Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund (application from Sweden – EGF/2015/009 SE/Volvo Trucks)
Date: 2016-02-16
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, Sweden, Upper Norrland (Sweden), collective dismissal, commitment of expenditure, distribution of EU funding, general budget (EU), motor vehicle industry, payment appropriation

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   EUROPEAN COMMISSION  Brussels, 16.2.2016  COM(2016) 61 final   Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund  (application from Sweden – EGF/2015/009 SE/Volvo Trucks)  
 
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  16  September  2015,  Sweden  submitted  application  EGF/2015/009 SE/Volvo 
Trucks for a financial contribution from the EGF, following redundancies2 in Volvo 
Group  Truck  Operation,  EMEA  and  four  suppliers  and  downstream  producers  in 
Sweden. 

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/2015/009 SE/Volvo Trucks 

Member State 
Region(s) concerned (NUTS3 level 2) 

Sweden 
SE33 (Upper Norrland)  

Date of submission of the application 

16 September 2015 

Date of acknowledgement of receipt of the 
application 

16 September 2015 

Date of request for additional information 

30 September 2015 

Deadline for provision of the additional 
information 

11 November 2015 

Deadline for the completion of the assessment 

3 February 2016 

Intervention criterion 

Primary enterprise 

Article 4(1)(a) of the EGF Regulation 

Volvo Group Truck Operation EMEA 

Number of enterprises concerned 

5 

Sector(s) of economic activity 
(NACE Revision 2 Division)4 

Division 29 (Manufacture of motor 
vehicles, trailers and semi-trailers) 

Number of subsidiaries, suppliers and 
downstream producers 

4 

Reference period (four months): 

24 February 2015 - 24 June 2015 

1 
2 
3 

4 

OJ L 347, 20.12.2013, p. 855. 
Within the meaning of Article 3 of the EGF Regulation. 
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). 
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 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 EGF5 (EUR) 
Total budget (EUR) 
EGF contribution (60 %) (EUR) 

ASSESSMENT OF THE APPLICATION 

Procedure 

647 

0 

647 

647 

500 

0 

2 869 938 
119 580 
2 989 518 
1 793 710 

4. 

5. 

Sweden  submitted  application  EGF/2015/009 SE/Volvo  Trucks  on  16  September 
2015,  within  12  weeks  of  the  date  on  which  the  intervention  criteria  set  out  in 
Article 4 of the EGF Regulation were met. The Commission acknowledged receipt of 
the  application  on  16  September  2015  and  requested  additional  information  from 
Sweden on 30 September 2015,  within  two weeks of the date of submission  of the 
application.  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  3  February 
2016. 

The  Commission  was  exceptionally  unable  to  comply  with  this  deadline.  The 
explanation, in accordance with Article 8(4) of Regulation 1309/2013, is that, there 
was  an  exceptional  shortage  of  expert  staff  in  the  period  during  which  the 
Commission prepared its proposal.  

Eligibility of the application 

Enterprises and beneficiaries concerned 

6. 

The application relates to 470 workers made redundant in Volvo Trucks and 177 in 4 
suppliers  and  downstream  producers.  The  primary  enterprise  operates  in  the 
economic sector classified under the NACE Revision 2 Division 29 (Manufacture of 
motor  vehicles,  trailers  and  semi-trailers).  The  redundancies  made  by  the  primary 
enterprise are mainly located in the NUTS level 2 region of SE33 (Upper Norrland). 

Enterprises and number of dismissals within the reference period 

Volvo Group Truck Operation EMEA 
IL Logistics AB 
Lernia 

470  Caverion 
24 
90 

Isringhausen 

6 
57 

5 

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

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Enterprises and number of dismissals within the reference period 

Total no. of enterprises: 5 

Total no. of dismissals:  

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

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

647 

0 

647 

Intervention criteria 

7. 

8. 

9. 

Sweden  submitted  the  application  under  the  intervention  criteria  of  Article 4(1)(a), 
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 24 February 2015 
to 24 June 2015. 

The redundancies during the reference period are as follows: 

– 

– 

470 workers made redundant in Volvo Trucks, and 

177  workers  made  redundant  in  4  suppliers  and  downstream  producers  of 
Volvo Trucks. 

