Explanatory Memorandum to COM(2022)20 - Globalisation Fund application from Spain - EGF/2021/006 ES/Cataluña automotive - Main contents
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| dossier | COM(2022)20 - Globalisation Fund application from Spain - EGF/2021/006 ES/Cataluña automotive. |
|---|---|
| source | COM(2022)20  |
| date | 20-01-2022 |
CONTEXT OF THE PROPOSAL
1. The rules applicable to financial contributions from the European Globalisation Adjustment Fund for Displaced Workers (EGF) are laid down in Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013 1 (hereinafter called EGF Regulation).
2. On 23 September 2021, Spain submitted an application EGF/2021/006 ES/Cataluña automotive for a financial contribution from the EGF, following displacements in the economic sector classified under the NACE Revision 2 division 29 (Manufacture of motor vehicles, trailers and semi-trailers) in the NUTS 2 region of Cataluña (ES51) in Spain.
3. Following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.
SUMMARY OF THE APPLICATION
| EGF application | EGF/2021/006 ES/Cataluña automotive |
| Member State | Spain |
| Region(s) concerned (NUTS 2 level 2) | Cataluña (ES51) |
| Date of submission of the application | 23 September 2021 |
| Date of acknowledgement of receipt of the application | 29 September 2021 |
| Date of request for additional information | 7 October 2021 |
| Deadline for provision of the additional information | 29 October 2021 |
| Deadline for the completion of the assessment | 20 January 2022 |
| Intervention criterion | Article 4(2)(b) of the EGF Regulation |
Number of enterprises concerned | 10 |
| Sector(s) of economic activity (NACE Revision 2 division) 3 | Division 29 (Manufacture of motor vehicles, trailers and semi-trailers) |
| Reference period (six months): | 1 January 2021 – 1 July 2021 |
| Number of displacements during the reference period (a) | 346 |
| Number of displacements before or after the reference period (b) | 359 |
| Total number of displacements (a + b) | 705 |
| Total number of eligible beneficiaries | 705 |
| Total number of targeted beneficiaries | 450 |
| Budget for personalised services (EUR) | 3 138 300 |
| Budget for implementing EGF 4 (EUR) | 150 119 |
| Total budget (EUR) | 3 288 419 |
| EGF contribution (85 %) (EUR) | 2 795 156 |
ASSESSMENT OF THE APPLICATION
Procedure
4. Spain submitted application EGF/2021/006 ES/Cataluña automotive within 12 weeks of the date on which the intervention criteria set out in Article 4 of the EGF Regulation were met, on 23 September 2021. The Commission acknowledged receipt of the application on 29 September 2021 and requested additional information from Spain on 7 October 2021. Such additional information was provided within 15 working days of the request. The deadline of 50 working days of the receipt of the complete application within which the Commission should finalise its assessment of the application's compliance with the conditions for providing a financial contribution expires on 20 January 2022.
Eligibility of the application
Contents
- Enterprises and beneficiaries concerned
- Intervention criteria
- Calculation of displacements and of cessation of activity
- Eligible beneficiaries
- Description of the events that led to the displacements and cessation of activity
- Expected impact of the displacements as regards the local, regional or national economy and employment
- Procedures for consulting the targeted beneficiaries or their representatives or the social partners as well as local and regional authorities
- Targeted beneficiaries
- Proposed measures
- Estimated budget
- Period of eligibility of expenditure
5. The application relates to 346 displaced workers whose activity has ceased in the economic sector classified under the NACE Revision 2 division 29 (Manufacture of motor vehicles, trailers and semi-trailers). The redundancies are located in the NUTS 2 region of Cataluña (ES51).
