CELEX: 52014PC0255
Language: en
Date: 2014-05-07
Title: Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund, in accordance with Point 13 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission of 2 December 2013 on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2012/010 RO/Mechel from Romania)

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		52014PC0255
		
			Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund, in accordance with Point 13 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission of 2 December 2013 on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2012/010 RO/Mechel from Romania) /* COM/2014/0255 final  */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
Article 12 of Council Regulation (EU,
Euratom) No 1311/2013 laying down the multiannual financial framework for
the years 2014-2020[1]
allows for the mobilisation of the European Globalisation Adjustment Fund (EGF)
within the annual ceiling of EUR 150 million (2011 prices) over
and above the relevant headings of the financial framework.
The rules applicable to the contributions
from the EGF for applications submitted until 31 December 2013 are laid
down in Regulation (EC) No 1927/2006 of the European Parliament and of the
Council of 20 December 2006 on establishing the European Globalisation
Adjustment Fund[2].
On 21 December 2012, Romania submitted application EGF/2012/010 RO/Mechel for a financial contribution from the EGF,
following redundancies in SC Mechel Campia Turzii SA and one downstream
producer (SC Mechel Reparatii Targoviste SRL) in Romania.
After a thorough examination of this
application, the Commission has concluded in accordance with Article 10 of
Regulation (EC) No 1927/2006 that the conditions for a financial
contribution under this Regulation are met.
SUMMARY OF THE APPLICATION AND ANALYSIS
 Key data: ||   
 EGF Reference no. || EGF/2012/010 
 Member State || Romania 
 Article 2 || (a) 
 Primary enterprise || SC Mechel Campia Turzii SA 
 Suppliers and downstream producers || 1 
 Reference period || 20.6.2012 – 20.10.2012 
 Starting date for the personalised services || 1.3.2013 
 Application date || 21.12.2012 
 Redundancies during the reference period || 825 
 Redundancies before and after the reference period || 688 
 Total eligible redundancies || 1 513 
 Redundant workers expected to participate in the measures || 1 000 
 Expenditure for personalised services (EUR) || 6 909 300 
 Expenditure for implementing EGF[3] (EUR) || 233 000 
 Expenditure for implementing EGF (%) || 3,26 
 Total budget (EUR) || 7 142 300 
 EGF contribution (50 %) (EUR) || 3 571 150 
1.           The application was
presented to the Commission on 21 December 2012 and supplemented by
additional information up to 4 March 2014.
2.           The application meets the
conditions for deploying the EGF as set out in Article 2(a) of Regulation (EC)
No 1927/2006, and was submitted within the deadline of 10 weeks referred to in
Article 5 of that Regulation.
Link between the redundancies and major
structural changes in world trade patterns due to globalisation
3.           In order to establish the
link between the redundancies and major structural changes in world trade
patterns due to globalisation, Romania argues that the sector of the
manufacture of finished and semi-finished steel products, in which Mechel Campia
Turzii and Mechel Reparatii Targoviste were active, has undergone serious
economic disruption as a result of a rapid decline of the EU market share in
the steel products sector and the market share growth of countries such as
China. The Romanian authorities have provided data[4] which indicate that, for
the steel industry as a whole, the production of crude steel in the EU-27
decreased from 206.9 million tonnes in 2006 to 177.6 million tonnes in 2011,
leading to a decline of the EU-27's market share from 16.6 % in 2006 to
11.7 % in 2011, whereas, during the same period, China's market share
increased from 33.7 % to 45.0 %. Over the period 2002-2011, China's market share more than doubled from 20.2%, whereas the EU-27's market share dropped
to half from 20.8 %. 
4.           In the period 2009-2011,
apparent consumption[5]
of steel (crude steel equivalent) in the EU-27 increased from 127.0 million
tonnes to 168.7 million tonnes (+32.9 %), without however reaching
pre-crisis levels, whereas worldwide consumption increased from 1 219.6
million tonnes to 1 484.7 million tonnes (+21.7 %), exceeding figures
for 2008. A similar trend was recorded for the apparent consumption of finished
steel products which increased by 32.0 % in the EU-27 compared to
21.4 % at worldwide level. In the EU-27, much of this regain in demand was
absorbed through imports.