Calculation of redundancies and of cessation of activity 

10. 

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

– 

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

Eligible beneficiaries 

11. 

The total number of eligible beneficiaries is therefore 647. 

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

globalisation 

12. 

13. 

In order to establish the link between the redundancies and major structural changes 
in world trade patterns due to globalisation, Sweden argues that the manufacture of 
commercial  vehicles,  a  relatively  small  segment  within  the  large  automotive 
industry,  is  no  longer  dominated  by  European  and  North  American  manufacturers. 
While  the  manufacturers  based  in  the  Triad  markets  (North  America  excluding 
Mexico,  Europe  and  Japan)  are  the  undoubted  technology  leaders,  the  newly 
emerging Asian truck manufacturers in China and India have gained access to new 
technology from joint ventures with established market leaders in the West.  

China is now the leader in the global production of commercial vehicles with a share 
of 34,1 %. In 2014, the US remained the second largest manufacturer of commercial 
vehicles (2.8 million units), accounting for 15% of the world share. The EU ranked 
third, with almost 2.2 million units produced, 12.1% of the world total. The US, the 
EU and China together account for more than 60% of total world commercial vehicle 
production.  Global  production  of  commercial  vehicles  remained  stable  in  2014  ( -
1%),  registering  more  than  18  million  units,  with  an  increase  in  the  Triad  markets. 
Production  of  commercial  vehicles  in  the  EU  grew  thanks  to  the  light  commercial 
vehicle  segment  which,  with  its  1,8  million  units,  represented  almost  82%  of  total 

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commercial  vehicle  production.  The  heavy  truck  production  segment  within  the 
commercial vehicles market however registered a negative trend compared to 2013 6. 

A  serious  shift  in  EU  trade  was  recorded  in  2014  with  EU  manufacturers'  exports 
declining and an increase in the import of vehicles. In 2014, EU commercial vehicle 
exports showed a decline by EUR 3.9 billion in light commercial vehicles (-12.5%) 
and EUR 6.3 billion in heavy commercial vehicles, buses and coaches (- 10 %)7. This 
led to an overall decline in EU exports (- 11 %). Total commercial vehicle imports 
into  the  European  Union  increased  (+  10.7  %)7.  More  than  half  of  EU  commercial 
vehicle imports came from Turkey (+ 2.4 %), with China in second place (+ 2.4 %). 
A significant increase in imports from the US (+ 9.3%) and, even more so, Thailand 
(+  51.7  %)  has  been  observed7.  As  a  result  of  the  trend  illustrated  by  the  figures 
above,  the  EU  trade  balance  for  commercial  vehicles,  while  still  positive,  is  25  % 
lower than the previous year. 

A number of Asian producers have emerged as formidable players and while they are 
essentially supplying their domestic markets, they are also developing the technology 
to  compete  on  the  world  stage.  In  order  to  be  able  to  compete  in  the  truck  sector, 
European  manufacturers  will  have  to  increase  efficiency  at  production  facilities  in 
the mature markets. The Volvo strategy8 clearly illustrates a response to these trends, 
with Volvo launching optimisation and cost saving measures while at the same time 
investing  aggressively  in  Asia,  as  seen  in  the  2013  agreement  with  the  Chinese 
manufacturer  Dongfeng  Motor  Group  Company  Limited,  (DFG)  which  led  to  the 
acquisition of 45 % of the DFG subsidiary, Dongfeng Commercial Vehicles8. 

In  line  with  the  recent  figures  above,  the  non-EU  manufacturers  of  commercial 
vehicles  and  the  suppliers  of  Original  Equipment  Manufacturers  (OEM)  are 
becoming  increasingly  sophisticated  and  able  to  target  the  European  market  with 
their exports. 
Consultancy  company  Deloitte  suggests9  that  the  low-cost  segments  of  the  truck 
market  are  now  gradually  building  capacity  and  entering  the  higher  standard 
segments,  in  many  cases  by  committing  to  joint  ventures  with  Triad  market 
manufacturers  and/or  key  suppliers.  Structural  changes  are  needed  to  keep 
profitability in the European truck market. 

