REPORT on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers[...]

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers (application from Denmark - EGF/2023/004 DK/Danish Crown)

(COM(2024)0035 - C9-0040/2024 - 2024/0044(BUD))

The European Parliament,

- having regard to the Commission proposal to the European Parliament and the Council (COM(2024)0035 - C9-0040/2024),

- having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013[1]("EGF Regulation"),

- having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027[2] [3]as amended by Regulation (EU, Euratom) 2024/765[4], and in particular Article 8 thereof,

- having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources[5], and in particular point 12 thereof,

- having regard to the letter from the Committee on Employment and Social Affairs,

- having regard to the report of the Committee on Budgets (A9-0171/2024),

A. whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns or of the global financial and economic crisis, and to assist their reintegration into the labour market; whereas this assistance is made through a financial support given to workers and the companies for which they worked;

B. whereas Denmark submitted application EGF/2023/004 DK/Danish Crown for a financial contribution from the European Globalisation Adjustment Fund (EGF), following a total number of 751 displacements[6]in the economic sector classified under the NACE Revision 2 division 10 (Manufacture of food products) in the province of Nordylland with 692 displacements within a reference period for the application from 19 May 2023 to 19 September 2023, and 59 displacements before or after the reference period;

C. whereas the application relates to 692 displacements within the reference period for the application, 651 displaced workers whose activity has ceased in Danish Crown (Danish Crown A/S) and 41 displaced workers in 2 suppliers and downstream producers of Danish Crown[7];

D. whereas the application relates to 59 displacements whose activity ceased before or after the reference period of four months, where a clear causal link can be established with the event that triggered the cessations of activity of the displaced workers during the reference period as required by Article 6(2) of the EGF Regulation;

E. whereas the application is based on the intervention criteria of Article 4(2), point (a), of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in an enterprise in a Member State, including workers made redundant by suppliers and downstream producers and/or self-employed persons whose activity has ceased;

F. whereas the Danish slaughterhouse sector is in a structural crisis; whereas since 2005, the number of pigs slaughtered in Denmark has decreased by 4,4 million (20 %); whereas the decline is largely due to the shift from raising pigs for slaughter to raising piglets for export; whereas exporting piglets is more profitable for Danish farmers than fattening pigs for slaughter due to low pork prices,

G. whereas Danish Crown is a group of Danish food companies engaged in the butchery, processing and sale of primarily pork and beef; whereas the event giving rise to these displacements is the closure of Danish Crown's slaughterhouse in Sæby in Frederikshavn Municipality following the decline of pig available for slaughtering;

H. whereas the requirements laid down in national and Union legislation concerning collective redundancies have been complied with;

I. whereas financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into decent and sustainable employment within or outside their initial sector of activity, while preparing them for a greener and more digital European economy;

J. whereas the MFF revision reduces the maximum annual amount of the EGF from EUR 186 million to EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093 as amended by Regulation (EU, Euratom) 2024/765; whereas the Commission should monitor EGF implementation and all Institutions should take any necessary measures to ensure that all justified requests for EGF support, as a manifestation of Union solidarity, can be met;

1. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Denmark is entitled to a financial contribution of EUR 1 882 212 under that Regulation, which represents 60 % of the total cost of EUR 3 137 021, comprising expenditure for personalised services of EUR 2 878 001 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 259 020;

2. Notes that the Danish authorities submitted the application on 6 December 2023, and that, following the provision of additional information by Denmark, the Commission finalised its assessment on 29 February 2024 and notified it to Parliament on the same day;

3. Notes that the application relates to 751 displaced workers affected by the closure of Danish Crown's slaughterhouse in Sæby;notes further that 390 displaced workers in total will be targeted beneficiaries and are expected to participate in the measures;