5.           Between 2009 and 2011,
imports of finished and semi-finished steel products in the EU-27 increased
from 101.0 million tonnes to 138.4 million tonnes (+37.0 %), whereas, by
comparison, imports of such products in China decreased from 22.3 million
tonnes to 16.3 million tonnes (−26.9 %). Over the same period, while
exports of semi-finished and finished steel products in the EU-27 increased
from 112.8 million tonnes to 145.8 million tonnes (+29.2 %), they
increased much more strongly in third countries such as China (+99.8 %),
the USA (+43.8 %) or South Korea (+42.6 %), which together accounted
for 21.8 % of exports of finished and semi-finished steel products at
worldwide level in 2009, against 35.8 % for the EU-27. These data
demonstrate that the EU has recorded a substantial increase of imports into the
EU of finished and semi-finished steel products in recent years as well as a
relative decline of exports of such products, both of which add up to a loss of
EU market share in the sector of finished and semi-finished steel products, in
which Mechel operated. These events have negatively affected the performance of
the sector, as reflected in the pressures on the competiveness of the EU steel
industry at international level and the job losses due to restructuring in the
steel sector in Europe[6].
6.           To date, the steel sector
has been the subject of five EGF applications, four of which were intended to
provide support to workers made redundant as a result of major structural
changes in world trade patterns due to globalisation[7] and one was intended to
provide support to workers made redundant as a direct result of the global
financial and economic crisis[8].
Demonstration of the number of
redundancies and compliance with the criteria of Article 2(a)
7.           Romania submitted this
application under the intervention criteria of Article 2(a) of Regulation
(EC) No 1927/2006, which requires at least 500 redundancies over a
four-month period in an enterprise in a Member State, including workers made
redundant in its suppliers and downstream producers.
8.           The application cites 825
redundancies in Mechel Campia Turzii and one downstream producer during the
four-month reference period from 20 June 2012 to 20 October 2012 and a further
688 redundancies outside the reference period, but related to the same
collective redundancies procedure. All of these redundancies were calculated in
accordance with the third indent of the second paragraph of Article 2 of Regulation
(EC) No 1927/2006. The Commission has received the confirmation required under
the third indent of the second paragraph of Article 2 that this is the actual
number of redundancies effected.
Explanation of the unforeseen nature
of those redundancies
9.           The Romanian authorities
argue that the decision to make workers redundant at Mechel Campia Turzii could
not have been foreseen. In November 2009, Mechel announced the completion of three
new production lines at its plant in Câmpia Turzii. However, at the end of
2011, Mechel's operations in Romania started to experience financial
difficulties, as a result of the losses incurred during two previous financial
years due to unfavourable prices in European steel markets linked to rising
ferrous scrap prices and weak demand for finished products. At the end of 2011,
Mechel Campia Turzii put in place a number of measures to reduce staff costs
(e.g. suspension of individual wage increases, bonuses and incentive
regulations; prohibition of overtime; reorganisation of labour shifts;
reduction of working time, with wages proportional to working time). However, these
measures did not remedy the financial difficulties of the enterprise, which
decided to initiate collective redundancies.
Identification of the dismissing
enterprises and workers targeted for assistance
10.         The application relates to 1 513
redundancies (1 441 during and after the reference period in Mechel Campia
Turzii and 72 in Mechel Reparatii Targoviste). The Romanian authorities
estimate that 1 000 of the redundant workers will participate in the
coordinated package of personalised services.
11.         The break-down of the
targeted workers is as follows:
 Category || Number || Percent 
 Men || 728 || 72,80 
 Women || 272 || 27,20 
 EU citizens || 1 000 || 100,00 
 Non EU citizens || 0 || 0,00 
 15-24 years old || 9 || 0,90 
 25-54 years old || 879 || 87,90 
 55-64 years old || 112 || 11,20 
 > 64 years old || 0 || 0,00 
12.         From the workers targeted
for assistance, four have a longstanding health problem or disability.
13.         In terms of occupational
categories, the break-down is as follows:
 Category || Number || Percent 
 Managers || 32 || 3,20 
 Professionals || 61 || 6,10 
 Technicians and associate professionals || 91 || 9,10 
 Clerical support workers || 81 || 8,10 
 Service and sales workers || 6 || 0,60 
 Craft and related trades workers || 271 || 27,10 
 Plant and machine operators, and assemblers || 449 || 44,90 
 Elementary occupations || 9 || 0,90 
14.         In accordance with Article
7 of Regulation (EC) No 1927/2006, Romania has confirmed that a policy of
equality between women and men as well as non-discrimination has been applied,
and will continue to apply, during the various stages of the implementation of
and, in particular, in access to the EGF.
