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/2013/011 BE/Saint-Gobain Sekurit from Belgium)
Date: 2015-01-21
Institutions: European Commission
Subjects: Belgium, European Globalisation Adjustment Fund, collective dismissal, commitment of expenditure, financial management, management audit, motor vehicle industry, reintegration into working life, updating of skills













EUR-Lex - 52015PC0009 - EN











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52015PC0009

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/2013/011 BE/Saint-Gobain Sekurit from Belgium) /* COM/2015/09 final - 2014/ () */









EXPLANATORY
MEMORANDUM
CONTEXT OF THE PROPOSAL
1.           The rules applicable to
the contributions from the 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 19 December 2013, Belgium submitted application EGF/2013/011 BE/Saint-Gobain Sekurit for a financial
contribution from the EGF, following redundancies linked to the closure of the production
plant of Saint-Gobain Sekurit Benelux SA (‘SGS Benelux’) located in Auvelais, near
Sambreville. The application was supplemented by additional information up to 4 July
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/2013/011 BE/Saint-Gobain Sekurit 
 Member State: || Belgium 
 Date of submission of the application: || 19.12.2013 
 Intervention criterion: || Article 2(c) of the EGF Regulation 
 Primary enterprise: || Saint-Gobain Sekurit Benelux SA 
 Number of suppliers and downstream producers: || 0 
 Reference period: || 31.8.2013-31.12.2013 
 Date on which the personalised services to the targeted workers were started: || 31.8.2013 
 Number of redundancies during the reference period: || 250 
 Number of redundancies before and after the reference period: || 7 
 Total number of redundancies: || 257 
 Number of persons expected to participate in the measures: || 257 
 Budget for personalised services: || EUR 2 578 379 
 Budget for implementing the EGF: || EUR 101 478 (3.8 % of the total budget) 
 Total budget: || EUR 2 679 856 
 Financial contribution requested from the EGF: || EUR 1 339 928 (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 manufacture of safety glass for the automotive industry, in which Saint-Gobain
Sekurit (SGS) Benelux is active, has undergone serious economic disruption as a
result of several factors, such as a decrease in the production of automotive
safety glass in the EU, an increase of the market shares of competitors from
non-EU countries and an increase in imports of these products into the EU.
5.           SGS Benelux was an
original equipment manufacturer of automotive safety glass (windscreens, side
windows, etc.) supplying various car manufacturers, which implies that its
activities were closely linked to production trends in the automotive industry.
According to data referred to by the Belgian authorities[2], between 2007 and 2012,
the production of passenger cars in the EU-27 decreased from 21.9 million units
to 19.5 million units (− 11.3 %; − 2.4 % annual
growth[3]),
whereas, in the rest of the world, it increased from 47.5 million units to 60.6
million units (+ 27.6 %; + 5.0 % annual growth). This reduction
in car production levels in the EU, which is linked to the general decrease in consumer
demand in the EU as a consequence of the economic crisis, has therefore led to
a general reduction in demand for automotive equipment in the EU, which has strongly
affected automotive equipment suppliers. In the case of SGS Benelux, for
example, during the period preceding the redundancies (2011/2012), Ford, Volvo,
and BMW, which were the main direct clients of SGS Benelux, recorded decreases
in sales of respectively 12 %, 10 % and 2 %[4]. 
6.           This reduction in production
levels has led to a weakening of the competitive position of EU producers of
automotive safety glass. According to data provided by the Belgian authorities[5], between 2007 and 2013,
Saint-Gobain Sekurit’s market share decreased by 5 percentage points, whereas the
aggregated market share of the main automotive glass producers located in non-EU
countries, such as Trakya Cam (Turkey)[6]
and Fuyao (China), increased from around 6 % to slightly over 10 %, mainly
as a result of an increase in imports of automotive safety glass into the EU.
