Explanatory Memorandum to COM(2010)453 - Globalisation Fund application EGF/2010/002 ES/Cataluña automoción - Main contents
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| dossier | COM(2010)453 - Globalisation Fund application EGF/2010/002 ES/Cataluña automoción. |
|---|---|
| source | COM(2010)453  |
| date | 02-09-2010 |
The rules applicable to the contributions from the EGF are laid down in Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 establishing the European Globalisation Adjustment Fund i.
On 29 January 2010, Spain submitted application EGF/2010/002 ES/Cataluña automoción for a financial contribution from the EGF, following redundancies in 23 enterprises operating in the NACE Revision 2 Division 29 (manufacture of motor vehicles, trailers and semitrailers) i in the NUTS II region Cataluña (ES51) in Spain.
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.
Contents
- SUMMARY OF THE APPLICATION AND ANALYSIS
- EGF Reference no. EGF/2010/
- Total budget in EUR 4 235
- Link between the redundancies and major structural changes in world trade patterns due to globalisation or the global financial and economic crisis
- Demonstration of the number of redundancies and compliance with the criteria of Article 2(b)
- Explanation of the unforeseen nature of those redundancies
- Identification of the dismissing enterprises and workers targeted for assistance
- Enterprises and number of dismissals
- Category Number Percent
- Category Number Percent
- Educational level Number Percent
- Description of the territory concerned and its authorities and stakeholders
- Expected impact of the redundancies as regards local, regional or national employment
- 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
- Actions Estimated number of workers targeted Estimated cost per worker targeted (in EUR) Total costs (EGF and national co- financing) (in EUR)
- Date(s) on which the personalised services to the affected workers were started or are planned to start
- Procedures for consulting the social partners
- Information on actions that are mandatory by virtue of national law or pursuant to collective agreements
- Management and control systems
- Financing
- Source of payment appropriations
- Proposal for a
- Article 1
- Article 2
- For the European Parliament For the Council
Key data:
Member State Spain
Article (b)
Enterprises concerned
NUTS II region Cataluña (ES51)
NACE Revision 2 Division 29 (manufacture of motor vehicles, trailers and semitrailers)
Reference period 23/2/2009 to 22/11/
Starting date for the personalised services 1/12/
Application date 29/1/
Redundancies over the reference period 2
Redundant workers targeted for support 1
Personalised services : budget in EUR 4 066
Expenditure for implementing EGF i: budget in EUR 168
% expenditure for implementing EGF 3,
EGF contribution EUR (65 %): 2 752
1. The application was presented to the Commission on 29 January 2010 and supplemented by additional information up to 26 April 2010.
2. The application meets the conditions for deploying the EGF as set out in Article 2(b) 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 or the global financial and economic crisis
3. In order to establish the link between the redundancies and the global financial and economic crisis, Spain argues that the economic crisis has put the automotive sector worldwide under particular pressure. The Commission already recognised that, as some 60-80 % (depending on the Member State) of new cars in Europe are purchased with the aid of credit, the financial crisis at the origin of the downturn has hit the automotive industry particularly severely i. In the second quarter of 2009 and after the 12 successive months of decline in the production, the total vehicle production in EU was 39,5 % lower than a year earlier. The downturn has severely affected all major car manufacturers in the European market i.
4. The global financial and economic crisis has had a serious impact on demand for vehicles in Spain and in its export markets. In 2008 new car registrations in Spain declined by 28 % compared with the previous year, mainly due to tight credit conditions, the very low consumer confidence and declining consumer purchasing power. Moreover, the global nature of the crisis also led a sales drop by 9,6 % for vehicles manufactured in Spain and sold abroad. As the Spanish car sector exports 85 % of its production, mainly within the EU, this decline in exports and domestic demand had a strong negative impact on employment in the automotive sector.
5. Spain provided information that the number of dismissals in the Catalonian automotive sector in the last four years – each year compared with the previous year – developed as follows:
- 7,59 % - 5,49 % 42,25 % 157,21 %
6. Spain submitted this application under the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE Revision 2 Division in one region or two contiguous regions at NUTS II level in a Member State.
