CELEX: 51975PC0502
Language: en
Date: 1975-10-08
Title: Proposal for a Council Decision in regard to the intervention of the European Social Fund in favour of persons occupied in the textile and clothing sectors) (submitted to the Council by the Commission)

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COM (75) 502
Vol. 1975/0191
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                           i
                                      .             COM(75)502 final
                                                    Brussels , 8 October 1975
                          Proposal for a Council Decision
            in regard to the intervention of the European Social Fund
            in favour of persons occupied in the textile and clothing
                                    sectors x
                                - )
              ■   j                     "     /
                      ( submitted to the Council by the Commission)
                *                                    ...
                                                                           ■  i
                    \
                                                                       , f
COM (75) 502 final                                                    //
 ---pagebreak---                                                    v/995/75 - E.   *
                      Proposal for a Council Decision
        in regard to the intervention of the European Sooial Fund
        in favour of persons occupied in the textile and clothing
                                 sectors
      THE COUNCIL OP THE EUROPEAN CCMMUNITIES
     Having regard to the Treaty establishing the European Economic
      Community ;
     Having regard to the Council Decision of 1 February 1971 on "the
      reform of the European Social Fund ( l ) and in particular
   ■ Article 4 thereof ;
     Having regard to the proposal from the Commission ;
     Having regard to the opinion of the European Parliament/
     Having regard to the opinion of the Economic and Social Committee ;
     Whereas the Decision of the Council of 19 December 1972 in regard
     to the intervention of the European Social Fund in favour of persons
     occupied in the textile sector expires on 1 January 1976 ( 2 );
    Whereas the employment situation in the Community textile sector
     continues nevertheless to "be characterised by imbalances of a quali­
    tative and quantitative nature and gives rise to the need to extend
    the specific common action aimed at ensuring a better adaptation of
    the supply of and demand for manpower in this sector ;
                                     S
    Whereas the difficulties felt in the area of employment in the textile
    sector have progressively affected the clothing sector ;
( 1 ) O.J. n° L 28 of 4 .2.1971 , P# 15
( 2 ) O.J. n# L 261 of 28.12.1972. P. 160
 ---pagebreak---           This figure could be reduced by one third to take account
          of launching delays that may occur on extending the Fund 's
          activities to a new field . The number of persons concerned
          in the clothing industry in 1976 can therefore be assumed
          to be 1*4-. 000 .
( 1 ) The Commission Preliminary Draft General
      Budget ( Doc . COM ( 75 ) 330 , pp . 56 and 57 )
      provision is made in respect of Textile ,
      sector operations for about # million u . a .
      under the combined heading "Agriculture and
      Textiles " { the remaining appropriations
      required for assistance in the textile and
      clothing sectors , about 12 - 1^ million u . a .,
      are entered under the heading "Anti-crisis
      regulation" which provides for a total
      amount of 60 million u . a .
 ---pagebreak---                              FINANCIAL  DATA
Annex to the proposal for a Council Decision on assistance by the
European Social Fund for workers in the textile and clothing sectors
The annual cost of assistance by the European Social Fund for workers
in the textile and clothing sectors can be estimated at about
20 - 22 million u . a » ( 1 ).
This estimate is based on the following data :
1 * Average cost of assistance by the Social Fund for vocational train­
     ing programmes and geographical mobility in the textile sector in
     the last three years : 670 u . a * per person *
     This average could be taken as a basis for action in the forthcoming
     year with regard to both the textile and clothing Bectors *
2 . Number of people concerned r
     - In textile   t
       • About 16,500 persons were concerned by applications for assis­
         tance in 1975 »
       • Provision should be made for the same or a slightly higher
         number of recipients in 1976 , i * e . about 17»000 • 20,000
         persons *
         This figure corresponds to about one third of the total number
         of persons leaving the textile sector each year for the last
         five years .
