Employment: Commission proposes €6 million from the Globalisation Fund to help over 2,500 road haulage and delivery workers in France
Employment: Commission proposes €6 million from the Globalisation Fund to help over 2,500 road haulage and delivery workers in France
The European Commission has proposed to mobilise €6 million from the European Globalisation Adjustment Fund (EGF) to help 2,513 former workers of Mory-Ducros in France to find new jobs. The proposal now goes to the European Parliament and the EU's Council of Ministers for approval. The redundancies were spread across 84 sites in France.
"The economic crisis has badly affected the road transport sector", said EU Commissioner for Employment, Social Affairs, Skills and Labour Mobility Marianne Thyssen. She stressed the importance of supporting the redundant lorry drivers and their colleagues in their efforts to find new jobs as swiftly as possible: "The European Globalisation Fund will make the workers' transition to new jobs easier and faster by helping them adapt their skills to the requirements of future employment."
France applied for support from the EGF following the dismissal of 2,513 workers in Mory-Ducros SAS. These job losses were the result of the global financial and economic crisis which has deeply affected the road haulage sector, leading to its decline in line with the general weakening of physical output in Europe.
Workers will receive career advice and guidance. The total estimated cost of the package is €10 million, of which the EGF would provide €6.
Background
Mory-Ducros was an enterprise active in the fields of courier services, freight transport and delivery, warehousing and rental of related materials, and provided these services both within France and abroad. At the time of the redundancies, it was the second biggest operator in France for such services, mobilising some 4 500 vehicles each day.
Road haulage in vehicles weighing more than 3.5 tonnes declined by 13.7% in the EU and by 21% in France between 2007 and 2012, as a result of the global financial and economic crisis.
Faced with the reduction in volumes to be transported, a price war broke out within the sector, which was not helped by the upward evolution in the various costs (petrol, wages, materials), thus leading to a steady deterioration in operating margins and a series of losses for the sector in France since 2007.
On 25 November 2013, after two consecutive years of heavy losses, Mory-Ducros declared its insolvency and was placed under Administration. On 6 February 2014, a liquidator was appointed, tasked with closing the enterprise.
More open trade with the rest of the world leads to overall benefits for growth and employment, but it can also cost jobs, particularly in vulnerable sectors and among lower-skilled workers. This is why the Commission first proposed setting up a fund to help those adjusting to the consequences of globalisation. Since starting operations in 2007, the EGF has received 133 applications. Some €543 million has been requested to help about 119,000 workers. In 2013 alone, it provided more than €53.5 million in support.
The Fund continues during the 2014-2020 period as an expression of EU solidarity, with further improvements to its functioning. Its scope includes workers made redundant because of the economic crisis, as well as fixed-term workers, the self-employed, and, by way of derogation until the end of 2017, young people not in employment, education or training (NEETs) residing in regions eligible under the Youth Employment Initiative (YEI) up to a number equal to the redundant workers supported.
Further information
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