Description of the territory
concerned and its authorities and stakeholders
15.         The redundancies have
primarily affected the municipality of Câmpia Turzii and its surrounding area, in
the south-east of Cluj County, in north-west Romania. From the socioeconomic point
of view, the Câmpia Turzii area is characterised by low income levels and a weak
diversification of economic activities. AJOFM Cluj estimates that around half of the working age population in Câmpia
Turzii is employed in the industrial sector. Mechel Campia Turzii was the largest employer in
the area with 1 837 employees (in June 2012), accounting for around a
third of the total number of employees in the area. The local labour market is
very restricted as the unemployment rate in the Câmpia Turzii area is generally
around 5 % and the job vacancy rate is very low (below 0.5 %)[9].
16.         The authorities in charge
of implementing the measures are the Romanian National Agency for Employment
(ANOFM) and the Cluj County Agency for Employment (AJOFM
Cluj). 
17.         Other stakeholders include
local and regional authorities, trade unions and enterprises that will be
linked to the cooperative enterprise which will be established to support the
workers targeted for assistance as part of the measure 'Assistance in
initiating independent activities. 
Expected impact of the redundancies
as regards local, regional or national employment
18.         Over two-thirds of the
workers made redundant live in Câmpia Turzii and
its surrounding area and nearly one third in other parts
of Cluj County. According to AJOFM Cluj, the unemployment rate in Cluj County was 3.7 % before the redundancies and increased to 4.1 % in February
2013, after the redundancies. The number of unemployed persons in the Câmpia Turzii area more than doubled from 481 to
1 290, as a result of the redundancies, and the percentage of unoccupied
persons among the population aged 18-62 increased from 2.7 % to 7.2 %. The redundancies have therefore
had major repercussions for the local labour market, given the low
number of jobs available in the area of Câmpia Turzii (on average 30 vacancies
per month) and the low number of potential employers. Between
2008 and 2010 there was a continuous decrease in the number of employees in the
steel industry in Cluj County and a significant reduction in the net investment
volume in this industry. According to AJOFM Cluj, the majority of the workers made redundant have qualifications that are
specific to the metallurgical industry, but such qualifications are not in
demand anymore from the employers that offer vacancies
in Cluj County.
Co-ordinated package of personalised
services to be funded and a breakdown of its estimated costs, including its
complementarity with actions funded by the Structural Funds
19.         All the following measures
combine to form a co-ordinated package of personalised services which aims at
re-integrating the redundant workers into employment[10]:
–     
Registration of workers: This measure consists in completing a registration form as part of
the project coordination centre’s database, to identify the skills, competences
and experience of each worker, to validate their status, and to define their
needs and preferences.
–     
Information, vocational guidance and counselling: This measure consists in a series of activities developed by the
project coordination centre: 
–              
informing business operators in the Câmpia
Turzii area about the project and identifying job vacancies; 
–              
informing targeted workers about the local
labour market, labour legislation, vocational training courses and job
opportunities; 
–              
performing motivation interviews, psychological
evaluations and aptitude tests with the targeted workers;
–              
providing careers advice and vocational guidance
to the targeted workers and drawing-up individual action plans for each
targeted worker;
–              
providing advice on how to identify a job, how
to approach a potential employer, how to behave before and after a job interview;

–              
making recommendations to participate in other
project activities (e.g. vocational training courses, internships, cooperative enterprise).
–     
Vocational training courses and internships: This measure consists in providing vocational training courses to workers
which correspond to their needs, as identified during information, vocational
guidance and counselling activity. The training courses, which will generally
last between three to six months, will be provided to groups of 7 to 28 persons
by authorised external providers recognised by the National Agency for Payments
and Social Inspection and the National Centre for Professional Training and
will lead to a certification of the acquired competences[11]. The training
providers will be paid through a voucher reimbursement system, following a
confirmation of arrangements with AJOFM Cluj, after the course is completed and
the training course participants have received their certification. The project
coordination centre will coordinate the training activities and will monitor
each training course. Training course participants will be monitored six months
after the completion of the course. Workers will also be able to participate in
internships of 5 to 90 days organised specifically for redundant workers by
potential employers located in the area affected by the redundancies. 
