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 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2013/012 BE/Ford Genk from Belgium)
Date: 2014-08-22
Institutions: European Commission
Subjects: Belgium, European Globalisation Adjustment Fund, collective dismissal, commitment of expenditure, distribution of EU funding, economic recession, motor vehicle industry, payment appropriation













EUR-Lex - 52014PC0532 - EN











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52014PC0532

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 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2013/012 BE/Ford Genk from Belgium) /* COM/2014/0532 final - 2014/ () */









EXPLANATORY MEMORANDUM
CONTEXT OF THE PROPOSAL
1.           The rules applicable to financial
contributions from the European Globalisation Adjustment Fund (EGF) for
applications submitted until 31 December 2013 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 Fund (the ‘EGF
Regulation’)[1].
2.           On 23 December 2013, Belgium submitted application EGF/2013/012 BE/Ford Genk for a financial contribution from the EGF,
following redundancies in the assembly plant of Ford-Werke GmbH[2] located in Genk (‘Ford Genk’) and in 10 suppliers of Ford Genk in Belgium. The application was
supplemented by additional information up to 12 June 2014.
3.           Having examined this application,
the Commission has concluded, in accordance with the applicable provisions of the
EGF Regulation, that the conditions for a financial contribution from the EGF
are met.
SUMMARY OF THE APPLICATION
 EGF application: || EGF/2013/012 Ford Genk 
 Member State: || Belgium 
 Date of submission of the application: || 23.12.2013 
 Intervention criterion: || Article 2(c) of the EGF Regulation 
 Primary enterprise: || Ford-Werke GmbH 
 Number of suppliers and downstream producers: || 10 
 Reference period: || 1.7.2013-1.11.2013 
 Date on which the personalised services to the targeted workers were started: || 1.7.2013 
 Number of redundancies during the reference period: || 469 
 Number of redundancies before and after the reference period: || 43 
 Total number of redundancies: || 512 
 Number of persons expected to participate in the measures: || 479 
 Budget for personalised services: || EUR 1 085 890 
 Budget for implementing the EGF: || EUR 56 000 (4.9 % of the total budget) 
 Total budget: || EUR 1 141 890 
 Financial contribution requested from the EGF: || EUR 570 945 (50 % of the total budget) 
ANALYSIS OF THE APPLICATION
Link between the redundancies and
major structural changes in world trade patterns due to globalisation
4.           In order to establish the
link between the redundancies and major structural changes in world trade
patterns due to globalisation, the Belgian authorities argue that the sector of
the production of passenger cars, in which Ford Genk is active, has undergone
serious economic disruption, in particular a rapid decline of the EU’s market
share. 
5.           According to data referred
to by the Belgian authorities[3],
as shown in the figure below, between 2007 and 2012, the production of
passenger cars in the EU-27 decreased from 17.10 million units to 14.61 million
units (− 14.6 %; − 3.1 % annual growth),
whereas, during the same period, at worldwide level, the production of
passenger cars increased from 53.05 million units to 63.07 million units (+ 18.9 %; + 3.5 % annual growth). This
has led to a decrease of the EU-27’s market share in the production of
passenger cars at worldwide level, measured in volume terms, from 32.2 % to
23.2 % (− 28.2 %; − 6.4 % annual growth). By
comparison, during the same period, China’s market share increased from
12.0 % to 24.6 % (+ 104.6 %; + 15.4 % annual
growth), whereas the market shares of the other main producers decreased (Japan: − 27.7 % / − 6.3 % annual growth; South Korea: − 5.9 %
/ − 1.2 % annual growth; USA: − 12.0 % / − 2.5 %
annual growth) but, generally, to a lesser extent than for the EU-27. These
data therefore show a rapid decline of the EU’s market share in the sector of
the production of passenger cars at worldwide level. 