| Enterprises and number of displacements within the reference period | |||
| Aludyne Automotive Spain, SLU | 3 | Gruau Ibérica, SLU | 7 |
| Bosch Sistemas de Frenado, SLU | 13 | Magna Seating Spain SLU | 1 |
| Continental Automotive Spain, SA | 156 | Nobel Plastiques Iberia, SA | 68 |
| Faurencia Interior Systems España, SAU | 71 | Robert Bosch España (Castellet plant) | 8 |
| Fico Transpar, SA | 10 | U-Shin Spain, SLU | 9 |
Total no. of enterprises: 10 | Total no. of displacements: | 346 | |
| Total no. of self-employed persons whose activity has ceased: | 0 | ||
| Total no. of eligible workers and self-employed persons: | 346 |
6. Spain submitted the application under the intervention criteria of Article 4(2)(b) of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers over a reference period of six months in enterprises operating in the same economic sector defined at NACE Revision 2 division and located in one region or two contiguous regions defined at NUTS 2 level in a Member State. There were 346 displaced workers in the NUTS 2 region of Cataluña (ES51).
7. The reference period of six months for the application runs from 1 January 2021 to 1 July 2021.
8. The cessation of activities of the displaced workers during the reference period has been calculated from from the date of the de facto termination of the contract of employment or its expiry.
9. In addition to the workers already referred to, the eligible beneficiaries include 359 displaced workers whose activity ceased before or after the reference period of six months. All these workers ceased their activity within the six months before the start of the reference period on 1 January 2021 and/or between the end of the reference period and the day before of the adoption of this proposal. A clear causal link can be established with the event that triggered the cessations of activity of the displaced workers during the reference period..
10. The total number of eligible beneficiaries is 705.
11. The event giving rise to these displacements is Nissan’s decision to stop activities and close down its plant in Catalonia.
12. On 27 May 2020, Renault, Nissan and Mitsubishi presented their new strategic plan based on a leader-follower scheme and on complementarity between companies. Each company would focus on a particular type of vehicle, per product segment i.e. the leading company will engineer one mother vehicle (leader car) and sister vehicles with the support of the followers’ teams. Each enterprise will also focus on its core regions. Under this scheme, Nissan will focus on China, North America and Japan; Renault on Europe, Russia, South America and North Africa; and Mitsubishi on Southeast Asia and Oceania 5 . The following day, triggered by the steady contraction of the EU market share in global passenger car production 6 , Nissan confirmed its intentions to reduce its presence in Europe 7 to refocus on more profitable markets and announced the closure of its plant in Barcelona 8 . The closure was completed by the end of 2021.
13. The enterprises listed in point 5 were suppliers to Nissan. The announcement of Nissan's closure caused the partial closure of some of these suppliers (such as Faurencia 9 or Continental) and the reduction by 31-53% of their workforce, while other suppliers closed down entirely, such as Aludyne 10 , Magna Seating 11 or Robert Bosch 12 .
Expected impact of the displacements as regards the local, regional or national economy and employment
14. The automotive industry is the third most important sector in Catalonia (after chemicals and food) both in terms of turnover and employment. The turnover of the automotive industry (23,8 billion euros) represents more than 10% of the region's GDP 13 . The sector provides around 143 000 jobs (direct, indirect and induced jobs), that represents 4,2% of the Catalan employed population, according to data of the Cluster of the Automotive Industry of Catalonia (CIAC) 14 .
15. The displacements concerned by this application are concentrated in four counties of the province of Barcelona (Barcelonès, Alt Penedés, Baix Llobregat and Vallés Oriental), where a large number of automotive enterprises are located. Job destruction in these regions was on the rise over the period 2018 - 2020
Displacements in Barcelonès, Alt Penedés, Baix Llobregat and Vallés Oriental (2017=0)
Source: SOC (Catalonia’s public employment service) 15
16. The number of workers displaced by collective redundancy procedure between January and June 2021 in Catalonia (7 993 people), already exceeds the number of displaced workers in 2020 (7 936 people) 16 . Almost 50% of the displacements in the first half of 2021 occurred in the automotive sector, which is the most affected by the rebound in collective redundancy procedures.
17. The closure of Nissan’s plant in Barcelona resulted in more than 2 500 direct redundancies and the loss of 8 000 jobs among its suppliers (3 000 among top-tier suppliers, those who negotiate directly with vehicle manufacturers, and additional 5 000 among smaller suppliers) 17 . The employers' association Primec estimates the negative impact of the closure of Nissan Barcelona at EUR 3 600 million, a loss equivalent to 2,6% of the value of the industrial sector in Catalonia 18 .