–     
Assistance in initiating independent
activities: AJOFM Cluj will help to establish a new
enterprise in the form of a cooperative society[12] with standard by-laws[13], which will have as
its members 250 of the targeted workers and will manufacture various sports
equipment items for a Romanian sports equipment company, itself a subcontractor
for a multinational sports equipment company[14].
The targeted workers were given the opportunity to express their interest in
being members of the cooperative. The 250 members of the cooperative will be
selected by AJOFM Cluj from among the group of interested targeted workers by
means of two aptitude tests and sent on internships to other companies
performing similar activities, where they will be evaluated. Each selected
worker will be entitled to a voucher of EUR 15 000 to be used as a
membership contribution towards the cooperative's capital[15]. The main part of
these funds, besides a part reserved for legal and administrative start-up
costs and working capital[16],
will be used by the cooperative to buy the necessary machinery, equipment and
raw materials for carrying out its productive activities[17]. The machinery,
equipment and raw materials will be paid from the financial coverage of the
vouchers issued for each member of the cooperative. 
–     
There is a link between the need for purchasing
these assets, furnishing the production space and the number of persons who
will join the cooperative. The rate of integration of persons into the
cooperative is based on the needs for purchasing assets and for the functioning
of the cooperative. The workers will have equal rights within the cooperative.
They will collectively own the production assets, will determine their own
salary and dividends and will decide on future business plans and investments[18]. Workers will be
committed to remain in the cooperative for the first three years of operation.
If workers decide to leave before this term, the managing bodies of the
cooperative will decide on the amount of compensation corresponding to the
value of their contribution to the share capital of the cooperative that may be
paid to those workers and under what conditions. New members wishing to join
the cooperative will have to make an equivalent contribution (which may be
funded through other support projects). 
–     
A commercial contract will be signed between the
cooperative and its client, for an initial duration of four years which can be
extended (the client has a contract with the sports equipment multinational for
10 years). The contract between the cooperative and its client will be on
market terms and will provide the cooperative's income, although there will be
no exclusivity clause and the cooperative may diversify its client base. AJOFM
Cluj will impose the sustainability of the project through a written
undertaking with the cooperative[19].
–     
The Commission considers that this measure,
while innovative in its setup and implementation, fully meets the conditions
for eligible actions laid down in Article 3(a) of Regulation (EC) No 1927/2006
and, in particular, that this measure corresponds to the category of measures
referred to as 'entrepreneurship promotion or aid for self-employment'.
–     
Renting the production space and paying the
rent for the project’s duration: The cooperative's
activity will start with a sampling line employing 50 workers, to be expanded
up to the total 250 workers. The rent for the production facilities will be
paid by AJOFM Cluj (with EGF co-funding) until the end of the EGF
implementation (March 2015) and thereafter by the cooperative's client. 
–     
Travel allowance:
This measure consists in an allowance of up to EUR 250 per person which is
intended to cover the costs for workers of travelling from their home to the
place where they are called for a job interview or to participate in other
project activities. Beneficiaries shall reside in the area affected by the
redundancies and participate in at least two project activities.
–     
Interview allowance: This measure consists in an allowance of up to EUR 100 per person,
payable to workers who participate in job interviews, selection tests or other
recruitment procedures organised by a potential employer. The allowance is
intended to cover the personal costs related to the interview. Beneficiaries
may receive a maximum of two allowances if they participate in more than two
interviews with different employers.
–     
Internship allowance: This measure consists in an allowance of up to EUR 1000[20] (or up to EUR 3000 for
workers trained as technical or specialised staff[21]), payable to workers
who participate in an internship. The allowance is intended to cover the costs
of accommodation, medical insurance, meals, raw materials, protective
equipment, etc. Beneficiaries must reside in the area affected by the
redundancies and participate in at least two project activities.
–     
Subsistence allowance: This measure consists in a lump-sum payment of EUR 150 to workers
who participate in the internships. The allowance is intended to compensate for
the fact that some measures may take place outside the area of residence of the
beneficiaries and may involve their temporary absence from home and family. The
persons participating in the internships no longer receive unemployment benefit
and cannot hold a job during the period of the internship. The subsistence
allowance is paid only once, after the completion of the measure in which the
worker participated.
