Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund (application EGF/2014/016 IE/Lufthansa Technik)
Date: 2015-02-06
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, Ireland, aeronautical industry, cessation of trading, collective dismissal, commitment of expenditure, economic consequence, employment aid, reintegration into working life, social impact













EUR-Lex - 52015PC0047 - EN











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52015PC0047

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund (application EGF/2014/016 IE/Lufthansa Technik) /* COM/2015/047 final - 2015/ () */









EXPLANATORY MEMORANDUM
CONTEXT OF THE PROPOSAL
1.           The rules applicable to
financial contributions from the European Globalisation Adjustment Fund (EGF)
are laid down in 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[1] (the 'EGF Regulation').

1.           The Irish authorities
submitted application EGF/2014/016 IE/Lufthansa Technik for a financial
contribution from the EGF, following redundancies in Lufthansa
Technik Airmotive Ireland Ltd (LTAI) and two of its suppliers in Ireland.
2.           Following its assessment
of this application, the Commission has concluded, in accordance with all applicable
provisions of the EGF Regulation, that the conditions for awarding a financial
contribution from the EGF are met. 
SUMMARY OF THE APPLICATION
 EGF application || EGF/2014/016 IE/Lufthansa Technik 
 Member State || Ireland 
 Region(s) concerned (NUTS level 2) || IE 02 – Southern and Eastern 
 Date of submission of the application || 19 September 2014 
 Date of acknowledgement of receipt of the application || 24 September 2014 
 Date of request for additional information || 3 October 2014 
 Deadline for provision of the additional information || 14 November 2014 
 Deadline for the completion of the assessment || 6 February 2015 
 Intervention criterion || Article 4(2) of the EGF Regulation 
 Primary enterprise || Lufthansa Technik Airmotive Ireland Ltd 
 Sector(s) of economic activity (NACE Rev. 2 division)[2] || Division 33 (Repair and installation of machinery and equipment) 
 Number of subsidiaries, suppliers and downstream producers || 2 
 Reference period (four months): || 1 March 2014 – 30 June 2014 
 Number of redundancies or cessations of activity during the reference period (a) || 149 
 Number of redundancies or cessations of activity before or after the reference period (b) || 275 
 Total number of redundancies (a + b) || 424 
 Total estimated number of targeted beneficiaries || 250 
 Number of targeted young persons not in employment, education or training (NEETs) || 200 
 Budget for personalised services (EUR) || 3 922 944 
 Budget for implementing EGF[3] (EUR) || 228 320 
 Total budget (EUR) || 4 151 264 
 EGF contribution (60 %) (EUR) || 2 490 758 
ASSESSMENT OF THE APPLICATION
Procedure
3.           The Irish authorities submitted
application EGF/2014/016 IE/Lufthansa Technik within 12 weeks of the date on
which the intervention criteria set out in paragraphs 6 to 8 below were met, on
19 September 2014. The Commission acknowledged receipt of the application
within two weeks of the date of submission of the application, on 24 September
2014 and requested additional information from the Irish authorities on 3
October 2014. Such additional information was provided within six weeks of the
date of the request. The deadline of 12 weeks of the receipt of the complete
application within which the Commission should finalise its assessment of the
application's compliance with the conditions for providing a financial
contribution expires on 6 February 2015. 
Eligibility of the application
Enterprises and beneficiaries
concerned
4.           The application relates to
424 workers made redundant in Lufthansa Technik Airmotive Ireland Ltd (the
primary enterprise) and two suppliers. The primary
enterprise operates in the economic sector classified
under NACE Revision 2 Division 33 ('Repair and
installation of machinery and equipment'). The redundancies
made by the enterprises concerned are mainly located in the NUTS[4] level 2 region of Southern and Eastern Ireland (IE 02). 