Market
share in the production of passenger cars at worldwide level (volume)
Source: OICA
6.           The difficult economic situation
of the car manufacturing sector in the EU, which is principally due to a
consistent decline in sales of new passenger cars in the EU as a consequence of
the economic crisis and to structural problems with overcapacity faced by some
manufacturers in several Member States, has negatively affected the international
competiveness of the EU’s automotive industry as a whole. These factors have led
to plant closures and restructuring by several car manufacturers and their
suppliers, which have resulted in a high number of job losses in the car
manufacturing sector in recent years. For instance, between 2008 and 2013, the number
of persons employed in the car manufacturing sector (NACE Rev. 2 division 29
‘Manufacture of motor vehicles, trailers and semi-trailers’) in the EU-27 decreased
by approximately 220 000 from 3.16 million to 2.94 million (− 7.0 %)[4].
7.           The automotive industry
has been the subject of 17 decisions on the mobilisation of the EGF since the
start of the EGF in 2007[5].
In particular, the decline of the EU’s market share in the production of the
passenger cars has been referred to in eight previous EGF decisions[6]. 
Number of redundancies and compliance
with the criteria of Article 2(c)
8.           The application is based
on the intervention criteria of Article 2(c) of the EGF Regulation, under which,
in exceptional circumstances, an application may be considered admissible even
if the intervention criteria laid down in Articles 2(a) or 2(b) of the EGF
Regulation are not met, provided that the redundancies have a serious impact on
employment and the local economy.
9.           The application relates to
469 redundancies made during a period of four months from 1 July 2013 to
1 November 2013 (which includes 246 redundancies at Ford Genk and 223 redundancies
at eight of its suppliers) and to 43 redundancies made after this period,
between 1 November 2013 and 23 December 2013 (which includes 26
redundancies at Ford Genk and 17 redundancies at seven of its suppliers), but which
are related to the same collective redundancies procedure. This total number of
512 redundancies during and after the reference period corresponds to a first
wave of redundancies at Ford Genk and its suppliers[7] and to reductions in
workforce at Ford Genk’s suppliers due to a reduction of activities at the Ford
plant in preparation for its closure.
 Enterprise || Number of redundancies: 
   || during the reference period || after the reference period || Total 
 Ford Genk (Ford-Werke GmbH) || 246 || 26 || 272 
 BASF Coatings Services NV || 1 || 0 || 1 
 Belplas Industries BVBA || 0 || 1 || 1 
 FACIL Europe BVBA || 9 || 0 || 9 
 Henkel Industrieservice BVBA || 7 || 0 || 7 
 IAC Group BVBA || 46 || 4 || 50 
 Lear Corporation Belgium CVA || 33 || 5 || 38 
 Service Magazijn Limburg NV || 73 || 1 || 74 
 Syncreon Genk BVBA || 42 || 3 || 45 
 Transport Service NV || 0 || 2 || 2 
 Zender Industrie België NV || 12 || 1 || 13 
 Total || 469 || 43 || 512 
10.         All the redundancies have
been calculated from the date of the de facto termination of the contract of
employment before its expiry, as laid down in the second indent of the second
paragraph of Article 2 of the EGF Regulation (‘method 2’).
11.         The application therefore
partly meets the intervention criteria laid down in Article 2(a) of the
EGF Regulation, as it relates to redundancies over a period of four months in
an enterprise in a Member State, but it derogates from these criteria as
regards the minimum number of redundancies during the reference period as there
are less than 500 redundancies.
12.         The Belgian authorities
argue that exceptional circumstances are applicable because, although, for this
first wave of redundancies, the number of redundancies during the reference
period is below the threshold of 500 redundancies, two other waves of
redundancies are expected to occur in 2014 (approximately 650 redundancies at
Ford Genk and its suppliers) and at the closure of the plant at the end of 2014
(approximately 4 000 redundancies at Ford Genk and its suppliers), for
which the Belgian authorities may submit EGF applications. As regards this
first wave of redundancies, even though the threshold of 500 redundancies is
not met, the Belgian authorities have wished to implement specific measures in
favour of this first group of redundant workers as rapidly as possible, so as
to increase the possibilities for them to find new employment and to give all
redundant workers the same opportunity. In total, the number of direct redundancies
expected to be caused by the closure of Ford Genk is very high (approximately
4 340 redundancies at Ford Genk and 2 820 redundancies at its suppliers
located in the same geographical area). According to analyses referred to by
the Belgian authorities[8],
these redundancies will have a serious impact on employment and the local
economy.
