Explanatory Memorandum to COM(2010)531 - Globalisation Fund application EGF/2009/030 NL/Drenthe Division 18 from the Netherlands - Main contents
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| dossier | COM(2010)531 - Globalisation Fund application EGF/2009/030 NL/Drenthe Division 18 from the Netherlands. |
|---|---|
| source | COM(2010)531  |
| date | 01-10-2010 |
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 on establishing the European Globalisation Adjustment Fund i.
On 30 December 2009, the Netherlands submitted application EGF/2009/030 NL/Drenthe Division 18 for a financial contribution from the EGF, following redundancies in two enterprises operating in the NACE Revision 2 Division 18 (printing and reproduction of recorded media) i in the NUTS II region Drenthe (NL13) in the Netherlands.
This application is part of a package of six interrelated applications, all of which concern redundancies in eight different NUTS II regions in the Netherlands in enterprises operating in the graphics sector, the activities of which are classified under two different NACE Revision 2 Divisions, namely Division 18 (printing and reproduction of recorded media) and Division 58 (publishing activities).
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/2009/030
- Total budget in EUR 697 896
- 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(c)
- 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
- 15 to 24 years old 25 18
- 25 to 54 years old 77 55
- 55 to 64 years old 35 25
- Category 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
- Preparatory activities
- Accompaniment
- Training
- Actions Estimated number of workers targeted Estimated cost per worker targeted (in EUR) Total costs (EGF and national cofinancing) (in EUR) *
- Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006)
- Total estimated costs 697
- 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 Netherlands
Article 2 (c)
Enterprises concerned 2
NUTS II regions Drenthe (NL13)
NACE Revision 2 Division 18 (printing and reproduction of recorded media)
Reference period 1/4/2009 to 29/12/2009
Starting date for the personalised services 1/4/2009
Application date 30/12/2009
Redundancies during the reference period: 140
Redundant workers targeted for support 140
Personalised services: budget in EUR 669 980
Expenditure for implementing EGF i: budget in EUR 27 916
% expenditure for implementing EGF 4 %
EGF contribution EUR (65 %) 453 632
1. The application was presented to the Commission on 30 December 2009 and supplemented by additional information up to 6 May 2010.
2. The application meets the conditions for deploying the EGF as set out in Article 2(c) 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, the Netherlands argues that the economic crisis resulted in a substantial decrease in demand for the printing and publishing sector. The orders from other economic sectors for printed advertising material, which represents 35 % of the total turnover of the printing and publishing sector, decreased by 5,6 % between 2008 and 2009 due to the reduction of budgets for media and advertising activities induced by the economic crisis. The application cites several examples. In the construction industry the budget for information and publicity was cut by 36,8 % following the crisis, in the financial sector by 33,3 % and in consumer electronics by 30,6 %. In addition, the economic crisis negatively affected demand for various types of printed media material: the demand for popular magazines decreased by 18,2 %, for newspapers by 7,5 %, for commercial newspapers distributed free of charge by 16,4 % and for professional magazines by 16,5 %.
4. The Netherlands submitted this application under the intervention criteria of Article 2(c) of Regulation (EC) No 1927/2006, which provides that, in small labour markets or in exceptional circumstances, where duly substantiated by the Member State concerned, an application for a contribution from the EGF may be considered admissible even if the intervention criteria laid down in Article 2(a) and 2(b) are not entirely met, when redundancies have a serious impact on employment and the local economy. In this case the applicant must specify which of the main intervention criteria its application fails to meet.
5. The Netherlands has specified that the application seeks to derogate from Article 2(b), where the required threshold is 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.
6. The application cites 140 redundancies in two enterprises operating in the same NACE Revision 2 Division during the nine-month reference period from 1 April 2009 to 29 December 2009, all located in the NUTS II region Drenthe (NL13). All of these redundancies were calculated in accordance with the second indent of the second paragraph of Article 2 of Regulation (EC) No 1927/2006.
7. The Dutch authorities argue that this application meets the requirements for a submission under Article 2(c) of the Regulation (EC) No 1927/2006 citing exceptional circumstances: it covers further redundancies in the same NACE 2 Division during the same reference period as the redundancies covered by application EGF/2009/029 NL/Gelderland and Overijssel Division 18 that was submitted by the Netherlands under Article 2(b) of Regulation (EC) No 1927/2006. In addition, Drenthe constitutes a contiguous region at NUTS II level with Overijssel. The exceptionality of the case lies in the combination of these factors, which together pose an unusual and difficult situation on the workers and the region concerned.