 Enterprises and number of dismissals within the reference period 
 Lufthansa Technik Airmotive LTD || 415 ||   ||   
 QCafe || 4 ||   ||   
 Senaca group || 5 ||   ||   
 Total no. of enterprises: 3 || Total no. of dismissals: || 424 
 Total no. of self-employed persons whose activity has ceased: || 0 
 Total no. of eligible workers and self-employed persons: || 424 
Intervention criteria
5.           The Irish authorities submitted
the application under the intervention criteria of Article 4(2) of the EGF
Regulation, derogating from the criteria of Article 4(1)(a), which requires at
least 500 workers being made redundant or self-employed
persons' activity ceasing, over a reference period of four
months in an enterprise in a Member State, including
workers made redundant by suppliers and downstream producers and / or
self-employed persons whose activity has ceased. In the
application, a reference period of four months (1 March to 30 June 2014) is
demonstrated, while the number of workers being made redundant is lower than
the 500 person threshold for an Article 4(1)(a) application. Ireland has argued that exceptional circumstances prevail in this case, as the redundancies
have a serious impact on employment and the local and regional economy (see
paragraphs 21 to 23).
7.           The
application relates to:
–              
148 workers made redundant[5]
in Lufthansa Technik Airmotive Ireland Ltd during the reference period of four
months,
–              
1 worker made redundant in 1 supplier of the
primary enterprise during the same reference period of four months,
Calculation of redundancies and of
cessation of activity
8.           The redundancies have been
calculated as follows:
–              
1 from the date on which the employer, in
accordance with Article 3(1) of Council Directive 98/59/EC[6], notified the competent
public authority in writing of the projected collective redundancies. The Irish
authorities confirmed prior to the date of the completion of the assessment by
the Commission that this redundancy has actually been effected.
–              
148 from the date of the de facto termination of
the contract of employment or its expiry.
Eligible beneficiaries
9.           In addition to the workers
already referred to, the eligible beneficiaries include 275 workers made
redundant before or after the reference period of four months. These workers
were all made redundant after the general announcement of the projected
redundancies on 15 November 2013. A clear causal link can be established with
the event which triggered the redundancies during the reference period, i.e.
the dismissing enterprise closing down.
10.         The total number of
eligible beneficiaries is therefore 424. 
Link between the redundancies and major
structural changes in world trade patterns due to globalisation
11.         In order to establish the
link between the redundancies and major structural changes in world trade
patterns due to globalisation, Ireland argues that the closure of the LTAI is a
result of a serious shift in the EU trade in goods and services resulting from a
technological shift towards the production of new generation aircraft and
components; a shift in wider aircraft component production practices with resultant
impacts on the market fundamentals of the underlying business model of LTAI and
a shift in location of global aircraft production.
12.         Over the last 20 years, the
most popular aircraft types have evolved from largely all-metal, mechanical,
electro-mechanical, hydraulic and pneumatic designs (e.g. B737-200/300/400/500,
MD80, B747-100/200/300 and DC10/MD11) to increasing composite, metal/composite
structures, fly-by-wire automated, fully computer-controlled aircraft.
Similarly, the engine designs of the 1960s and 1970s have given way to highly
sophisticated materials and aerodynamic design. 
13.         The future world aircraft fleet
is likely to be dominated by single aisle / narrow body aircraft typical of,
and including B737-600/700/800/900 and A32Fam types. The proportion of this
type is expected to grow from 64 % of today’s world fleet to over 70 %
of the future world fleet (in excess of 29 000 aircraft). The growth in
demand for narrow body aircraft is predicted to emanate primarily from Asia and
the Far East where the aviation sector is expanding and also there is a broader
global requirement to replace older aircraft types with narrow body types to
the fore[7].
14.         With the arrival of further
new generation types such as the B737 Max and A320 Neo, operators have moved to
retire the older classic aircraft and to some extent the older versions of the
new generation types. Over the past five years, substantial numbers of the classic
aircraft types have been retired which were powered by engine types that were the
mainstay of the LTAI portfolio. 
15.         The traditional business
model of LTAI was based on a number of elements which have come under severe
pressure as a result of changes in the world aircraft fleet profiles and
resultant rapid decline of the aircraft models that formed the base of the LTAI
portfolio.
16.         LTAI used to have a very
well-established engine spare parts trading business which gave it the ability
to trade and access the world network of materials suppliers and repair
agencies in its own right and also a highly competitive advantage in bidding
for engine repair contracts.