7.           The impacts of these changes
in trade patterns have been exacerbated by other factors such as high
production costs (in particular labour costs), overcapacity due to the
reduction of production levels and low levels of productive investment. As
another factor, the Belgian authorities note that there has been a general
trend by manufacturers and suppliers in the automotive industry to transfer
production within the EU, from Western Europe (in particular, France, Belgium, and  Spain) to Eastern Europe. As an illustration of this phenomenon, within the
EU, the share of cars produced in Eastern Europe increased from 15 % in
2000 to 34 % in 2012. In the case of Saint-Gobain Sekurit, this has enabled
other entities than SGS Benelux to maintain or develop their activities (due to
lower unit labour costs or greater geographical proximity to clients).
8.           As a result, according to
data provided by the Belgian authorities[7],
between 2007 and 2012, SGS Benelux recorded an operating loss of EUR 20.46
million, whereas, during the same period, the other enterprises of Saint-Gobain
Sekurit in the EU were still able to record operating profits. It is therefore
apparent that SGS’s activities have been affected by these changes in trade
patterns (reduction of production in the EU, loss of market share and increase
of imports, shift in production towards Eastern Europe), which have brought
about a concentration of SGS activities in the more profitable entities,
leading to redundancies in SGS Benelux.
9.           Since the start of the EGF
in 2007, there have been no other EGF applications relating specifically to the
automotive glass sector[8],
but there have been a series of applications relating to motor vehicle
manufacturers or suppliers of automotive equipment [9].
Number of redundancies and compliance
with the criteria of Article 2(c)
10.         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.
11.         The application relates to 250
redundancies made at SGS Benelux during a period of four months from 31 August
2013 to 31 December 2013 and to 7 redundancies made at SGS Benelux before 31
August 2014 which are related to the same collective redundancies procedure. This
total number of 257 redundancies is calculated from the date of the employer’s
individual notice to lay off or to terminate the contract of employment of the
worker, as laid down in the first indent of the second paragraph of
Article 2 of the EGF Regulation (‘method 1’). Four further workers will be
made redundant at a later stage and are not included in this application.
12.         The application therefore
partly meets the intervention criteria laid down in Article 2(a) of
Regulation (EC) No 1927/2006, 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.
13.         The Belgian authorities
argue that exceptional circumstances are applicable because, although the
number of redundancies is below the threshold of 500 redundancies, the effects
of the redundancies are expected to be significant. In addition, it has been
announced that another enterprise belonging to the Saint-Gobain Group,
Saint-Gobain Glass Benelux, will also cease production activities at its plant
in Auvelais, in September 2014. In total, the number of direct redundancies
expected to be caused by the closure of SGS Benelux and Saint-Gobain Glass
Benelux is very high (approximately 260 redundancies at SGS Benelux and around
300 redundancies at Saint-Gobain Glass Benelux). According to the Belgian
authorities, these redundancies are likely to have a serious impact on employment
and the local economy.
14.         As regard the glass sector,
in 2011 already, 171 redundancies were carried out in AGC Automotive, a
manufacturer of automotive glass located in Fleurus, near Charleroi. In
February 2014, the AGC group announced its intention to close its photovoltaic
glass plant, located in Roux, near Charleroi, which could lead to the loss of
around 190 jobs. At a wider level, between 2011 and 2013, six other companies
in the manufacturing industry carried out collective redundancies in the Namur
region (290 job losses) and seven companies in the manufacturing industry
carried out collective redundancies in the Charleroi region (around 1 400
job losses). Given the socioeconomic situation of the area concerned and of its
neighbouring areas (Charleroi, Namur), the workers made redundant by SGS
Benelux have limited employment possibilities in these areas as they are likely
to be in competition with many other workers with similar qualifications and
experience for a limited number of jobs in the glass sector.
15.         A major part of the glass
production units in Belgium are located in Wallonia (44 out of 122 units),
which also concentrates most of the workers in this sector (58 %). This can be
explained by the fact that Wallonia has a strong historical tradition of
glass-making. Most companies in this sector are relatively large enterprises
(over 40 % of companies employ more than 50 workers). Between 2007 and 2012,
the number of jobs in the glass sector in the provinces of Hainaut and Namur decreased from around 3 940 to 3 170 (− 19 %), with most losses being for
production-line jobs. During 2013, FOREM recorded 301 vacancies in the sector
of the manufacture of other non-metallic mineral products in the provinces of
Hainaut and Namur, including, more specifically, 96 job vacancies in the glass
sector (i.e. 0.25 % of total vacancies and 1.62 % of vacancies in manufacturing
industry). However, these vacancies concerned not only occupations specific to
the glass sector (e.g. glass forming operator), but also general occupations
(sales, administration, maintenance, etc.). Nine out of ten of these vacancies
were under temporary contracts.