In  the  past  few  years  we  have  seen  the  industry  consolidate  and  adjust  its 
manufacturing  footprint  on  a  global  scale  to  bring  it  more  into  line  with  reduced 
demand  around  the  world.  The  acquisition  of  Scania  by  MAN  and  Volkswagen 
Commercial  Vehicles  is  one  of  the  latest  examples  of  efforts  to  create  a  leading 
commercial vehicles group. As IBM Institute for Business Values states10: "structural 
changes are a given reality for today’s truck industry, which faces fundamental shifts 
to business models". 

The  truck  industry,  subject  to  heavy  regulation  and  strongly  cyclical  markets,  has 
found  it  difficult  to  embrace  major  transformation  and  the  need  to  adjust.  Thus, 
globalisation  is  among  the  top  external  forces  impacting  the  truck  industry  today. 
According to the ACEA report6, the truck industry has become ever more 'global' in 
recent  decades,  as  various  developments  in  this  industry  are  related  and  influenced 

Economic and Market ACEA outlook report, ACEA (March 2015) 
Eurostat, last available data in ACEA outlook report, ACEA (March 2015) 
Volvo annual report 2014 p.2 : www.volvogroup.com (2014) 
"Truck market 2024, Sustainable Growth in Global Market" Deloitte (2014) 
"Truck 2020 transcending turbulence", IBM Global Business Service (May 2015) 

14. 

15. 

16. 

17. 

18. 

19. 

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by  globalisation.  This  development  will  increase  competition,  as  it  is  commonly 
expected  that  emerging  markets'  OEMs  will  enter  the  Western  markets  by  2030, 
leading  to  greater  price  pressure.  The  Western  OEMs  will  counterbalance  the 
stagnation on their markets by more co-operation to reduce investment costs, to grow 
and eliminate risks of new competitors. 
Price Waterhouse Cooper (PwC) in a report11 shows that development of low-budget 
trucks  will  require  a  shift  in  operating  models.  This  shift  might  lead  to  the 
outsourcing  of  production  to  growing  emerging  markets.  Global  competition  has 
caused  a  continuous  increase  in  the  number  of  consolidations  and  co-operations  or 
partnerships in recent decades. This trend is expected to continue, especially between 
Western  OEMs  and  emerging  market  OEMs.  In  so  doing,  it  is  following  the 
passenger  car  sector,  which  underwent  a  similar  reshaping  in  the  late  1990s.  It  is 
expected  that  by  2030,  emerging  market  producers  will  have  entered  the  Western 
markets, leading to higher price pressures. 

There are some major trends that will affect and increase global competition within 
the commercial vehicle industry in coming years. Demographic change and increased 
urbanisation, regulatory issues such as tolls, taxes, barriers to trade through national 
legislation,  environmental  requirements,  fuel  efficiency,  safety  and  security,  etc. 
These are all factors that will drive up costs, in particular in development and R&D 
and will increase competition. EU manufacturers need to prepare for these events. 

Already, by relocating parts of the international supply chains and the production of 
Triad market manufacturers, globalisation has been affecting job patterns and wages. 
The latest surveys by KPMG12 by PwC11 and by Tillväxtverket13 all emphasise that it 
will  no  longer  be  sustainable  to  have  high  production  costs  in  a  situation  of  global 
competition.  

The Swedish authorities therefore argue that the partial relocation of the Volvo Umeå 
department  is  driven  by  the  need  to  increase  efficiency  and  decrease  cost  to  meet 
existing and expected global competition8. 

To date, the Manufacture of motor vehicles, trailers and semi-trailers sector has been 
the  subject  of  22  EGF  applications,  including  this  one,  12 of  which  based  on trade 
related globalisation and 10 on the global financial and economic crisis. 

20. 

21. 

22. 

23. 

24. 

Events giving rise to the redundancies and cessation of activity 

25. 

26. 

The  Volvo  Group  is  one  of  the  world’s  leading  manufacturers  of  trucks,  buses, 
construction equipment and marine and industrial engines. The Group also provides 
complete  solutions  for  financing  and  service.  Headquartered  in  Gothenburg,  it 
employs about 100 000 people, has production facilities in 19 countries and sells its 
products in more than 190 markets. 