7. The application cites 2 330 redundancies in 23 enterprises classified in the same NACE Revision 2 Division during the nine-month reference period from 23 February 2009 to 22 November 2009, all located in a single region (ES51) at NUTS II level, Cataluña. All redundancies were calculated in accordance with the second indent of the second paragraph of Article 2 of Regulation (EC) No 1927/2006. Of the total of 2 330 workers, 1 429 have been targeted for assistance.
8. The Spanish authorities argue that although the automotive sector had been experiencing difficulties, mainly due to delocalisation, even before the crisis, the automobile industry in Catalonia managed to stay stable until early 2008. From that moment the industry began to feel the impact of the financial and economic crisis with a sudden drop in demand for vehicles in Spain and worldwide. This decline in demand was unforeseeable for firms or governments and happened at an unprecedented rate and speed.
9. The application relates to 2 330 redundancies in the following 23 enterprises:
Ac de Mecaniques Joan, SL Industrias del Molde y Derivados, SA
Castellón, SA Manufactura Moderna de Metales, SA
Catalana de Material Auxiliar de la Construccion SA (CAMAC) Nissan Motor Ibérica, SA
Construcciones Mecanicas Ceman, SA Peguform Module Div. Iberica Front Ends, SLU
Decolletatge Farrés, SA Poliester Nautic
Esteban Ikeda, SA Poliester So Ma, SL
Fabricación Componen. Motocicletas, SA Prensas y Montajes Industriales, SA
Febersa Industrial, Sa Solfer Componenti España, SL
Federal Mogul Friction Products, SAU Talleres Lape, SL
Flexngate España. SA Utymat, SA
Frape Behr, SA Y-Tec Europa, SA
Industrial Carrocera Arbuciense SA (INDCAR)
Total no. of enterprises: Total no. of dismissals: 2
10. All dismissed workers, with the exception of the 901 ex-Nissan workers (i.e. 1 429 redundant workers of the total 2 330) are targeted for assistance. Nissan workers will not be supported by the EGF as they benefit from the measures of their own social plan.
11. The break-down of the targeted workers is as follows :
Men 1 74,
Women 25,
EU citizens 1 97,
Non EU citizens 2,
15 to 24 years old 1,
25 to 54 years old 1 73,
55 to 64 years old 24,
Over 65 years old 0,
12. Five of the targeted workers are disabled.
13. In terms of professional categories i, the break-down is as follows :
Managers 1,
Professionals 2,
Technicians and associated professionals 12,
Clerks 9,
Service workers 0,
Craft and related trade workers 9,
Plant and machine operators 32,
Elementary occupations 31,
14. In terms of educational level i, the break-down is as follows:
Basic education 41,
Secondary education 23,
Post-secondary non-tertiary education 6,
Tertiary education 4,
Uneducated or early school leavers 23,
15. In accordance with Article 7 of Regulation (EC) No 1927/2006, Spain 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.
16. The territory concerned by the redundancies is within the NUTS II region of Catalonia and is concentrated in Barcelona's metropolitan area, i.e. the city of Barcelona and the surrounding medium-sized towns, which form a polycentric metropolitan area.
17. The business model in Catalonia is characterised by a high presence of micro enterprises (nine out of ten enterprises employed fewer than ten workers) complemented by enterprises employing more than 250 workers, which provide 30 % of total employment. The service sector represents 69 % of total employment, industry 19 % and the primary sector 12 %. Employment in the automotive sector represents 3 % of industrial employment in Catalonia.
18. The main stakeholders are the Generalitat de Cataluña-Departament de Treball (labour services of the Catalonia autonomous government) and the social partners constituting the governing board of the Servei de Ocupació de Catalunya (the public labour offices of Catalonia): the trade unions Comisión Obrera Nacional de Cataluña and Unión General de Trabajadores, two employers' organizations: Foment del Treball and PIMEC i, and two associations representing the town halls of Catalonia. The Servei de Ocupació de Catalunya will be responsible for implementing the measures, supervising the procedures and controlling the expenditure.