Explanation of the unforeseen nature
of those redundancies
16.         The Belgian authorities
argue that the decision to make workers redundant at SGS Benelux could not have
been foreseen. To adapt to changes in the market, the Saint-Gobain group put in
place a range of strategies aimed at increasing competiveness and profitability
which led to various reorganisations such as a shift of production at the SGS
Benelux plant in Auvelais. The production of tempered glass (side windows) was
transferred to other plants and SGS Benelux kept only the production of laminated
glass (windscreens). In addition, in 2009/2010 a restructuring plan was put in
place following the divestiture of the production of tempered glass which
included productivity investments and the termination of 100 jobs. These
reorganisations did enable the company to reduce costs, but SGS Benelux still had
the highest unit labour costs within the group.
17.         Other factors, such as the continued
trend by car manufacturers to relocate production to eastern Europe and the
closure of the Ford Genk plant in October 2012[10],
further undermined the competitiveness of SGS Benelux against other plants
within the Saint-Gobain group. As a result, in June 2013, the general
management of the Saint-Gobain group announced its intention to close the SGS
Benelux plant in Auvelais and to transfer production to other plants of the
Saint-Gobain Sekurit business unit in the EU.
Identification of the targeted
workers
18.         The Belgian authorities
estimate that all 257 workers made redundant before and during the reference
period will take part in the measures cofinanced by the EGF.
19.         The breakdown of targeted
workers by sex, nationality and age group is as follows:
 Category || Number of targeted workers 
 Sex: || Men: || 254 
   || Women: || 3 
 Nationality: || EU nationals: || 250 
   || Non-EU nationals: || 7 
 Age group: || 15-24 years old: || 5 
   || 25-54 years old: || 236 
   || 55-64 years old: || 16 
   || Over 65 years old: || 0 
20.         Six of the targeted workers
have a longstanding health problem or disability.
21.         The breakdown of targeted
workers by occupational category[11]
is as follows:
 ISCO-08 major group || Number of targeted workers 
 1 Managers || 14 
 2 Professionals || 6 
 3 Technicians and associate professionals || 27 
 4 Clerical support workers || 7 
 5 Service and sales workers || 2 
 7 Craft and related trades workers || 34 
 8 Plant and machine operators and assemblers || 154 
 9 Elementary occupations || 13 
22.         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
23.         The redundancies primarily affect
the Basse-Sambre employment area, around the town of Sambreville, in the province of   Namur in the Walloon region. The socioeconomic situation in the Basse-Sambre
area is greatly influenced by the neighbouring urban areas of Charleroi and Namur.
24.         In the Namur area, the
municipalities located along the Sambre and Meuse valley are generally among
those with the weakest socioeconomic indicators. The Namur area has around
118 800 salaried worker[12]
jobs. The share of blue collar workers is lower than the average for the
Walloon region, whereas the share of white collar workers and civil servants is
higher. In terms of number of jobs, the main economic sectors are public administration
and defence (17 % of jobs), education (13 %), health and social
services (7 %), and retail trade (7 %).
25.         The Charleroi area has
around 131 000 salaried worker jobs. In 2013, around 23 % to 24 %
of jobseekers registered at the Charleroi and Namur regional directorates
(FOREM) were below 25 years old, around 23 % were above 50 years old, around
35 % to 40 % had been unemployed for more than two years and around 45 %
to 50 % did not have higher secondary education[13]. Structural
unemployment is relatively stable, as it is dependent on skills that are
difficult to acquire without being integrated into the labour market.
Unemployment is thus concentrated on low-skilled persons and persons under 25
years old or over 50 years old. There is an increasing number of jobseekers
over 50 years old. Cyclical unemployment has been increasing since 2009, as a
consequence of the crisis.
26.         The measures are
implemented by FOREM (the public employment and training service of the Walloon
Region) through a Redeployment Unit (cellule de reconversion)
specifically set up as part of the legal obligations linked to the collective
redundancies procedure[14].