Application of the EU Quality Framework for anticipation of change and restructuring (QFR)
18. Spain has described how the recommendations set out in the EU Quality Framework for anticipation of change and restructuring have been taken into account in the present case. Spain highlights that public bodies monitor restructuring processes and manage collective redundancies requests although without authorisation/refusal capacity. These bodies can however set up programmes promoting job creation in partnership with local bodies or public-private bodies (redeployment agencies).
19. In the run-up to displacements, in accordance with national legislation, social partners, enterprises and workers’ representatives engage in negotiation aimed at agreeing on displacements and the outplacement plans that are a legal obligation for an enterprise dismissing 50 or more workers at the same time. The outplacement plans provide the workers with job-search assistance, occupational guidance and training. The duration of the plans is six months. Catalonia’s public employment service (SOC) provides redeployment services to the displaced workers not entitled to the outplacement plans.
20. The most representative trade union and business organizations in Catalonia, Comisiones Obreras, UGT, Fomento del Trabajo Nacional (FOMENT) and PIMEC (association of SMEs of Catalonia) analysed the future prospects of the regional labor market and the skills in demand by enterprises offering jobs. These social partners were part of the working group set to define the package of measures for which the EGF co-financing is requested.
Complementarity with actions funded by national or Union funds
21. Spain has confirmed that the measures described below receiving a financial contribution from the EGF will not also receive financial contributions from other Union financial instruments.
22. The coordinated package of personalised services complements actions funded by other national or EU funds such as SOC's general services (job-search support, vocational counselling and training).
Procedures for consulting the targeted beneficiaries or their representatives or the social partners as well as local and regional authorities
23. Spain has indicated that various actors supported the EGF application. A working group was created with representatives, among others, of SOC, CIAC, and the Agència per la Competitivitat de l'Empresa (ACCIÓ) 19 . The working group met on a bi-weekly basis from 30 July 2020 to 14 December 2020. The social partners (referred to in point 20) also participated in the process. The social partners officially expressed their support for the EGF measures to be offered to former workers in Nissan’s suppliers in a meeting held on 26 November 2020.
Targeted beneficiaries and proposed measures
24. The estimated number of displaced workers expected to participate in the measures is 450. The breakdown of these workers by gender, age group and educational level is as follows:
| Category | Number of expected beneficiaries | ||
| Gender: | Men: | 250 | (55,6 %) |
| Women: | 200 | (44,4 %) | |
| Non-binary | 0 | (0,0 %) | |
| Age group: | Below 30 years: | 16 | (3,5 %) |
| 30-54 years: | 277 | (61,6 %) | |
| Over 54 years: | 157 | (34,9 %) | |
| Educational level | Lower secondary education or less 20 | 227 | (50,4 %) |
| Upper secondary 21 or post-secondary education 22 | 108 | (24,0 %) | |
| Tertiary education 23 | 115 | (25,6 %) |
25. The personalised services to be provided to displaced workers consist of the following measures:
–General information and welcome session. This includes general information on available counselling and training programmes, allowances and incentives; and the profiling of the workers. As the measure is implemented in collaboration with the Cluster of the Automotive Industry of Catalonia, the, workers have the opportunity to clarify their career prospects within the automotive sector and decide whether upskill and remain in the sector or retrain to find employment in other sectors.
–Preparatory workshops focused on various job-search methodologies and key job-seach aspects such as CV drafting, job interviews and group dynamics, etc. This is complemented with more in-depth information on redeployment, sectors that require licensing or certificates of professional competence, and certification of competencies and soft skills acquired in work situations. For those considering self-employment there are workshops on business creation.
–Occupational guidance are provided in bilateral sessions with a counsellor. Together, counsellor and worker will prepare a personalised path to employment or self-employment. Training needs will also be defined during these sessions.