Explanation of the unforeseen nature
of those redundancies
13.         The Belgian authorities
argue that the closure of the Ford plant in Genk could not have been foreseen. In
September 2010, the management of Ford and the trade unions represented at the
Ford Genk plant concluded an agreement on investment commitments for the period
2010-2014 in which the management of Ford agreed to maintain the production of
three car models (Mondeo, S-Max, Galaxy) in the Genk plant and to assign the
production of future models in the same segment to the plant. The management of
Ford also agreed to maintain the installed capacity at 225 000 units a
year and to ensure that no collective redundancies would occur at Ford Genk
throughout the duration of the agreement, in return for which the trade unions
agreed to reductions in personnel costs[9].
According to the Belgian authorities, in September 2012, the management of Ford
denied allegations concerning the closure of the plant and confirmed the planned
production of the next-generation Mondeo model at the Genk plant as from
October 2013. However, in October 2012, Ford announced its plan to close the Genk plant at the end of 2014 and to assign the production of new car models to other
plants in the EU[10].
Identification of the targeted
workers
14.         The Belgian authorities
estimate that 479 of the 512 workers made redundant during this first wave of
redundancies (i.e. the targeted workers) will participate in the measures to be
cofinanced by the EGF[11].
15.         The breakdown of targeted
workers by sex, nationality and age group is as follows:
 Category || Number of targeted workers 
 Sex: || Men: || 401 
   || Women: || 78 
 Nationality: || EU nationals: || 479 
   || Non-EU nationals: || 0 
 Age group: || 15-24 years old: || 3 
   || 25-54 years old: || 470 
   || 55-64 years old: || 6 
   || Over 64 years old: || 0 
16.         Seven of the targeted
workers have a longstanding health problem or disability.
17.         The breakdown of targeted
workers by occupational category[12]
is as follows:
 ISCO-08 major group || Number of targeted workers 
 1 Managers || 0 
 2 Professionals || 39 
 3 Technicians and associate professionals || 59 
 4 Clerical support workers || 3 
 5 Service and sales workers || 0 
 7 Craft and related trades workers || 39 
 8 Plant and machine operators and assemblers || 253 
 9 Elementary occupations || 4 
 Unknown / not available || 82 
18.         In accordance with Article 7
of the EGF Regulation, the Belgian authorities have confirmed that the
principles of equality of treatment and non-discrimination will be respected in
the access to the proposed measures and their implementation.
Description of the territory
concerned and its authorities and stakeholders
19.         The redundancies at Ford
Genk and its suppliers primarily affect the province of Limburg, in the Flemish
Region, in northeast Belgium. The province of Limburg is a former coal-mining
area in which employment is strongly dependant on traditional industry. According
to the Belgian authorities, in comparison to the Flemish average, the province of   Limburg is characterised by a high level of unemployment, by lower qualification
levels and skills levels, and by a less developed supply of education services.
In addition, enterprises in the province of Limburg appear to be generally less
innovative and to have a lower degree of internationalisation compared to the
Flemish average (in terms of share of exports and level of inward foreign
investments) and the number of start-up enterprises is also relatively low. According
to the Belgian authorities, the province of Limburg is also relatively poorly
accessible due to weak infrastructural development.
20.         The authority responsible
for the EGF application is the European Social Fund (ESF) Agency Flanders. The
main bodies responsible for implementing the measures cofinanced by the EGF are
the Flemish Service for Employment and Vocational Training (VDAB) and the
National Employment Office (RVA). 
21.         Other organisations
involved in the general coordination and implementation of the proposed measures
include:
–              
the Flemish Government (Minister-President,
Minister for Work); 
–              
the Province of Limburg;
–              
trade unions (ABVV, ACV, ACLVB);
–              
the Regional Socioeconomic Consultation
Committee (RESOC) and the Socioeconomic Council of the Limburg Region (SERR Limburg);
–              
the Employment and Training Fund for the Limburg Metalworking Industry (FTML) and the Limburg Institute for the Training of
Employees in the Metalworking Industry (LIMOB);
–              
the ‘New Entrepreneurial Limburg’ platform
(which brings together the Federation of Industrial Technology, the Flemish
Farmers’ Union, the Limburg Builders’ Confederation, the Flemish Union of
Self-Employed Employers – Limburg, the League of Christian Employers – Limburg,
and the Flemish Chamber of Commerce and Industry – Limburg).