17.         However, the
ever-increasing cost of development of engine technology and the development of
parallel repair technology incentivised the Original Equipment Manufacturer (OEM)
– mostly non-EU companies such as General Electric, Pratt Whitney, Honeywell
and International Aero Engines – to enter the Maintenance, Repair and Overhaul
(MRO) market to a greater extent than had hitherto been the case. 
18.         A
driving force behind increases in global air travel growth has been the
industrialisation of countries such as India and China. In Asia Pacific and the
 Middle East, ambitious construction plans for new international and domestic
airports will provide new opportunities for commercial aircraft MRO providers. Given
this background, and the growth fuelled by the tendency for West European and
US carriers to send their wide-bodied aircraft to China for heavy maintenance,
MRO companies have been investing heavily in China in particular and also in
the APAC and Middle East regions[8].

19.         In recognition of the
emerging opportunities for aircraft and aircraft component repair, maintenance
and overhaul activity outside the EU, Lufthansa Technik has, itself, in recent
times sought and concluded strategic alliances with operators in the APAC
region including China, the Philippines. The parent company Lufthansa Technik
has also decided to base its global Airbus A330/340 MRO operations at its Lufthansa
Technik Philippines (LTP) subsidiary, in line with its plan to transfer some
heavy maintenance facilities for wide-bodied aircraft to Asia where labour
costs are lower. The LTP workforce has expanded from 1 800 to 2 200
with Filipino mechanics undergoing training in Germany[9]. 
20.         Lufthansa Technik has also
in 2013 and early 2014 either entered into, or renewed, aircraft service
contracts with Air Asia X based in Malaysia, component service contracts with
GoAir, India and Sri Lankan Airlines and engine service contracts with Pakistan
International Airlines. It has also concluded, inter alia, a long-term
component services agreement with UTC Aerospace, USA, an engine Original
Equipment Manufacturer (OEM).
21.         These non-EU companies are
clearly intended to provide capacity and services at lower cost than
Lufthansa’s main bases in the EU and will help cater for the rapid growth of
the aviation industry outside the EU. 
22.         To date, the 'repair and
installation of machinery and equipment' sector has been the subject of two EGF
applications (including this case), the other case having been based on the
global financial and economic crisis[10].
Events giving rise to the
redundancies and cessation of activity 
23.         The events giving rise to
the redundancies in Lufthansa Technik Airmotive Ireland Ltd are the closure of
the enterprise and the dismissal of the entire workforce.
24.         The Airmotive Ireland aircraft maintenance repair and overhaul (MRO) plant at Rathcoole, Co Dublin was set up by
Aer Lingus in 1980. Lufthansa Technik Airmotive Ireland Limited (LTAI)
took a 60 % shareholding in 1997 and full ownership in 1999.
25.         In
October 2010, a Lufthansa wholly-owned subsidiary, Shannon Aerospace, cut 100
jobs as part of a wider restructuring programme for the
German-owned company, which it attributed to an unsustainable cost base[11].
26.         On 15 November 2013, the
company announced that it was proposing to make 409 employees redundant at its
facility in West Dublin. The company stated that this
followed an extensive review of operations at LTAI, in the context of declining
revenues and shrinking international market opportunities[12]. 
27.         Despite efforts involving
LTAI and the Industrial development Authority (IDA) to find a buyer for the
plant, the redundancies of a total of 415 workers and closure of the facility
in 2014 were confirmed in December 2013. Redundancies commenced in December
2013 and were scheduled for completion in June 2014. 
Expected impact of the redundancies
as regards the local, regional or national economy and employment
28.         The 415 Lufthansa workers
resided in the geographical counties of Dublin (212 across administrative
counties South Dublin, Fingal, Dublin City, Dun Laoghaire-Rathdown), Kildare
(140), Meath (15), Wicklow (14) or other surrounding counties (34). Of the Dublin residents, over 60 lived in areas near Rathcoole such as Tallaght and Clondalkin (South Dublin) and Blanchardstown (Fingal).