–Training. This includes (1) training on horizontal competencies such as personal development, occupational risk prevention, foreign languages, and training as trainers; (2) re-skilling vocational training to cater for identified needs of the local labour market such as maintenance of buildings and urban equipment, warehouse operations, warehouse logistics, HACCP 24 , food safety, food handling, etc.; and (3) up-skilling vocational training to cater for the skills at request in the automotive sector, such as welding techniques (TIG 25 , MIG/MAG 26 , automatic welding, special welding, etc.), industrial design (2D and 3D Mechanical Design, CAD, CAD-CAM 27 system integration, etc.), machining (CNC programming 28 , interpretation of CNC plans, operator and tool preparer, etc.), and maintenance (electric, hydraulic and pneumatic automation; programmable automations; maintenance of rolling and transmission systems; hybrid and electric vehicle maintenance; etc.); and (4) internships in enterprises. This aims to facilitate a training experience in a real work environment.
–Entrepreneurship support. With the aim of developing viable business or self-employment projects, workers interested in becoming self-employed receive support in the form of training and personalised tutoring throughout the business start-up process. This may cover planning, feasibility studies, business plans, help with identifying financing possibilities, etc.
–Business creation. The workers who start their own business or self-employment activity receive up to EUR 5 000 to cover set-up costs.
–Intensive job-search assistance, including active search of the local and regional employment opportunities (also for self-employed persons) and job-matching.
–Tutoring after reintegration into work. The workers reintegrated into employment are guided during the first months to prevent possible problems arising in their new jobs.
–Incentives. There are a variety of incentives. (1) A contribution to commuting expenses is foreseen. The amount is calculated per day of participation and it will take into account whether the commute is urban or interurban. (2) Outplacement incentives. Those who return to employment receive EUR 350 per month, for a maximum of three months. The incentive is designed to encourage quick reemployment and stimulate elderly workers to remain in the labour market. (3) Internship allowance. Workers on internships in enterprises receive EUR 10 per hour of internship. (4) Contribution to expenses for carers of dependent persons. Workers with caring responsibilities (children, elderly or disabled persons) receive up to EUR 20 per day of participation in the measures. This aims to cover the additional costs that participants with care responsibilities face in order to participate in the measures.
26. The measures were planned to be in line with the Spanish Circular Economy Strategy 29 and the Strategy for the Sustainable Development of Catalonia 30 . The horizontal training on digital skills along with some of the planned up-skilling/re-skilling training caters for the requirement of disseminating the skills required in the digital industrial age and in a resource-efficient economy, in line with Article 7.2 of the EGF Regulation. To serve this purpose, the following studies Capacitats i tecnologies vinculades a la indústria 4.0 a Catalunya 31 and Competències i necessitats formatives del sector de l’automoció a Catalunya 32 have been taken into account.
27. The proposed actions constitute active labour market measures within the eligible measures set out in Article 7 of the EGF Regulation. These actions do not substitute passive social protection measures.
28. Regarding the activities already undertaken for the assistance of the displaced workers, Spain has informed that the workers entitled to outplacement plans 33 already received them and SOC has provided the workers with access to its general services (job-search support, vocational counselling and training).
29. Spain has provided the required information on measures that are mandatory for the enterprises concerned by virtue of national law or pursuant to collective agreements. Spain has confirmed that a financial contribution from the EGF will not replace such measures.
30. The estimated total costs are EUR 3 288 419, comprising expenditure for personalised services of EUR 3 138 300 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 150 119.
