10,000 workers were helped by the European Globalisation Adjustment Fund (EGF) last year and of these, more than two-thirds found a new job, according to a report adopted by the European Commission today.

10,000 workers were helped by the European Globalisation Adjustment Fund (EGF) last year and of these, more than two-thirds found a new job, according to a report adopted by the European Commission today. The second annual report on the EGF shows an increasing uptake of the funds by EU countries for measures to support workers dismissed as a result of globalisation. It also reports on the outcome of the first EGF contributions in terms of helping the redundant workers into new jobs.

EU Employment Commissioner Vladimír Špidla said: "The EGF has been in operation for only two years, but it already shows encouraging results. Almost 10 000 workers benefited from the Fund last year, in particular through job-search allowances, training schemes and employment incentives. Now that its rules have been revised and its scope broadened to tackle the social impact of the global economic crisis, the EGF will help redundant workers even more efficiently in their efforts to find a new job."

In 2008, the Commission received five applications for a contribution from the EGF. These applications, submitted by Italy, Spain and Lithuania, related to 6 587 redundancies and requested a total amount of EUR 20 626 022. After an in-depth analysis of their eligibility, the Commission had submitted three of these applications to the Budgetary Authority by 31 December 2008, while the other two were approved in 2009.

A total of EUR 49 035 729 was granted in 2008 in eight EGF contributions, five of which were for applications received in 2007 and three for applications received in 2008. These funds were used to co-finance active labour market policy measures (mostly job-search allowances, training and employment incentives) targeted at 9 941 redundant workers in five Member States (Italy, Malta, Portugal, Spain and Lithuania).

In 2008, the Commission received final reports on the implementation of the first three EGF cases. These reports showed that the EGF had directly contributed to the re-integration into employment of 2 158 workers (69 % of those targeted for help) who had been made redundant in the automotive industry and the mobile phone sector. The final reports also suggested that the EGF contributions allowed the Member States concerned to prepare a more effective package of measures benefiting the redundant workers, in particular through innovative social actions (e.g. interaction in peer groups, more one-to-one guidance and counselling) and an extended duration of support, which would not have been available without the EGF contribution.

Background

There have been 22 applications to the EGF since its start in 2007, for a total amount of over EUR  130 million, helping almost 29 000 workers. These applications related to mass redundancies in the automotive sector, mobile phones, textiles, computers and domestic appliances.

The EGF was established by the European Parliament and the Council at the end of 2006 to provide help for people who have lost their jobs due to the impact of globalisation. 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.