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Document 52011PC0388
Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/029 NL/Zuid-Holland and Utrecht Division 18 from the Netherlands)
Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/029 NL/Zuid-Holland and Utrecht Division 18 from the Netherlands)
Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/029 NL/Zuid-Holland and Utrecht Division 18 from the Netherlands)
/* COM/2011/0388 final */
Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/029 NL/Zuid-Holland and Utrecht Division 18 from the Netherlands) /* COM/2011/0388 final */
EXPLANATORY MEMORANDUM Point 28 of the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[1] allows for the mobilisation of
the European Globalisation Adjustment Fund (EGF) through a flexibility
mechanism, within the annual ceiling of EUR 500 million over and
above the relevant headings of the financial framework. The rules applicable to the contributions
from the EGF are laid down in Regulation (EC) No 1927/2006 of the European
Parliament and of the Council of 20 December 2006 on establishing the European
Globalisation Adjustment Fund[2]. On 20 December 2010, the Netherlands
submitted application EGF/2010/029 NL/Zuid-Holland and Utrecht Division 18 for
a financial contribution from the EGF, following redundancies in 52 enterprises
operating in the NACE Revision 2 Division 18 ('Printing and reproduction of
recorded media')[3]
in the NUTS II regions of Zuid-Holland (NL33) and Utrecht (NL31) in the Netherlands. This application is part of a package of
four interrelated applications, all of which concern redundancies in six
different NUTS II regions in the Netherlands in enterprises operating in the
printing and reproduction of recorded media sector. After a thorough examination of this
application, the Commission has concluded in accordance with Article 10 of
Regulation (EC) No 1927/2006 that the conditions for a financial contribution
under this Regulation are met. SUMMARY OF THE APPLICATION AND ANALYSIS Key data: || EGF Reference no. || EGF/2010/029 Member State || Netherlands Article 2 || (b) Enterprises concerned || 52 NUTS II regions || Zuid-Holland (NL33) Utrecht (NL31) NACE Revision 2 Division || 18 ('Printing and reproduction of recorded media') Reference period || 16.1.2010 – 16.10.2010 Starting date for the personalised services || 16.1.2010 Application date || 20.12.2010 Redundancies during the reference period || 800 Redundant workers targeted for support || 800 Expenditure for personalised services (EUR) || 3 912 589 Expenditure for implementing EGF[4] (EUR) || 163 024 Expenditure for implementing EGF (%) || 4,0 Total budget (EUR) || 4 075 613 EGF contribution (65 %) (EUR) || 2 649 148 1.
The application was presented to the Commission
on 20 December 2010 and supplemented by additional information up to 3 March
2011. 2.
The application meets the conditions for
deploying the EGF as set out in Article 2(b) of Regulation (EC) No 1927/2006,
and was submitted within the deadline of 10 weeks referred to in Article 5 of
that Regulation. Link between the redundancies and
major structural changes in world trade patterns due to globalisation or the
global financial and economic crisis 3.
In order to establish the link between the
redundancies and the global financial and economic crisis, the Netherlands
argues that the economic crisis resulted in a substantial decrease in demand
for the graphic media industry. As a consequence the turnover in the graphic
industry decreased by 8,6 % in 2009. The orders from other economic
sectors for printed advertising material, which represents 35 % of the
total turnover of the printing and publishing sector, decreased dramatically
between 2008 and 2009 due to the reduction of budgets for media and advertising
activities induced by the economic crisis. The application cites several
examples. In the construction industry, the budget for information and
publicity was cut by 36,8 % following the start of the crisis; in the
financial sector by 33,2 % and in consumer electronics by 30,6 %. In
addition, the economic crisis negatively affected demand for various types of
printed media material: in 2009, demand for popular magazines decreased by 25,7 %,
for newspapers by 24,4 %, for commercial newspapers distributed free of
charge by 10,54 % and for professional magazines by 23,4 %. 4.
In its assessment on EGF applications related to
the same sector and regions[5],
the Commission has already stated the impact of the economic and financial
crisis on the enterprises operating in the NACE Revision 2 Division 18
('Printing and reproduction of recorded media') in the NUTS II regions of
Zuid-Holland and Utrecht. Demonstration of the number of
redundancies and compliance with the criteria of Article 2(b) 5.