–     
Participation allowance: This measure consists in a lump-sum payment of EUR 200 to workers
who complete a certification programme as part of a vocational training course.
The allowance is intended to motivate workers and to compensate them for
expenses generated by their participation in the training course. The persons
participating in a training course cannot hold a job during the period of the
training course since course attendance is mandatory and courses are generally
held in the first part of the day.
–     
The travel allowance, interview allowance and
internship allowance will be paid only after the submission of documentary
evidence by the beneficiaries (e.g. receipt, bill, invoice, etc.). Workers who
participate in the internships and who receive the subsistence allowance will
not receive the travel allowance since transport is provided by the company
organising the internship.
–     
Mentoring after employment integration: This measure consists in mentoring activities provided by
employers to newly recruited workers for a period of three to six months. The
mentor will offer support and assistance in view of facilitating the transition
from the status of dismissed worker to the status of employed person.
20.         The expenditure for
implementing the EGF, which is included in the application in accordance with
Article 3 of Regulation (EC) No 1927/2006, covers preparatory, control
activities as well as information and publicity.
21.         The personalised services
presented by the Romanian authorities are active labour market measures within
the eligible actions defined by Article 3 of Regulation (EC) No 1927/2006. The Romanian
authorities estimate the total costs at EUR 7 142 300, of which
the expenditure for personalised services at EUR 6 909 300 and
the expenditure for implementing the EGF at EUR 233 000 (3,26 %
of the total amount). The total contribution requested from the EGF is EUR 3
571 150 (50 % of the total costs).
 Actions || Estimated number of workers targeted || Estimated cost per worker targeted (EUR) || Total costs (EGF and national cofinancing) (EUR) 
 Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006) 
 Registration of workers || 1 000 || 50 || 50 000 
 Information, vocational guidance and counselling || 1 000 || 1 500 || 1 500 000 
 Vocational training courses and internships || 500 || 800 || 400 000 
 Assistance in initiating independent activities || 250 || 15 000 || 3 750 000 
 Renting the production space and paying the rent for the project’s duration || 250 || 860 || 215 000 
 Travel allowance || 300 || 250 || 74 300 
 Interview allowance || 400 || 100 || 40 000 
 Internship allowance || 400 || 1 000 || 400 000 
 Subsistence allowance || 400 || 150 || 60 000 
 Participation allowance || 500 || 200 || 100 000 
 Mentoring after employment integration || 400 || 800 || 320 000 
 Subtotal personalised services ||   || 6 909 300 
 Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006) 
 Preparatory activities ||   || 153 000 
 Management ||   || 0 
 Information and publicity ||   || 70 000 
 Control activities ||   || 10 000 
 Subtotal expenditure for implementing EGF ||   || 233 000 
 Total estimated costs ||   || 7 142 300 
 EGF contribution (50 % of total costs) ||   || 3 571 150 
22.         The Romanian authorities
have confirmed that the measures are complementary with actions funded by the
Structural Funds[22]
and that all double financing will be prevented. To avoid double-financing of
activities under the ESF and the EGF, the Romanian authorities have signed a
framework protocol which allows the authorities involved in the management of
ESF operations to cross-check the databases of the Ministry of Labour, Family,
Social Protection and Elderly, the Managing Authority of the ESF Operational
Programme 'Human Resources Development', and ANOFM. 
Date(s) on which the personalised
services to the affected workers were started or are planned to start
23.         Romania started the
personalised services to the affected workers included in the co-ordinated
package proposed for co-financing to the EGF on 1 March 2013. This date
therefore represents the beginning of the period of eligibility for any
assistance that might be awarded from the EGF.
Procedures for consulting the social
partners
24.         The redundant workers were
consulted several times during the preparation of the EGF application. Procedures
for consulting the social partners on the proposed coordinated package of
personalised services included the following:
·      in June 2012, a meeting between the Minister for Labour and the
management of Mechel Campia Turzii on the enterprise's position regarding the
intended redundancies;
·      in August 2012, a meeting between the Deputy Minister for Social
Dialogue and members of the commission for social dialogue (which includes
trade union representatives) on the situation generated by the redundancies;
·      in September 2012, a meeting between the Deputy Minister for Social
Dialogue and representatives of trade unions and of local public authorities on
the possibility for the Romanian government to access the EGF.