19. Around 90 % of the redundancies covered by this application occurred in Barcelona's metropolitan area. They furthermore represent 5 % of total new unemployment in industry in Catalonia. Outside Barcelona the number of layoffs was small in absolute terms (137 in Santa Oliva, Tarragona and 71 in Arbuciés, Gerona). Nevertheless the impact at local level is great, representing respectively 40 % and 20 % of unemployment in these two municipalities.
20. In Catalonia, the impact of the economic and financial crisis has reversed the main indicators of the Lisbon strategy. Between Q2/2008 and Q2/2009 the employment rate for workers of 16 to 64 years old dropped from 72,1 % to 64,9 % (70,5 % for men and 59,1 % for women). The overall unemployment rate doubled in the same period raising from 7,6 % to 15,9 %
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
21. All the following measures combine to form a co-ordinated package of personalised services aimed at re-integrating the workers into the labour market.
22. Welcome session, occupational guidance and profiling : The first measure provided to all 1 429 participants includes the profiling of the workers as well as information on available jobs, on skills and training requirements, on available training programmes and apprenticeship support schemes, as well as mobility grants, participation and insertion incentives. Participating in this measure is an essential precondition for access to any other personalised service. Nonetheless the participation rate it is estimated at only 77 % of the targeted workers, due mainly to the fact that high proportion of the workers are in the older age categories.
23. Outplacement assistance : This measure combines two complementary actions. On the one hand it involves the design, implementation and follow-up of personalised support, including mentoring during the process until reintegration into work. Nevertheless taking into consideration the average profile of the participants (men over 45 years with low qualifications) the mentoring could be extended beyond that point in time. On the other hand it also involves an intensive employment search, including active research of local and regional employment opportunities. The participation rate is estimated at 70 % of the participants in the profiling interview.
24. Intensive job-search assistance : This measure aims to provide all targeted workers with the material means and coaching (individual or workshops) during job-search activities. The workers participating in this measure will be provided also with a 'social corner', i.e. a place to share experiences and advice on job searching. This is to motivate the participants to continue searching for a job actively.
25. General training and re-training : This measure will offer diverse paths of training:(1) Individual tailor-made training to enhance the abilities and potential of each ex-worker according to his/her situation and prospects. This may include training to success a competition, completing the upper secondary school, a degree or tertiary education, etc. i Training in sectors where opportunities exist or will arise or training in jobs related to the automotive sector. i Training for self employment. This training, intended for those who already have a business idea, will cover issues such as planning, carrying out feasibility studies, preparation of business plans and raising finance. Paths 1 and 2 will be complemented, as far as possible, with one to three months in-house traineeship. The participants in the traineeships will receive a monthly allowance of about EUR 350.
26. Training for specific vocational qualifications : This training will be designed to cater for the identified needs of local enterprises, who in turn will undertake to employ at least 60 % of those workers who participate in this action. Around 20 % of the targeted workers will participate in this measure.
27. Workshops on entrepreneurship : This consists in short and dynamic workshops, which aim to promote the idea of entrepreneurship among workers who had never considered being anything other than employees. These workshops will cover different levels of the entrepreneurship process from the basic information or first contact to more elaborate issues like workshops on generation of business ideas, on the process of analysis of those business ideas, etc.
28. On-the-job training : This measure is intended for the most disadvantaged of the targeted workers who will combine theoretical and on-the-job training during three months. The participants in this measure will receive a monthly wage.
29. Entrepreneurship assistance: This measure is aimed at former managers, workers with high qualifications or workers who compensate with a solid professional experience and a less high qualification, willing to start a business on their own as self-employed, partner of a cooperative or by promoting a spin-off enterprise.It will consist in personalized tutoring during the whole process of starting the business (development of a business idea, feasibility analysis, fundraising and development of the business plan) and support in the completion of the administrative formalities for setting up the business. Around 10 % of the workers are expected to participate in this measure.