The Netherlands submitted this application under
the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006,
which requires at least 500 redundancies over a nine-month period in
enterprises operating in the same NACE Revision 2 Division in one region or two
contiguous regions at NUTS II level in a Member State. 6.
The application cites 800 redundancies in 52
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media')[6]
in the NUTS II regions of Zuid-Holland (NL33) and Utrecht (NL31) during the
nine-month reference period from 16 January 2010 to 16 October 2010. Of these
redundancies 288 occurred in six enterprises and were calculated in accordance
with the first indent of the second paragraph of Article 2 of Regulation (EC)
No 1927/2006. A further 512 redundancies occurred in 46 enterprises and were
calculated in accordance with the second indent of the same paragraph. Explanation of the unforeseen nature
of those redundancies 7.
The Dutch authorities argue that the financial
and economic crisis and its impact on the sector could not have been foreseen.
The application states that before the crisis the printing and publishing
industry in the Netherlands went through an expensive restructuring process in
order to remain competitive with enterprises from outside the EU. The sector
was transformed from a demand driven to a supply oriented industry which meant
a great deal of effort to prepare employees for the new way of working. The
current crisis bears the risk of cancelling out the benefits of the heavy
investments and efforts made by the sector. Identification of the dismissing
enterprises and workers targeted for assistance 8.
The application relates to 800 redundancies (all
of whom are targeted for assistance) in the following 52 entreprises: Enterprises and number of dismissals Drukkerij Groen te Leiden || 7 || Phytalis, Leidschendam || 1 Den Haag Media Groep Rijswijk || 86 || Schorel Drukkerij BV, Spijk || 1 Alphense Drukkerij, Alphen ad Rijn || 9 || Stadtman BV, Delft || 1 Boekbinderij Bentveld BV, Zoetermeer || 8 || TDS Printmaildata, Schiedam || 1 Jansen Binders BV, Leiden || 65 || TDS Schiedam, Schiedam || 1 United Graphics BV, Zoetermeer || 48 || Thieme Media Services BV , Delft || 12 Molier Specials BV, Rijswijk || 8 || Drukkerij Sonneveld, s Gravenzande ZH || 41 Handelsdrukkerij T. de Vries BV, Ridderkerk || 12 || Binderij Afco Delcour BV, Nieuwegein || 61 Van Marle Drukkerij, Moerkapelle ZH || 3 || Studio 01 BV, Soest || 2 Alkemade Printing BV, Lisse || 16 || Budde Grafimedia, Nieuwegein || 4 Drukkerij Stimuka BV, Rijswijk || 21 || Pfaff Grafische Bindwerken BV, Woerden || 24 Binderij Bruystens BV, Rotterdam || 19 || Drukkerij Van Amerongen BV, Amersfoort || 2 De Groot Drukkerij BV, Goudriaan || 3 || Biegelaar, Maarssen || 35 Koninklijke De Swart BV, 's-Gravenhage || 71 || Plantijn Casparie IJsselstein || 32 Thieme Media Center BV, Rotterdam || 137 || Plantijn Casparie Nieuwegein || 18 Media Balance, Capelle || 1 || KienLabel BV, Nieuwegein || 1 Ark Print, Rotterdam || 1 || Kerckebos Grafische Communicatie, Zeist || 1 Drukkerij van den Ende, R’dam, Zoetermeer || 1 || Waanders Drukkers/Uitg. || 1 Drukkerij van Deventer, ’s Gravenhage || 1 || Drukkerij Linea Recta, Utrecht || 1 Drukkerij de Eendracht, Schiedam || 1 || Boekbinderij Mirenta BV, Den Haag || 1 Drukkerij Dekkers BV, Dordrecht || 1 || Bopack Etiketten Zeist || 1 Drukkerij N. van der Heijden, Rhoon || 2 || Vogelaar Verzenders BV, IJsselstein || 1 Grafisch Bedr. Kapsenbergvanwaesberge BV, Rotterdam || 1 || Drukkerij Zuidam BV, Woerden || 29 Micro Format Systems BV, Lisse || 1 || Drukkerij Ridderhof, Vlaardingen || 1 Neroc BV, Capelle ad IJssel || 1 || Veldwijk Van Loon Graf. Bedr. BV, Waddinxveen || 1 Oranje van Loon, Den Haag || 1 || RotoSmeets, Utrecht || 1 Total enterprises: 52 || Total dismissals: 800 || 9.