8. According to the Netherlands, Drenthe is in a very difficult situation. This province has a low population density compared to the other provinces concerned by the applications related to the graphics sector as well as a low level of industrial activities. The unemployment rate increased from 6,3 % in October 2008 to 7,5 % in October 2009. This province has the third highest unemployment rate in the Netherlands. The number of people searching for a job increased by 17,4 % between February 2009 and February 2010. Drenthe counts amongst the provinces in the Netherlands with a pro capita income significantly below the average.
9. At the same time, the graphics sector in the Netherlands has suffered from large-scale redundancies, as is also shown by the five other interrelated EGF applications submitted by the Netherlands, which show a high number of redundancies in enterprises in the graphics sector in other parts of the Netherlands.
10. The Commission services therefore consider that the redundancies in question have a serious impact on employment and the local economy and that the difficult economic and labour market situation in Drenthe and the further redundancies in other NUTS II level regions of the Netherlands due to the same cause and during the same period in the same NACE 2 Division combine to meet the criteria of Article 2(c) of Regulation (EC) No 1927/2006.
11. This interpretation is also in line with the statement of the Commission on the occasion of the adoption of Regulation (EC) No 546/2009 i according to which 'i n cases where an EGF application under Article 2(b) is submitted by a Member State, if further redundancies have occurred in another NUTS II level region of the same Member State due to the same cause and during the same period in the same NACE 2 Division, the Commission considers that an application for EGF assistance for the latter workers can be made under Article 2(c) citing exceptional circumstances '.[6]
12. The Dutch authorities argue that the financial and economic crisis and its impact could not be foreseen. The application further states that before the crisis the printing and publishing industry in the Netherlands went through an expensive restructuring process in order to remain technically competitive with enterprises from outside the EU, in particular in Turkey, China and India. The sector was transformed from a demand into a supply oriented industry. The current crisis bears the risk of annulling the effects of the heavy investments and efforts made by the sector.
13. The application cites a total of 140 redundancies, all of whom are targeted for assistance in the following two enterprises:
Drukkerij Giethoorn Ten Brink B.V, Meppel Giethoorn Media groep B.V., Meppel
Total enterprises: Total dismissals:
14. The break-down of the targeted workers is as follows:
Men 91 65
Women 49 35
EU citizens 132 94
Non EU citizens 8 6
Over 65 years old 3 2
There are 6 workers (4 %) with a longstanding health problem or disability included in the categories above.
15. In terms of professional categories, the break-down is as follows:
Manager 10 7
Professional 28 20
Technicians 29 21
Clerical support workers 17 12
Service and sales workers 17 12
Plant and machine operators and assemblers 39 28
16. In accordance with Article 7 of the Regulation (EC) No 1927/2006, the Netherlands 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.
17. The territory concerned covers the province of Drenthe. This province has a low population density compared to the other provinces concerned by the applications related to the graphics sector as well as a low level of industrial activities.
18. The main authorities concerned are the Ministry for Social Affairs and the Training Fund for the graphics and media sector (A&O Fonds Grafimedia) by order of the Council for consultation in the graphics and media sector. Other relevant stakeholders are the Institute for creative industry (GOC), the public organisation responsible for allowances (UWV werkbedrijf), UWV mobility centre Zuid-Oost Drenthen, the organisation for SME's (MKB-ondernemingen), the regional training centers Drenthecollege, Deltioncollege, Alphacollege, the social partner organisations: FNV Kiem (trade union), CNV Media (trade union), KVGO (employers organisation) for the district Groote Veenen.
19. The Dutch authorities argue that the redundancies in the graphics sector will aggravate the unemployment situation, which has already deteriorated as a result of the economic and financial crisis. In the province of Drenthe the unemployment rate increased from 6,3 % in October 2008 to 7,5 % in October 2009. This province has the third highest unemployment rate in the Netherlands. The number of people searching for a job increased by 17,4 % between February 2009 and February 2010. The applicant further refers to the fact that in the graphics sector there is a relatively high proportion of workers in the older age groups where unemployment is very high in the province under consideration. Moreover, Drenthe has a general problem of a rapidly ageing population. The additional redundancies in the graphics sector in the older age groups will therefore have a significant impact. Drenthe counts amongst the provinces in the Netherlands with a pro capita income significantly below the average.
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
20. The following types of measures are proposed, all of which combine to form a coordinated package of personalised services aimed at re-integrating the workers into the labour market. They will be offered to the dismissed workers through a mobility centre, called Centre Creative Careers (Centrum Creatieve Carrières).
- Intake and registration: covers an initial interview in order to register the dismissed worker and to identify the most suitable types of measures.
- Information and helpdesk: relates to collective meetings and a helpdesk function to provide information to the dismissed workers about the available measures.
- Job to job accompaniment: covers an individualised programme including screening, the establishment of a career and vocational action plan and short time mentoring at the new workplace.
- Outplacement: seeks to give active support to dismissed workers in their exploration of new job opportunities.
