Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund (application from Ireland – EGF/2015/006 IE/PWA International)
Date: 2015-11-06
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, Ireland, aeronautical industry, collective dismissal, commitment of expenditure, distribution of EU funding, employment aid, financial aid, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 6.11.2015  COM(2015) 555 final   Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund  (application from Ireland – EGF/2015/006 IE/PWA International)  
 
EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

1. 

2. 

3. 

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 1927/20061 (the ‘EGF Regulation’). 

On  19  June  2015, 
Ireland  submitted  application  EGF/2015/006 IE/PWA 
International Ltd for a financial contribution from the EGF, following redundancies2 
in PWA International (PWAI) and one supplier in Ireland. 

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 

Member State 

Region(s) concerned (NUTS level 2) 

EGF/2015/006 IE/PWA International 

Ireland 
IE02- Southern and Eastern  

Date of submission of the application 

Date of acknowledgement of receipt of the 
application 

19 June 2015 

19 June 2015 

Date of request for additional information 

3 July 2015 

Deadline for provision of the additional 
information 

14 August 2015 

Deadline for the completion of the assessment 

6 November 2015 

Intervention criterion 

Primary enterprise 

Article 4(2) of the EGF Regulation 

PWA International Ltd 

Number of enterprises concerned 

2 

Sector(s) of economic activity 
(NACE Revision 2 Division)3 

Division 33 - Repair and installation 
of machinery and equipment  

Number of subsidiaries, suppliers and 
downstream producers 

1 

Reference period (four months): 

19 December 2014 - 19 April 2015 

1 
2 
3 

OJ L 347, 20.12.2013, p. 855. 
Within the meaning of Article 3 of the EGF Regulation. 
OJ L 393, 30.12.2006, p. 1. 

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Number of redundancies during the reference 
period (a) 

Number of redundancies before or after the 
reference period (b) 

Total number of redundancies (a + b) 

Total number of eligible targeted beneficiaries 

Total number of targeted beneficiaries 

Number of targeted young persons not in 
employment, education or training (NEETs) 
Budget for personalised services (EUR) 
Budget for implementing EGF4 (EUR) 
Total budget (EUR) 
EGF contribution (60 %) (EUR) 

61 

47 

108 

108 

108 

108 

707 670 
29 486 
737 156 
442 293 

ASSESSMENT OF THE APPLICATION 

Procedure 

4. 

Ireland submitted application EGF/2015/006 IE/PWA International within 12 weeks 
of  the  date  on  which  the  intervention  criteria  set  out  in  Article 4  of  the  EGF 
Regulation  were  met,  on  19  June  2015.  The  Commission  acknowledged  receipt  of 
the  application  on  the  same  day  and  requested  additional  information  from  Ireland 
within two weeks of the date of submission of the application, on 3 July 2015. Such 
additional information was provided within six weeks 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 November 2015. 

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

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The  application  relates  to  108  workers  made  redundant  in  PWA  International  Ltd. 
and one supplier. The primary enterprise operated in the economic sector classified 
under the NACE Revision 2 Division  33 (Repair and installation of machinery and 
equipment).  The  redundancies  made  by  the  enterprises  are  mainly  located  in  the 
NUTS5 level 2 region of Southern and Eastern (IE 02). 

Enterprises and number of dismissals within the reference period 

PWA International 
Total no. of enterprises: 2 

104  Manguard 

Total no. of dismissals:  

Total no. of self-employed persons whose activity has ceased:  

Total no. of eligible workers and self-employed persons:  

4 

108 

0 

108 

In accordance with the fourth paragraph of Article 7 of Regulation (EU) No 1309/2013. 
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). 

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Intervention criteria 

6. 

7. 

8. 

Ireland  submitted  the  application  under  the  intervention  criteria  of  Article 4(2) 
derogating from the criteria of Article 4(1)(a) of the EGF Regulation, which requires 
at least 500 workers being made redundant 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. 

The reference period of four months for the application runs from 19 December 2014 
to 19 April 2015. 

The redundancies during the reference period are as follows:  

– 

61 workers made redundant by PWA International Ltd. 

Calculation of redundancies and of cessation of activity 

9. 

