Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund following an application from Germany – EGF/2017/008 DE/Goodyear
Date: 2018-02-09
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: Baden-Württemberg, European Globalisation Adjustment Fund, Germany, commitment of expenditure, dismissal, employment aid, financial aid, general budget (EU), globalisation, reintegration into working life, rubber industry

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   EUROPEAN COMMISSION  Brussels, 9.2.2018 COM(2018) 61 final  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund following an application from Germany – EGF/2017/008 DE/Goodyear  
 
 
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 6 October 2017, Germany submitted an application EGF/2017/008 DE/Goodyear 
for  a  financial  contribution  from  the  EGF,  following  redundancies2  in  Goodyear 
Dunlop Tires Germany GmbH in Germany. 

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 

EGF/2017/008 DE/Goodyear 

Germany 

Region(s) concerned (NUTS3 level 2) 

Regierungsbezirk Karlsruhe (DE12) 

Date of submission of the application 

6 October 2017 

Date of acknowledgement of receipt of the 
application 

6 October  2017 

Date of request for additional information 

23 October 2017 

Deadline for provision of the additional 
information 

4  December 2017 

Deadline for the completion of the assessment 

26 February 2018 

Intervention criterion 

Primary enterprise 

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

Goodyear 

Number of enterprises concerned 

1 

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

NACE Revision 2 Division 22 

(Manufacture of rubber and plastic 
products) 

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 subsidiaries, suppliers and 
downstream producers 

0 

Reference period (max. four months): 

14 July 2017 - 5 October 2017 

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 

632 

14 

646 

646 

646 

0 

3 464 371 
144 348 
3 608 719 
2 165 231 

4. 

Germany submitted application EGF/2017/008 DE/Goodyear within 12 weeks of the 
date  on  which  the  intervention  criteria  set  out  in  Article 4  of  the  EGF  Regulation 
were  met,  on  6 October 2017.  The  Commission  acknowledged  receipt  of  the 
application on the same day, and requested additional information from Germany on 
23 October 2017. 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 
financial  contribution  expires  on 
with 
26 February 2018. 

for  providing  a 

the  conditions 

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The  application  relates  to  646  workers  made  redundant  in  Goodyear  Dunlop  Tires 
Germany GmbH. This enterprise operates in the economic sector classified under the 
NACE  Revision  2  Division  22  (Manufacture  of  rubber  and  plastic  products).  The 
redundancies  made  by  Goodyear  are  located  in  the  NUTS  level  2  region  of 
Regierungsbezirk Karlsruhe (DE12) in Germany. 

Enterprises and number of dismissals within the reference period 

Goodyear Dunlop Tires Germany 
GmbH 

  632 

5 

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

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Intervention criteria 

6. 

7. 

8. 

Germany submitted the application under the intervention 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 for the application runs from 14 July 2017 to 5 October 2017. 

The redundancies during the reference period are as follows: 

– 

632 workers made redundant in Goodyear. 

Calculation of redundancies and of cessation of activity 

9. 

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

– 

632 from the date of the employer's individual notice to lay off or to terminate 
the contract of employment of the worker. 

Eligible beneficiaries 

10. 

In  addition  to  the  workers  already  referred  to,  the  eligible  beneficiaries  include  14 
workers made redundant before or after the reference period. These workers were all 
made  redundant  after  the  general  announcement  of  the  projected  redundancies  on 
24 October 2016.  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 646. 

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,  Germany  argues  that  globalisation  has 
had a negative impact on B-segment car tyre production6 in the EU. This is due to the 
fact that Asian suppliers gained significant market shares in the recent years. 

While the production of passenger cars in the EU-27, which plummeted during the 
financial  crisis,  has  picked  up  again  slightly  over  recent  years,  it  did  not  regain  its 
2006  level  until  2016.  According  to  analyses  of  the  European  Automobile 
Manufacturers' Association (ACEA), sales of smaller cars still fell short of their 2005 
level in 2016. However, the global market share of motor vehicles manufactured in 
Europe shrunk from 35 % in 2001 to 23 % in 2016. China’s global market share rose 
over the same period from 5 % to 30 %7. Car production in Asia saw a 45 % increase 
over the past ten years8. 

