European Globalisation Fund to be Enhanced

European Globalisation Fund to be Enhanced

European Globalisation Fund to be Enhanced

The European Parliament's Employment and Social Affairs Committee have adopted changes to the European Globalisation Adjustment Fund (EGF) from 2021 onwards. One of the major changes of the new version of this fund is that workers who are made redundant in smaller countries, such as Ireland will have a greater chance of benefiting from it.

From now on, Member States will be able to apply for support when a restructuring event of at least 200 workers takes place. The minimum threshold is currently 500 employees.

This fund supports workers who are made redundant as a result of global changes that affect their jobs. The EU provides funds to directly support affected workers through upskilling and support to gain alternative opportunities. There had been a threshold of 500 workers or above to apply for the fund but this has proved difficult for small countries. However the vote said that number should be reduced to 200.

This statement reflects the European Parliament’s position and will have to be agreed with council but is should benefit smaller countries such as Ireland.

Ireland has made ten successful applications to the EGF. Seven of these applications were submitted on foot of large scale redundancy situations arising from the closure of facilities at Dell, Waterford Crystal, SR Technics (all in 2009), Talk Talk (2011), Andersen Ireland, Lufthansa Technik Airmotive Ireland (2014) and PWA International (2015) respectively.

The other applications were sectoral and provided supports for workers who were made redundant between July 2009 and March 2010 in sub-sectors of the construction industry.

With a budget of €1.57 billion over the period 2021-2027, this fund will provide support for people who lose their jobs resulting from major changes due to globalisation, including cases where restructuring events happen because of automation, digitalisation or the transition to a low-carbon economy.

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