The break-down of the targeted workers is as
follows: Category || Number || Percent Men || 520 || 65,0 Women || 280 || 35,0 EU citizens || 752 || 94,0 Non EU citizens || 48 || 6,0 15-24 years old || 144 || 18,0 25-54 years old || 440 || 55,0 55-64 years old || 200 || 25,0 > 64 years old || 16 || 2,0 10.
Of the targeted workers 32 are disabled. 11.
In terms of occupational categories, the
break-down is as follows: Category || Number || Percent Manager || 56 || 7,0 Professional || 160 || 20,0 Technicians || 168 || 21,0 Clerical support workers || 96 || 12,0 Service and sales workers || 96 || 12,0 Plant and machine operators and assemblers || 224 || 28,0 12.
In accordance with Article 7 of Regulation (EC)
No 1927/2006, the Netherlands has confirmed that a policy of equality between
women and men as well as non-discrimination has been applied, and will continue
to apply, during the various stages of the implementation of and, in
particular, in access to the EGF. Description of the territory
concerned and its authorities and stakeholders 13.
The territory concerned covers the provinces Zuid-Holland
and Utrecht. Both provinces belong to the Randstad, the most densely populated
area in the Netherlands. The economic situation of both provinces deteriorated
in 2009 and its economic growth was negative (-3,2 %) compared with the
previous year. Of the almost 2 000 graphic media enterprises in the
Netherlands 26,8 % are located in these two provinces (18,1 % in
Zuid-Holland and 8,7 % in Utrecht) and represent 24,1 % (14,9 %
and 9,2 % respectively) of the jobs in the graphic media sector. 14.
The main authorities concerned are the Ministry
for Social Affairs and Employment (SZW) and the Training Fund for the graphics
and media sector (A&O Fonds Grafimedia) on behalf of Raad for Overleg in de
Grafimedia Branche-ROGB (Council for consultation in the graphics and media
sector). Other relevant stakeholders are the Institute for creative industry
(GOC); the public organisation responsible for allowances (UWV werkbedrijf);
UWV mobility centre; ROC Midden Nederland, ROC Mondriaan (government vocational
training centres at regional level) and the Grafisch Lyceum Rotterdam; the
organisation for SMEs (MKB-ondernemingen); the social partner organisations:
FNV Kiem (trade union), CNV Media (trade union), Koninklijk Verbond van
Grafische Ondernemingen-KVGO (employers' organisation) for the districts
Gelderland/Utrecht, Den Haag and Rotterdam; and NUV (employers' organisation). Expected impact of the redundancies
as regards local, regional or national employment 15.
During 2008 and 2009 employment in the graphic
media enterprises located in Zuid-Holland contracted by 14 % while in
enterprises located in the province of Utrecht it contracted by 20 %. The
Dutch authorities argue that the redundancies in the graphics sector will
aggravate the unemployment situation, which has already deteriorated as a
result of the economic and financial crisis: the number of people searching for
a job increased by 16,1 % between February 2009 and February 2010 in
Zuid-Holland, for Utrecht the increase was 16,3 % for the same period.
Moreover, as there are service companies and suppliers which are extremely
dependent on the graphic media industry the risk of bankruptcies is high and
could cause further problems in the future, even after the crisis. Co-ordinated package of personalised
services to be funded and a breakdown of its estimated costs, including its
complementarity with actions funded by the Structural Funds 16.
The following types of measures are proposed,
all of which combine to form a coordinated package of personalised services
aimed at re-integrating the workers into the labour market. They will be
offered to the dismissed workers through a mobility centre, called Creative
Career Centre (C3). Preparatory activities –
Intake and registration: This covers an initial interview in order to register the dismissed
worker and to identify the most suitable types of measures. –
Information and helpdesk: This relates to collective meetings and a helpdesk function to
provide information to the dismissed workers about the available measures. Counselling –
Work to work counselling: This job to job accompaniment covers an individualised programme
including screening, the establishment of a career and vocational action plan,
labour market orientation and initial counselling at the new workplace. –
Outplacement: This
seeks to give active support to dismissed workers in their exploration of new
job opportunities. –
Job interview training: This covers the analysis of available job vacancies, support for
the drafting of a CV and an application letter and preparation for job
interviews. –
Guidance for starting one's own company: The accompaniment towards business creation seeks to assist
dismissed workers who envisage creating their own business. This covers the
provision of legal advice, assistance for the elaboration of a business plan,
support on administrative requirements. Training –
'Education': This covers vocational
training and re-training, management and social skills training and specific
technical re-training for workers whose technical training has become obsolete. –
Recognition of prior experience (APL): This covers the evaluation of prior knowledge and experience of
individual workers as well as the identification of areas where further
training is required. 17.