22.         The Flemish Government has
also established a specific taskforce which brings together all relevant
stakeholders (social partners, employer groups, local and regional authorities,
sectoral associations, etc.). The Commission’s services have been associated in
the work of the taskforce.
Expected impact of the redundancies
as regards local, regional or national employment
23.         Ford
Genk has been the largest employer in the province of Limburg, representing 1.7 % of the
total number of persons employed. It also accounted for 10 % of the total
turnover of the 500 largest enterprises in Limburg. 
24.         According to a study referred
to by the Belgian authorities[13], for every 100 jobs expected to be lost at Ford Genk, there would
be 65 jobs lost at its direct and indirect suppliers in Limburg and an
additional 72 jobs lost at its suppliers located elsewhere in the Flemish
Region. In terms of the number of persons employed, as shown in the table
below, this would mean that the 4 340 direct jobs expected to be lost as a
result of the closure of the Ford Genk plant would be accompanied by an
additional loss of approximately 2 820 jobs at suppliers located in Limburg
and 3 110 jobs at suppliers located elsewhere in the Flemish Region,
bringing the total number of jobs losses in the Flemish Region to approximately
10 270 (job multiplier of 2.4). In addition, the reduction in purchasing
power (consumption expenditure) is expected to lead to a loss of approximately
1 040 jobs in Limburg and 450 jobs in the rest of the Flemish Region,
bringing the total number of jobs losses in the Flemish Region to approximately
11 760 (job multiplier of 2.7).
 Type of effect on employment || Estimated number of job losses 
 Direct job losses (at Ford Genk) || 4 340 
 Indirect job losses (at suppliers in Limburg) || 2 820 
 Indirect job losses (at suppliers in the rest of the Flemish Region) || 3 110 
 Induced job losses (in Limburg) || 1 040 
 Induced job losses (in the rest of the Flemish Region) || 450 
 Total || 11 760 
25.         As a whole therefore, approximately
8 200 jobs could be lost in the province of Limburg, which could lead to
an increase of the unemployment rate in Limburg of between 1.8 and 2 percentage
points (i.e. an increase of between 26.5 % to 29.4 % in the regional
unemployment rate, from 6.8 % to 7.9 %, only for direct job losses at
Ford Genk, or 8.6 % including indirect job losses at its suppliers, or
8.8 % including induced job losses). 
26.         More generally, the closure
of Ford Genk is also expected to lead to a reduction in economic welfare of
between 2.6 % and 2.9 % (due to reductions in output and purchasing
power), and to a reduction of 10.9 % in labour productivity growth (in
terms of value added).
Personalised services to be funded
and breakdown of estimated costs
27.         Only some of the measures
which form part of the actions to be implemented by the Belgian authorities to
support the workers made redundant due to the closure of the Ford Genk plant
will be cofinanced by the EGF. Measures which are mandatory under collective
redundancies procedures in Belgium[14],
as well as supplementary measures which are financed by other means than the EGF[15], are therefore not
included in this EGF application. The overall set of
measures (mandatory measures, supplementary measures, EGF measures) is managed
by VDAB.
28.         The personalised services
provided to the workers made redundant as part of the actions which will be cofinanced
by the EGF for the first wave of redundancies[16]
consist of the following measures (grouped by category):
(1)         
Job-search assistance: 
–              
Key Account Manager: As part of the ‘Jobs voor Limburg’ initiative, an Account Manager in
VDAB will ensure the coordination of job offers received from enterprises that
have expressed an interest in recruiting workers made redundant by Ford Genk or
its suppliers, and will develop initiatives to support this activity (e.g. managing
the dedicated email contact service).