4. Takes note that most of the displacedworkers have low levels of formal qualifications (46 %) or rather outdated qualifications and skills (40 %); takes note that the 305 (41%) of the displaced workers are of a migrant background and are not fluent in Danish; the EGF package also proposes measures on improving general competences including improving language skills in Danish;

5. Welcomes the fact that the co-ordinated package of personalised services was drawn up by Denmark in consultation with targeted beneficiaries, their representatives and social partners;

6. Recalls that personalised services to be provided to the workers and self-employed persons consist of the following actions: motivation, retention, training on general competences, upskilling/reskilling training, and training and job-search allowance;

7. Strongly welcomes the fact that training offers were drawn considering several studies such as Jobbarometer 2023 (an analysis of local labour needs in Frederikshavn, Hjørring, Jammerbugt and Brønderslev Municipality), the Biennial Labour Market Balance that provides an overview of possible job openings, and FremKom4 analysis on skills, and that it aims to raise general competencies (including language and numeracy), digital competencies and skills improvement for jobs with skills shortages;

8. Stresses in particular the importance of Article 7(2) of the EGF Regulation, which requires the coordinated package to anticipate future labour market perspectives and required skills, which are compatible with the shift towards a resource-efficient and sustainable economy and with a particular focus on the dissemination of skills required in the digital industrial age;

9. Notes that Denmark started providing personalised services to the targeted beneficiaries on 16 October 2023 and that the period of eligibility for a financial contribution from the EGF will therefore be from 16 October 2023 until 24 months after the date of the entry into force of the financing decision;

10. Notes that Denmark started incurring administrative expenditure to implement the EGF on 1 June 2023 and that expenditure for preparatory, management, information and publicity, control and reporting activities shall therefore be eligible for a financial contribution from the EGF from 1 June 2023 until 31 months after the date of the entry into force of the financing decision;

11. Stresses that the Danish authorities have confirmed that the eligible actions do not receive assistance from other Union funds or financial instruments, and that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation;

12. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements, or any allowances or rights of the displaced workers, to ensure full additionality of the allocation;

13. Approves the decision annexed to this resolution;

14. Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

15. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Denmark - EGF/2023/004 DK/Danish Crown

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013[8], and in particular Article 15(1), first subparagraph, thereof,

Having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources[9], and in particular point 9 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) The European Globalisation Adjustment Fund for Displaced Workers (EGF) aims to demonstrate solidarity and promote decent and sustainable employment in the Union by providing support for workers made redundant and self-employed persons whose activity has ceased in the case of major restructuring events and assisting them in returning to decent and sustainable employment as soon as possible.

(2) The EGF is not to exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093[10].

(3) On 6 December 2023, Denmark submitted an application to mobilise the EGF in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of workers' displacements in Danish Crown and 2 suppliers and downstream producers in Denmark, in the economic sector classified under the Statistical classification of economic activities in the European Community ('NACE')[11]Revision 2 division 10 (Manufacture of food products) in the Nomenclature of Territorial Units for Statistics ('NUTS')[12]level 2 region of Nordjylland (DK05) in Denmark. It was supplemented by additional information provided in accordance with Article 8(5) of Regulation (EU) 2021/691. That application is considered to comply with the conditions for providing a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on the basis of the assessment made by the Commission in the Proposal for a mobilisation decision of the European Parliament and of the Council[13].

(4) The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 1 882 212 in respect of the application submitted by Denmark.

(5) In order to minimise the time taken to mobilise the EGF, this Decision should apply from the date of its adoption,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the Union for the financial year 2024, the European Globalisation Adjustment Fund for Displaced Workers shall be mobilised to provide the amount of EUR 1 882 212 in commitment and payment appropriations.

Article 2

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption][⁕].

Done at,

For the European Parliament For the Council

The President The President

EXPLANATORY STATEMENT

I. Background

The European Globalisation Adjustment Fund (EGF) was created to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

In accordance with point 9 of the Interinstitutional Agreement of 16 December 2020[14], the Commission is required, following the positive assessment of an application, to submit a proposal to mobilise the Fund to the budgetary authority and to complement it with a corresponding request for transfer to the relevant budget lines.