14. 

From 2015 to 2016, imports into the EU increased by 22 %, while exports decreased 
by 3 %9. Although most imported vehicles come from Turkey (market share 29 %), 

6 

7 

8 
9 

The tyre market broadly comprises two segments, defined according to wheel rim size. The B segment 
encompasses rim sizes ranging from 13 to 16 inches, usually used for small or mid-size vehicles, while 
the A segment covers the 17 to 22-inch range, typically for larger cars. 
ACEA The Automobile Industry Pocket Guide 2017-2018 http://www.acea.be/publications/article/acea-
pocket-guide 
OICA 2017: Statistics, http://www.oica.net/category/production-statistics/ 
Eurostat  2017:  Extra  EU  trade  of  motor  vehicles,  by  category,  2013-2016  (EUR  million), 
http://ec.europa.eu/eurostat/statistics-

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the  strongest  growth  in motor-vehicle imports  in  2015-2016  was  achieved  by India 
(31 %  increase),  closely  followed  by  South  Africa  (29 %)  and  Japan  (20 %)10.The 
long-term  market  strategies  of  car  and  tyre  manufacturers  alike  have  to  be  aligned 
with  potential  growth  rates.  Whereas  motorisation  within  the  European  Union 
increased  by  only  9 %  from  2005  to  2015,  motorisation  in  Asia/Oceania  rose  by 
140 %, and in Central and South America by 59 % over the same period11. 

Therefore,  the  global  tyre  market  has  also  changed  markedly  since  the  turn  of  the 
millennium. While the three big global players Bridgestone, Michelin and Goodyear 
accounted  for  57 %  of  global  tyre  production  in  2000,  their  significance  had 
diminished worldwide by 2013, to 38 %. Over the same period, the market share of 
Asian  manufacturers  from  China,  Taiwan  and  Singapore  rose  from  4 %  in  2001  to 
20 %  in  2013  according  to  an  internal  study  by  Ernst  &  Young  Consulting. 
According to the European Tyre and Rubber Manufacturer's Association (ETRMA), 
of the 10 tyre manufacturers generating the highest turnover in 2016, six were from 
Asia12. 

In  2015,  in  the  EU,  tyre  imports  (130  million  tyres)  far  outstripped  exports  (74 
million).  EU  tyre  production  in  2015  (4.9  million  tonnes)  still  fell  slightly  short  of 
the 2007 output figure (5.1 million tonnes)13. 

A  study  published  by  market  research  institute  Gesellschaft  für  Konsumforschung 
reveals  that  while  77 %  of  tyres  sold  in  Germany  in  2005  belonged  to  the  B  tyre 
segment,  such  tyre  sizes  accounted  for  just  43 %  of  sales  in  Germany  in  2014, 
reflecting the  shift  of production  of smaller  vehicles to  the growth  markets of Asia 
and South America14. 

15. 

16. 

17. 

18. 

To date, the NACE Revision 2 Division 22 sector (Manufacture of rubber and plastic 
products) has not been the subject of any EGF application15. 

Events giving rise to the redundancies and cessation of activity 

19. 

The event giving rise to these redundancies is the complete shutdown of Goodyear's 
production  plant  in  Philippsburg.  The  Goodyear  Tire  &  Rubber  Company  was 
established  in  Akron,  Ohio,  USA,  in  1898  and  is  one  of  the  world’s  leading  tyre 

10 

11 

12 

13 

14 

15 

- 

2017: 