The Redeployment Unit for SGS Benelux is managed by a committee which brings
together representatives from the Walloon public services in charge of
employment, training, and economic affairs, FOREM, trade unions, and
sector-based vocational training organisations. Some of the measures are
implemented by SGS Benelux through a team of in-house human resources staff which
has been specifically set up to provide support services to the redundant
workers (‘Saint-Gobain Développement’ – SGD).
27.         Besides FOREM and SGD, the
other organisations involved in the general coordination and implementation of
the measures therefore include:
–              
the Walloon Government (Minister-President of
the Walloon Region in charge of Structural Funds coordination, Minister for
Employment and Training, Minister for the Economy);
–              
trade unions (FGTB, CSC);
–              
the sectoral vocational and technological
training centres active in the Walloon region (centres de compétences)[15]; 
–              
the European Social Fund (ESF) Agency of the
French Community of Belgium.
Expected impact of the redundancies
as regards local, regional or national employment
28.         The closure of SGS Benelux will
lead to the loss of 261 direct jobs, including 218 production-line jobs (ouvrier
status). Of these job losses, 257 are included in the application, as the
remaining four redundancies will happen at a later stage. The redundancies at SGS Benelux are expected
to lead to the loss of a significant share of employment in the Basse-Sambre area.
As indicated above, the Basse-Sambre area, which is situated in the province of Namur but which is also linked to the labour market areas of southern Hainaut (Charleroi), is characterised by a relatively high level of structural unemployment, with a
relatively high proportion of long-term unemployment and low qualification
levels and skills. The redundancies at SGS Benelux are therefore set against a
difficult local socioeconomic context, as there have been several company
restructurings in the province of Namur in recent years, in particular in the
glass sector. As in the rest of Wallonia, most of the enterprises are SMEs
(around 80 % of the establishments in the area employ fewer than 10
workers). However, medium-sized enterprises and large companies account for the
most jobs. Establishments with more than 100 workers, such as SGS Benelux,
represent only 1.9 % of establishments in the area but account for nearly 42 %
of the jobs. The redundancies at SGS Benelux mainly concern production-line
workers (83 % of staff concerned have ouvrier status), whereas, as
noted above, the main sectors in terms of numbers of jobs in the Namur region
are those that predominantly offer jobs under employé status (e.g.
public service sectors). In this context, to find a new job in the area, the
workers from SGS Benelux will have to retrain to find jobs in other occupations
and / or other sectors.
Personalised services to be funded
and breakdown of estimated costs
29.         Only some of the measures
which form part of the actions implemented by the Belgian authorities to
support the workers made redundant by SGS Benelux will be cofinanced by the
EGF. Measures which are mandatory under collective redundancies procedures in
Belgium and which are carried out as part of the standard activities of the
Redeployment Unit (e.g. outplacement support, training, job-search assistance
and careers advice, etc.),[16]
as well as supplementary measures which are financed by means other than the
EGF, are therefore not included in the EGF application. The overall set of
measures (mandatory measures, supplementary measures, EGF measures) is managed
by FOREM.
30.         The personalised services
provided to the redundant workers and to be cofinanced by the EGF consist of
the following measures (grouped by category)[17]:
(1)         
Individual job-search assistance, case
management and general information services:
–              
Redeployment (support / guidance /
integration): This set of services builds upon the
standard activities carried out by the Redeployment Units. The services will be
provided by a team of FOREM staff (project manager, specialised advisers) in
partnership with former workers’ representatives who act as ‘social attendants’
(accompagnateurs sociaux) to encourage workers to take part in the
measures and to help them with administrative procedures. To facilitate
contacts between the workers, the services are provided jointly to all the
redundant workers at dedicated premises. The services cover three types of
activity: (i) collective information on job-search techniques (writing a CV and
application letter, using web resources, etc.), explanations on labour
regulations (outplacement, unemployment, employment contract, pension),
awareness-raising on discrimination, presentation of occupations and sectors
with potential, etc.; (ii) individual interviews with a FOREM adviser (skills
audit, career pathway, guidance on training, etc.); (iii) free and open access
to job-search tools (IT equipment with an internet connection, telephone,
specialised documentation, etc.). This measure will concern all 257 targeted
workers, for a maximum duration of 24 months.