The redundancies during the reference period have been calculated as follows: 

– 

61 from the date of the de facto termination of the contract of employment or 
its expiry. 

Eligible beneficiaries 

10. 

In  addition  to  the  workers  already  referred  to,  the  eligible  beneficiaries  include  47 
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  10  October  2013.  A  clear  causal  link  can  be  established  with  the 
event which triggered the redundancies during the reference period. 

11. 

The total number of eligible beneficiaries is therefore 108. 

Link between the redundancies and major structural changes in world trade patterns due to 

globalisation 

12. 

13. 

14. 

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 PWAI, 
a  Maintenance  Repair  and  Overhaul  (MRO)  enterprise  and a  joint  venture  between 
United Technologies Corporation's Pratt & Whitney (P&W) and Singapore Airlines 
Engineering Company (SIAEC), was made to consolidate the company’s operations 
in  North  America  and  Asia  by  the  phased  transfer  from  PWAI  to  other  repair 
facilities within the P&W network, namely P&W PSD based in Arkansas (USA) and 
Eagle Services Asia based in Singapore. 

Over the past 10 years Asia-based customers have accounted for approximately 50 % 
of PWAI’s business e.g. Japan Airlines (JAL), JAL Aeroparts, All Nippon Airways 
(ANA) and Mitsubishi Heavy Industries (MHI). Another 40 % of PWAI’s business 
has  been  with  USA-based  customers,  like  United  Airlines,  and  just  10 %  with 
European customers e.g. SR Technics in Switzerland and Lufthansa in Germany. 

Worldwide  engine  shop  visits  for  the  PW4000  engine,  representing  approximately 
90 %  of  the  PWAI  repair  business,  declined  by  36 %  between  2006  and  2013.  A 
further decline by 54 % is forecast for the period 2006-2020. This is due to the early 
retirement  of  some  wide-bodied  and  long-haul  aircraft  operating  the  PW4000,  as 
more  efficient  engines  such  as  the  Rolls-Royce  Trent  and  the  P&W  GP7000  have 
become available. 

15. 

PWAI  repairs  and  overhauls  engine  cases  for  Large  Commercial  Aircraft  Engines 
Technological shifts towards new generation aircraft also help to explain the reduced 

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demand for activity by PWAI at an Irish location and the migration of such activity 
outside  the  EU.  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 A32 
family types. The proportion of this type is expected to grow from 64 % of today’s 
world  fleet to  over  70 %  in  future.  This  growth  is  predicted to  emanate  from  Asia, 
where  the  aviation  sector  is  expanding  and  there  is  a  requirement  to  replace  older 
aircraft  types  with  narrow  body  types6.  SAIEC,  a  wholly-owned  subsidiary  of 
Singapore  Airlines  and  one  half  of  the  PWAI  joint  venture,  is  the  main  driver  of 
Singapore’s  national  efforts  to  develop  and  build  employment  in  international 
aviation activities. 

PWAI had been affected on an ad-hoc basis in recent years by the absence of a clause 
in the EU-Korea Free Trade Agreement (FTA) which would exempt repaired goods 
from  customs  duties  on  re-entry.  Korea's  FTA  with  the  US  includes  such  a  clause. 
While  Korea  has  extended  the  current  duty  exemption  until  the  end  of  2016,  long 
term customers have been advised that in the future certain tariffs would apply on re-
entry  to  Korea  of  aviation  products  which  have  been  repaired  in  the  EU,  whereas 
such  tariffs  would  not  apply  on  re-entry  to  Korea  following  repair  in  the  US.  A 
former PWA sister site in the US would consequently benefit from such preferential 
conditions, whereas PWAI would not. Though a number of issues were resolved, this 
situation  overhung  certain  contract  negotiations.  Prior  to  this,  Korean  Airlines  had 
been a large customer of the Dublin site facility. 

The trend towards locating MRO activity near centres of global aviation expansion, 
and the adverse impacts  of global trade  deals,  has  seriously affected Europe and in 
particular Ireland. SR Technics closed its plant at Dublin  Airport in  2009, with  the 
loss  of  over  1 100  jobs  (EGF/2009/021  IE/SR  Technics).  Lufthansa  Technik 
Airmotive  Ireland  closed  its  plant  in  2014,  with  the  loss  of  over  420  jobs 
(EGF/2014/016 IE/Lufthansa Technik). 

