The European Commission approved, on 30 November, applications from Germany and Lithuania for assistance from the European Globalisation Adjustment Fund (EGF). The applications will now be put before the European Parliament and the Council  for decision. If approved, €6.2 million will help 1,793 automotive workers made redundant by the Karmann Group back into employment and €258,163 requested will help 480 employees made redundant from Snaige – a manufacturer of electrical equipment – and two of its suppliers – UAB Jugos kabeliai and UAB Hoda.

The German application, which was received on 13 August 2009, relates to 2,476 dismissed workers (1,618 in Lower Saxony and 858 in North Rhine Westphalia) of whom 1,793 are targeted for assistance. These redundancies are a consequence of a change in world trade patterns; in particular, a significant reduction of the EU market further exacerbated by the global financial and economic crisis and the ensuing reduction in demand for motor vehicles since the second half of 2008. The assistance package is targeted at short time allowance; basic, individual and group qualification; qualification management; counselling for setting up a business; job research; peer groups/workshops; international job applications and aftercare in case of unemployment at the end of the measures.

The Lithuanian application relates to 651 redundancies in AB Snaige, a manufacturer of electrical equipment, and two of its suppliers. The redundancies are a consequence of the rapid decline in demand for refrigerators and refrigerating equipment due to the current economic slowdown. Snaige, which exports approximately 97% of its production, has seen its sales in the EU and the rest of Europe fall by more than 80% since mid-2008. The package of EGF assistance will help the workers with development of personalised employment plans, job search assistance, training and re-training, promotion of entrepreneurship, outplacement assistance and training and job search allowances.

Background

There have been 34 applications to the EGF since the start of its operations, in January 2007, for a total amount of over 226 million euro, helping more than 41,000 workers. EGF applications relate to the following sectors: automotive (France, Spain, Portugal, Austria, Germany, Sweden); textiles (Italy, Malta, Lithuania, Portugal, Spain and Belgium); mobile phones (Finland and Germany); domestic appliances (Italy); computers (Ireland); mechanical/electronic (Denmark); repair and maintenance of aircraft and spacecraft (Ireland); crystal glass (Ireland); ceramics (Spain); construction (Netherlands and Lithuania); carpentry and joinery (Spain); electrical equipment (Lithuania) and furniture (Lithuania). Initial reports from the first cases supported by the EGF show strong results in helping workers stay in the labour market and find new jobs.