–              
Boosting job-search: FOREM will carry out specific activities to help workers in their
job search and to overcome difficulties in the redeployment process. This
includes meetings between the redundant workers and potential employers (job
matching), company visits, meetings with recruiters to prepare for job
interviews, and exchanges of experience with other workers who have already
retrained or have found a job after a collective redundancy. This measure could
be provided to potentially all 257 targeted workers (on a voluntary basis,
depending on individual needs).
–              
Proactive job search: The SGD team is composed of experienced human resources professionals
from the Saint-Gobain group who have a good knowledge of the local labour
market and of other companies in the area. SGD will provide a package of outplacement
services. The first step will be to conduct individual interviews with each of
the 257 targeted workers to identify their expectations and competences and the
type of job they are looking for. Based on these interviews, SGD will draw up a
list of profiles by job status, competences, geographical restrictions,
occupation, and qualifications. SGD will search for jobs in the region and
identify potential employers. SGD will then contact these potential employers
to present the outplacement activities and to identify vacancies and possible
support measures (e.g. additional training). SGD is then able to match job
vacancies with potential candidates from the list of workers and to send a
shortlist of candidates to the potential employer. The potential employer will
request the CVs of interesting candidates from SGD. The potential employer will
then contact the candidate(s) to start the recruitment process (with follow-up
from SGD). If a worker is offered a job, SGD will provide help for
administrative procedure and for additional training activities if necessary.
If a worker is rejected, SGD will assess with the worker concerned the factors
that led to the employer’s choice and help that worker to prepare for future
job openings. There will be monthly meetings between SGD and FOREM through a
Liaison Committee to ensure that the information on the workers is up to date
and that the candidates put forward meet the skills profiles that potential
employers are looking for.
(2)         
Training and retraining:
–              
Integrated training: A range of vocational training courses could be provided to
potentially all 257 targeted workers (depending on the type of course) either
by FOREM or by the centres de competences or IFAPME[18]. As an initial step,
FOREM staff will help each participant to define their work-related goals and
guide them towards one of three types of training module. Workers who could
retrain for an occupation similar to the one they held in SGS Benelux could
either follow a specific or specialisation module (40 hours) to adapt their
competences and bring them up to date (e.g. lift truck operator, specific
welding process, IT skills), or a supplementary course leading to new
qualifications (320 hours), which would enable the workers to apply for jobs in
a new occupation in the industrial sector. For retraining into an entirely
different sector of activity, workers could follow an occupational training
course (on average 960 hours) to acquire the competences required for this
occupation. At the end of each training module, the new skills can be assessed
and documented. Depending on the type of training and the field of competences,
participants will be awarded either a formal certification of skills (i.e. a
certificate of competence), a certificate of attendance (for competences or
occupations for which no formal certification exists) or a validation of skills
(for skills and competences acquired outside formal training courses). The
formal certification of skills is verified through assessment tests which lead
to the award of a ‘Certificate of Skills Acquired through Training’ (Certificat
des Compétences Acquises en Formation – CECAF). The validation of skills is
verified through assessment tests which lead to the award of skills credentials
(titres de compétences).
–              
Specific training:
If a worker needs to acquire specific skills for a job (e.g. machine tool
controls, IT programme, occupational specialisation, etc.) and such training is
not offered by FOREM, the centres de compétences or IFAPME, SGD will
cover the costs of such activities, which include training through the worker
and mate system (compagnonnage), traineeships in companies, technical
training, language training, etc. It is estimated that 200 persons will
participate in the measure.
–              
Transfer of experience: Experienced workers can enhance their skills and know-how by
becoming teachers or trainers in technical education. A specific
awareness-raising and pre-training module will be developed by FOREM and the
federations of the various branches of technical education to encourage certain
workers to train to become vocational teachers. The module will include the
provision of specific information, technical support, meetings with
practitioners and site visits. The module will last for eight weeks and will
target around 10 workers.