To date, the "repair and installation of machinery and equipment" sector has been the 
subject  of  these  three  EGF  applications,  two  of  which  based  on  trade  related 
globalisation 7 and one 8 on the global financial and economic crisis. 

16. 

17. 

18. 

Events giving rise to the redundancies and cessation of activity 

19. 

20. 

The  event  giving  rise  to  these  redundancies  is  the  closure  of  PWAI,  based  in 
Rathcoole,  Co  Dublin.  It  was  originally  established  in  1989  as  a  joint  venture 
between  United  Technologies  Corporation  and  Airmotive  Ireland  Holdings,  more 
recently known as Lufthansa Technik Airmotive Ireland. 

On  10  October  2013,  the  PWAI  Board  of  Directors  announced  plans  to  close  the 
business on a phased basis over an 18-month period, with final closure in June 2015. 
The  PWAI  Board  of  Directors,  during  consultations  with 
the  employee 
representatives,  confirmed  that  the  decision  to  close  the  PWAI  facility  was  not  a 
reflection  on  the  employees,  as  productivity  and  efficiency  had  increased  and  all 
critical  targets  had  been  achieved  or  even  exceeded  e.g.  annual  revenue,  profits, 
environmental health & safety and quality. 

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7 
8 

Lufthansa Technik HR Department report to IDA Ireland of 28 March 2014. 
EGF/2014/016 IE/Lufthansa Technik and EGF/2015/006 IE/PWA International. 
EGF/2009/021 IE/SR Technics. 

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21. 

22. 

At the time of the official letter to the Minister, notifying the collective redundancy, 
the number of people employed at the PWAI site in Rathcoole was 107 in total (98 
permanent, four fixed-term employees and five agency workers). 

The first workers were made redundant on 22 May 2014, and all workers, with the 
exception of the last two, had left by 28 August 2015. These final two workers left 
on 30 September 2015. 

Expected impact of the redundancies as regards the local, regional or national economy and 

employment 

23. 

24. 

25. 

26. 

The PWAI plant is situated in the centre of the county of South Dublin. As at March 
2015,  the  104  PWAI  workers  resided  in  the  geographical  counties  of  Dublin  (51), 
Kildare  (34),  Meath  (4),  Wicklow  (4)  and  other  surrounding  counties  (11).  Of  the 
Dublin  residents,  14 lived in  areas  near Rathcoole such as  Tallaght  and Clondalkin 
(South Dublin) and in Blanchardstown/Coolmine (Fingal). 

The  latest  Census  (2011)  provides  various  detailed  statistics.  Thus,  of  a  total 
population over the age of 15, the South Dublin unemployment rate was only slightly 
higher  (11,61 %)  than  the  national  average  (10,83  %),  but  these  figures  conceal 
pockets  of  considerable 
instance,  Blanchardstown-
local  disadvantage.  For 
Tyrrelstown,  Tallaght-Killinarden,  Clondalkin-Rowlagh  and  Tallaght-Fettercairn 
were  among  the  top  25  of  3 409  electoral  districts  nationally,  with  unemployment 
figures of between 22 and 25 %. Lower secondary education was the highest level of 
education attained for some 25,4 %9 of the population in Tallaght-Killinarden while 
local  authority  housing  represented  some  49,4 %  of  housing  tenure  in  Tallaght-
Fettercairn. Other socio-economic indicators such as low employment rates, lack of 
professional  qualifications,  high  number  of  households  headed  by  lone  parents  and 
high dependency levels point to considerable local disadvantage and poverty. 

Despite reductions in the unemployment figures in more recent times, over the period 
December 2014 to March 2015, the number of persons under the age of 25 years on 
the  Live  Register  of  unemployed  persons  in  the  Dublin  region  actually  increased 
while the State average dropped by -1,85 %. 