The expenditure for implementing the EGF, which
is included in the application in accordance with Article 3 of Regulation (EC)
No 1927/2006, covers management and control activities as well as
information and publicity. 18.
The personalised services presented by the Dutch
authorities are active labour market measures within the eligible actions
defined by Article 3 of Regulation (EC) No 1927/2006. The Dutch authorities
estimate the total costs of these services at EUR 3 912 589 and
the expenditure for implementing the EGF at EUR 163 024 (4,0 %
of the total amount). The total contribution requested from the EGF is
EUR 2 649 148 (65 % of the total costs). Actions || Estimated number of workers targeted || Estimated cost per worker targeted (EUR) || Total costs (EGF and national cofinancing) (EUR)* Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006) Intake and registration || 800 || 193 || 154 716 Information and helpdesk || 800 || 86 || 68 763 WTW counselling || 280 || 3 672 || 1 028 293 Outplacement || 240 || 4 475 || 1 073 988 Job interview training || 240 || 1 418 || 340 376 Guidance for starting one's own company || 40 || 4 657 || 186 304 Education || 336 || 2 492 || 837 530 Recognition of prior experience (APL): || 80 || 2 782 || 222 619 Sub total personalised services || || 3 912 589 Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006) Management || || 40 756 Information and publicity || || 40 756 Control activities || || 81 512 Sub total expenditure for implementing EGF || || 163 024 Total estimated costs || || 4 075 613 EGF contribution (65 % of total costs) || || 2 649 148 * Totals do not tally due to rounding 19.
The Netherlands confirms that the measures
described above are complementary with actions funded by the Structural Funds.
ESF measures are available only for workers in employment while EGF actions aim
to bring back to employment workers already made redundant. The managing
authority for the EGF, which is also managing authority for the ESF, has put in
place the necessary control procedures to eliminate any risk of double funding. Date(s) on which the personalised
services to the affected workers were started or are planned to start 20.
The Netherlands started the personalised
services to the affected workers included in the co-ordinated package proposed
for co-financing to the EGF on 16 January 2010. This date therefore represents the
beginning of the period of eligibility for any assistance that might be awarded
from the EGF. Procedures for consulting the social
partners 21.
The social partners were consulted through the
Foundation Labour Market and Training Fund for the graphics and media sector
(Arbeids & Opleidingsfonds Grafimedia branche), which in the light of the
crisis agreed on the creation of a mobility centre for the sector named C3
(Creative Career Centre). The aim of this mobility centre is to coordinate the
various active labour market measures in consultation with the social partners. 22.
The Dutch authorities confirmed that the
requirements laid down in national and EU legislation concerning collective
redundancies have been complied with. Information on actions that are mandatory
by virtue of national law or pursuant to collective agreements 23.
As regards the criteria contained in Article 6
of Regulation (EC) No 1927/2006, the Dutch authorities in their application: · confirmed that the financial contribution from the EGF does not replace
measures which are the responsibility of companies by virtue of national law or
collective agreements; · demonstrated that the actions provide support for individual workers
and are not to be used for restructuring companies or sectors; · confirmed that the eligible actions referred to above do not receive
assistance from other EU financial instruments. Management and control systems 24.
The Netherlands has notified the Commission that
the financial contribution will be managed and controlled by the same bodies
that manage and control the European Social Fund (ESF) funding in the
Netherlands. The Agency for Social Affairs and Employment (Agentschap SZW) will
be the intermediate body for the managing authority. Financing 25.
On the basis of the application from the
Netherlands, the proposed contribution from the EGF to the coordinated package
of personalised services is EUR 2 649 148, representing 65 %
of the total cost. The Commission's proposed allocation under the Fund is based
on the information made available by the Netherlands. 26.
Considering the maximum possible amount of a
financial contribution from the EGF under Article 10(1) of Regulation (EC) No
1927/2006, as well as the scope for reallocating appropriations, the Commission
proposes to mobilise the EGF for the total amount referred to above, to be
allocated under heading 1a of the financial framework. 27.
