European Parliament resolution of 17 September 2014 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 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/2012/010 RO/Mechel from Romania) (COM(2014)0255 – C8-0088/2014 – 2014/2043(BUD))
Date: 2014-09-17
Institutions: Committee on Budgets, Committee on Employment and Social Affairs, Committee on Regional Development, European Parliament
Subjects: Cluj, Dâmbovita, European Globalisation Adjustment Fund, Romania, collective dismissal, commitment of expenditure, employment aid, financial aid, processing industry, reintegration into working life








C_2016234EN.01004701.xml










28.6.2016   


EN


Official Journal of the European Union


C 234/47





P8_TA(2014)0018
Mobilisation of the European Globalisation Adjustment Fund: application EGF/2012/010 RO/MECHEL - Romania
European Parliament resolution of 17 September 2014 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 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/2012/010 RO/Mechel from Romania) (COM(2014)0255 – C8-0088/2014 – 2014/2043(BUD))
(2016/C 234/13)

The European Parliament,






—


having regard to the Commission proposal to the European Parliament and the Council (COM(2014)0255 – C8-0088/2014),










—


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 (1) (EGF Regulation),










—


having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (2), and in particular Article 12 thereof,










—


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 (3) (IIA of 2 December 2013), and in particular point 13 thereof,










—


having regard to trilogue procedure provided for in point 13 of the IIA of 2 December 2013,










—


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










—


having regard to the letter of the Committee on Regional Development,










—


having regard to the report of the Committee on Budgets (A8-0008/2014),










A.


whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market;










B.


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 2 December 2013 in respect of the adoption of decisions to mobilise the EGF;










C.


whereas Romania submitted application EGF/2012/010 RO/Mechel for a financial contribution from the EGF, following 1 513 redundancies: 1 441 during and after the reference period in Mechel Campia Turzii and 72 in Mechel Reparatii Targoviste with 1 000 workers targeted for EGF co-funded measures, during the reference period from 20 June 2012 to 20 October 2012;










D.


whereas the Romanian authorities argue that decision to make workers redundant at Mechel Campia Turzii could not have been foreseen; whereas the company put in place a number of measures to reduce staff costs, however these measures did not remedy the financial difficulties and the enterprise decided to initiate collective redundancies;










E.


whereas 72,8 % of the workers targeted by the measures are men and 27,2 % are women; whereas 87,9 % of the workers are between 25 and 54 years old and 11,2 of workers are between 55 and 64 years old;










F.


whereas the 44,9 % of the dismissed workers belong to the category of plant and machine operators and assemblers, 27,1 % belong to the category of craft and related trades workers, 9,1 % are technicians and associate professionals and 8,1 % belong to the category of clerical support workers;










G.


whereas the application fulfils the eligibility criteria set up 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, Romania is entitled to a financial contribution under that Regulation;












2.


Notes that the Romanian authorities submitted the application for EGF financial contribution on 21 December 2012, and that its assessment was made available by the Commission on 7 May 2014; regrets very lengthy evaluation of seventeen months and that because of the inflation rate in the period 2012-2014, there has been a decrease of the purchasing power; calls on the Commission to propose measures for addressing this issue in similar situations in the future;












3.


Stresses that labour market conditions slightly changed in the past seventeen months and believes that a further analysis based on the economic and financial situation in 2014 should be foreseen;












4.


Considers that the redundancies in SC Mechel Campia Turzii SA and one downstream producer (SC Mechel Reparatii Targoviste SRL) are linked to major structural changes in world trade patterns due to globalisation, referring to the fact that the sector of the manufacture of finished and semi-finished steel products, in which Mechel Campia Turzii and Mechel Reparatii Targoviste were active, has undergone serious economic disruption as a result of a rapid decline of the Union market share in the steel products sector and the market share growth of countries such as China; points out that this case demonstrates the need for a Union strategy on the steel products industry in order to maintain competiveness;












5.


Notes that the 1 513 redundancies in question have had major repercussions for the local labour market, given that the Mechel Campia Turzii was the largest employer in the area with 1 837 employees (in June 2012), accounting for around a third of the total number of employees in the area, deplores that the number of unemployed persons in the Campia Turzii area more than doubled as a result of the redundancies; notes also that the local labour market is very restricted as the unemployment rate in the Câmpia Turzii area is generally around 5 % and the job vacancy rate is very low (below 0,5 %) (4);












6.