The  redundancies  at  PWAI  are  already  having  an  adverse  impact  on  the  economy 
and  labour  markets  of  parts  of  the  Dublin  and  Eastern  region,  with  particularly 
negative  impacts  on  those  local  areas  where  a  large  part  of  the  PWAI  workforce 
resides.  With  unemployment  rates  recently  trending  upwards  in  those  regions  and 
fewer opportunities within the MRO and wider manufacturing sector, former PWAI 
workers, particularly older male workers, face increased competition for jobs and an 
increased risk of entering into long-term unemployment. 

Explanation of the exceptional circumstances underlying the admissibility of the application 

27. 

28. 

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Ireland  argues  that  this  application  should  be  assimilated  to  an  application  under 
Article 4(1)(a)  of  the  EGF  Regulation  due  to  exceptional  circumstances  having  a 
serious  impact  on  employment  and  the  local,  regional  or  national  economy.  This 
argument is based on the  pre-existing difficult situation of the area, combined with 
the  cumulative  effect  of  three  major  closures  in  the  MRO  sector  within  a  short 
period, and no employers remaining in this sector in the whole of Ireland. 

PWAI  commenced  its  commercial  life  in  1989  as  ‘Airmotive  Ireland  Holdings 
Ireland’ a subsidiary of parent Lufthansa Technik and located only 200 meters from 

http://airo.maynoothuniversity.ie/external-content/census-2011-national-mapping-viewer. 

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the  parent  plant,  before  later  being  acquired  by  UTC  and  becoming  PWAI. 
Thereafter the development of PWAI echoed that of Lufthansa Technik with strong 
growth in the 1990s and early 2000s and then reduction in turnover and activity and 
eventual closure in 2014/15 for the same types of reasons (global competition from 
Asia and elsewhere, delocalisation to emerging markets affording greater expansion 
opportunities,etc).  PWAI  operated  in  the  same  sector  as  Lufthansa  Technik  and,  if 
these redundancies had occurred some months earlier, they could have been included 
with those of Lufthansa Technik as part of a sectoral EGF application. 

Ireland, starting at a low employment base, had since the 1990s been slowly carving 
out  a  niche  for  itself  in  the  MRO  sector,  attracting  substantial  foreign  direct 
investment and creating much well-paid employment in the sector. 

In February 2009, SR Technics at Dublin Airport announced its closure with the loss 
of 1 135 MRO jobs (EGF/2009/021 IE/SR Technics). 

In October 2013, PWA International Ltd announced its closure with the loss of 107 
MRO jobs (EGF/2015/006 IE PWA International). 

In November 2013, Lufthansa Technik announced its closure and 415 redundancies 
(EGF/2014/016 IE/Lufthansa Technik). 

A total of 1 657 jobs have therefore been lost within less than five years within one 
subsector (aircraft maintenance, repair and overhaul) in one delimited area (Dublin). 
This  significant  loss  of  employment  in  a  small  open  economy  like  Ireland  is 
exceptionally severe in terms of jobs and revenue. 

The  skills  profile  of  the  affected  workers  under  the  SR  Technics  EGF  programme 
was very similar to that of the PWAI workers. The SR Technics EGF programme led 
to  positive  outcomes,  with  some  53,45 %  of  beneficiaries  back  in  employment  in 
September 2012, almost 12 months after programme end. 

The re-employment potential in Ireland for workers with an aviation MRO skillsets 
background  is  much  reduced.  Opportunities  to  seek  such  employment  in  Northern 
Ireland, too, have been severely curtailed, with the announcements in 2014 and 2015 
of a total of 800 job losses at Bombardier, an aviation manufacturing company based 
in Belfast, located 165 km from Dublin. 

29. 

30. 

31. 

32. 

33. 

34. 

35. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

36. 

The estimated number of redundant workers expected to participate in the measures 
is  108.  The  breakdown  of  these  workers  by  sex,  citizenship  and  age  group  is  as 
follows: 

Sex: 

Category 

Men: 

Women: 

Citizenship:  EU citizens: 

Number of  
targeted beneficiaries 

98  (90,74 %) 

10 

(9,26 %) 

108 

(100 %) 

non-EU citizens: 

0 

(0 %) 

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Age group: 

15-24 years: 

25-29 years: 

30-54 years: 

55-64 years: 

over 64 years: 

2 

3 

(1,85 %) 

(2,78 %) 

85  (78,70 %) 

17  (15,74 %) 

1 

(0,93 %) 

37. 