Since  1999  Volvo  Car  Corporation  is  no  longer  part  of  Volvo  Group,  but  Volvo 
Group  and  Volvo  Cars  still  share  the  same  brand  name.  A  new  company,  Volvo 
Trademark Holding AB, was established 1999 to deal with brand matters for the two 
companies.  Volvo  Cars  and  Volvo  Group  remain  separate  entities  but  cooperate  in 
research and development, and brand-related investments such as Volvo Ocean Race. 

11 
12 
13 

"The truck industry in 2020", PwC (2014) 
"Competing in the global truck Industry", KPMG (2014) 
"Den globala fordonsindustrin 2010 ur ett svenskt perspektiv", Tillväxtverket 

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27. 

28. 

29. 

30. 

31. 

32. 

33. 

34. 

Volvo  Group  Truck  Operations  (GTO)  encompasses  all  production  of  the  Group’s 
engines and transmissions as well as all production of Volvo, Renault, Mack and UD 
trucks. GTO also includes  spare parts supplies to the Group’s customers as well as 
logistics.  In  the  past  decade  the  Volvo  Group’s  acquisition  driven  expansion, 
including  such  acquisitions  as  Renault  Trucks,  Mack,  UD  Trucks  and  SDLG,  has 
provided  the  company  access  to  new  brands  and  new  markets.  One  step  in  this 
strategy was the acquisition of 45% of the Chinese company Dongfeng Commercial 
Vehicles, which was concluded in January 2015. 

GTO  now  needs  to  make  the  production  chain  more  effective.  This  impacts 
operations  at  the  Umeå  plant.  The Volvo  Group  has  reduced  personnel  globally  by 
approximately  10  %  from  110  000  employees  to  about  100  000.  In  Sweden,  the 
number  of  workers  has  been  reduced  from  25  000  to  21  000  during  the  past  four 
years, including this year’s reductions at the Umeå plant. 

The  Umeå  plant  is  part  of  GTO,  which  employs  about  33 000  employees  globally. 
The lay-offs in the Umeå plant have also affected employees at Volvo Logistics and 
Parts, which are organised within GTO. 

The  Umeå  plant,  as  part  of  Volvo  Group’s  global  industrial  system,  produces  the 
Volvo  brand  heavy  duty  cabs  for  Europe,  some  cabs  for  knocked  down  plants 
overseas,  and  all  the  Volvo  cab  stamping  parts  for  other  continents  (Brazil,  Asia). 
Cab trimming, on the other hand, is carried out in the Tuve plant near Gothenburg. 

The European Optimisation Programme of the Volvo Group is being implemented in 
2015. As a consequence of this programme, the Umeå plant department specialised 
in heavy duty cab stamping, welding, painting and cab trimming is transferred to the 
Tuve plant, so as to be localised close to the truck final assembly plant. 

Volvo  also  announced  redundancies  in  Gothenburg  and  Eskilstuna.  While  the 
redundancies  in  Umeå  constitute  the  major  part  of  the  targeted  beneficiaries, 
redundant  workers  from  Gothenburg  and  Eskilstuna  are  also  included.  Volvo's 
efficiency programme has additionally affected subcontractors, especially in Umeå. 

The discussions about potential EGF support began in Umeå in March 2014. By that 
time, every worker had been personally informed about the planned redundancies by 
the responsible manager and the representative of the unions. At their first meeting 
on 18 March 2014, the stakeholders and the social partners in the region agreed that 
the redundancies at Volvo would have a significant negative impact in the region and 
would also involve other companies, and that there was therefore a need for action.  

The first notices were given in Gothenburg GTO on 14 April 2014 and more workers 
there  received  their  notices  on  19  May.  On  16  June  2014,  workers  in  Elskilstuna 
were notified about their redundancies. 

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

employment 

35. 

The population of the county of Västerbotten (of which Umeå is the capital) in early 
2014 was around 262 360, i.e.  about 2.7 %  of the  country's  population, a declining 
share. In general, Arctic labour markets, like those in other sparsely populated areas, 
are  more  fragile  because  geographical  isolation  and  a  harsh  climate  make  job 
creation and employment more costly than in other regions. 