    *"        dothing industry t
       * By applying the same ratio , i * e * recipients/population having
         left the sector , as in respect of textiles , the number of
         recipients can be estimated at about 21,000 per year *-
 ---pagebreak---                                - 2 -
 HAS DECIDED AS FOLLOWS :
 Article 1
 Operations which are aimed at facilitating the employment and the geographical
 and occupational mobility of persons occupied in the textile industry , inclu­
 ding the processing of chemical fibres and in the clothing industry , whose
 activities are directly affected , or are in danger of being affected , by
quantitative or qualitative measures for structural adaptation and who are
to pursue activities as employed persons either within that industry or
outside it , shall be eligible for assistance from the Social Fund pursuant
to Article 4 of the Council Decision of 1 February 1971 *
Operations for the benefit of self-employed persons in charge of textile
undertakings , in particular small craft undertakings , who are to pursue acti­
vities as self–employed persons , shall also be eligible for assistance from
the Fund on the terms laid down in the previous paragraph *
Article    2
Aids included in the list laid down by Council Regulation ( EEC ) No 2397/71
of 8 November 1971 on aids which may qualify for assistance from the Euro­
pean Social Fund may also receive assistance from the Fund by virtue of this
Decision ( 3 )«
Article   3
This decision shall enter into force on 2nd January- 197° *
Done at Brussels , •••
                                                       For the Council
  ( 3 ) O.J. No , L 249 of 10.11.1971 . p. 58
 ---pagebreak---                                                              V/995/75-*
Intorvontion by the Europoaa Sooiol Fund to assist porsons occupied in tho
toxtilo and olothing industrioe - extonsion of the Counoil IDeoision of
19 Dooomber 1972 and inolusion of the olothing industry ( application of
Artiolo 4 of tho Counoil Dooision of 1 February 1971 )
                                EXPLAÎIA.TORY MaiorwAimuM
1*        In 1972 1 and in viow of oonolusions which it roachod on tho basis
of various studios on tho toxtila industry in tho Community countries , the
                                                                                 / -
Commission had rocourso to Article 4 of the "basio dooision of tho now
Social Fund when proposing to tho Counoil ci spooifio oommon action for
porsons oocupied in tho toxtilo and olothing induotrios . At its mooting of    .
9 Hovomber 1972 the Council ogrood to make tho Sooial Fund available to
workors in tho textile industry ( inoluding tho prooosoing of ohomioal fibros )
for a period of three years^ and doforred tho <iuostion of a similar vridoning
of tho soope of the Fund to inoludo the olothing industry for subsequent
             2
examination •
Tho dooision regarding textiles expires on 1 January 1976.' Howevor, sinoo it
oaino into foroe the employment situation in this industry has not improved
at all and tho reasons whioh justified* tho dooision are just as valid today#
It thorofore seems nocossary to extend it# Moreover, sinoo the difficulties
onoountorod in tho toxtilo industry proper have gradually *offeotod tho olothing
industry, it has now bocomo imporativo to inoludo tho lattof in . tho fiold
of application of tho dooision.                       • -J        • v.? 1 ' .
  1 ~af*ÏJo. L 291/160 of 20 Dooomber 1972
2    Soo Council Document "Summary of decisions "
     Documont 2/2746 - J/72 ( Soc. 275),
 ---pagebreak---                                                  2                 ν/995/75-3
  2.        Aocording "to avcjLlablo information tho total numbor of porsons
  omployod in tho textilo industry alone dooroasod "by 322,000 workers ( from
  2^09,000 to 1,887 , 000)Xbetweon 1970 and 1974. This lpying^-off of staff
  reflects tho extont of tho groat changes wliioh oontinue to face thoso tuo
  industries , end tho magnitudo of tho reconversions of equipment and oapital
  and the adaptations of manpower which thoy nooossitato <> Thoro aro throo main
  reasons for thoso changes ? increased competition and the disturbanoos ifhioh
 it causos on world markets ; tho pressure of technological innovations ; and,
particularly with regard to tho olothing industry , a oortain laolc of struc–
                           x)whilet the clothing industry decreased by 125*000 unit
tural adaptation.            , ( fron lf292f 00O to 1,167,000)
 3«         Wot only havo tho toxtile and clothing industries boon amongst tho
sootors which havo sufforod most from tho rocoasion but also , ani abovo all , •
thoy havo boon faood during tho last three yoars with a speotaoular rovorsal
in thoir commercial oquilibriura « ais far as exports aro concomod , certain
traditional outlets in tho ovorseas countrios have boon lost , whilo tho com­
petition encountered on tho markets of non-mcmbor countries has booomo part­
icularly aggroesivo „ Ab far as imports are oonoomod , oortain goods havo
boon made more vulnerable as a result of tho policy of gradually lowering
barriers in rospoct of tho dovoloping countries , particularly in tho context
of gonoralizod preferences^; in addition, oxtromely koon competition has
boon folt as a rosult of imports from a number of countries with which tho
Community ie at present negotiating voluntary restraint agreements . Since it           ,
is at tho level of finished products that the impact of imports is most felt ,
it is not only the textile industry proper, but tho whole toxtile production
chain, inoluding the olothing industry, whoso position is affoctod.