29.         As per the latest Census
2011, of a total population over the age of 15 of 3 608 662, the
number of persons categorised at Unemployed having lost or given up a previous
job in Ireland was 390 677 (10,83 %). Whilst the South Dublin
percentage was only slightly higher at 11,61 %, these figures conceal
pockets of considerable local disadvantage. 
30.         For instance,
Blanchardstown-Tyrrelstown, Tallaght-Killinarden, Clondalkin-Rowlagh and
Tallaght-Fettercairn were among the top 25 of 3 409 electoral districts
nationally with unemployment figures of 24,64 %[13], 23,83 %[14], 22,34 %[15] and 22,01 %[16] respectively. Other
socio-economic indicators for these electoral districts such as low levels of
educational achievement, lack of professional qualifications and high levels of
local authority housing point to considerable local disadvantage and poverty. 
31.         The number of persons on
the Live Register of unemployed persons in the Dublin region between April and
May 2014 increased from 94 529 to 94 940 (+0,43 %) compared to
an increase from 388 559 to 388 764 (+0,05 %) for the State as a
whole[17].
32.         By end
2012, in Ireland close to 59 %
of the working-age population aged 15 to 64 had a paid job. This
figure remains significantly lower than the 69-71 % employment rate target
which Ireland has set in its Europe 2020 strategy indicators[18].
Explanation of the exceptional
circumstances underlying the admissibility of the application
33.         Ireland argues that,
despite the fact that fewer than 500 redundancies occurred within the four
month reference period, this application should nevertheless be assimilated to
an application under Article 4(1)(a) of the EGF Regulation due to exceptional
circumstances and because the redundancies have a serious impact on employment
and the local and regional economy. To this end, the Irish authorities provide
information on the series of redundancies in enterprises in this sector. They
started in 2009 and 2010 with 1 365 redundancies at SR Technics MRO
facility in Dublin airport. In November 2013 the redundancies at Lufthansa
Technik Airmotive Technik in South Dublin were announced, followed by the
announcement of 107 redundancies at Pratt and Whitney – another MRO operation
based in Rathecoole. In addition about 400 redundancies were announced in
September 2014 at Bombardier, a Belfast based aerospace company which could
have been a potential workplace for redundant Lufthansa Technik workers as it
is situated some 120 km from Dublin.
34.         As currently there are
about 1 550 employees in this sector in Ireland, the figures above show a
shrinkage of about 52 % in total employment in that field.
35.         The Irish authorities also
argue that the workforce from this sector possesses some very specific skills
that are difficult to be exploited in other sectors, thus making it difficult
for the workers to find a new job easily. The latter is even more valid for
those of the workers who are older (around 20 % of the Lufthansa Technik
workers) or have been with that same employer for a number of years.
Targeted beneficiaries and proposed
actions
Targeted beneficiaries
36.         The estimated number of targeted
workers expected to participate in the measures is 250. The breakdown of these workers
by sex, citizenship and age group is as follows:
 Category || Number of targeted beneficiaries 
 Sex: || Men: || 220 || (88 %) 
   || Women: || 30 || (12 %) 
 Citizenship: || EU citizens: || 246 || (98,4 %) 
   || non-EU citizens: || 4 || (1,6 %) 
 Age group: || 15-24 years: || 12 || (4,8 %) 
   || 25-29 years: || 18 || (7,2 %) 
   || 30-54 years: || 149 || (59,6 %) 
   || 55-64 years: || 70 || (28,0 %) 
   || over 64 years: || 1 || (0,4 %) 
37.         Additionally, the Irish
authorities will provide personalised services co-financed by the EGF to up to
200 young people not in employment, education or training (NEETs) under the age
of 25 on the date of submission of the application, given that all 424
redundancies referred to in paragraph 10 occurred in the NUTS level 2 region of
Southern and Eastern Ireland (IE 02) which is eligible under the Youth
Employment Initiative. 
