European Parliament resolution of 16 April 2013 on the 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/2011/023 IT/Antonio Merloni SpA from Italy) (COM(2013)0090 — C7-0046/2013 — 2013/2032(BUD))
Date: 2013-04-16
Institutions: Committee on Budgets, Committee on Employment and Social Affairs, Committee on Regional Development, European Parliament
Subjects: European Globalisation Adjustment Fund, Italy, collective dismissal, commitment of expenditure, economic recession, employment aid, general budget (EU), household electrical appliance, payment appropriation, reintegration into working life








C_2016045EN.01010602.xml










5.2.2016   


EN


Official Journal of the European Union


C 45/106





P7_TA(2013)0109
European Globalisation Adjustment Fund: application EGF/2011/023 IT/Antonio Merloni SpA
European Parliament resolution of 16 April 2013 on the 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/2011/023 IT/Antonio Merloni SpA from Italy) (COM(2013)0090 — C7-0046/2013 — 2013/2032(BUD))
(2016/C 045/23)

The European Parliament,






—


having regard to the Commission proposal to the Parliament and the Council (COM(2013)0090 — C7-0046/2013),










—


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 management (1) (IIA of 17 May 2006), 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 on establishing the European Globalisation Adjustment Fund (2) (EGF Regulation),










—


having regard to the trilogue procedure provided for in point 28 of the IIA of 17 May 2006,










—


having regard to the letter of the Committee on Employment and Social Affairs,










—


having regard to the report of the Committee on Budgets (A7-0111/2013),










A.


whereas the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers made redundant as a result of major structural changes in world trade patterns and to assist their reintegration into the labour market;










B.


whereas the scope of the European Globalisation Adjustment Fund (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;










C.


whereas the Union’s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible, in accordance with the Joint Declaration of the European Parliament, the Council and the Commission adopted during the conciliation meeting on 17 July 2008, and having due regard for the IIA of 17 May 2006 in respect of the adoption of decisions to mobilise the EGF;










D.


whereas Italy submitted application EGF/2011/023 IT/Antonio Merloni for a financial contribution from the EGF, following redundancies in Antonio Merloni SpA in Italy requesting assistance for 1 517 redundancies, all targeted for EFG co-funded measures, during the four-month reference period from 23 August 2011 to 23 December 2011;










E.


whereas the application fulfils the eligibility criteria laid down by the EGF Regulation;












1.


Agrees with the Commission that the conditions set out in Article 2(a) of the EGF Regulation are met and that, therefore, Italy is entitled to a financial contribution under that Regulation;












2.


Notes with regret that the Italian authorities submitted the application for EGF financial contribution on 29 December 2011 and that its assessment was made available by the Commission on 20 February 2013; regrets the lengthy evaluation period of 14 months; calls on the Commission to conclude the evaluation phase and finally present proposals for decisions on the four remaining cases submitted in 2011;












3.


Notes that the production plants of Antonio Merloni SpA, a producer of domestic appliances, were located in the Italian regions of Marche and Umbria, in particular the provinces of Ancona and Perugia; observes that in 2002, Antonio Merloni SpA, the fifth largest manufacturer of appliances in the Union changed its sales strategy and started selling its products directly through its own brands in 2006; notes that as a result of the global economic crisis, the company experienced financial difficulties, which were further exacerbated by the sudden tightening of conditions for accessing financial credit; notes that the downturn in production, which had been following the downward trend at a European level, combined with financial constraints, resulted in the winding-up of the business activities of Antonio Merloni SpA; notes that a total of 2 217 workers were made redundant, of whom 700 were employed by QA Group SpA; notes that this application, therefore, covers the 1 517 workers who are unemployed as a result of the closure of Antonio Merloni SpA;












4.


Notes that Antonio Merloni SpA was declared insolvent already in October 2008 and the sale of its assets and the take over of 700 workers were concluded only in December 2011; notes that the Italian authorities launched their original request for EGF assistance previously in 2009; notes, however, that the application had to be re-launched in late 2011 given that the workers were formally dismissed only when the assets had been sold and administrative proceedings concluded;












5.


Recalls that the EGF has already supported workers dismissed in the sector of manufacturing of domestic appliances (case EGF/2009/010 LT/Snaigė) (3);












6.


Emphasises the fact that in the pre-crisis years, the provinces of Ancona and Perugia had an unemployment rate lower than the national average; notes that in 2009, unemployment increased by 40 % compared with the previous year while in 2010, the unemployment rate remained stable in Perugia and decreased in Ancona, mainly due to a fall in the activity rate, rather than an increase in employment; observes that in 2009, the regional GDP decreased by about 3 % and the turnover of industry contracted by 14,6 % in Marche and by 16,4 % in Umbria, compared with the previous year; notes that this contraction resulted in an increase in the hours of Cassa Integrazione Guadagni (4) in manufacturing sectors by 368 % in Marche and by 444 % in Umbria; observes that the 1 517 redundancies of Antonio Merloni SpA covered by this application have further aggravated the situation;












7.


Welcomes the fact that in order to provide workers with speedy assistance, the Italian authorities decided to initiate the implementation of the measures on 29 March 2012, well ahead of the final decision on granting the EGF support for the proposed coordinated package; deplores, however, that the EGF could only intervene almost three and a half years after the company had been declared insolvent;












8.