II. Denmark's application and the Commission's proposal

On 6 December 2023, Denmark submitted an application EGF/2023/004 DK/Danish Crown for a financial contribution from the EGF, following 751 redundancies[15]at the company Danish Crown (Danish Crown A/S) and 2 suppliers and downstream producers resulting from the closure of Danish Crown's slaughterhouse in Sæby. This is the fourth application of 2023 and the second to be examined under the 2024 budget.

Following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.

On 29 February 2024, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Denmark to support the reintegration in the labour market of 390 targeted beneficiaries, i.e. workers made redundant as a result of the closure of Danish Crown's slaughterhouse in Sæby. In total, EUR 1 882 212 will be mobilised from the EGF for Denmark, representing 60 % of the total costs of the proposed actions.

The Commission deemed the Danish application admissible under the intervention criteria of Article 4(2)(a) of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in an enterprise in a Member State, including workers made redundant by suppliers and downstream producers and/or self-employed persons whose activity has ceased.

EGF co-funding has been requested for the following five types of actions, to be provided to redundant workers:

(a) Motivation: This first measure is a combination of information, motivation, and counselling, along with workers' profiling. The main goal of the motivation process is to develop participants' confidence in their own abilities, make them realise that improving their skills will help them obtain a new job, discuss possible barriers that could hinder their skill improvement and together find solutions to remove these barriers.

(b) Retention: The objective of this measure is to maintain motivation to participate in educational and upskilling pathways by supporting redundant workers through individual mentoring and advice, helping them resolve challenges and minimize barriers.

(c) Training on general competences: The Danish Act on Active Employment Efforts sets that redundant workers must be offered training in reading, writing, arithmetic and dyslexia training, if necessary. Therefore, the training offer part of the EGF package reinforces the basic training provided for by law and focuses on general adult education that allows improving one or more subjects at primary school level, as well as language skills in Danish. Training in Danish is particularly relevant, since 41 % of the redundant workers have a migrant background15 and are not fluent in Danish. Training in digital skills and ad-hoc training tailored for Danish Crown former workers is also foreseen. The adapted training is a combination of language training and employment-oriented support (including job-search) to help participants meet labour law requirements and reconnect with the labour market.

(d) Upskilling/reskilling training: The profiles of the displaced workers do not correspond to the skills sought in the labour market. Most of the workers have low levels of formal qualifications (46 %) or rather outdated qualifications and skills (40 %). Most workers with only primary education belong to the age group of 30-39 years, while most of the workers with vocational education or training (VET) as the highest educational level belong to the age group of 50-59 years. The training offer includes shorter pathways for skills improvement (AMU-training) and vocational training based on competency assessment (RKV) that certifies any competency obtained in the formal educational system, at work or in continuing training. AMU focuses on training low-skilled adults and covers most of trades, industries, and services. AMU's offer ranges from introductory to highly specialised courses. Training is delivered in workshops that resemble enterprises' work environment.

(e) Training/job-seach allowance: Workers will receive an allowance while engaged in training or job-search.

According to the Commission, the described measures constitute active labour market measures within the eligible actions set out in Article 7 of the EGF Regulation and do not substitute passive social protection measures.

Denmark provided the required information on actions that are mandatory for the enterprises concerned by virtue of national law or pursuant to collective agreements. They confirmed that a financial contribution from the EGF will not replace such actions.

Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 1 882 212 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).

According to an internal agreement within the Parliament, the Employment and Social Affairs Committee and the Committee on Regional Policy should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund.

LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS(19.3.2024)

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Denmark - EGF/2023/004 DK/Danish Crown (2024/0044(BUD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Employment and Social Affairs has been asked to submit an opinion to your committee and decided to send the opinion in the form of a letter.