                                                                                •/•
ï
nJ   ¥1. •    • 1  4     i 4   a   M   ■  i
                                           ' • •   « •    •    « •  L %     . ^     _ A
 , It is pointed -Out that , for toxtile products and ponding tho oonolusion of
     tho bilateral negotiations being held on the subjoct of tho Miiltifibros
   • Arrangomont , tho Commission has proposed to oxtond the , prosont systom for
     197 6 with a fixed Inorooso of 5 % in the tariff quotas and thoooilings
     oxprossod in tonnage® In addition, now oountri.es will be included in the
     list of beneficiary countries for certain products#                . "       :
 ---pagebreak---                                         -3-                    V/995/75-3 '       ν
   4*       Hith regard, to tho offoots of tho technological innovation typical of
   tho '"now ora" which textiles linvo ontorod, lot us rooall tho two cuopocts of
   thorn whioh tho proposal for a decision forwardod in 1972 had alroady
   ompliasizod. On tho ono hand, tho ooaroh for mora satisfactory oompotitive
  positions, and the aocoleratod application of now toohniques which it
  demands , aro likoly to causa oonsidorablo ohangos in tho sphere of omploymont
  whioh could also load to tho laying-off of workors. On tho othor hand, and
  dospito tho oonstant reduction in the total number of workers, manpowor
  shortages, Bomotimes of a quantitative nature but more frequently and more
  particularly qualitative, appoar ae a result ' • of tho introduction of new
  taal:s whioh correspond to tho requirements of an industry that has bocomo
  to an evor-inoroasing extent a capital intonsivo industry, but also as a
  ronult of the inadequacy of vocational training systems and sometimes ovon
  of tho abandoning of an industry whose imago has beoomo less attractivo
 for some workors .
 Thoro is still a very cloar nood at both levels for dynamio retraining,
 specialization and readaptation operations.
 5»        Lastly, oertain problems concerning employmont and manpowor aro a
 result of the vary struoturos of the textile industry, and that of tho
 clothing industry in particular# The latter has continued to a largo oxtont.
 to bo a labour-intensivo industry ( 80 $ womon), with a very high turnover
 of staxf and relatively small average increase in productivity. Tho numbor
 of smcJ.1 and medium-sized undertakings (average size: 62 persons per undor-
takxnui without counting small orafts ) is oxtromoly important , and cottage
industry is still widespread. Moreover, tho clothing industry is goographi–
         vory soattorod, and dooontralisation to rural and mountain regions or
aroas in doolino has ofton holped undertakings to obtain the labour whioh
  hoy h<.d difficulty in finding in moro industr&lizod centres for tho rates
of pay and working conditions whioh they offered.
 ---pagebreak---                                       ~- 4-                          V/995/75-3
                                    >               *    ♦ ,
          .   .  · -'   .  . ■ · :.         . · <     ·.               · ■ '
  Despite movements towards concentration which may be expected in the
  coming years , the clothing industry plays and will continue to play an
^ important role , particularly in the development and survival of econo--
 mically threatened regions .
  6.     . Tho restructuring measures which havo tnlson placo in tho textile end
  clothing industries . during rocont years havo had varying offocts in "tho -
  various oountries . Tho some will ho truo in tho noar future : rooonvoreions ,
  combinations , adaptations or transfers of staff will havo voxy varying
  reporcussions on tho various regions and oatogorios of workers depending
  on tho competitive position and adaptation capacity of tho branchos of
  industry, tho typo or sizo of tho undertaking, and the doneity of tho
  population working in thoso industries . However, thoro is no doubt that ,
  when oonsidorod from an overall point of view for tho Community as a whole ,
  tho imbalances obsorvod and expected in tho omploymont sphere in those two
  sootors demand both on account of thoir soopo and tho naturo of tho metisuro
  whioh thoy mcy involvo , that tho spooifio common aotion authorizing Sooicil
  Fund intervention undor Article 4 be oontinuod.
  In view of the faot that tho problems aris'o moro and more in gonoral
  toxtilo/oloiJring terms ^ it no longer seems possible to avoid extending
  intorvontion by the Fund to workers in the clothing industry.                    ■
                                                  ■          • • * '         « • '   * *
  7«        All the types of aid provided for in tho Fund 's list of eligiblo
  aid will , thoroforo , bo applioablo to workers in both industries , including,
 and for the snmo roasons as thoso given when tho docision of Novombor 1972
 was adoptod, workers from family-typo small oraft undertakings who intorid
 to pursue activities as self-employed persons# ' ,r 1