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Document 32000Y0915(01)
Information note on procedures concerning the supplementary social measures in connection with the restructuring of the coal industry (2001-2002)
Information note on procedures concerning the supplementary social measures in connection with the restructuring of the coal industry (2001-2002)
Information note on procedures concerning the supplementary social measures in connection with the restructuring of the coal industry (2001-2002)
OJ C 265, 15.9.2000, p. 2–3
(ES, DA, DE, EL, EN, FR, IT, NL, PT, FI, SV)
In force
Information note on procedures concerning the supplementary social measures in connection with the restructuring of the coal industry (2001-2002)
Official Journal C 265 , 15/09/2000 P. 0002 - 0003
Information note on procedures concerning the supplementary social measures in connection with the restructuring of the coal industry (2001-2002) (2000/C 265/02) 1. Introduction Since the early 1990s, the restructuring of the coal industry has continued at a steady pace with the aim, in some Member States, of bringing production activities to a close. Social aid for workers affected by the restructuring of the coal and the steel industries ("traditional aid") is available under Article 56 of the ECSC Treaty. In recent years, through the Rechar programme (1990-1993)(1) and the social measures for the coal industry (1994-1997 and 1998-2000)(2), the Commission has provided supplementary social aid for coalworkers. The Commission has now decided to make this supplementary aid available for the years 2001 and 2002 (to 23 July 2002, the date of expiry of the ECSC Treaty). The estimated total cost of the programme over the 19 months for which it will apply is EUR 51 million. The new programme is a continuation of the programme currently applying, which provides for an increased level of ECSC support to coalworkers affected by early retirement, redeployment and unemployment measures. No changes are being made either to the levels of aid currently available or to the implementing conditions. 2. Justification of the measure Production costs in the Union's coal industry are, in general, well above world market prices. In view of this, mining companies have for many years been involved in the process of restructuring and rationalisation. Following the closure of the last Portuguese mine in 1995, there are now only four Member States producing coal, namely Germany, Spain, France and the United Kingdom. In Germany, which in terms of production and workforce is now the main coal producer in the Union, a restructuring plan has recently been agreed by the coal industry, the trade unions and the local and federal governments. This will involve significant closures and job losses. A similar plan is in operation in Spain whereas, in France, it has been agreed that all mining will cease in 2005. In the United Kingdom, most of the restructuring in the sector has been carried out and production costs are now substantially lower than elsewhere in the Union. The British coal industry still faces problems in selling its coal, however, particularly given the increased use of natural gas, the low price of coal on the international market and the continuing strength of the pound. The coal industry in Germany, Spain and France currently employs around 95000 workers. It is estimated that, of these, approximately 17500 are likely to be affected by restructuring measures or closures during the period in which the programme will apply. However, given the rules governing intervention currently in force in the Member States, only approximately 13000 will be eligible under this programme. A further 13500 workers are currently employed in the coal industry in the United Kingdom. It is not foreseen that any of these workers whose jobs are affected by restructuring will benefit from the aid provided for in this programme, as the absence of the special national aid required by Article 56 of the ECSC Treaty will render them ineligible (see 3.3 below). 3. Assistance procedures The ECSC aid granted under this programme will supplement the traditional aid granted under Article 56 of the ECSC Treaty. This will make it possible to assume a greater proportion of the cost of the social measures. 3.1. Eligibility All coalworkers who are eligible for traditional aid under Article 56(2)(b) and (1)(c) of the ECSC Treaty will also be eligible for aid under the supplementary programme. The detailed eligibility criteria for traditional aid are defined in the bilateral conventions between the Commission and the Member States. 3.2. Types of measures In general, the ECSC will co-finance all social measures for coalworkers in the Member States which fall under one of the following categories: 3.2.1. Early retirement Measures to pension off older workers on an acceptable income, thereby removing them from the labour market. Part-time or progressive early retirement measures may also be co-financed. 3.2.2. Redeployment Redeployment may be within the mining company or outside it. A wide range of measures may be co-financed, as may a combination of these (compensation for loss of wages, severance grants, geographical mobility payments, etc.). Vocational retraining is however excluded as, since the end of 1994, the ECSC has not contributed to retraining schemes. 3.2.3. Unemployment In some coalmining areas, given the shortage of opportunities for re-employment and the fact that age-related measures may have been exploited to the full, cuts in the workforce may lead to unemployment for certain categories of workers. In this context, aid under the supplementary programme may cover many types of assistance to unemployed workers, particularly tide-over allowances and severance grants. 3.3. Amounts of aid The average ceiling for aid is set at EUR 4000 per person for early retirement and EUR 2000 for redeployment and unemployment. In accordance with the provisions of Article 56 of the ECSC Treaty, the total amount of ECSC aid granted (traditional aid plus supplementary aid) may not exceed the Member State's special contribution to the measures. 3.4. Period of assistance The period of assistance during which the ECSC may co-finance expenditure for a worker will be limited to a maximum of 36 months, reckoned from the date the measure begins. The aid under the supplementary programme may either reinforce Community intervention during the traditional aid period or cofinance the cost of the measures during an additional period of no more than 18 months (early retirement) or 12 months (redeployment and unemployment). 4. Other procedures In principle, the expenditure to be co-financed will be that relating to the programmes of social measures to be implemented from 1 January 2001. However, applications for aid may also relate to measures implemented in 2000 for workers who have lost their jobs or whose jobs have been affected during that year and who have not been included in the applications for supplementary aid for 2000. As a general rule, the procedures and conditions governing aid, other than those specifically set out in this document, will be those included in the bilateral agreements for granting traditional aid. Advances of up to 50 % of the amount granted may be paid at the request of the Member State concerned, subject to its certifying that the measures have begun and its confirmation of the number of workers included. Where this number is lower than forecast, there will be a proportional reduction in the amount to be paid. Final requests for payment must be submitted by 31 March of the fifth year following the decision to grant aid. Unpaid balances will be automatically cancelled on 30 June of the same year. In accordance with the rules governing the plurality of ECSC and ESF aid, a worker may receive combined aid from the two Community instruments for non-simultaneous measures with different aims. Thus, for example, a vocational training course co-financed by the ESF may be preceded or followed by a period giving rise to the co-financing of tide-over allowances by the ECSC. 5. Financial aspects The cost of the programme to the ECSC budget is likely to be around EUR 29 million in 2001 and EUR 22 million in 2002. These figures are indicative and the final allocations will be decided during the annual budgetary procedure. (1) OJ C 185, 26.7.1990, p. 18. (2) OJ C 108, 16.4.1994, p. 3, and OJ C 198, 28.6.1997, p. 6.