The Committee on Employment and Social Affairs considered the matter at its meeting of 19 March 2024 and decided to call on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution.

Yours sincerely,

Dragoş Pîslaru

SUGGESTIONS

A. Whereas, on 6 December 2023, Denmark submitted an application EGF/2023/004 DK/Danish Crown for a financial contribution from European Globalisation Adjustment Fund for Displaced Workers (EGF) following displacements in Danish Crown and 2 suppliers and dowstream producers in Denmark;

B. Whereas the application relates to 692 displacements within the reference period for the application, that is 651 displaced workers whose activity has ceased in Danish Crown (Danish Crown A/S), operating in the economic sector classified under the NACE Revision 2 division 10 (Manufacture of food products), and 41 displaced workers in 2 suppliers and downstream producers of Danish Crown in the NUTS 2 region of Nordylland (North Jutland, DK05); whereas in addition to these workers, the eligible beneficiaries include 59 displaced worker whose activity ceased before or after the reference period of four months; whereas the total number of eligible beneficiaries is 751;

C. Whereas the Commission deemed this Danish application admissible under the intervention criteria of Article 4(2)(a) of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in an enterprise in a Member State, including workers made redundant by suppliers and downstream producers and/or self-employed persons whose activity has ceased;

D. Whereas on 29 February 2024, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Denmark to support the reintegration in the labour market of 390 targeted beneficiaries, i.e. workers made redundant as a result of the closure of Danish Crown's slaughterhouse in Sæby;

E. Whereas Danish Crown is a group of Danish food companies engaged in the butchery, processing and sale of primarily pork and beef; whereas the event giving rise to these displacements is the closure of Danish Crown's slaughterhouse in Sæby in Frederikshavn Municipality following the decline of pig available for slaughtering;

F. Whereas the Danish slaughterhouse sector is in a structural crisis; whereas since 2005, the number of pigs slaughtered in Denmark has decreased by 4,4 million (20 %); whereas the decline is largely due to the shift from raising pigs for slaughter to raising piglets for export; whereas exporting piglets is more profitable for Danish farmers than fattening pigs for slaughter due to low pork prices;

G. Whereas since the financial crisis of 2008, the number of industrial and production jobs in the municipality of Frederikshavn has decreased by 36 %, three times the national rate; whereas although the unemployment in North Jutland is low (3,1 % in August 2023) it is slightly higher than the national average (2,8 %); whereas the number of unemployed people in the region increased by 10 % in 2023 compared to 2022; whereas all of the municipalities were affected; whereas the number of unemployed women remained the same, while men's unemployment increased by 20 %; whereas these gender imbalances in the regional labour market add to difficulties when hiring; whereas men work mainly in the private sector and are overrepresented in agriculture, industry and crafts, while women are overrepresented in public administration, education, health, culture and leisure; whereas the gender breakdown of Danish Crown displaced workers illustrates this imbalance (86 % men and 14 % women); whereas according to FremKom4 analysis, there is shortage of qualified labour in North Jutland, both in the technical field (the green transition) and in care, health and pedagogy (social welfare) which is expected to increase;

H. Whereas Danish Crown complied with Danish law on collective redundancies, which establishes a mandatory procedure for informing and consulting workers representatives; whereas the procedure makes it possible to explore any possibility of avoiding or reducing the number of redundancies; whereas directly after the decision to close down the Sæby site, the management of the enterprise and employee representatives started negotiations of a social plan, which includes offers for outplacement in other Danish Crown sites, individual counselling, job and training interviews, and relocation allowances for those outplaced at another Danish Crown slaughterhouse; whereas an internal career fair, focusing on approximately 400 internal jobs at Danish Crown, was held in May 2023, followed by a bus tour to other Danish Crown slaughterhouses in Denmark; whereas Danish Crown also contributes one million Danish krone (approximately EUR 134 050) to the national co-financing share of the cost of the measures;