(3)         
Promotion of entrepreneurship:
–              
Support for enterprise creation: Workers who are considering setting-up their own business will
receive guidance and support from a Business Creation Adviser from FOREM. This
support includes two main activities: (i) collective information sessions to
raise awareness on business creation opportunities, provide information on
legal aspects and measures to support business creation; (ii) individual
interviews with interested workers to review their project and put them in
contact with business support organisations and service providers. The Adviser
will work closely with the Redeployment Units to assist workers with their
business projects. Around 60 workers are expected to attend the information
sessions and around 20 would take part in the interviews and follow-up
activities. 
–              
Support for self-employment: For workers who would not be eligible for support under the
‘Airbag’ scheme for self-employed workers[19],
SGD will provide additional support in the form of advice from experts to
assess the feasibility of each business creation project and to secure
financing, including help to negotiate loans on favourable terms. Around five
workers are expected to benefit from this measure. An amount of around EUR 10 000
per project is budgeted.
–              
Support for collective projects: Workers who might be considering setting-up a ‘social’ enterprise
together as a group will receive guidance and support from a specialised
consultancy (selected through a call for tenders) and from the Redeployment
Unit. This support includes information and awareness-raising sessions on
business creation and basic management skills, as well as advice on setting up
the company (e.g. drawing up a business plan, drafting legal statutes,
marketing, etc.). Grants may be awarded to help cover the start-up costs of
such business projects. The workers must submit an application which describes
the project (e.g. workers’ skills and experience, feasibility study, financial
analysis, market potential, growth prospects, socioeconomic benefits, etc.).
The Redeployment Unit’s Support Committee, which brings together
representatives from the employer, trade unions and FOREM, assesses the
application and decides to award a grant or not. Each worker involved in the
project may receive a grant of EUR 5 000 (with funds being pooled
together among all workers taking part). The grants can be used to cover the
purchase of equipment, merchandises, publicity, consultancy, training, etc. The
consultancy will administer the grants and report to FOREM on the use of
expenditure (invoices and supporting documentation). It is expected that around
30 workers will take part in this measure, with five support grants being
awarded to the workers.
(4)         
Allowances:
–              
Relocation allowance: If a worker is offered a new job (through the SGS Benelux job-search
team) which requires the worker to move residence, SGS Benelux may provide to this
worker an allowance of up to EUR 5 000 to cover removal costs. The
allowance will be paid by SGD on the basis of a settled invoice for the actual
costs incurred (reimbursement). This measure could target up to 20 workers.
–              
Recruitment incentive: If a worker is offered a new job under an indefinite term
contract, SGD may provide to the new employer a contribution to the worker’s labour
costs corresponding to one month of that workers’s salary. The amount of the
recruitment incentive paid to the employer will be representative of the
employer’s actual labour costs (including taxes and compulsory social security
contributions)[20].
SGD and the employer will sign an agreement regarding the recruitment incentive.
The recruitment incentive will be paid by SGD when the job contract is signed,
except if agreed otherwise with the new employer. This measure could target around
100 workers.
31.         These measures constitute
active labour market measures within the eligible actions defined by
Article 3 of the EGF Regulation. 
32.         The total costs of the
measures are estimated at EUR 2 679 856, which includes
EUR 2 578 379 for personalised services and EUR 101 478
for implementing the EGF (3.8 % of total costs). The
total financial contribution requested from the EGF is EUR 1 339 928
(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) Individual job-search assistance, case management and general information services: ||   ||   ||   
 –    Redeployment (support / guidance / integration) || 257 || 2 263 || 581 556 
 –    Boosting job-search || 257 || 175 || 45 000 
 –    Proactive job-search || 257 || 2 482 || 637 860 
 (2) Training and retraining: ||   ||   ||   
 –    Integrated training || 257 || 1 293 || 332 263 
 –   Specific training || 200 || 1 500 || 300 000 
 –   Transfer of experience || 10 || 300 || 3 000 
 (3) Promotion of entrepreneurship: ||   ||   ||   
 –   Support for enterprise creation || 58 || 388 || 22 500 
 –   Support for self-employment || 5 || 10 240 || 51 200 
 –   Support for collective projects || 30 || 1 833 || 55 000 
 (4) Allowances: ||   ||   ||   
 –    Relocation allowance || 20 || 5 000 || 100 000 
 –    Recruitment incentive || 100 || 4 500 || 450 000 
 Subtotal: || – || – || 2 578 379 
 Expenditure for implementing the EGF: ||   ||   ||   
 1. Preparatory activities || – || – || 30 000 
 2. Management || – || – || 19 200 
 3. Information and publicity || – || – || 18 500 
 4. Control activities || – || – || 33 778 
 Subtotal: || – || – || 101 478 
 Total costs: || – || – || 2 679 856 
 EGF contribution (50 % of total costs) || – || – || 1 339 928 
 * Rounded figures. 