–              
Social Intervention Advisor (SIA): Social Intervention Advisors in VDAB will provide the following
activities to all targeted workers: (i) information session before the
dismissal (initial assistance provided by the Employment Units, completion of a
basic administrative file as pre-registration for the unemployment system, information
on rights and obligations under the general measures within the redundancy
programme, outplacement guidance, etc.); (ii) information session after the
dismissal (organised with RVA) on rights and obligations as a jobseeker, unemployment
benefits, available help and support services, training opportunities, etc.; (iii)
individual interviews with workers made redundant and presentation of VDAB
services according to the needs of each worker; (iv) helpdesk function.
–              
Information on vocational education and
training options: Potential employers will provide
group information sessions at the workplace (Ford Genk plant, before or after
the shifts) to all targeted workers; short-term internships took place at rail
network operator Infrabel between July 2013 and autumn 2013 (80 targeted
workers). 
–              
Active job-oriented guidance: VDAB staff will provide the following services to approximately
150 targeted workers: (i) search for job offers; (ii) contacts with potential
employers; (iii) organisation of enterprise visits; (iv) development of other
promotion measures; (v) individualised guidance to persons who find a job (three
months).
(2)         
Training and re-training:
–              
Vocational training courses: VDAB will provide vocational training courses in areas which
correspond to the needs of the targeted workers, as identified during
information, vocational guidance and counselling activity. The training courses
will either be provided in-house by VDAB or will be outsourced to external training
providers through a tendering procedure. The vocational training courses will
be provided to approximately 100 to 110 targeted workers. In addition, approximately
30 targeted workers will participate in internships of between a few days to a
few weeks; each internship will be monitored by a mentor at the enterprise
where the internships is carried out and will be followed-up by a coach from
VDAB or the external provider.
–              
Employment through individual vocational training: As part of a general scheme managed by VDAB (‘individuele
beroepsopleiding’ – IBO), enterprises will provide individual workplace
training courses of between one to six months (carried out by or under the
supervision of a mentor) to approximately 75 targeted workers. At the end of
the workplace training course, the enterprise must offer a fixed-term or
indefinite employment contract to the participant in the course. 
–              
Application training: External contractors will provide training on job search skills to
approximately 75 targeted workers in the form of collective workshops (group exercises,
simulations, etc.) with special attention to groups such as non-native Dutch speakers
or older jobseekers; job applications will be followed-up by a coach.
29.         These measures constitute
active labour market measures within the eligible actions defined by
Article 3 of the EGF Regulation. 
30.         The total costs of the measures
are estimated at EUR 1 141 890, which includes expenditure for
personalised services of EUR 1 085 890 and expenditure for implementing
the EGF (preparatory activities, management, information and publicity, and
control activities) of EUR 56 000 (4.9 % of total costs). The total financial contribution requested from the EGF is
EUR 570 945 (50 % of total costs).
 Measures || Estimated number of targeted workers || Estimated cost per targeted worker (EUR)* || Total costs (EGF and national cofinancing) (EUR)* 
 Personalised services: ||   ||   ||   
 (1) Job-search assistance: ||   ||   ||   
 –     Key Account Manager || 479 || 47 || 22 400 
 –     Social Intervention Advisor (SIA) || 479 || 184 || 88 000 
 –     Information on vocational education and training options || 479 || 4 || 1 900 
 –     Active job-oriented guidance || 150 || 1 000 || 150 000 
 (2) Training and re-training: ||   ||   ||   
 –     Vocational training courses || 30-110 || N/A || 718 094 
 –     Employment through individual vocational training || 75 || 470 || 35 272 
 –     Application training || 75 || 936 || 70 224 
 Subtotal: || – || – || 1 085 890 
 Expenditure for implementing the EGF: ||   ||   ||   
 1. Preparatory activities || – || – || 0 
 2. Management || – || – || 40 000 
 3. Information and publicity || – || – || 6 000 
 4. Control activities || – || – || 10 000 
 Subtotal: || – || – || 56 000 
 Total costs: || – || – || 1 141 890 
 EGF contribution (50 % of total costs) || – || – || 570 945 
 * Rounded figures. 
31.         The Belgian authorities have
confirmed that the measures are complementary with actions funded by the
Structural Funds and that appropriate mechanisms are in place to prevent double
financing.
Date on which the personalised
services to the targeted workers were started or are planned to start
32.         The Belgian authorities
started to provide the personalised services to the targeted workers on
1 July 2013. Expenditure on these measures is therefore eligible for a
financial contribution from the EGF from that date.