30. Peer support : This measure is intended as a supplement to the personalized support (tutoring) and will be focused in both the technical and the emotional component of the process of starting a business or searching a job. It will consist in putting the participating workers in contact with formerly unemployed workers who succeeded in their reintegration into employment and whose experiences could serve as a good example. The sessions will be facilitated by the coaches. Around 50 % of the participants in the outplacement assistance measure will also participate in this mentoring.
31. Participation incentive : To encourage their participation in the measures, the workers will receive a lump sum of EUR 600 (EUR 100 a month for a maximum of six months) conditional upon their participation in the measures of the EGF package.
32. Outplacement incentives : A lump sum of EUR 1 000 will be paid to workers who return to employment and remain employed at least for six consecutive months. The subsidy is designed to encourage reintegration into the labour market and to stimulate workers, particularly those who are older, to remain in the labour market.
33. Entrepreneurship incentives : All the workers who return to employment as self-employed or entrepreneur will receive a lump sum of EUR 1 200 when they have accumulated three months of social security contributions or run a business during three months at least. This incentive has been designed to support self-employed workers during the start-up months of their business.
34. Contribution to the expenses for change of residence : The workers, who change residence after taking a job that is at least 70 kilometres from their current residence, will receive a lump sum of EUR 3 500 to cover the necessary expenditure.
35. The expenditure for implementing EGF, which is included in the application in accordance with Article 3 of Regulation (EC) No 1927/2006, covers preparatory, management and control activities as well as information and publicity.
36. The personalised services presented by the Spanish authorities are active labour market measures within the eligible actions defined by Article 3 of Regulation (EC) No 1927/2006. The Spanish authorities estimate the total costs of these services at EUR 4 235 284 and the expenditure for implementing EGF at EUR 168 864 (=3,98 % of the total amount). The total contribution requested from the EGF is EUR 2 752 935 (65 % of the total costs).
Actions Estimated number of workers targeted Estimated cost per worker targeted (in EUR) Total costs (EGF and national co- financing) (in EUR)
Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006)
Welcome session, occupational guidance and profiling Información inicial y entrevista en profundidad 1 64
Outplacement assistance Tutorización para la reinserción y la activación laboral 1 1 050
Intensive job-search assistance Apoyo intensivo en la búsqueda de trabajo 262
General training and re-training Formación para la recolocación 1 624
Training for specific vocational qualifications Formación a medida de las necesidades de las empresas 2 300
Workshops on entrepreneurship Talleres de fomento del espiritu empresarial 56
On-the-job training Promoción del empleo 3 395
Entrepreneurship assistance Tutorización para la creación de empresas 2 150
Peer support Mentoring y apoyo intergeneracional 93
Participation incentive Ayuda a la participación 450
Outplacement incentives Ayudas a la recolocación 1 263
Entrepreneurship incentives Ayudas para el autoempleo 1 45
Traineeship allowances Beca salario 126
Contribution to the expenses for change of residence Ayudas a la mobilidad geográfica. 3 185
Subtotal personalised services 4 066
Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006)
Preparatory 17
Management 103
Information and publicity 18
Control activities 30
Subtotal expenditure for implementing EGF 168
Total estimated costs 4 235
EGF contribution (65 % of total costs) 2 752
37. Spain confirms that the measures described above are complementary with actions funded by the Structural Funds. Spain will also ensure a clear audit trail for EGF funded activities, and confirms that no other EU funding is sought or used for these activities.
38. The main objectives of the 2007-2013 ESF operational programmes for Catalonia are promoting entrepreneurship, promoting workers' lifelong learning and decreasing the risk of early school leaving, focusing in particular on the most vulnerable people or people at risk of social exclusion, mainly young workers, or those over 45 years old, women and disabled people. Although some of the EGF measures, in particular those related to entrepreneurship promotion, could look similar to ESF measures there is a difference: EGF measures have a uniqueness and special character (they address a sector and a particular population) and they are tailor-made and have an intensive format. Continuous follow-up of ESF and EGF actions pursuing similar purposes and the workers concerned will avoid any overlap between ESF and EGF measures.