25.         The Romanian authorities
confirmed that the requirements laid down in national and EU legislation
concerning collective redundancies have been complied with.
Information on actions that are
mandatory by virtue of national law or pursuant to collective agreements
26.         As regards the criteria
contained in Article 6 of Regulation (EC) No 1927/2006, the Romanian authorities
in their application:
·      confirmed that the financial contribution from the EGF does not
replace measures which are the responsibility of companies by virtue of
national law or collective agreements;
·      demonstrated that the actions provide support for individual workers
and are not to be used for restructuring companies or sectors;
·      confirmed that the eligible actions referred to above do not receive
assistance from other EU financial instruments.
Management and control systems 
27.         Romania has notified the
Commission that the financial contribution will be managed and controlled by
the same bodies as for the European Social Fund. The financial contribution
will be managed by ANOFM which was designated as the national authority
responsible for the management of financial contribution from the EGF. Government
Decision No 11/2009 establishes the institutional framework for the coordination
and management of EGF financial contributions. Specific guidelines describe EGF
management procedures, the role of the different bodies involved and the
mechanisms for ensuring compliance with the general principles of EGF management
and the relevant legal framework. The auditing authority attached to the
Romanian Court of Auditors has been appointed as the auditing authority for the
EGF.
Financing
28.         On the basis of the
application from Romania, the proposed contribution from the EGF to the
coordinated package of personalised services (including expenditure to
implement EGF) is EUR 3 571 150, representing 50 % of the
total cost. The Commission's proposed allocation under the Fund is based on the
information made available by Romania.
29.         Considering the maximum
possible amount of a financial contribution from the EGF under Article 12 of
Council Regulation (EU, Euratom) No 1311/2013, as well as the scope for
reallocating appropriations, the Commission proposes to mobilise the EGF for
the total amount referred to above.
30.         The proposed decision to
mobilise the EGF will be taken jointly by the European Parliament and the
Council, as laid down in point 13 of the Interinstitutional Agreement of 2
December 2013 between the European Parliament, the Council and the Commission
on budgetary discipline, on cooperation in budgetary matters and on sound
financial management[23].
31.         The Commission presents
separately a transfer request in order to enter in the 2014 budget specific
commitment appropriations, as required under point 13 of the Interinstitutional
Agreement of 2 December 2013.
Source of payment appropriations 
Appropriations allocated to the EGF budget line
in the 2014 budget will be used to cover the amount of EUR 3 571 150
needed for the present application.
Proposal for a
DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on the mobilisation of the European
Globalisation Adjustment Fund, in accordance with Point 13 of the
Interinstitutional Agreement between the European Parliament, the Council and
the Commission of 2 December 2013 on budgetary discipline, on cooperation in
budgetary matters and on sound financial management (application EGF/2012/010
RO/Mechel from Romania)
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 (EC) No
1927/2006 of the European Parliament and of the Council of 20 December 2006
establishing the European Globalisation Adjustment Fund[24], and in particular
Article 12(3) thereof,
Having regard to the Interinstitutional
Agreement of 2 December 2013 between the European Parliament, the Council
and the Commission on budgetary discipline, on cooperation in budgetary matters
and on sound financial management[25],
and in particular point 13 thereof,
Having regard to the proposal from the
European Commission[26],
Whereas:
(1)       The European Globalisation
Adjustment Fund (EGF) was established to provide additional support for workers
made redundant as a result of major structural changes in world trade patterns
due to globalisation and to assist them with their reintegration into the
labour market.
(2)       The EGF shall not exceed a
maximum annual amount of EUR 150 million (2011 prices), as laid down in
Article 12 of Council Regulation (EU, Euratom) No 1311/2013 laying
down the multiannual financial framework for the years 2014-2020[27].
(3)       Romania submitted an
application to mobilise the EGF, in respect of redundancies in the enterprise SC
Mechel Campia Turzii SA and one downstream producer, on 21 December 2012
and supplemented it by additional information up to 4 March 2014. This
application complies with the requirements for determining the financial
contributions as laid down in Article 10 of
Regulation (EC) No 1927/2006. The Commission, therefore,
proposes to mobilise an amount of EUR 3 571 150.
(4)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by Romania,
HAVE ADOPTED THIS DECISION:
Article 1
For the general budget of the European
Union for the financial year 2014, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 3 571 150 in
commitment and payment appropriations.