Edition 

Statistics 

explained/index.php/File:Extra_EU_trade_of_motor_vehicles,_by_category,_2013-
2016_(EUR_million).png 
ACEA The Automobile Industry Pocket Guide 2017-2018 http://www.acea.be/publications/article/acea-
pocket-guide 
ACEA The Automobile Industry Pocket Guide 2017-2018 http://www.acea.be/publications/article/acea-
pocket-guide 
ETRMA 
http://www.etrma.org/uploads/Modules/Documentsmanager/20161208---statistics-booklet-2016-
final5.pdf. 
ETRMA 
http://www.etrma.org/uploads/Modules/Documentsmanager/20161208---statistics-booklet-2016-
final5.pdf 
GFK  2015:  GfK  Retail  Sales  Tracking  Data,  Tire  Trade  Germany,  Jan-Dec  2005  to  Jan-Dec  2014, 
https://blog.gfk.com/wp-content/uploads/2015/04/01-a.png 
The  related  NACE  Revision  2  Division  29  sector  (Manufacture  of  motor  vehicles,  trailers  and  semi-
trailers)  has  been  the  subject  of  23  EGF  applications,  13  of  which  were  based  on  the  trade  related 
globalisation and 10 on the global financial and economic crisis. In many of these cases, both criteria 
(globalisation and crisis) in varying degrees influenced the decision to lay off workers. It is then up to 
the Member State to determine which was the principal cause in a specific application and to provide a 
reasoned  analysis  of  the  link  between  the  redundancies  and  that  particular  criterion,  showing  a  clear 
causality. 

Statistics 

Edition 

2017: 

2016, 

2016, 

Nr. 

Nr. 

8, 

8, 

- 

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manufacturers.  In  1954,  Deutsche  Goodyear  GmbH  was  founded,  and  in  1966, 
construction of the company’s tyre factory in Philippsburg started. Goodyear Dunlop 
currently  has  around  7 600  employees  in  Germany.  Its  German  headquarters  is  in 
Hanau.  Other  plants  in  Germany  are  located  in  Fürstenwalde,  Wittlich,  Riesa  and 
Fulda. 

As EU automotive output and market shares have fallen in the wake of globalisation, 
significant  overcapacity  has  built  up  in  the  B  segment  at  Goodyear,  amounting  to 
around  five  million  tyres  across  the  company’s  integrated  European  production 
setup.  This  corresponds  to  the  average  annual  capacity  of  one  production  plant. 
Therefore,  Goodyear  was  forced  to  close  one  of  its  European  factories.  Goodyear 
decided to close the plant in Philippsburg, which has the largest production capacity 
for tyres in the B segment among Goodyear's European plants. On 24 October 2016, 
therefore,  Goodyear’s  management  announced  that  the  Philippsburg  tyre  factory, 
with its 888-strong workforce, was to close in 2017. 

On  26 April 2017,  Goodyear  concluded  with  the  IG  BCE  trade  union  a  collective 
agreement regulating redundancy terms. Following talks with the works council, this 
was incorporated into a redundancy scheme. Production was already discontinued on 
15 July 2017,  and 
for 
the 
31 December 2017.  

factory  has  been  announced 

the  closure  of 

The social partners agreed on the creation of two transfer companies. The creation of 
a  transfer  company  is  not  mandatory  under  German  law.  There  is  no  obligation  on 
the  part  of  the  dismissing  company  to  contribute  towards  the  creation  of  a  transfer 
company. Without the participation of the dismissing company, no transfer company 
would be set up. If the dismissing company does offer to participate, and if the social 
partners agree to the creation of a transfer company, German social law sets the legal 
frame (§§ 110 and 111,SGB III). 

The  transfer  companies  will  be  managed  by  weitblick  -  personalpartner  GmbH,  a 
company  owned  by  the  Confederation  of  German  Trade  Unions  (Deutscher 
Gewerkschaftsbund  -  DGB).  646  of  the  workers  signed  a  tripartite  agreement 
according  to  which  they  enter  the  transfer  company  upon  the  official  end  of  their 
employment with  Goodyear.  632 signed the agreement within  the reference period, 
another 14 were not able to sign yet due to maternity leave etc, but are expected to 
sign before termination of the contract with Goodyear. The persons who chose not to 
enter the transfer company had found a new job already, or decided to retire. 

 Goodyear  has  made  severance  payments,  agreed  to  top-up  the  training  allowance 
(Transferkurzarbeitergeld)  and  provided  a  re-skilling  budget  of  around  EUR 3 000 
for each employee. The transfer period of each employee is calculated on the basis of 
length of service with the company and amounts to a maximum of one year. 