Notes that the coordinated package of personalised services to be co-funded includes measures for the reintegration of 1 517 workers into employment such as occupational guidance, job-search assistance, entrepreneurship promotion, vocational training and skills upgrade, guidance for workers over 50 years old, job-search allowances, hiring benefits, contributions to commuting expenses and contributions to the expenses for a change of residence;












9.


Welcomes the fact that the social partners were consulted on the design of the measures of the coordinated EGF package and that these measures were made part of social plan ‘Accordo di Programma’ signed by the Ministry of Economic Development and the concerned regions and that the implementation of the EGF support will be monitored by a coordination group;












10.


Recalls the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career and the equal access to EGF independently of their type of employment contract and employment relationship; expects the training on offer in the coordinated package to be adapted not only to the level and needs of the dismissed workers but also to the actual business environment;












11.


Asks the Commission to further detail in future proposals the types of training to be provided through a voucher, in which sectors the workers are likely to find employment and whether the training on offer is aligned to the future economic prospects and labour market needs in the regions concerned by the dismissals; welcomes, however, the strict link between the voucher and each worker's agreed pathway of reintegration;












12.


Calls on the Italian authorities to use the EGF support to its full potential and to encourage the maximum number of workers to participate in the measures; recalls that early EGF interventions in Italy suffered from relatively low rate of budget implementation mainly due to low participation rates;












13.


Welcomes, in the coordinated package of personalised services, the module ‘Guidance for over-50s’ intended for older employees, which make 12 % of the targeted labour force;












14.


Welcomes the fact that the contribution to expenses of residence shall only be paid as a one-off contribution upon presentation of proof of the expenditure incurred;












15.


Takes note that EUR 5 684 000 of the total cost of the package of services amounting to EUR 7 451 972 is devoted to various financial incentives and allowances, including the facilitation of dismissed workers mobility; recommends that a proportionate amount should be dedicated to training-related measures in future mobilisations;












16.


Points out that the biggest part of the costs of personalised services is to be committed to ‘Job search allowance’ (EUR 2 000 per worker for the days of participation in EGF measures), which is an equivalent of the Italian subsistence allowance ‘CIGS’ for the sake of simplification; reiterates, therefore, that the EGF support should primarily be allocated to training programs instead of contributing directly to financial allowances which are the responsibility of Member States by virtue of national law; recommends that in future cases of the mobilisation of that Fund, such measures should be discouraged;












17.


Notes the relatively high ‘Hiring benefit’ (EUR 5 000 per worker); welcomes the fact that such measures will only be disbursed to employers guaranteeing permanent contracts for targeted workers and expects the Commission to deliver the relevant detailed information regarding the contract conditions for these workers;












18.


Notes that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on complementarity with actions funded by the Structural Funds; reiterates its call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect of the existing regulations and that no duplication of Union-funded services can occur;












19.


Requests the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF; appreciates the improved procedure put in place by the Commission, following Parliament's request for the accelerated release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF; hopes that further improvements in the procedure will be integrated in the new Regulation on the EGF (2014–2020) and that greater efficiency, transparency and visibility of the EGF will be achieved;












20.


Emphasises the importance of good and swift cooperation between the Commission and Member States when preparing applications under the forthcoming new EGF regulation;












21.


Recalls the institutions’ commitment to ensuring a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing one-off, time-limited individual support geared towards helping workers who have been made redundant as a result of globalisation and the economic crisis; emphasises the role that the EGF can play in the reintegration of workers made redundant into the labour market;












22.


Stresses that in accordance with Article 6 of the EGF Regulation, it should be ensured that the EGF supports the reintegration of individual workers made redundant into employment; stresses, furthermore, that EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment; reiterates that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements nor measures restructuring companies or sectors;












23.


Welcomes the fact that following requests from Parliament, the 2013 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and that, therefore, it deserves a dedicated allocation, which will avoid as far as possible transfers from other budget lines, as has happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF;












24.


Regrets the decision of the Council to block the extension of the ‘crisis derogation’, allowing to provide financial assistance to workers made redundant as a result of the current economic crisis, in addition to those losing their jobs because of changes in global trade patterns and allowing for an increase in the rate of Union co-financing to 65 % of programme costs for applications submitted after the 30 December 2011 deadline; calls on the Council to reintroduce this measure without delay;












25.


Approves the decision annexed to this resolution;












26.


Instructs its President to sign the decision with the President of the Council and to arrange for its publication in the Official Journal of the European Union;












27.


Instructs its President to forward this resolution, including its annex, to the Council and the Commission.






(1)  OJ C 139, 14.6.2006, p. 1.

(2)  OJ L 406, 30.12.2006, p. 1.

(3)  Decision 2010/202/EU of the European Parliament and of the Council (OJ L 88, 8.4.2010, p. 15).

(4)  CIG is a scheme under Italian law, consisting of a financial benefit paid by the Istituto Nazionale della Previdenza Sociale-INPS (National Institute of the Social Security) in favor of workers suspended from undertaking the work performance or working reduced hours.



ANNEX


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/2011/023 IT/Antonio Merloni SpA from Italy)


(The text of this annex is not reproduced here since it corresponds to the final act, Decision 2013/278/EU.)