I. Whereas Denmark has confirmed that the measures receiving a financial contribution from the EGF will not also receive financial contributions from other Union financial instruments;

J. Whereas Denmark has indicated that the co-ordinated package of personalised services has been drawn up in consultation with the trade union NNF, in compliance with Article 7(4) of Regulation (EU) 2021/691;

K. Whereas the EGF shall not exceed a maximum annual amount of EUR 186 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027;

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution:

1. Recalls that the objective of the EGF is to demonstrate solidarity with, and provide support to beneficiaries; considers that financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into decent and sustainable employment within or outside their initial sector of activity; stresses the importance of preparing workers for the urgently needed green and digital transitions of the European economy and society; reiterates in this context the important role the Union plays, including through the EGF, in contributing to the financing of necessary qualifications for the just transition in line with the European Green Deal;

2. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Denmark is entitled to a financial contribution of EUR 1 882 212 under that Regulation, which represents 60 % of the total cost of EUR 3 137 021, comprising expenditure for personalised services of EUR 2 878 001 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 259 020;

3. Welcomes the fact that Denmark's application was prepared in close collaboration with the municipality of Frederikshavn, the Danish Agency for Labour Market and Recruitment and the Labour Market Council North Denmark, that the municipality of Frederikshavn held a meeting with relevant educational institutions that could be involved in the upskilling/reskilling training to align offer to needs and expectations, as well as the fact that the co-ordinated package of personalised services has been drawn up in consultation with the trade union NNF;

4. Notes that the application relates to 751 displaced workers affected by the closure of Danish Crown's slaughterhouse in Sæby; notes further that 390 displaced workers in total will be targeted beneficiaries and are expected to participate in the measures; acknowledges that profiles of the displaced workers do not correspond to the skills sought in the labour market, as most of the displaced workers have low levels of formal qualifications (46 %) or rather outdated qualifications and skills (40 %) as well as most workers with only primary education belong to the age group of 30-39 years, while most of the workers with vocational education or training (VET) as the highest educational level belong to the age group of 50-59 years; notes that 41 % of the redundant workers have a migrant background and are not fluent in Danish; further notes that 85,90 % are men, 14,10 % are women and 10% are below 30 years; stresses the specific needs of these groups should be taken into account when providing personalised services;

5. Stresses that Denmark has confirmed that the measures supported by the EGF will not receive any financial contributions from other Union financial instruments;

6. Notes that personalised services to be provided to the workers consist of the following measures: (a) motivation (a combination of information, motivation, and counselling, along with workers' profiling), (b) retention (seeking to maintain motivation to participate in educational and upskilling pathways by supporting redundant workers through individual mentoring and advice, helping them resolve challenges and minimize barriers), (c) training on general competences (general adult education that allows improving one or more subjects at primary school level, as well as language skills in Danish), (d) upskilling/reskilling training, and (e) training/job-search allowance;

7. Strongly welcomes the fact that training offers were drawn considering several studies such as Jobbarometer 2023 (an analysis of local labour needs in Frederikshavn, Hjørring, Jammerbugt and Brønderslev Municipality), the Labour Market Balance that provides an overview of possible job openings, and FremKom4 analysis on skills, and that it aims to raise general competencies (including language and numeracy), digital competencies and skills improvement for jobs with skills shortages;

8. Stresses in particular the importance of Article 7.2 of the EGF Regulation, which requires the coordinated package to anticipate future labour market perspectives and required skills, which are compatible with the shift towards a resource-efficient and sustainable economy and with a particular focus on the dissemination of skills required in the digital industrial age;

9. Recalls the possibility for special time-limited measures within the coordinated package including, inter alia, to pay childcare allowances, as provided in Article 7.2 b of the EGF regulation to facilitate job seekers' participation in the activities proposed.

ANNEX: ENTITIES OR PERSONSFROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

Key to symbols:

+ : in favour

- : against

0 : abstention