Date(s) on which the personalised services to the affected workers were started or are planned to start
39. Personalised services to the affected workers included in the co-ordinated package proposed for co-financing by the EGF were started by Spain on 1 December 2009. This date therefore represents the beginning of the period of eligibility for any assistance that might be awarded from the EGF.
40. The social partners were consulted during the preparation of the co-ordinated package of measures. The proposed application was discussed on 17 December 2009 at one of the regular meetings of the governing board of the Servei de Ocupació de Catalunya. This governing board is composed by the trade unions Comisión Obrera Nacional de Cataluña and Unión General de Trabajadores, two employers' organizations: Foment del Treball and PIMEC i, and two associations representing the town halls of Catalonia, and other stakeholders.
41. The Spanish authorities confirmed that the requirements laid down in national and Community legislation concerning collective redundancies have been complied with.
Information on actions that are mandatory by virtue of national law or pursuant to collective agreements
42. As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the Spanish authorities in their application:
43. 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;
44. demonstrated that the actions provide support for individual workers and are not to be used for restructuring companies or sectors;
45. confirmed that the eligible actions referred to under points 20 to 22 above do not receive assistance from other Community financial instruments.
46. Spain has notified the Commission that the financial contribution will be managed and controlled by the same bodies that manage and control the ESF. The Servei d'Ocupació de Catalunya will be the intermediate body for the managing authority.
47. On the basis of the application from Spain, the proposed contribution from the EGF to the coordinated package of personalised services is EUR 2 752 935, representing 65 % of the total cost. The Commission's proposed allocation from the Fund is based on the information made available by Spain.
48. Considering the maximum possible amount of a financial contribution from the EGF under Article 10 i of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred above, to be allocated under heading 1a of the financial framework.
49. The proposed amount of financial contribution will leave more than 25 % of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year, as required by Article 12 i of Regulation (EC) No 1927/2006.
50. By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Inter-institutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.
51. The Commission presents separately a transfer request in order to enter in the 2010 budget specific commitment and payment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006.
52. In the current state of implementation, it is foreseeable that the payment appropriations available in 2010 under the budget line 01.0404 'Competitiveness and Innovation Framework Programme - Entrepreneurship and innovation programme' will not be fully used this year.
53. This line covers expenditure related to the implementation of the financial instrument of this programme, the main objective of which is to facilitate the access of SMEs to finance. Some time lag exists between transfers to the trust accounts managed by the European Investment Fund and disbursement to the beneficiaries. The financial crisis has a major effect on the forecasts in terms of disbursements for 2010. As a result, in order to avoid excessive balances on the trust accounts, the methodology for calculation of payment appropriations has been reviewed, taking into account the expected disbursements. The amount of EUR 2 752 935 can therefore be made available for transfer.
DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/002 ES/Cataluña automoción)
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 the Inter-institutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management i, and in particular point 28 thereof,
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 i, and in particular Article 12 i thereof,
Having regard to the proposal from the European Commission i,
Whereas:
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.
The scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis.
The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual ceiling of EUR 500 million.
Spain submitted an application to mobilise the EGF, in respect of redundancies in 23 enterprises operating in the NACE Revision 2 Division 29 (manufacture of motor vehicles, trailers and semitrailers) sector in a single NUTS II region, Cataluña (ES51), on 29 January 2010 and supplemented it by additional information up to 26 April 2010. 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 2 752 935.
The EGF should, therefore, be mobilised in order to provide a financial contribution for the application submitted by Spain.
HAVE DECIDED AS FOLLOWS:
For the general budget of the European Union for the financial year 2010, the European Globalisation Adjustment Fund (EGF) shall be mobilised to provide the sum of EUR 2 752 935 in commitment and payment appropriations.
This Decision shall be published in the Official Journal of the European Union .
Done at Brussels/Strasbourg,
The President The President
– the case of the manufacturing and construction industries". June 2009 update.
(ec.europa.eu/enterprise/newsroom/cf)
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