Globaliseringsfonds steunt 3.582 arbeiders van Renault bij zoeken naar nieuw werk met 24,4 miljoen euro (en)

European Commission - Press release

Brussels, 11 July 2011- The European Commission has approved an application from France for assistance from the European Globalisation Adjustment Fund (EGF). The € 24 493 525 was requested by the French authorities to help 3,582 workers made redundant by Renault - and seven of its subsidiaries and downstream producers - back into work. The application will now be sent to the European Parliament and the Council of the European Union (the EU's Budgetary Authority) for decision.

"The financial crisis led to an economic slow-down which has hit the car industry particularly badly, said László Andor, EU Commissioner for Employment, Social Affairs and Inclusion, "Car production in Europe has dropped dramatically and its workers are still experiencing hardship. I am confident that the support and training provided through the EGF makes the former workers' transition to a new job easier”.

The French application relates to 4,445 workers made redundant by Renault and seven of its suppliers and downstream producers. The dismissals were a consequence of the financial and economic crisis. Renault suffered from the increasing cost of credit and the hardening of credit conditions from 2008 onwards. This seriously affected the company's ability to fund its own activities in the short-term, as well as its investment plans. It created insecurity about jobs, leading to buyers putting off any decision to purchase a car. Despite temporary measures such as scrappage schemes introduced by some Member States, the registration of new Renault cars in Europe dropped by 6.5 % between 2007 and 2008. During the fourth quarter of 2008 this downward trend accelerated and, in December 2008, the registration of new cars dropped by 27.5 % compared to the same time the previous year.

The regions most affected by the redundancies are Ile-de-France, Haute-Normandie and Nord-Pas-de-Calais. In Ile-de-France the redundancies mainly took place in the Guyancourt Aubevoie plant, Renault's headquarters. In the Haute-Normandie region, the job losses occurred in Cléon near Rouen and Sandouville, close to Le Havre. Le Havre in particular has suffered dramatic industrial decline with few opportunities for the job-seekers. In Nord-Pas-de-Calais, the redundancies mainly took place in Douai and Maubeuge. Both towns are located in areas with high unemployment (13.8 % and 15.5 %).

The financial assistance from the EGF is targeted at the 3,582 most disadvantaged workers to help them find a job by providing advisory services (guidance on job search, advice on business start-up, etc); training and re-training; support for business creation and allowances.

The total estimated cost of the package is € 37.6 million, of which the European Union will provide EGF assistance of € 24.4 million.

Background

There have been 77 applications to the EGF since the start of its operations in January 2007, for a total amount of about €353 million, helping over 75,000 workers. EGF applications relate to the following sectors: automotive (France, Spain, Portugal, Poland, Austria, Germany, Sweden and Belgium); textiles (Italy, Malta, Lithuania, Portugal, Spain and Belgium); mobile phones (Finland and Germany); domestic appliances (Italy); computers and electronic products (Ireland, Portugal and the Netherlands); shipbuilding (Denmark); mechanical/electronic (Denmark, Poland and Germany); repair and maintenance of aircraft and spacecraft (Ireland); crystal glass (Ireland); ceramics and natural stone (Spain); construction (Netherlands, Italy, Ireland and Lithuania); carpentry and joinery (Spain); electrical equipment (Lithuania) publishing and printing industry (Netherlands), furniture (Lithuania), shoe manufacture (Portugal), retail trade (Czech Republic, Greece and Spain) and wholesale trade (Netherlands). Final reports from the earlier cases supported by the EGF show strong results in helping workers stay in the labour market and find new jobs.

The EGF, an initiative first proposed by President Barroso to provide help for people who lose their jobs due to the impact of globalisation, was established by the European Parliament and the Council at the end of 2006. In June 2009, the EGF rules were revised to strengthen the role of the EGF as an early intervention instrument. It forms part of Europe's response to the financial and economic crisis. The revised EGF Regulation entered into force on 2 July 2009 and applies to all applications received from 1 May 2009 onwards.

Further information

EGF website: http://ec.europa.eu/egf

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