Additionally,  Ireland  will  provide  personalised  services  co-financed  by  the  EGF  to 
up to 108 young people not in employment, education or training (NEETs) under the 
age  of  25  on  the  date  of  submission  of  the  application,  given  that  61  of  the 
redundancies occurred in the NUTS level 2 region of  Southern and Eastern (IE02), 
which is eligible under the Youth Employment Initiative. 

38. 

The  total  estimated  number  of  targeted  beneficiaries  expected  to  participate  in  the 
measures, including NEETs, is therefore 216. 

Eligibility of the proposed actions 

39. 

The personalised services to be provided to redundant workers and NEETs consist of 
the following actions: 

– 

Guidance and career planning and development 

Early  and  comprehensive  occupational  guidance  and  career  planning  is  very 
important  to  workers  made  redundant  who  can  initially  feel  disoriented  and 
unsure of a route back into the labour market. 

Supports  will  include  individualised  profiling,  needs  identification,  learning 
assessment,  CV  preparation,  career  guidance  and  planning,  job  search 
assistance and other related supports and advice. 

The Department of Social Protection, the Education and Training Boards, the 
SOLAS EGF  Coordination Unit and other specialists, where appropriate, will 
assist the redundant workers, including the delivery of formal QQI-accredited 
career  planning  courses10  which  serve  as  stepping  stones  to  more  formal 
employment-oriented training and education courses. 

PWAI itself implemented an outplacement programme prior to the redundancy 
of individual workers, which offered them the opportunity to receive individual 
career and financial counselling.  

– 

EGF Training Grants 

The  EGF  Training  Grants  mechanism  provides  flexibility  for  the  EGF 
beneficiary  to  identify  and  select  tailored  and  approved  training  courses, 
further and higher education, in addition to those provided through the public 
system. Such programmes can be funded with the EGF training grant and are 
either industry-accredited or accredited by Quality and Qualifications Ireland. 

– 

Training and Further Education Programmes 

These measures are provided mainly by state agencies such as Education and 
Training Boards11 but also by approved private providers. 

10 
11 

QQI - www.qqi.ie  
http://www.etbi.ie/etbs/directory-of-etbs/ 

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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 Institutes of Technology of Tallaght, Blanchardstown, Carlow, Dublin 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  and 
funded  under  initiatives  such  as  Springboard  and  Momentum12  may  also  be 
provided in appropriate cases. 

The  EGF  Training  Grant  is  available  to  targeted  clients  to  access  privately-
provided  third  level  programmes  where  they  are  not  available  through  the 
publicly-funded  system  or  are  highly  specialised.  Education  and  training 
programme content is validated by QQI. 

PWAI  has  put  an  “Employee  Scholar  Programme”  in  place,  which  sponsors 
exiting employees who commence or continue with third level education of at 
least ordinary degree level for a period of 12 months after their exit date. This 
complementary activity is not mandatory and is not being charged to the EGF. 

– 

Time Limited Allowances 

To facilitate participation in guidance, training and education courses, an EGF 
Course Expenses Contribution (CEC) scheme will be provided to defray some 
of  the  ancillary  costs  involved.  The  CEC  is  administered  by  the  EGF  Co-
ordination  Unit  and  contributes  towards  some  of  the  costs  associated  with 
mobility,  subsistence,  course  materials,  equipment,  childcare,  etc.  subject  to 
certain financial limits. 

Other time limited supports may include education, training, employment and 
activation allowances. 

40. 

41. 

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. 

Ireland has 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 

42. 

The estimated total costs are EUR 737 156, comprising expenditure for personalised 
services of EUR 707 670 and expenditure for preparatory, management, information 
and publicity, control and reporting activities of EUR 29 486. 

12 

www.springboardcourses.ie; www.momentumskills.ie. 

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43. 