Procedures for consulting the social
partners
33.         VDAB has informed the
social partners represented in SERR Limburg about the objectives and proposed
measures of the EGF application. Representatives of each social partner
represented in SERR Limburg participate in a Monitoring Committee specifically
set up for the EGF application. In addition, the EGF application has been discussed
with the social partners as part of the regular reporting on the implementation
of the Limburg Strategic Action Plan (‘Strategisch Actieplan Limburg in het
Kwadraat’ – SALK) which was set up to address the regional impact of the
closure of the Ford Genk plant.
34.         The Belgian authorities have
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
35.         The Belgian authorities
have confirmed that:
–              
the financial contribution from the EGF will not
replace measures which are the responsibility of enterprises by virtue of
national law or collective agreements;
–              
the measures provide support for individual
workers and are not used for restructuring enterprises or sectors;
–              
the measures will not receive financial support
from other Union funds or financial instruments.
Management and control systems 
36.         The application contains a
detailed description of the management and control system which specifies the
responsibilities of the bodies involved. The financial contribution from the
EGF will be managed and controlled by the same bodies as for the ESF. One
entity within the ESF Agency Flanders will act as managing authority and
another separate entity within the ESF Agency Flanders will act as certifying
authority.
Financing
37.         Article 12 of Council
Regulation (EU, Euratom) No 1311/2013 laying down the multiannual
financial framework for the years 2014-2020[17]
allows for the mobilisation of the European Globalisation Adjustment Fund (EGF)
within the annual ceiling of EUR 150 million (2011 prices) over
and above the relevant headings of the financial framework.
38.         Considering the maximum
possible amount of a financial contribution from the EGF and the scope for
reallocating appropriations, the Commission proposes to mobilise the EGF for
the total amount of the requested contribution (EUR 570 945), which
represents 50 % of the total costs of the measures.
39.         The proposed decision to
mobilise the EGF will be taken jointly by the European Parliament and the
Council, as laid down in point 13 of the Interinstitutional Agreement of
2 December 2013 between the European Parliament, the Council and the
Commission on budgetary discipline, on cooperation in budgetary matters and on
sound financial management[18].
40.         The Commission presents
separately a transfer request in order to enter in the 2014 budget specific
commitment appropriations, as required under point 13 of the Interinstitutional
Agreement of 2 December 2013.
Source of payment appropriations
41.         Appropriations allocated to
the EGF budget line in the 2014 budget will be used to cover the amount of
EUR 570 945.
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 13 of the
Interinstitutional Agreement of 2 December 2013 between the European Parliament,
the Council and the Commission on budgetary discipline, on cooperation in
budgetary matters and on sound financial management 
(application EGF/2013/012 BE/Ford Genk from Belgium)
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union,
Having regard to the Interinstitutional
Agreement of 2 December 2013 between the European Parliament, the Council
and the Commission on budgetary discipline, on cooperation in budgetary matters
and on sound financial management[19],
and in particular point 13 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 Fund[20], and in particular
Article 12(3) thereof,
Having regard to the proposal from the
European Commission[21],
Whereas:
(1)       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.
(2)       The EGF shall not exceed a
maximum annual amount of EUR 150 million (2011 prices), as laid down in
Article 12 of Council Regulation (EU, Euratom) No 1311/2013 laying
down the multiannual financial framework for the years 2014-2020[22].
(3)       Belgium submitted an
application to mobilise the EGF, in respect of redundancies in the enterprise Ford-Werke
GmbH and 10 suppliers, on 23 December 2013 and supplemented it by
additional information up to 12 June 2014. This application complies with
the requirements for determining the financial contributions as laid down in
Article 10 of Regulation (EC) No 1927/2006. The Commission,
therefore, proposes to mobilise an amount of EUR 570 945.
(4)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by Belgium,
HAVE ADOPTED THIS DECISION:
Article 1
For the general budget of the European
Union for the financial year 2014, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 570 945 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                        For
the Council
The President                                                 The
President
[1]               OJ L 406, 30.12.2006, p. 1.