The additional EGF assistance will be used to complement the measures and can also 
be used to extend the duration of the individual measures. 595 workers enter a first 
transfer company on 1 January 2018. As another 51 workers remain in employment 
for the dismantling of the Goodyear plant, a  second transfer company is  created so 
that the remaining workers can enter the second transfer company on 1 April 2018. 

20. 

21. 

22. 

23. 

24. 

25. 

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

26. 

The  redundancies  are  expected  to  have  a  significant  adverse  effect  on  the  local 
economy. The city of Philippsburg, with about 13 000 inhabitants, lies in the Public 

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Employment Agency’s (PES) district of Waghäusl, with a total population of about 
60 000.  The  tertiary  sector  accounts  for  only  48 %  of  jobs  and  is  thus 
underrepresented compared with the Federal State of Baden-Württemberg as a whole 
(63 %).  The  region  is  primarily  characterised  by  an  above-average  proportion  of 
people working in the manufacturing sector. Compared to the neighbouring districts, 
the  unemployment  rate  in  the  Waghäusl  region  is  quite  high,  and  stands  at  5,7 % 
(June  2017),  compared  with  3,3 %  in  the  neighbouring  Karlsruhe  district. 
Unemployment  in  the  Waghäusl  area  is  on  the  rise,  and  17 %  higher  than  in  the 
previous year. Citizens with a migratory background and older people seem to be the 
most disadvantaged on the regional job market. 25 % of the unemployed are foreign 
nationals,  and  about  one  third  of  those  long-term  unemployed  that  are  on  social 
welfare are over the age of 55. A large proportion of the workers made redundant by 
Goodyear also fall into these categories. 

The Goodyear plant was the largest employer in the region, the second largest being 
a nuclear power plant. Due to Germany’s decision to be a nuclear-free country, the 
nuclear  power  plant  is  about  to  be  shut  down  within  the  next  few  years.  Several 
smaller  or  medium-sized  companies  in  the  region  have  made  hundreds  of  workers 
redundant,  for  example  146  people  made  redundant  in  the  summer  of  2017  in  a 
company  operating  in  the  automotive  sector,  or  144  people  made  redundant  due  to 
the  closure  of  a  press  manufacturer.  The  region  is  facing  a  structural  change.  The 
PES therefore designed a qualification and skills strategy, which takes into account 
both the (future) needs of the labour market as well as the qualification level of the 
workers concerned. 

27. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

28. 

The estimated number of redundant workers expected to participate in the measures 
is  646.  The  breakdown  of  these  workers  by  sex,  citizenship  and  age  group  is  as 
follows: 

Category 

Sex: 

Men: 

Women: 

Number of  
targeted beneficiaries 
(percentages rounded) 

641 

(99,23 %) 

5 

(0,77 %) 

Citizenship:  EU citizens: 

493 

(76,32 %) 

non-EU citizens: 

153 

(23,68 %) 

Age group: 

15-24 years: 

25-29 years: 

30-54 years: 

55-64 years: 

15 

33 

(2,32 %) 

(5,11 %) 

428 

(66,25 %) 

168 

(26,01 %) 

over 64 years: 

2 

(0,31 %) 

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Eligibility of the proposed actions 

29. 

As  set  out  above,  the  social  partners  agreed  on  the  creation  of  two  transfer 
companies, catering to two different batches of redundant workers of the Goodyear 
plant,  entering  the  first  transfer  company  on  1 January 2018,  or  the  second  transfer 
company  on  1 April 2018,  respectively.  The  additional  measures  offered  by 
Goodyear  are  also  provided  by  the  transfer  company,  but  are  not  part  of  the  EGF 
application.  All  of  the  measures  described  below  combine  to  form  a  package  of 
personalised services coordinated by the transfer companies and aim to re-integrate 
the redundant workers into employment. 

30. 

