92000E3359

WRITTEN QUESTION E-3359/00

by Ilda Figueiredo (GUE/NGL) to the Commission

(27 October 2000)

Subject: Mass redundancy

Vesticom, a clothing firm which forms part of the UK multinational Coats Viyella Clothing, is based in Torres Vedras, Portugal, and employs almost 300 people. It has, according to the Sindicato dos Trabalhadores Têxteis, Lanificios e Vestuário do Sul (Trade Union of Southern Textile, Wool and Clothing Workers), announced that it intends to issue redundancy notices to the entire workforce.

Vesticom set up business in Torres Vedras almost 27 years ago, and closure will harm the whole region, by cutting job opportunities, increasing dole queues and reducing its wealth creation capacity by PTE 1 billion. The closure is all the more unacceptable in view of the firm's high quality workforce, facilities and products.

Can the Commission tell me:

1. What measures it intends to take to prevent yet another instance of hundreds of workers being laid off on mass by a multinational;

2. Whether the firms in question have received any Community funding, either in Portugal or the UK?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(22 December 2000)

1. The Honourable Member refers to the problems raised by a possible collective redundancy announced by a company in Torres Vedras, Portugal.

Community law, through the consolidating Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies(1), aims to establish arrangements and procedures for collective redundancies together with measures designed to alleviate the consequences of redundancy for workers.

As Portugal has transposed this Directive into national law, it is the national courts and administrative authorities which are responsible for resolving any disputes relating to the case in point.

2. According to the information supplied by the Portuguese authorities, the Vesticom company received a Community contribution of 8 477 from the European Regional Development Fund in connection with an investment project worth 16 960 approved on 19 March 1996 as part of the Industry sub-programme of the operational programme Modernising the economic fabric.

A search of the Department of Education and Employment's projects and payments databases and the United Kingdom database for Coats Viyella, using the registered name of Coats Viyella PLC and related trading names(2), did not find any European Social Fund payments.

(1) OJ L 225, 12.8.1998.

(2) Coats; Madura Coats Ltd; Coats India; Madura Textiles; Jaeger; Viyella; Van Heuson; Ladybird; Coats Crafts UK; Coats Fabra; Barbour Threads.