Eligibility of the proposed actions
38.         The
personalised services to be provided to redundant workers and NEETs consist of
the following actions:
–              
 Guidance and career planning: This measure is considered to be crucially
important to workers made redundant who can initially feel disoriented and
unsure of a route back into the labour market. Early guidance intervention can
assist redundant workers to assess their situation and prospects in a clear
methodical manner. Further guidance in a more tailored form is useful in steering
the worker towards employment when some time has passed after being made
redundant. Supports will include individualised profiling, needs
identification, learning assessment, CV preparation, career guidance and
planning, job search assistance and other related supports and advice. A range
of bodies including the Department of Social Protection, the Education and
Training Boards, SOLAS EGF Coordination Unit and privately sourced guidance
specialists, where appropriate, are engaged in providing services to assist the
redundant workers, including the delivery of formal QQI/FETAC-accredited career
planning courses which serve as stepping stones to more formal
employment-oriented training and education courses.
–              
EGF Training Grants: These measures are provided by approved private providers
administered by the SO;AS EGF National Coordination Unit. The EGF Training
Grants mechanism provides increased flexibility for the EGF beneficiary to
identify and select specifically tailored and approved training, further
education and higher education programmes (including for instance aviation
courses designed by the Irish Aviation Authority (IAA)) in addition to those
provided through State agencies.
–              
Training and Further Education Programmes: These measures are provided mainly by state agencies such as
Education and Training Boards but also by approved private providers through
industry-led initiatives such as Skillnets training networks programmes
(www.skillnets.ie), Fast Track to IT (FIT www.fit.ie), etc. Specific
internship, work placements, work experience, traineeship and
community-oriented training programmes may also be provided in consultation
with the Department of Social Protection (DSP) and other State bodies which
have national responsibility for such interventions.
–              
 Higher Education Programmes: Higher
Education programmes will comprise full and part-time programmes for the
targeted population, delivered through State-funded institutions mainly in the Dublin region and hinterland. The Institute of Technology Tallaght, Institute of
Technology Blanchardstown, Institute of Technology Carlow, Dublin Institute of
Technology and Dublin City University are key higher education institutions
serving the general catchment area in which the affected workers reside.
Short-term conversion courses targeted at recognized skills shortages areas and
funded under initiatives such as Springboard (www.springboardcourses.ie) may
also be provided. The EGF Training Grant (QQI/HETAC) is also be available to
the redundant cohort to access privately-provided third level programmes where
they are not available through the publicly-funded system or are highly
specialised. Emphasis will be placed on carefully assessing those considering
undertaking a higher education programme in the context of their skills sets
and suitability to enrol for a particular course or whether preparatory courses
and alternative options in other support areas might be more appropriate.
–              
 Enterprise and self-employment supports: Enterprise and self-employment supports will mainly
be delivered by the Local Employment Offices in the region. A range of supports
will be made available to beneficiaries considering becoming self-employed and
starting their own business as a viable re-employment option. These supports
will include introductory modules, training workshops in business planning,
mentoring and priming grant aid. Other entrepreneurial training supports may be
provided, as appropriate, through the Department of Social Protection,
Skillnets networks or collaborations with higher education bodies.
–              
 Income Supports
including the EGF Course Expense Contribution (CEC) scheme: This measure aims at increasing the
accessibility to and participation in guidance, training and education courses,
an EGF Course Expenses Contribution (CEC) scheme will provide a level of
defrayment of some of the ancillary costs of course accessibility and
participation. The CEC administered by the EGF Co-ordination Unit contributes
towards defraying some of the
costs associated with mobility, subsistence, course materials, equipment etc.
Other allowances may, as appropriate, include Education and Training Board
training allowances, DSP Back to Education Allowance, Department of Education
and Skills Student Grants, DSP Back to Work Enterprise Allowance etc. 
The personalised services which are to be
provided to NEETs consist of the same options as for the redundant workers but
will be tailor made for each NEET individual as appropriate.
39.         The
proposed actions, here described, constitute active labour market measures within
the eligible actions set out in Article 7 of the EGF Regulation. These
actions do not substitute passive social protection measures. 
40.         The Irish authorities have provided
the required information on actions that are mandatory for the enterprise
concerned by virtue of national law or pursuant to collective agreements. They
have confirmed that a financial contribution from the EGF will not replace such
actions.