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

– 

– 

– 

– 

– 

– 

Upskilling measures: These are offered to eligible workers following profiling 
and  career  guidance  interviews,  and  with  the  intention  of  helping  them  to 
benefit  from  opportunities  in  the  labour  market.  The  training  courses  offered 
will  focus  on  sectors  with  future  prospects,  such  as  metal-working  and 
warehousing  sectors.  Courses  can  be  provided  individually  or  in  groups,  and 
they range from basic competences to upskilling courses and courses preparing 
the  participants  for  career  changes.  German  language  courses  will  be  a 
particular  focus  for  participants  with  a  very  low  level  of  German  language 
skills. 

Peer  groups  /  workshops:  These  will  be  group  fora  assisted  by  a  facilitator, 
helping participants to exchange ideas and reflections. Peer groups may focus 
on a range of topics, such as time management, self-management, promotion of 
health  measures  or  special  peer  groups  for  participants  with  a  migrant 
background. A variety of workshops are offered, such as on work-life-balance 
or on gender issues.  

Business  start-up  advisory  service:  This  will  comprise  a  package  of  advisory 
services  for  those  interested  in  starting  their  own  businesses.  These  services 
will include individualised tailor-made coaching measures. 

Job Search: Professional job scouts will help to locate potential job vacancies 
not yet published, which might suit eligible workers. A job fair is also planned. 

Follow-up mentoring / securing employment: Workers can benefit from further 
guidance  counselling  services  after  taking  up  new  employment  in  order  to 
facilitate transition into a new job and to minimise the risk of a job loss. 

Training allowance: The payment starts from the date when the worker enters 
the  transfer  company,  and  ends  as  soon  as  the  person  leaves  the  transfer 
company. 

31. 

32. 

33. 

The  project  will  contribute  to  sustainable  economic  development  in  Germany.  The 
measures organised are in line with Germany’s sustainability strategy, and weitblick 
– personalpartner GmbH, which has been entrusted with setting up the two transfer 
companies, holds a sustainability certification. 

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. 

Germany has provided the required information on actions that are mandatory for the 
enterprise concerned by virtue of national law or pursuant to collective agreements. 

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They have confirmed that a financial contribution from the EGF will not replace such 
actions. 

Estimated budget 

34. 

The  estimated 
personalised  services  of  EUR 3 464 371  and  expenditure 
management, 
EUR 144 348. 

total  costs  are  EUR 3 608 719,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

35. 

The total financial contribution requested from the EGF is EUR 2 165 231 (60 % of 
total costs). 

Actions 

Estimated 
number of 
participants 

Estimated cost 
(rounded) per 
participant16 
(EUR) 

Estimated total 
costs 
(EUR)  

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

Upskilling measures 
(Qualifizierungsmaßnahmen) 

Peer groups/workshops 

Business start-up advisory service 
(Existenzgründerberatung)  

Job Search (Stellenakquise) 

Follow-up mentoring/securing employment 
(Nachbetreuung/Beschäftigungssicherung)  

288 

276 

4 512 

1 299 516 

1 294 

357 086 

30 

1 690 

50 710 

350 

646 

369 

129 319 

643 

415 211 

Sub-total (a): 

Percentage of the package of personalised 
services  

– 

2 251 842 

(65 %) 

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

Training allowance 
(Transferkurzarbeitergeld)  

Sub-total (b): 

Percentage of the package of personalised 
services: 

 Actions under Article 7(4) of the EGF Regulation 

1. Preparatory activities 

646 

1 877 

1 212 529 

– 

– 

1 212 529 

(35 %) 

21 652 

16 

Estimated  total  costs  divided  by  estimated  number  of  participants;  average  estimated  costs  per 
participant are rounded in order to avoid decimals. 

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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) 

– 

– 

– 

– 

– 

– 

79 391 

7 218 

36 087 

144 348 

(4 %) 

3 608 719 

2 165 231 

36. 

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

Period of eligibility of expenditure 

37. 

38. 

Germany started providing the personalised services to the targeted beneficiaries on 
1 January 2018.  The  expenditure  on  the  actions  will  therefore  be  eligible  for  a 
financial contribution from the EGF from 1 January 2018 to 1 January 2020. 

Germany started incurring the administrative expenditure to implement the EGF on 
7 July 2017.  The  expenditure  for  preparatory,  management,  information  and 
publicity,  control  and  reporting  activities  shall  therefore  be  eligible  for  a  financial 
contribution from the EGF from 7 July 2017 to 1 July 2020. 