36. 

In  late  November  2014,  overall  unemployment  in  the  county  was  9 400  people, 
(7,2 % of the registered labour force), a decrease of about 1 000 people compared to 

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37. 

38. 

the same period in 2013. The national unemployment rate at the same time stood at 
7,9 %. 

A recent report by Västerbotten region with the title "40 000 new employees needed 
by  2025  in  Västerbotten"  expresses  these  challenges  :  a  declining  labour  force 
coupled  with  low  investment  in  SMEs.  According  to  the  report,  about  3 000 
individuals retire from the labour market every year. The region's job vacancies are 
concentrated in the health sector and in highly qualified fields. Engineers, operational 
and  organisation  managers  and  technical  professionals  are  needed.  Skilled  labour 
demand  is  increasing and there are distinct shortages in  many occupational groups, 
primarily those requiring highly specialised education and a high level of expertise. 

The consequences of the Volvo job losses will affect the sector and the region. The 
redundancy of 647 workers represents a challenge, particularly for the older workers 
in the target group. The redundant workers are likely to encounter difficulties in their 
job search, since they do not have the competences required on the regional labour 
market.  Most  of  the  targeted  workers  have  only  secondary  education,  while  the 
expected  job  openings  are  for  highly  qualified  staff  and  engineers  with  relevant 
higher  education.  The  project  will  therefore  need  to  work  closely  together  with 
education  and  employment  organisations.  It  can  promote  enterprise  creation  and 
improve job seekers' skills and competences relevant to the future employers' needs. 
Since the region is vast, the beneficiaries may need to travel extensively. 

A  smaller  number  of  the  targeted  beneficiaries  are  located  in  Sörmland  (East 
Sweden)  and  Västergötland  (West  Sweden).  The  labour  market  in  these  areas  is 
strong  compared  with  Västerbotten,  but  even  in  Gothenburg  there  is  likely  to  be  a 
need for further education or acquisition of competences in other sectors. In the case 
of  Eskilstuna  there  might  be  the  possibility  to  look  for  work  in  a  broader 
geographical area, which could include Stockholm. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

39. 

The estimated number of redundant workers expected to participate in the measures 
is  500.  The  breakdown  of  these  workers  by  sex,  citizenship  and  age  group  is  as 
follows: 

Sex: 

Category 

Men: 

Women: 

Citizenship:  EU citizens: 

non-EU citizens: 

Age group: 

15-24 years: 

25-29 years: 

30-54 years: 

55-64 years: 

over 64 years: 

8 

Number of  
targeted beneficiaries 

387 

113 

(77,4 %) 

(22,6 %) 

500  (100,0 %) 

0 

55 

75 

(0,0 %) 

(11,0 %) 

(15,0 %) 

300 

(60,0 %) 

61 

(12,2 %) 

9 

(1,8 %) 

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Eligibility of the proposed actions 

40. 

the  redundant  workers  by 
The  personalised  services 
Arbetsförmedlingen  (the  Swedish  Public  Employment  Service)  consist  of  the 
following  actions,  each  of  which  goes  beyond  what  would  normally  be  available 
without EGF support :  

to  be  provided 

to 

– 

– 

In-depth assessment and individual planning: This registration process includes 
a  survey  of  prior  experience  and  training,  and  is  speeded  up  for  EGF 
beneficiaries. It can include several individual and customised meetings, some 
of which may be with outplacement companies. 

Various  job-search  activities  and  coaching:  Standard  activities  offered  by 
Arbetsförmedlingen  will  be  combined  with  EGF  measures  such  as  individual 
support in direct contact with potential employers, motivational meetings, and 
conferences presenting the labour market in the region. This will be especially 
important  for  those  targeted  workers  who  regard  their  educational  level  as 
insufficient  for  the  vacancies  identified  in  the  region.  Both  individual  and 
group activities will be offered, some of which will be available online. 

–  Motivation  and  health  measures:  The  EGF  beneficiaries  will  have  access  to 
therapists,  psychologists  and  experts  in  cognitive  therapy  to  strengthen  their 
motivation  and  provide  help  for  those  whose  health  has  been  damaged  by 
redundancy after a long period of employment in the same company. 

