 200 650 (65 % of the total costs). 

15 

Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG). 

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10 

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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) 

Case management (2 modules): 
 Occupational orientation and activation  
 Active job search 
(Maßnahmen der Betreuung, Orientierung und 
Aktivierung) 

Individual training, including internships and 
entrepreneurship training 
(Ausbildungsmaßnahmen) 

Training allowance (Ausbildungsbedingte 
Zuschussleistung / Stipendien) 

Subsistence allowance while on training and 
job search (Schulungsarbeitslosengeld)  

350

1 030 

360 500

350

7 000 

2 450 000

350

3 600 

1 260 000

350

10 800 

3 780 000

Sub total personalised services 

7 850 500

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) 

10 500

75 000

25 000

40 000

150 500

8 001 000

5 200 650

28. 

According to Austria, the measures described above are complementary with actions 
funded  by  the  Structural  Funds.  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. Furthermore, Austria has put in place certification of costs procedures to 
exclude any risk of double financing. 

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

29. 

Austria started the personalised services to the affected workers included in the co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  1 October 2011.  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 

30. 

31. 

32. 

On 26.9.2011 and on 27.9.2011, the Styrian Economic Chamber (Wirtschaftskammer 
Steiermark)  and  Austria's  Federation  of  Trade  Unions 
(Österreichischer 
Gewerkschaftsbund  /  ÖGB)  agreed  to  establish  a  regional  labour  foundation  in 
support of the dismissed workers. The agreement of the partners was a prerequisite 
for the recognition of the labour foundation "Soziale Dienstleistungen Steiermark" by 
the  AMS  which  was  notified  on  30.9.2011.  The  two  umbrella  organisations  Die 
Steirischen 
Steirische 
Jugendwohlfahrtsträger were also involved in the discussions. 

Behindertenhilfe 

Dachverband 

and 

der 

Austrian  social  partnership  cooperation  is  a  voluntary  arrangement  of  mostly 
informal  nature  and  is  not  regulated  by  law16.  Only  when  enterprises  decide  to 
participate  in  specific  labour  market  policy  measures  are  they  subject  to  the 
applicable public employment service (AMS) rules. 

The Austrian  authorities confirmed  that the requirements laid down in national and 
EU  legislation  concerning  collective  redundancies  have  been  complied  with.  Given 
the  small  size  of  the  social  services  providers  concerned,  only  a  few  of  them  were 
the  Austrian 
obliged 
Frühwarnsystem  (early  warning  system)  in  accordance  with  §  45a  of  the 
Arbeitsmarktförderungsgesetz /AMFG. 

the  planned  redundancies  according 

to  announce 

to 

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 
Austrian 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; 

•  confirmed 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. 

16 

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

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12 

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Management and control systems  

34. 

35. 

36. 

Austria  has  notified  the  Commission  that  the  Land  of  Styria  and  Styria's  public 
employment services AMS will provide the 35 % national co-financing and are pre-
financing  the  actions.  The  former  will  take  on  25,5 %  of  the  national  co-financing 
and the latter 74,5 %. 

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 from that of the ESF: unit VI/S/5a 
within BMASK will take on this function for the EGF.  

The  coordinated  package  of  personalised  measures 
implemented  by 
Regionalstiftung  Soziale  Dienstleistungen  managed  by  Verein  Wirtschaftsoffensive 
(WOF) with offices in the cities of Graz and Köflach, and is 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. 

is 

Financing 

37. 

38. 

39. 

40. 

On the basis of the application from Austria, the proposed contribution from the EGF 
to  the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  EGF)  is  EUR 5 200 650,  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Austria. 

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. 

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41. 

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  

42. 

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 
an Amending budget. Appropriations from this budget line will be used to cover the 
amount of EUR 5 200 650 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/2011/011 AT/Soziale Dienstleistungen 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 
management17, 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  Fund18, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission19, 

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 
30 December 2011 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 
105 enterprises operating in the NACE Revision 2 Division 88 ('Social work activities 
without  accommodation')  in  the  NUTS  II  region  of  Steiermark  (AT22),  on 
21 December 2011 and supplemented it by additional information up to 25 June 2012. 
This  application  complies  with  the  requirements  for  determining  the  financial 

17 
18 
19 

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

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15 

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contributions  as  laid  down  in  Article  10  of  Regulation (EC) No 1927/2006.  The 
Commission, therefore, proposes to mobilise an amount of EUR 5 200 650. 

(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  2012,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 5 200 650 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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