[2]               Ford-Werke GmbH, a subsidiary of Ford of Europe AG,
has its registered seat in Cologne (Germany). It operates the Ford production plants
in Cologne and Saarlouis (Germany) and Genk (Belgium).
[3]               Source: International Organisation of Motor Vehicle
Manufacturers (OICA).
[4]               Source: Eurostat (online data code: lfsa_egan22d).
[5]               See EGF database, available at http://ec.europa.eu/social/main.jsp?catId=582.
[6]               See draft Commission proposals on cases EGF/2007/001
FR/Peugeot suppliers (Decision COM(2007) 415 final of 12.7.2007), EGF/2007/010
PT/Lisboa-Alentejo (Decision COM(2008) 94 final of 20.2.2008), EGF/2008/002
ES/Delphi (Decision COM(2008) 547 final of 9.9.2008), EGF/2008/004 ES/Castilla
y León / Aragón (Decision COM(2009) 150 final of 26.3.2009), EGF/2009/013
DE/Karmann (Decision COM(2010) 7 final of 22.1.2010), EGF/2012/004 ES/Grupo
Santana (Decision COM(2014) 116 final of 5.3.2014), EGF/2012/005 SE/Saab
(Decision COM(2012) 622 final of 19.10.2012), EGF/2012/008 IT/De Tomaso
automobili (Decision COM(2013) 469 final of 28.6.2013).
[7]               Voluntary departures as part of the redundancy programme
agreed between the social partners.
[8]               See paragraphs 0-26.
[9]               See
press announcement available at https://media.ford.com/content/fordmedia/fna/us/en/news/2010/11/30/ford-genk-agreement-shows-confidence-and-commitment-to-flanders-.html.

[10]             See press announcement available at https://media.ford.com/content/fordmedia/fna/us/en/news/2012/10/24/ford-plans-to-restructure-european-manufacturing-operations.html.
[11]             In accordance with Article 3a(b) of the EGF
Regulation, in cases where an application under Article 2(c) of the EGF
Regulation derogates from the criteria set out in Article 2(a) thereof,
workers made redundant after the reference period can be included in the group
of eligible workers, provided that the redundancies occurred after the general
announcement of the projected redundancies and a clear causal link can be
established with the event which triggered the redundancies during the
reference period. As these conditions are met, the 43 workers made redundant
after the reference period can therefore benefit from the measures to be
cofinanced by the EGF.
[12]             Major groups of the international standard
classification of occupations (ISCO-08).
[13]             Peeters,
L., Vancauteren, M., ‘Studie van de economische impact van de sluiting van Ford
Genk’, Universiteit Hasselt, November 2013, available at http://www.uhasselt.be/documents/kizok/impactstudie.pdf. 
[14]             As part of the legal obligations for employers that
carry out collective redundancies, Ford Genk and its suppliers have each had to
set up an Employment Unit (tewerkstellingscel) which will provide
outplacement services to the workers made redundant (job-search assistance and
careers advice, activation allowance equivalent to three or six months’ wages,
reduction of social security contributions for the worker and the employer if
the worker finds a job with a new employer, partial reimbursement of
outplacement costs for the dismissing employer). The Employment Units bring
together the employer and the relevant trade unions; their activities are
implemented by VDAB (certain activities are outsourced to outplacement
agencies).
[15]             These measures include the setting-up and management of
the ‘Werkpuntlimburg’ website (http://herstructureringenlimburg.vdab.be),
the organisation of job fairs, training with mixed financing (VDAB / Province
of Limburg), training courses in cooperation with sectoral training funds (e.g.
FTML, LIMOB), a set of specific measures for young people, and support for
entrepreneurship and setting-up own businesses. 
[16]             Only the costs of the measures which concern the first
wave of redundancies (479 targeted workers) have been included in this EGF
application. Workers affected in the following waves of redundancies may be
included in possible subsequent EGF applications.
[17]             OJ L 347, 20.12.2013, p. 884.
[18]             OJ C 373, 20.12.2013, p. 1.
[19]             OJ C 373, 20.12.2013, p. 1.
[20]             OJ L 406, 30.12.2006, p. 1.
[21]             OJ C […], […], p. […].
[22]             OJ L 347, 20.12.2013, p. 884.