– 

– 

– 

– 

– 

– 

– 

Entrepreneurship  and  business  creation:  Preparatory  courses  for 
those 
envisaging business creation will be given by external experts providing advice 
to future entrepreneurs. 

Beneficiaries  will  have  access  to  a start-up  grant  after  their  business idea  has 
been checked by consultants and approved. The grant will be paid out over a 6-
month  period  and  can  be  extended  to  12  months  following  the  advice  of  the 
consultant.  In  case  the  beneficiaries  take  over  enterprises  whose  owners  are 
near  retirement,  the  EGF  grant  can  enable  them  to  run  the  business  together 
with the retirees during a handover period.  

Education  and  training:  Education  and  training  that  would  not  normally  be 
accessible  to  them  will  be  made  available  to  the  EGF  beneficiaries.  Some  of 
this will be tailor made, in cooperation with Umeå university, high schools and 
companies  in  the  region.  The  target  group  will  be  encouraged  to  undertake 
gender breaking choices, e.g. in the health care sector. 

Training can include work experience and apprenticeships (for any age group), 
which can be made available also to those preparing to start up or take over a 
business. 

Validation  of  competences:  Validation  of  competences  will  be  offered  to  the 
participants. Since such services may not be available locally, beneficiaries will 
be able to travel to the relevant centres. 

Job-search assistance with private service providers: Private service providers 
procured  by  Arbetsförmedlingen  can  offer  the  target  group  substantial  help 
finding work and validating competences. 

Travel  expenses  and  related  costs:  The  region  of  Västerbotten  is  a  vast  area 
where  access  to  service  requires  mobility  and  accessory  costs.  Transfer  and 
moving costs related to relocation for a new job in another part of the country 

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can  be  covered,  as  can  long-distance  travel  for  interviews.  Such  expenditure 
will  need  to  be  agreed  in  advance,  be  certified  through  receipts  and  be 
verifiable. 

– 

Job search allowance: This is provided to the beneficiaries taking part in any of 
the  active  measures  described  above.  The  level  of  the  allowance  depends  on 
individual  factors,  the  ceiling  being  fixed  by  parliamentary  decision  at  SEK 
910 (ca. EUR 97) per day and declines after the first 100 days to SEK 760 (ca. 
EUR  81)  per  day.  The  average  of  EUR  12 000  budgeted  would  therefore 
provide an allowance per worker for about 128 days at the ceiling rate. 

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. 

Sweden 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. 

41. 

42. 

Estimated budget 

The  estimated  total  costs  are  EUR 2  989  518,  comprising  expenditure  for 
personalised  services  of  EUR 2  869  938  and  expenditure  for  preparatory, 
management, information and publicity, control and reporting activities of EUR 119 
580. 

43. 

The total financial contribution requested from the EGF is EUR 1 793 710 (60 % of 
total costs). 

Actions 

Estimated 
number of 
participants 

Estimated cost 
per participant 
(EUR, 
rounded) 

Estimated total 
costs 
(EUR)  

Personalised services (Actions under Article 7(1)(a) and (c) of the EGF Regulation) 

In-depth assessment and individual planning 

500 

28,51 

14 254 

Various job-search activities and coaching  

250 

644,42  

161 106 

Job-search assistance with private service 
providers 

55  

 1 109,91  

61 045  

Motivation and health measures  

Entrepreneurship preparation 

Entrepreneurship and business creation grants 

10 

25 

20 

521,70 

5 217 

573,92  

14 348  

15 000,00 

300 000 

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10 

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Education and training 

180 

6 869,72  

1 236 551  

Validation of competences 

25 

2 921,80 

73 045 

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

– 

1 865 566      

(65,00 %) 

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

Travel expenses and related costs  

50 

521,76  

26 088  

Job search allowance 

80  

12 228,55  

978 284  

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) 

– 

– 

– 

– 

– 

– 

– 

– 

1 004 372       

(35,00 %) 

0 

116 971  

2 609  

0 

119 580      

(4,00  %) 

2 989 518      

1 793 710      

44. 