- Application training: covers the analysis of available job vacancies, support for the drafting of a CV and an application letter and preparation for job interviews.
- Accompaniment towards business creation: seeks to assist dismissed workers who envisage creating their own business. This covers the provision of legal advice, assistance for the elaboration of a business plan, support on administrative requirements.
- Training and re-training: covers vocational training, management and social skills training and specific technical re-training for workers whose technical training has become obsolete.
- Recognition of prior experience: covers the evaluation of prior knowledge and experience of each individual worker as well as the identification of areas where further training is required.
21. The expenditure for implementing EGF, which is included in the application in accordance with Article 3 of Regulation (EC) No 1927/2006, covers management and control activities as well as information and publicity.
22. The personalised services presented by the Dutch authorities are active labour market measures within the eligible actions defined by Article 3 of Regulation (EC) No 1927/2006. The Dutch authorities estimate the total costs of these services at EUR 669 980,08 and the expenditure for implementing EGF at EUR 27 915,84 (=4 % of the total amount). The total contribution requested from the EGF is EUR 453 632 (65 % of the total costs).
Actions Estimated number of workers targeted Estimated cost per worker targeted (in EUR) Total costs (EGF and national cofinancing) (in EUR) *
Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006)
1. Preparatory activities 1.1. Intake and registration (intake en registratie) 194, 27 207,
1.2. Information and helpdesk (voorlichting en helpdesk) 86, 12 092,
2. Accompaniment 2.1. Job to job accompaniment (werk naar werk begeleiding) 3 774, 200 032,
2.2. Outplacement 4 484, 188 369,
2.3. Application training (solicitatietraining) 1 449, 60 875,
2.4. Accompaniment towards business creation (begeleiding eigen onderneming) 5 289, 37 025,
3. Training 3.1. Training and retraining (opleiding en omscholing) 2 505, 105 222,
3.2. Recognition of prior experience (erkenning verworven competenties) 2 796, 39 155,
Sub total personalised services 669 980,
Management 6 978,
Information and publicity 6 978,
Control activities 13 957,
Sub total expenditure for implementing EGF 27 915,
EGF contribution (65 % of total costs) 453
* Totals do not tally due to rounding
23. The Netherlands confirms that the measures described above are complementary with actions funded by the Structural Funds, in particular with a number of ESF training projects for workers in the graphics sector, the timing of which coincides with the EGF implementation period. The managing authority for the EGF, which is also managing authority for the ESF has put in place the necessary control procedures to eliminate any risk of double funding.
Date(s) on which the personalised services to the affected workers were started or are planned to start
24. The Netherlands started the personalised services to the affected workers included in the co-ordinated package proposed for co-financing to the EGF, on 1 April 2009. This date therefore represents the beginning of the period of eligibility for any assistance that might be awarded from the EGF.
25. The social partners were consulted through the Foundation Labour Market and Training Fund for the graphics and media sector (Arbeids & Opleidingsfonds Grafimedia branche), which in the light of the crisis agreed on the creation of a mobility centre for the sector named C3 (Centrum Creatieve Carrières). The aim of this mobility centre is to coordinate the various active labour market measures in consultation with the social partners.
26. The Dutch 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
27. As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the Dutch 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 Community financial instruments.
28. The Netherlands has notified the Commission that the financial contribution will be managed and controlled by the same bodies that manage and control the European Social Fund (ESF) funding in the Netherlands. The Agency for Social Affairs and Employment (Agentschap SZW) will be the intermediate body for the managing authority.
29. On the basis of the application from the Netherlands, the proposed contribution from the EGF to the coordinated package of personalised services is EUR 453 632, representing 65 % of the total cost. The Commission's proposed allocation under the Fund is based on the information made available by the Netherlands.
30. 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.
31. 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.
32. The aggregated amount of EGF contributions for EGF applications referring to exceptional circumstances for 2010, including the amount proposed in the present Proposal, will not exceed 15 % of the annual maximum amount of the EGF, as required by Article 2(c) of Regulation (EC) No 1927/2006.
33. By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional 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.
34. 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.
28 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.
29. 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 453 632 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/2009/030 NL/Drenthe Division 18 from the Netherlands)
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 Interinstitutional 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.
The Netherlands submitted an application to mobilise the EGF, in respect of redundancies in two enterprises operating in the NACE Revision 2 Division 18 (printing and reproduction of recorded media) in the NUTS II region Drenthe (NL13) on 30 December 2009 and supplemented it by additional information up to 6 May 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 453 632.
The EGF should, therefore, be mobilised in order to provide a financial contribution for the application submitted by the Netherlands.
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 453 632 in commitment and payment appropriations.
This Decision shall be published in the Official Journal of the European Union .
Done at,
The President The President
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