The proposed amount of financial contribution
will leave more than 25 % of the maximum annual amount earmarked for the
EGF available for allocations during the last four months of the year, as
required by Article 12(6) of Regulation (EC) No 1927/2006. 28.
By presenting this proposal to mobilise the EGF,
the Commission initiates the simplified trialogue procedure, as required by
Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to
securing the agreement of the two arms of the budgetary authority on the need
to use the EGF and the amount required. The Commission invites the first of the
two arms of the budgetary authority that reaches agreement on the draft
mobilisation proposal, at appropriate political level, to inform the other arm
and the Commission of its intentions. In case of disagreement by either of the
two arms of the budgetary authority, a formal trialogue meeting will be
convened. 29.
The Commission presents separately a transfer
request in order to enter in the 2011 budget specific payment appropriations,
as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Source of payment appropriations 30.
An amount of EUR 5 306 313
remains available on the EGF Budget line 04.0501 after adoption by both arms of
the Budgetary Authority of three Decisions totalling an amount of EUR 10 371 321,
and taking into account the seven cases currently discussed by the Budgetary
Authority for a total amount of EUR 31 931 316. This available
amount will be used to cover the amount of EUR 2 649 148 needed
for the present application. Proposal for a DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL on the mobilisation of the European Globalisation
Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement
of 17 May 2006 between the European Parliament, the Council and the Commission
on budgetary discipline and sound financial management (application
EGF/2010/029 NL/Zuid-Holland and Utrecht Division 18 from the Netherlands) 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 the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[7], and in particular point 28
thereof, Having regard to Regulation (EC) No
1927/2006 of the European Parliament and of the Council of 20 December 2006
establishing the European Globalisation Adjustment Fund[8], and in particular Article
12(3) thereof, Having regard to the proposal from the European
Commission[9], Whereas: (1) The European Globalisation
Adjustment Fund (EGF) was established to provide additional support for workers
made redundant as a result of major structural changes in world trade patterns
due to globalisation and to assist them with their reintegration into the
labour market. (2) The scope of the EGF was
broadened for applications submitted from 1 May 2009 to include support for
workers made redundant as a direct result of the global financial and economic
crisis. (3) The Interinstitutional
Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual
ceiling of EUR 500 million. (4) The Netherlands submitted
an application to mobilise the EGF, in respect of redundancies in 52
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media') in the NUTS II regions of Zuid-Holland (NL33)
and Utrecht (NL31), on 20 December 2010 and supplemented it by additional
information up to 3 March 2011. This application complies with the requirements
for determining the financial contributions as laid down in Article 10 of
Regulation (EC) No 1927/2006. The Commission, therefore,
proposes to mobilise an amount of EUR 2 649 148. (5) The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by the Netherlands. HAVE ADOPTED THIS DECISION: Article 1 For the general budget of the European
Union for the financial year 2011, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 2 649 148 in
commitment and payment appropriations. Article 2 This Decision shall be published in the Official
Journal of the European Union. Done at [Brussels/Strasbourg], For the European Parliament For
the Council The President The
President [1] OJ C 139, 14.6.2006, p. 1. [2] OJ L 406, 30.12.2006, p. 1. [3] Regulation (EC) No 1893/2006 of the European
Parliament and of the Council of 20 December 2006 establishing the statistical
classification of economic activities NACE Revision 2 and amending Council
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific
statistical domains (OJ L 393, 30.12.2006, p. 1). [4] In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006. [5] COM(2010)529. Proposal for a Decision of the European
Parliament and of the Council on the mobilisation of the European Globalisation
Adjustment Fund […] application EGF/2009/027 NL/Noord-Brabant and Zuid-Holland
Division 18 and COM (2010) 530. Proposal for a Decision of the
European Parliament and of the Council on the mobilisation of the European
Globalisation Adjustment Fund […] application EGF/2009/026 NL/Noord-Holland and
Utrecht Division 18. [6] Regulation (EC) No 1893/2006 of the European
Parliament and of the Council of 20 December 2006 establishing the statistical
classification of economic activities NACE Revision 2 and amending Council
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific
statistical domains (OJ L 393, 30.12.2006, p. 1). [7] OJ C 139, 14.6.2006, p. 1. [8] OJ L 406, 30.12.2006, p. 1. [9] OJ C […], […], p. […].