Estimated budget
41.         The estimated total costs are
EUR 4 151 264, comprising expenditure for personalised services
of EUR 3 922 944 and expenditure for preparatory, management, information and
publicity, control and reporting activities of EUR 228 320.
42.         The
total financial contribution requested from the EGF is EUR 2 490 758
(60 % of total costs).
 Actions || Estimated number of participants || Estimated cost per participant (EUR) (*) || Estimated total costs (EUR) (**) 
 Personalised services (Actions under Article 7(1)(a) and (c) of the EGF Regulation) 
 Occupational Guidance and Career Planning supports   || 450 || 404 || 181 924 
 EGF Training Grants || 198 || 2 106 || 416 932 
 Training and Second Level Education programmes || 218 || 4 123 || 898 910 
   Third Level Education programmes || 116 || 6 310 || 731 933 
 Enterprise/Self-employment support || 50 || 6 404 || 320 214 
 Sub-total (a): Percentage from total costs (a) and (b): || – || 2 549 913 
 (65 %) 
 Allowances and incentives (Actions under Article 7(1)(b) of the EGF Regulation) 
 Income supports including course expense contributions (CECs) || 358 || 3 835 || 1 373 031 
 Sub-total(b): Percentage from total costs (a) and (b): || – ||   1 373 031 (35%) 
 Actions under Article 7(4) of the EGF Regulation 
 1. Preparatory activities || – || 3 000 
 2. Management || – || 144 229 
 3. Information and publicity || – || 41 713 
 4. Control and reporting || – || 39 378 
 Sub-total (c): Percentage from the total costs (a+b+c): || – || 228 320 
 (5,5 %) 
 Total costs (a + b + c): || – || 4 151 264 
 EGF contribution (60 % of total costs) || – || 2 490 758 
(*)To avoid decimals, the estimated costs
per worker have been rounded. However the rounding has no impact on the total
cost of each measure.
(**)To avoid decimals, total costs per
measures have been rounded
43.         The costs of the actions
identified in the table above as actions under Article 7(1)(b) of the EGF
Regulation do not exceed 35 % of the total costs for the coordinated
package of personalised services. The Irish authorities confirmed that these actions
are conditional on the active participation of the targeted beneficiaries in
job-search or training activities.
44.         The Irish authorities
confirmed that the costs of investments for self-employment, business start-ups
and employee take-overs will not exceed EUR 15 000 per beneficiary. 
Period of eligibility of expenditure
45.         The Irish authorities started
providing the personalised services to the targeted beneficiaries on 7 December
2013. The expenditure on the actions referred to in point 29 will therefore be
eligible for a financial contribution from the EGF from 7 December 2013 to
19 September 2016, with the exception of third level education, which will
be eligible for a financial contribution until 19 March 2017.
46.         The Irish authorities started
incurring the administrative expenditure to implement the EGF on 15 November
2013. The expenditure for preparatory, management, information and publicity,
control and reporting activities will therefore be eligible for a financial
contribution from the EGF from 15 November 2013 to 19 March 2017. 
Complementarity with actions funded
by national or Union funds
47.         The sources of national
pre-financing or co-funding are the Irish Exchequer, which is pre-financing the
services and will also co-finance the programme upon approval of the EGF
contribution. Expenditure will be drawn from the National Training Fund and
voted expenditure subheads of the Department of Education and Skills and other
relevant Government Departments.
Procedures for consulting the targeted
beneficiaries or their representatives or the social partners as well as local
and regional authorities
48.         The Irish authorities have
indicated that the co-ordinated package of personalised services has been drawn
up in consultation with the targeted beneficiaries and their representatives as
well as the trade unions.
49.         Following receipt of the
notification from the Department of Jobs, Enterprise and Innovation of
impending collective redundancies in November 2013, the EGF Managing Authority,
in conjunction with the Industrial Development Authority, contacted the company
management and also made direct contact with the trade unions SIPTU (Services
Industrial Public and Technical Union), TEEU (Technical Engineering and
Electrical Union) and Unite the Union to discuss and identify the potential needs
of the redundant workers.