Complementarity with actions funded by national or Union funds 

39. 

40. 

The  sources  of  national  pre-financing  or  co-funding  are  the  Federal  budget  and 
Bundesagentur  für  Arbeit  (Federal  Public  Employment  Service).  These  fund  the 
national contribution of 40 % of the total costs of EGF financed measures offered by 
the transfer company17. 

Germany  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 

41. 

17 

Germany  has  indicated  that  the  co-ordinated  package  of  personalised  services  has 
been drawn up in consultation with all parties concerned especially representatives of 
the  workers  made  redundant,  social  partners  and  regional  authorities.  For  the 
planning of the EGF-supported measures, the Federal Ministry of Labour and Social 
Affairs held talks with Goodyear management, the works council, the IG BCE trade 
union as well as the PES to discuss scope for possible support from the EGF. During 
a  round  table  discussion  on  7 July 2017,  all  parties  concerned  gave  clear 

The provision of the package of personalised services, which comprises the payment of allowances as 
well as active labour market measures, can start as soon as the workers officially enter into the transfer 
company  (1 January 2018  or  1 April 2018,  respectively).  From  the  start,  workers  are  paid  training 
allowances (the "Transferkurzarbeitergeld"), which are eligible for EGF co-funding while the redundant 
workers follow active labour market policy measures. 

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endorsements  for  a  possible  EGF  application.  All  parties  were  cooperating  closely, 
and  on  18  September  2017,  the  concept  for  the  planned  package  of  personalised 
measures was presented by the PES. 

Management and control systems 

42. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  Germany  has  notified  the 
Commission  that  the  financial  contribution  will  be  managed  by  the  same  bodies 
within  the  Federal  Ministry  for  Labour  and  Social  Affairs  (Bundesministerium  für 
Arbeit  und  Soziales)  which  manage  the  European  Social  Fund  (ESF).  However, 
within  the  'Gruppe  Europäische  Fonds  für  Beschäftigung',  it  is  the  'Referat  EF  4' 
which acts as the managing authority for the EGF, while the managing authority for 
the  ESF  is  'Referat  EF  1'.  The  'Organisationseinheit  Prüfbehörde'  is  the  control 
authority  for  both  EGF  and  ESF.  These  bodies  also  managed  the  previous  EGF 
contributions  to  Germany.  Some  of  the  tasks  of  the  EGF  managing  authority  are 
permanently delegated to the PES by administrative agreement.  

Commitments provided by the Member State concerned 

43. 

Germany 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, 

Goodyear,  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, 

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 

44. 

45. 

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 2014-202018. 

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 2 165 231, representing 60 % of the total 
costs  of  the  proposed  actions,  in  order  to  provide  a  financial  contribution  for  the 
application. 

18 

OJ L 347, 20.12.2013, p. 884. 

EN 

10 

  EN 

 
                                                 
46. 

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 management19. 

Related acts 

47. 

48. 

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 2 165 231. 

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. 

19 

OJ C 373, 20.12.2013, p. 1. 

EN 

11 

  EN 

 
                                                 
Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund following an 
application from Germany – EGF/2017/008 DE/Goodyear 

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 1927/200620, 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 management21, and in particular point 13 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

20 
21 
22 

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 1311/201322. 

laid  down 

On 6 October 2017, Germany submitted an application to mobilise the EGF, in respect 
of  redundancies  in  Goodyear  Dunlop  Tires  Germany  GmbH  in  Germany.  It  was 
supplemented  by  additional  information  provided  in  accordance  with  Article 8(3)  of 
Regulation  (EU)  No 1309/2013.  That  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 2 165 231 in respect of the application submitted by Germany. 

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  of  2  December  2013  laying  down  the  multiannual 
financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884). 

EN 

12 

  EN 

 
                                                 
HAVE ADOPTED THIS DECISION:  

Article 1 

For the general budget of the Union for the financial year 2018, the European Globalisation 
Adjustment Fund shall be mobilised to provide the amount of EUR 2 165 231 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. 

EN 

13 

  EN