The  total  financial  contribution  requested  from  the  EGF  is  EUR 442 293  (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) 

Guidance and career planning 

EGF Training Grants 

Training and Further Education Programmes 

Higher Education Programmes 

Enterprise and self-employment supports 

Sub-total (a): 
Percentage of the package of personalised 
services  

190 

450 

85 500 

122 

1 800 

219 600 

44 

15 

6 

– 

2 500 

110 000 

5 800 

87 000 

5 000 

30 000 

532 100 

(75,19 %) 

Allowances and incentives (Actions under Article 7(1)(b) of the EGF Regulation) 

Time-limited allowances  

181 

970 

175 570 

Sub-total (b): 
Percentage of the package of personalised 
services: 

 Actions under Article 7(4) of the EGF Regulation 

1. Preparatory activities 

2. Management 

3. Information and publicity 

4. Control and reporting 

Sub-total (c): 
Percentage of the total costs : 

Total costs (a + b + c): 

EGF contribution (60 % of total costs) 

– 

– 

– 

– 

– 

– 

– 

– 

175 570 

(24,81 %) 

8 000 

1 486 

20 000 

29 486 

(4,00 %) 

737 156 

442 293 

44. 

The costs of the actions identified in the above table 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. Ireland confirmed that these actions are conditional 

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on  the  active  participation  of  the  targeted  beneficiaries  in  job-search  or  training 
activities. 

Period of eligibility of expenditure 

45. 

46. 

Ireland started providing the personalised services to the targeted beneficiaries on 22 
May 2014. The expenditure on these actions will therefore be eligible for a financial 
contribution from the EGF from 22 May 2014 to 19 June 2017, with the exception of 
third  level  education,  which  will  be  eligible  for  a  financial  contribution  until  19 
December 2017. 

Ireland started incurring the administrative expenditure to implement the EGF on 10 
October  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 10 October 2013 to 19 December 2017.  

Complementarity with actions funded by national or Union funds 

47. 

48. 

The source of national pre-financing is the Irish Exchequer, which will also co-fund 
the  programme.  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. 

Ireland  has  confirmed  that  the  measures  described  above  receiving  a  financial 
contribution  from  the  EGF  will  not  also  receive  financial  contributions  from  other 
Union financial instruments. 

Procedures  for  consulting  the  targeted  beneficiaries  or  their  representatives  or  the  social 

partners as well as local and regional authorities 

49. 

50. 

51. 

52. 

Ireland has 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. 

Following  receipt  of  the  notification  from  the  Department  of  Jobs,  Enterprise  and 
Innovation  of  impending  collective  redundancies  in  October  2013,  the  EGF 
Managing  Authority  (EGF  MA),  in  conjunction  with  the  Industrial  Development 
Authority, contacted the company management and the trade unions SIPTU13, TEEU 
and Unite the Union to identify and discuss the potential labour market re-integration 
needs of the workers being made redundant. 

In  April  2014  a  survey  of  worker  training  preferences  conducted  by  PWAI  and 
showing broad interest in technical and aviation-related training was provided to the 
EGF MA Bilateral contact continued between the EGF Managing Authority and the 
company and trade unions during the remainder of 2014. 

Further  contacts  by  the  EGF  MA  culminated  in  a  meeting  on  25  February  2015,  a 
month prior to the exit date of the largest single cohort of PWAI workers at which 
the EGF MA, SOLAS EGF Coordination Unit, PWAI workers and trade unions were 
represented  and  the  potential  of  the  EGF  to  assist  the  redundant  workforce  was 
discussed.  All  workers  were  subsequently  surveyed  in  March  2015  by  the  EGF 
Coordinating  Unit  regarding  their  potential  labour  market  re-integration  needs.  The 
results of this consultation helped inform the proposed EGF measures included in the 
application. 

13 

Services Industrial Public and Technical Union; Technical Engineering and Electrical Union. 

EN 

11 

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53. 

A consultative forum or other interactive process will 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  provide  input,  on  an  ongoing 
basis, to the effective implementation of the EGF programme. 

Management and control systems 

54. 

55. 

56. 

57. 

58. 

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 (MA). The main role of the EGF MA is to 
verify that the programme of personalised services and supports, co-financed through 
the  EGF,  has  been  properly  delivered  and  to  ensure  that  the  services  rendered  are 
fully supported by verifiably accurate documentation. 