Article 2
This Decision shall be published in the Official
Journal of the European Union.
Done at Brussels,
For the European Parliament                        For
the Council
The President                                                 The
President
[1]               OJ L 347, 20.12.2013, p. 884.
[2]               OJ L 406, 30.12.2006, p. 1.
[3]               In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006.
[4]               Source: World Steel Association, Steel Statistical
Yearbook 2012.
[5]               Apparent consumption is defined as production plus
imports minus exports.
[6]               cf. Communication from the Commission to the Parliament,
the Council, the European Economic and Social Committee and the Committee of Regions
– Action Plan for a competitive and sustainable steel industry in Europe (COM(2013)
407.
[7]               EGF/2009/022/ BG/Kremikovtsi AD (application rejected
by the Commission), EGF/2013/002 BE/Carsid (application presented to the
Commission on 2 April 2013), EGF/2013/007 BE Duferco-NLMK (application
presented to the Commission on 27 September 2013).
[8]               EGF/2010/007 AT/Steiermark and Niederösterreich. Decision 2011/652/EU of 27 September 2011 (OJ L 263,
7.10.2011, p. 9).
[9]               The job vacancy rate measures the percentage of
vacant posts, compared with the total number of occupied and unoccupied posts.
In the third quarter of 2012, the estimated job vacancy rate in the EU-28 in NACE
Rev.2 sections B to S (industry, construction, services) was 1.4 %.
[10]             Several of the proposed measures are similar to those
implemented in the case EGF/2011/014 RO/Nokia.
[11]             The training courses are intended for the redundant workers
who will not be selected to participate in the cooperative.
[12]             The Romanian authorities consider that measures to
support business creation by individual workers would not be effective as the
demand for goods and services in the region is low due to poor living
conditions.
[13]             The new enterprise is being established on the basis of
Law No 1/2005 on creating cooperatives. 
[14]             The client company was identified as a result of market
research conducted by AJOFM to find suitable companies willing to invest in the
Câmpia Turzii area and to participate in the cooperative setup.
[15]             According to the Romanian authorities, the amount of
EUR 15 000 per targeted worker was calculated by dividing the estimated
total costs of the industrial operation by the expected number of workers
needed. A contract will be concluded between AJOFM Cluj and each member of the
cooperative for granting the voucher, which will stipulate that the persons
laid-off have to respect the plan for setting-up and implementing the
cooperative.
[16]             Working capital refers to the amount necessary to cover
the expenses generated in the cooperative's activity for a few months' period,
which starts from the moment when the cooperative decides the sampling and
production until receiving the value of the first delivered products.
[17]             In practice, AJOFM Cluj will pay the EUR 15 000
directly to the cooperative on the basis of invoices issued to the cooperative by
the companies supplying the machinery, equipment and raw materials and any
accounting document according to law.
[18]             The workers may appoint a professional management,
although some of the former Mechel workers with relevant experience could also have
management or intermediary functions (HR, accounting, engineering, line
supervision, sales, etc.). The rights and conditions regarding persons who may
join or withdraw from the cooperative will be decided by the management of the
cooperative, and, implicitly, by each member of the cooperative through voting
rights in the general assembly.
[19]             AJOFM Cluj will conclude a contract with the
cooperative which will include clauses referring to the setting-up, the
functioning and sustainability of the cooperative, as well as clauses in case
the obligations undertaken under this contract are not respected. A similar contract
will be signed between AJOFM Cluj and companies hiring unemployed persons. In
case the hiring company does not respect its contractual obligations it will
have to return the funds received.
[20]             This amount has been determined based on estimates
provided by potential employers and providers of internships regarding the need
to cover costs related to the participation of the targeted workers in the
internships.
[21]             The higher amount of the allowance for workers trained
as technical or specialised staff is due to the fact that the period of the
internship for such staff is three times longer, also generating higher expenses.

[22]             As an example, the Romanian authorities will supplement
the EGF measures with the Callcem project which is co-financed by the ESF. The
Callcem project offers job vacancy search services and job-matching services
for job seekers (by telephone or IT means).
[23]             OJ C 373, 20.12.2013, p. 1.
[24]             OJ L 406, 30.12.2006, p. 1.
[25]             OJ C 373, 20.12.2013, p. 1.
[26]             OJ C […], […], p. […].
[27]             OJ L 347, 20.12.2013, p. 884.