50.         The Department of Social Protection
conducted a comprehensive survey of affected employees in January 2014 to
identify the targeted workers, their educational and training background and
their potential personalised service needs in order to improve their
re-employability prospects.
51.         Further contacts by the EGF
Managing Authority culminated in a meeting with union and non-union worker
representatives in August 2014 in relation to the EGF process, data gathering
and application progression. An additional mailshot survey was conducted by the
EGF Managing Authority through the EGF Coordination Unit and with the
assistance and the cooperation of the worker representatives, in order to
highlight the Fund’s potentiality in assisting the redundant workforce.
52.         It is intended, as in other
Irish EGF programmes, that a consultative forum or other interactive process be
established to complement the ongoing work of the EGF Coordination Unit and in
order to afford the redundant workers and relevant stakeholders the opportunity
to input, on an ongoing basis, to the implementation of the EGF programme.
Management and control systems
53.         The application contains a
description of the management and control system which specifies the
responsibilities of the bodies involved. Ireland has notified the Commission
that the financial contribution will be managed by the designated staff of the
Department of Education and Skills, who have been appointed as the EGF Managing
Authority. The Managing Authority examines and pays EGF claims submitted by
Intermediate Bodies on behalf of public expenditure bodies.
54.         Intermediate Bodies are
responsible for claiming EGF funding from the Managing Authority and in most
cases for its disbursement. Intermediate Bodies are also responsible for
verification that the purpose, scope and scale of funding is appropriate within
the terms of the EGF application. In addition, they ensure that monitoring and
adequate recording and internal control procedures in relation to all
EGF-related expenditure and claims are established by public beneficiary bodies
and duly documented.
55.         The EGF Certifying
Authority is responsible for the certification of expenditure statements
related to EGF co-financed measures. In doing so, the Certifying Authority
satisfies itself on compliance with all requirements relating to the accuracy,
legality, eligibility and regularity of expenditure. It also certifies the
Statement Justifying the Expenditure to be sent as part of the final report.
56.         An independent audit body
will submit its opinion with the final report.
Commitments provided by the Member State concerned
57.         The Irish authorities have provided
all necessary assurances regarding the following: 
–              
the principles of equality of treatment and
non-discrimination will be respected in the access to the proposed actions and
their implementation;
–              
the requirements laid down in national and EU
legislation concerning collective redundancies have been complied with;
–              
the proposed actions will not receive financial
support from other Union funds or financial instruments and any double
financing will be prevented;
–              
the proposed actions will be complementary with
actions funded by the Structural Funds; 
–              
the financial contribution from the EGF will comply
with the procedural and material Union rules on State aid.
BUDGETARY IMPLICATION
Budgetary proposal
58.         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 of
2 December 2013 laying down the multiannual financial framework for the
years 2014-2020[19].
59.         Having examined the
application in respect of the conditions set out in Article 13(1) of the
EGF Regulation, and having taken into account the number of targeted beneficiaries,
the proposed actions and the estimated costs, the Commission proposes to
mobilise the EGF for the amount of EUR 2 490 758, representing 60 % of the total costs of the proposed actions, in order to provide a financial
contribution for the application.
60.         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[20].
Related acts
61.         At the same time as it
presents this proposal for a decision to mobilise the EGF, the Commission will present
to the European Parliament and to the Council a proposal for a transfer to the
relevant budgetary line for the amount of EUR 2 490 758.
62.         At the same time as it
adopts this proposal for a decision to mobilise the EGF, the Commission will
adopt a decision on a financial contribution, by means of an implementing act,
which will enter into force on the date at which the European Parliament and
the Council adopt the proposed decision to mobilise the EGF.
Proposal for a
DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on the mobilisation of the European
Globalisation Adjustment Fund (application EGF/2014/016 IE/Lufthansa Technik)
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 (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[21],
and in particular Article 15(4) 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[22],
and in particular point 13 thereof,
Having regard to the proposal from the
European Commission,
Whereas:
(1)       The European Globalisation
Adjustment Fund (EGF) was established to provide support for workers made
redundant and self-employed persons whose activity has ceased as a result of
major structural changes in world trade patterns due to globalisation, as a
result of a continuation of the global financial and economic crisis addressed
in Regulation (EC) No 546/2009[23],
or as a result of a new global financial and economic crisis 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[24].