33.         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
34.         The Belgian authorities
started to provide the personalised services to the targeted workers on
31 August 2013. Expenditure on these measures is therefore eligible for a
financial contribution from the EGF from that date.
Procedures for consulting the social
partners
35.         The management of SGS Benelux
and the trade unions concluded a social plan in July 2013 as part of the
collective redundancies procedure. The social plan sets out the different measures
agreed upon by the various social partners involved. As mentioned above, the
trade unions and the former employer (SGS Benelux) are directly involved in the
management of the Redeployment Unit and in the implementation of certain
measures.
36.         The Belgian authorities have
confirmed that the requirements laid down in national and EU legislation regarding
collective redundancies have been complied with.
Information on actions that are
mandatory by virtue of national law or pursuant to collective agreements
37.         Under Belgian federal
legislation[21],
companies that carry out collective redundancies must provide outplacement
services to the redundant workers. The duration of the outplacement services
must be of at least 30 hours over three months for workers under the age of 45
and of at least 60 hours over six months for workers aged 45 and above. All
non-temporary workers must take part in such outplacement services, except in
the case of specific derogations. Under Walloon legislation[22], workers’ representative
organisations can ask FOREM to set up a Redeployment Unit to provide support to
the redundant workers. The decision by FOREM to set up a Redeployment Unit is
discretionary and it is not mandatory for employers or for workers to take part
in the measures carried out by a Redeployment Unit. However, the services
provided by Redeployment Units can be considered as fulfilling the legal
obligations regarding outplacement services.
38.         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[23];
–              
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[24].
Management and control systems
39.         The application contains a
detailed description of the management and control systems which specifies the
responsibilities of the bodies involved. A steering committee composed of all
the organisations involved in the implementation of the EGF measures ensures
overall follow-up and coordination. 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 of the Wallonia-Brussels Federation (formerly the French
Community of Belgium) will act as managing authority and another separate
entity within the ESF Agency will act as paying authority. The
Secretariat-General of the Wallonia-Brussels Federation will act as certifying
authority and FOREM will act as intermediary body.
Financing
40.         Article 12 of Council
Regulation (EU, Euratom) No 1311/2013 laying down the multiannual
financial framework for the years 2014-2020[25]
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.
41.         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 1 339 928),
which represents 50 % of the total costs of the proposed measures.
42.         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[26].
43.         The Commission presents
separately a transfer request in order to enter in the 2015 budget specific
commitment appropriations, as required under point 13 of the Interinstitutional
Agreement of 2 December 2013.
Source of payment appropriations
44.         Appropriations allocated to
the EGF budget line in the 2015 budget will be used to cover the amount of
EUR 1 339 928.
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/2013/011 BE/Saint-Gobain Sekurit 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 Regulation (EC)
No 1927/2006 of the European Parliament and of the Council of
20 December 2006 establishing the European Globalisation Adjustment Fund[27], and in particular
Article 12(3) 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[28],
and in particular point 13 thereof,
Having regard to the proposal from the
European Commission[29],
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[30].
(3)       Belgium submitted an
application to mobilise the EGF, in respect of redundancies in the enterprise Saint-Gobain
Sekurit Benelux SA, on 19 December 2013 and supplemented it by additional
information up to 4 July 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 1 339 928.
(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 2015, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 1 339 928 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]               Source: International Organisation of Motor Vehicle
Manufacturers (OICA).
[3]               Compound annual growth rate.
[4]               Source: PwC AutoFacts. New passenger car
registrations.
[5]               Source: Syndex study, May 2013.