31. The total financial contribution requested from the EGF is EUR 2 795 156 (85 % of total costs).
32. The national pre-financing and co-funding is provided by SOC.
| Measures | Estimated number of participants | Estimated cost per participant (EUR) 34 | Estimated total costs (EUR) 35 |
| Personalised services (measures under Article 7(2)(a) of the EGF Regulation) | |||
| General information to eligible beneficiaries and welcome session (acogida y diagnóstico inicial) | 450 | 70 | 31 500 |
| Preparatory workshops (medidas de sensibilización-talleres preparatorios) | 200 | 250 | 50 000 |
| Occupational guidance (programa de orientación laboral) | 450 | 472 | 212 500 |
| Training (programa de formación) | 400 | 3 104 | 1 241 500 |
| Entrepreneurship support (escuela de emprendedores y asesoría del emprendedor) | 50 | 1 300 | 65 000 |
| Business creation (incentivo a la constitución de negocios) | 20 | 5 000 | 100 000 |
| Intensive job-search assistence (prospección laboral) | 300 | 1 300 | 390 000 |
| Tutoring after reintegration into work (seguimiento en el empleo) | 200 | 250 | 50 000 |
| Sub-total (a): Percentage of the package of personalised services | – | 2 140 500 | |
| (68,21 %) | |||
| Allowances and incentives (measures under Article 7(2)(b) of the EGF Regulation) | |||
| Incentives (beca desplazamiento, insercción laboral por cuenta aj ena, conciliación, y beca prácticas en empresa) | 450 | 2 217 | 997 800 |
| Sub-total (b): Percentage of the package of personalised services: | – | 997 800 | |
| (31,79 %) | |||
| Activities under Article 7(5) of the EGF Regulation | |||
| 1. Preparatory activities | – | 14 678 | |
| 2. Management | – | 85 087 | |
| 3. Information and publicity | – | 35 615 | |
| 4. Control and reporting | – | 14 739 | |
| Sub-total (c): Percentage of the total costs : | – | 150 119 | |
| (4,57 %) | |||
| Total costs (a + b + c): | – | 3 288 419 | |
| EGF contribution (85 % of total costs) | – | 2 795 156 |
33. The costs of the measures identified in the table above as measures under Article 7(2)(b) of the EGF Regulation do not exceed 35 % of the total costs for the coordinated package of personalised services. Spain confirmed that these measures are conditional on the active participation of the targeted beneficiaries in job-search or training activities.
34. Spain confirmed that the costs of investments for self-employment, business creation and employee take-overs will not exceed EUR 22 000 per beneficiary.
35. Spain started providing the personalised services to the targeted beneficiaries on 17 January 2022. The expenditure on the measures will therefore be eligible for a financial contribution from the EGF from 17 January 2022 until 24 months after the date of the entry into force of the Financing Decision.
36. Spain started incurring the administrative expenditure to implement the EGF on 30 July 2020. The expenditure for preparatory, management, information and publicity, control and reporting activities shall therefore be eligible for a financial contribution from the EGF from 30 July 2020 until 31 months after the date of the entry into force of the Financing Decision.
Management and control systems
37. The application contains a description of the management and control system, which specifies the responsibilities of the bodies involved. Spain 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 Plus. SOC will be the intermediate body for the managing authority.
Commitments provided by the Member State concerned
38. Spain has provided all necessary assurances regarding the following:
–the principles of equality of treatment and non-discrimination will be respected in access to the proposed measures and their implementation,
–the requirements laid down in national and EU legislation concerning collective redundancies have been complied with,
–the dismissing enterprises, which have continued their activities after the lay-offs, have complied with their legal obligations and provided for their workers accordingly,
–any double financing will be prevented,
–the financial contribution from the EGF will comply with the procedural and material Union rules on State aid.
BUDGETARY IMPLICATION
Budgetary proposal
39. The EGF shall not exceed a maximum annual amount of EUR 186 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 36 .
40. Having examined the application in respect of the conditions set out in Article 13(1) and (2) of the EGF Regulation, and having taken into account the number of targeted beneficiaries, the proposed measures and the estimated costs, the Commission proposes to mobilise the EGF for the amount of EUR 2 795 156, representing 85 % of the total costs of the proposed measures, in order to provide a financial contribution for the application.
41. The proposed decision to mobilise the EGF will be taken jointly by the European Parliament and the Council, as laid down in point 9 of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources 37 .
Related acts
42. At the same time as it presents this proposal for a decision to mobilise the EGF, the Commission will present to the European Parliament and to the Council a proposal for a transfer to the relevant budgetary line the amount of EUR 2 795 156.
43. At the same time as it adopted this proposal for a decision to mobilise the EGF, the Commission adopted a decision on a financial contribution that constitutes a financing decision within the meaning of Article 110 of the Financial Regulation 38 . That financing decision will enter into force on the date on which the Commission is notified of the approval of the budgetary transfer by the European Parliament and the Council.