Notes that to date, the steel sector has been the subject of five EGF applications, four of which were intended to provide support to workers made redundant as a result of major structural changes in world trade patterns due to globalisation (5) and one was intended to provide support to workers made redundant as a direct result of the global financial and economic crisis (6);












7.


Notes the amount of EUR 15 000 to be granted to 250 selected workers as assistance in initiating independent activities; regrets that only a fourth of the targeted workers will be able to participate in this action;












8.


Welcomes the fact that, in order to provide workers with speedy assistance, the Romanian authorities decided to initiate the implementation of the personalised services to the affected workers on 1 March 2013, well ahead of the final decision on granting the EGF support for the proposed coordinated package;












9.


Expects with great interest the creation and development of the ‘cooperative society’ with the dismissed workers and its outcomes;












10.


Notes that the coordinated package of personalised services to be co-funded includes measures for the reintegration of 1 000 redundant workers into employment such as vocational guidance and counselling, vocational training courses and internships, assistance in initiating independent activities, renting the production space and paying the rent for the project’s duration; travel, interview, participation, subsistence and internship allowances, mentoring after employment integration;












11.


Calls on the Romanian authorities to ensure that the selection of the 250 members of the cooperative society fully respects the principles of non-discrimination and equal opportunities; calls further for the continued consultation and involvement of the social partners;












12.


Welcomes the fact that the Romanian National Agency for Employment (ANOFM), the Cluj County Agency for Employment (AJOFM Cluj) as well as other local and regional authorities, trade unions and enterprises will be linked to the cooperative enterprise which will be established to support the workers targeted for assistance as part of the measure ‘Assistance in initiating independent activities’ and that a policy of equality of women and men as well as non-discrimination will be applied during the various stages of the implementation of and in access to the EGF;












13.


Notes the elevated cost of the registration of workers compared to a previous application from Romania; notes furthermore the total estimated costs of EUR 70 000 on information and publicity actions which should result in a better awareness about the EGF contribution and ensure more visibility of the role of the Union in it;












14.


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; expects the training on offer in the coordinated package to be adapted not only to the needs of the dismissed workers but also to the actual business environment;












15.


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; stresses that the Romanian authorities confirm that the eligible actions do not receive assistance from other Union financial instruments; 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;












16.


Requests the institutions involved to make the necessary efforts to improve procedural 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 Parliament and the Council the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF; underlines that further improvements in the procedure have been integrated in the new EGF Regulation (7) and that greater efficiency, transparency and visibility of the EGF will be achieved;












17.


Stresses that, in accordance with Article 6 of the EGF Regulation, it shall be ensured that the EGF supports the reintegration of individual redundant workers into stable 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;












18.


Welcomes the adoption of the new EGF Regulation which reflects the agreement reached between the Parliament and the Council to reintroduce the crisis mobilisation criterion, to increase Union financial contribution to 60 % of the total estimated cost of proposed measures, to increase efficiency for the treatment of EGF applications in the Commission and by the Parliament and the Council by shortening time for assessment and approval, to widen eligible actions and beneficiaries by introducing self-employed persons and young people and to finance incentives for setting up own businesses;












19.


Approves the decision annexed to this resolution;












20.


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












21.


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






(1)  OJ L 406, 30.12.2006, p. 1.

(2)  OJ L 347, 20.12.2013, p. 884.

(3)  OJ C 373, 20.12.2013, p. 1.

(4)  The job vacancy rate measures the percentage of vacant posts, compared with the total number of occupied and unoccupied posts. In the third quarter of 2012, the estimated job vacancy rate in the EU-28 in NACE Rev.2 sections B to S (industry, construction, services) was 1,4 %.

(5)  EGF/2009/022/BG/Kremikovtsi AD (application rejected by the Commission), EGF/2013/002 BE/Carsid (application presented to the Commission on 2 April 2013), EGF/2013/007 BE Duferco-NLMK (application presented to the Commission on 27 September 2013).

(6)  EGF/2010/007 AT/Steiermark and Niederösterreich. Decision 2011/652/EU of 27 September 2011 (OJ L 263, 7.10.2011, p. 9).

(7)  Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006 (OJ L 347, 20.12.2013, p. 855).



ANNEX


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/2012/010 RO/Mechel from Romania)


(The text of this annex is not reproduced here since it corresponds to the final act, Decision 2014/696/EU.)