[6]               Trakya Cam does however own automotive glass plants
in Bulgaria and Romania.
[7]               Source: Syndex study, May 2013.
[8]               See EGF database, available at http://ec.europa.eu/social/main.jsp?catId=582.

[9]               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(2009) 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 automoción (Decision COM(2009) 150 final of 20.3.2009),
EGF/2009/007 SE/Volvo and EGF/2009/009 AT/Steiermark (Decision COM(2009) 602
final of 27.10.2009), EGF/2009/013 DE/Karmann (Decision COM(2010) 7 final of
22.1.2010), EGF/2009/019 FR/Renault (Decision COM(2011) 420 final of
11.7.2011), EGF/2010/002 ES/Cataluña automoción (Decision COM(2010) 453 final
of 2.9.2010), EGF/2010/004 PL/Wielkopolskie Automotive (Decision COM(2010) 616
final of 29.10.2010), EGF/2010/031 BE/General Motors Belgium (Decision
COM(2011) 212 final of 14.4.2011), EGF/2011/003 DE/Arnsberg and Düsseldorf
automotive (Decision COM(2011) 447 final of 20.7.2011), EGF/2011/005
PT/Norte-Centro Automotive (Decision COM(2011) 664 final of 13.10.2011),
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/2013/006
PL/Fiat Auto Poland (application submitted to the Commission on 23 July 2013),
EGF/2013/012 BE/Ford Genk (application presented to the Commission on 23
December 2013).
[10]             See application EGF/2013/012 BE/Ford Genk.
[11]             Major groups of the international standard
classification of occupations (ISCO-08).
[12]             As opposed e.g. to self-employed jobs. 
[13]             Source: FOREM.
[14]             See paragraph 29.
[15]             The centres de compétences carry out training
activities, forward studies and awareness-raising activities on specific
occupations or sectors. The centres de compétences are set up in
partnership by the Walloon Region, FOREM, the social partners from the sectors
concerned, research centres, and universities.
[16]             See paragraph 29.
[17]             In their submission of 4 July 2014, the Belgian
authorities amended the budget of some of the measures so as to correspond to
their actual status of implementation. 
[18]             IFAPME (Institut wallon de Formation en Alternance et
des indépendants et Petites et Moyennes Entreprises) is a public training
institute that provides work-linked dual training in the form of
apprenticeships and specific courses for SME managers.
[19]             The ‘Airbag’ scheme is run by the Walloon Region. It
provides start-up grants of up to EUR 12 500 over two years to
persons who wish to set-up as full-time self-employed workers.
[20]             The number of targeted workers and the budget for this
measure are estimated based on a similar measure carried out by Saint-Gobain
France for which the average monthly salary was around EUR 4 500.
[21]             Arrêté
royal relatif à la gestion active des restructurations du 9 mars 2006
(Belgisch Staatsblad / Moniteur Belge, 31.3.2006, éd. 2, p. 18309).
[22]             Décret
de la Région wallonne relatif au plan d’accompagnement des reconversions du
29 janvier 2004 (Belgisch Staatsblad / Moniteur Belge, 10.3.2004,
p. 13547).
[23]             The financial contribution from the EGF will enable the
Belgian authorities to extend the provision of outplacement services beyond the
mandatory periods and to carry out additional measures. For calculating the
costs allocated to the EGF, the Belgian authorities will take into account the measures
carried out during the legal obligation period (this only relates to the
measure ‘Redeployment (support / guidance / integration)’. The number of hours
of outplacement services carried out during the mandatory period will be
deducted from the total number of hours of outplacement services that each
targeted beneficiary will have befitted from.
[24]             Financial support from the ESF was awarded under Axis
2.2 of the Convergence Operational Programme for 2008-2013 to a project
(EnTrain – En Transition-Reconversion-Accompagnement) which aimed to develop
pedagogical methods for Redeployment Units in general.
[25]             OJ L 347, 20.12.2013, p. 884.
[26]             OJ C 373, 20.12.2013, p. 1.
[27]             OJ L 406, 30.12.2006, p. 1.
[28]             OJ C 373, 20.12.2013, p. 1.
[29]             OJ C […], […], p. […].
[30]             OJ L 347, 20.12.2013, p. 884.