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.  Sweden  confirmed  that  these  actions  are 
conditional  on  the  active  participation  of  the  targeted  beneficiaries  in  job-search  or 
training activities. 

45. 

Sweden 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 

46. 

Sweden started providing the personalised services to the targeted beneficiaries on 30 
January 2015. The expenditure on the actions will therefore be eligible for a financial 
contribution  from  the  EGF  from  30  January  2015  to  16  September  2017,  with  the 
exception of third level education, which will be eligible until 16 March 2018. 

47. 

Sweden started incurring the administrative expenditure to implement the EGF on 30 
January  2015.  The  expenditure  for  preparatory,  management,  information  and 

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publicity,  control  and  reporting  activities  shall  therefore  be  eligible  for  a  financial 
contribution from the EGF from 30 January 2015 to 16 March 2018.  

Co-funding and complementarity with actions funded by national or Union funds 

48. 

49. 

The  Swedish  government 
Arbetsförmedlingen budget. 

is  co-funding 

the  EGF  measures 

through 

the 

Sweden  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 

50. 

51. 

The co-ordinated package of personalised services has been drawn up in consultation 
with the targeted beneficiaries and their representatives as well as local public actors. 
Meetings  of  the  relevant  local  actors  take  place  once  a  month,  and  the  Volvo 
redundancies were discussed for the first time in July 2014. The HR Department at 
Volvo  has  been  co-operative  in  facilitating  data  gathering  and  the  planning  of 
measures.  

The stakeholders involved in the planning and implementation are the Municipality 
of  Umeå,  the  County  Administrative  Board,  the  Region  of  Västerbotten,  the  trade 
unions,  the business  centre  for  technology,  the chamber  of  commerce,  the  business 
organisation ”Företagarna”, Umeå University, Arbetsförmedlingen and Volvo itself. 
Various measures have been taken to ensure that the target group (as well as the HR 
resources and the trade union representatives) is aware of the opportunities provided 
by the EGF. 

Management and control systems 

52. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  Sweden  has  notified  the 
Commission that the financial contribution will be managed by Arbetsförmedlingen  
which  is  formally  appointed  as  the  managing  and  paying  authority.  The  project 
accounts  will  be  examined  by  the  Internal  Audit  Unit,  which  is  a  separate  body 
attached  to  the  board  of  Arbetsförmedlingen.  Its  task  is  to  examine  the  internal 
control  and  verification  process  at  PES  and  suggest  improvements,  as  well  as 
providing  advice  and  support  for  the  Board  and  the  Director  General.  Project 
auditing will take place on a regular basis. 

Commitments provided by the Member State concerned 

53. 

Sweden 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, 

Volvo  Trucks,  which  has  continued  its  activities  after  the  lay-offs,  has 
complied  with  its  legal  obligations  governing  the  redundancies  and  provided 
for its workers accordingly, 

the proposed actions will not receive financial support from other Union funds 
or financial instruments and any double financing will be prevented, 

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– 

– 

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 

54. 

55. 

56. 

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 1 793 710, 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 

57. 

58. 

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 1 793 710. 

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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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund  
(application from Sweden – EGF/2015/009 SE/Volvo Trucks) 

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  16  September  2015,  Sweden  submitted  an  application  EGF/2015/009 SE/Volvo 
Trucks  for  a  financial  contribution  from  the  EGF,  following  redundancies  in  Volvo 
Trucks  (Volvo  Group  Truck  Operation,  EMEA)  and  four  suppliers  and  downstream 
producers  in  Sweden.  It  was  supplemented  by  additional  information  provided  in 
accordance  with  Article 8(3)  of  Regulation  (EU)  No 1309/2013.  The  application 
complies with the requirements for determining a financial contribution from the EGF 
as laid down in Article 13 of Regulation (EU) No 1309/2013. 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 1 793 710 in respect of the application submitted by Sweden. 

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

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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HAVE ADOPTED THIS DECISION:  

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2016,  the  European 
Globalisation  Adjustment  Fund  shall  be  mobilised  to  provide  the  sum  of  EUR 1  793  710         
in commitment and payment appropriations. 

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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