The Intermediate Body performs additional checks to ensure that the declaration of 
final  expenditure  by  the  Public  Beneficiary  Bodies  in  respect  of  claims  is  accurate 
and  supported  by  a  clear  audit  trail  before  formal  declaration  is  made  of  the  total 
amount of eligible expenditure. 

Public Beneficiary Bodies are responsible for the claiming of EGF funding from the 
EGF  MA  and  in  most  cases  for  its  disbursement.  They  are  also  responsible  for 
verification  that  the  purpose,  scope  and  scale  of  funding  is  appropriate  within  the 
terms of the EGF programme. 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 service providers and duly documented. 

The  EGF  Certifying  Authority  is  responsible  for  the  certification  of  expenditure 
related  to  EGF  co-financed  measures.  In  doing  so,  the  authority  satisfies  itself  on 
compliance  with  all  requirements  relating  to  the  accuracy,  legality,  eligibility  and 
regularity of the expenditure. 

An externally-sourced independent audit company will be contracted by the MA to 
provide an audit opinion on whether expenditure for which EU co-financing has been 
provided is legal and regular; the accounts detailing the programme expenditure give 
a true and fair view and control systems put in place function properly. 

Commitments provided by the Member State concerned 

59. 

Ireland has 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. 

EN 

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BUDGETARY IMPLICATION 

Budgetary proposal 

60. 

61. 

62. 

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 2014-202014. 

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 442 293, representing 60 % of the total 
costs  of  the  proposed  actions,  in  order  to  provide  a  financial  contribution  for  the 
application. 

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 management15. 

Related acts 

63. 

64. 

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 442 293. 

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. 

14 
15 

OJ L 347, 20.12.2013, p. 884. 
OJ C 373, 20.12.2013, p. 1. 

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13 

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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund  
(application from Ireland – EGF/2015/006 IE/PWA International) 

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 1927/200616, 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 management17, and in particular point 13 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

16 
17 
18 

The  European  Globalisation  Adjustment  Fund  (EGF)  aims  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, or as a result of a 
new  global  financial  and  economic  crisis,  and  to  assist  them  with  their  reintegration 
into the labour market. 

The  EGF  is  not  to  exceed  a  maximum  annual  amount  of  EUR 150  million  (2011 
in  Article 12  of  Council  Regulation  (EU,  Euratom) 
prices),  as 
No 1311/201318. 

laid  down 

On  19  June  2015,  Ireland  submitted  an  application  EGF/2015/006 IE/PWA 
International  for  a  financial  contribution  from  the  EGF,  following  redundancies  in 
PWA International Ltd. and one supplier in Ireland. It was supplemented by additional 
information  provided 
(EU) 
No 1309/2013.  That  application  complies  with  the  requirements  for  determining  a 
financial contribution from the EGF in accordance with Article 13 of that Regulation. 

in  accordance  with  Article 8(3)  of  Regulation 

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  108  young  persons 
not in employment, education or training (NEETs). 

In  accordance  with  Article 4(2)  of  Regulation  (EU)  No 1309/2013,  the  application 
from Ireland is considered admissible since the redundancies have a serious impact on 
employment and the local, regional or national economy. 

OJ L 347, 20.12.2013, p. 855. 
OJ C 373, 20.12.2013, p. 1. 
Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for 
the years 2014-2020 (OJ L 347, 20.12.2013, p. 884). 

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(6) 

(7) 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 442 293 in respect of the application submitted by Ireland. 

In  order  to  minimise  the  time  taken  to  mobilise  the  EGF,  this  decision  should  apply 
from the date of its adoption, 

HAVE ADOPTED THIS DECISION:  

For  the  general  budget  of  the  European  Union  for  the  financial  year  2015,  the  European 
Globalisation  Adjustment  Fund  shall  be  mobilised  to  provide  the  sum  of  EUR 442 293  in 
commitment and payment appropriations. 

Article 1 

Article 2 

This Decision shall enter into force on the day of its publication in the Official Journal of the 
European Union. It shall apply from [the date of its adoption]. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

  

Date to be inserted by the Parliament before the publication in OJ. 

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