(3)       On 19 September 2014 Ireland submitted an application to mobilise the EGF, in respect of redundancies[25] in Lufthansa Technik
Airmotive Ireland LTD and two suppliers in Ireland. It was supplemented by
additional information pursuant to Article 8.3 of Regulation (EU) No 1309/2013.
The application complies with the requirements for determining a financial
contribution from the EGF in accordance with Article 13 of Regulation (EU)
No 1309/2013. The Commission, therefore, has proposed to mobilise an
amount of EUR 2 490 758.
(4)       In accordance with Article
6(2) of Regulation (EU) No 1309/2013, Ireland has decided to provide
personalised services co-financed by the EGF also to 200 NEETs.
(5)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by Ireland.
HAVE ADOPTED THIS DECISION: 
Article 1
For the general budget of the European
Union for the financial year 2015, the EGF shall be mobilised to provide the
sum of EUR 2 490 758 in commitment and payment appropriations.
Article 2
This decision
shall enter into force on the day of its adoption.
Done at Brussels,
For the European Parliament                        For
the Council
The President                                                 The
President
[1]               OJ L 347, 20.12.2013, p. 855.
[2]               Regulation (EC) No 1893/2006 of the European
Parliament and of the Council of 20 December 2006 establishing the statistical
classification of economic activities NACE Revision 2 and amending Council
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific
statistical domains (OJ L 393, 30.12.2006, p. 1).
[3]               In accordance with the fourth paragraph of Article 7
of Regulation (EU) No 1309/2013.
[4]               Commission Regulation (EU) No 1046/2012 of 8 November
2012 implementing Regulation (EC) No 1059/2003 of the European Parliament
and of the Council on the establishment of a common classification of
territorial units for statistics (NUTS) as regards the transmission of the time
series for the new regional breakdown (OJ L 310, 9.11.2012, p. 34).
[5]               Within the meaning of Article 3(a) of the EGF
Regulation.
[6]               Council Directive 98/59/EC of 20 July 1998 on
the approximation of the laws of the Member States relating to collective
redundancies (OJ L 225, 12.8.1998, p. 16).
[7]               LTAI HR Department report to
IDA Ireland of 28 March 2014
[8]               http://www.asianaviation.com/articles/415/China-MRO
[9]               http://www.lite.orientaviation.com/orient-aviation-magazine/ground-handling/lht-continues-to-spread-its-wings-in-asia#.VK_FVxtF2Uk
[10]             EGF/2009/021 IE/SR Technics
[11]             http://eurofound.europa.eu/observatories/emcc/erm/factsheets/shannon-aerospace
[12]             http://www.ltai.ie/press-releases-content/-/asset_publisher/3hGk/content/press-release-ltai-wind-up-media/10165
[13]             http://census.cso.ie/sapmap2011/Results.aspx?Geog_Type=ED&Geog_Code=04015&CTY=04
[14]             http://census.cso.ie/sapmap2011/Results.aspx?Geog_Type=ED&Geog_Code=03033&CTY=03
[15]             http://census.cso.ie/sapmap2011/Results.aspx?Geog_Type=ED&Geog_Code=03009&CTY=03
[16]             http://census.cso.ie/sapmap2011/Results.aspx?Geog_Type=ED&Geog_Code=03030&CTY=03
[17]             http://www.cso.ie/en/releasesandpublications/er/lr/liveregistermay2014/#.VK_L0RtF2Uk
[18]             http://ec.europa.eu/europe2020/europe-2020-in-your-country/ireland/national-reform-programme/index_en.htm
[19]             OJ L 347, 20.12.2013, p. 884.
[20]             OJ C 373, 20.12.2013, p. 1.
[21]             OJ L 347, 20.12.2013, p. 855.
[22]             OJ C 373, 20.12.2013, p. 1.
[23]             OJ L 167, 29.6.2009, p.26.
[24]             OJ L 347, 20.12.2013, p. 884.
[25]             Within the meaning of Article 3(a) of the EGF
Regulation.