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Document 52011PC0389
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/2010/030 NL/Noord-Holland and Flevoland 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/2010/030 NL/Noord-Holland and Flevoland 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/2010/030 NL/Noord-Holland and Flevoland Division 18 from the Netherlands)
/* COM/2011/0389 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/2010/030 NL/Noord-Holland and Flevoland Division 18 from the Netherlands) /* COM/2011/0389 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/2010/030
NL/Noord-Holland and Flevoland Division 18 for a
financial contribution from the EGF, following redundancies in 26 enterprises operating in the NACE Revision 2 Division 18 ('Printing
and reproduction of recorded media')[3] in the
NUTS II regions of Noord-Holland (NL32) and Flevoland (NL23) 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/2010/030 Member State || Netherlands Article 2 || (b) Enterprises concerned || 26 NUTS II regions || Noord-Holland (NL32) Flevoland (NL23) 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 || 551 Redundant workers targeted for support || 551 Expenditure for personalised services (EUR) || 2 730 959 Expenditure for implementing EGF[4] (EUR) || 113 789 Expenditure for implementing EGF (%) || 4,0 Total budget (EUR) || 2 844 748 EGF contribution (65 %) (EUR) || 1 849 086 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 an EGF application 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 region of Noord-Holland. 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 551 redundancies in 26
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media')[6] in the NUTS II regions of Noord-Holland (NL32) and Flevoland (NL23) during the nine-month reference period from 16 January 2010 to 16 October 2010. Three hundred of these
redundancies occurred in eight 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 251 redundancies occurred in 18 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 551 redundancies (all
of whom are targeted for assistance) in the following 26 enterprises: Enterprises and number of dismissals Kwak, Van Daalen & Ronday te Zaandam || 25 || Onkenhout Almere || 3 AKS Grafische Afwerking & Drukveredeling, Amsterdam || 35 || Plantijn Casparie Almere || 85 Boekbinderij Mirenta BV, Amsterdam || 5 || Plantijn Casparie Beheer Almere || 9 Beursdrukkerij Costra, Diemen || 80 || Thieme Grafimedia Groep Flevoland || 24 Multiscreen Zwanenburg BV, Zwanenburg || 7 || Grey Amsterdam || 1 Noordhoek Offset BV, Aalsmeer || 13 || Joh. Enschede Amsterdam || 2 Rotatiedrukkerij Voorburgwal (TMG) Amsterdam || 42 || Persgroep Nederland, Amsterdam || 1 Thieme Rotatie BV Amsterdam || 48 || Remmert Dekker, Wormer || 1 Thieme Amsterdam BV || 70 || Sixtyseven BV, Beverwijk || 2 Thieme Print 4U Amsterdam || 24 || Stadtman BV, Hoorn || 1 Ten Klei DM, Amsterdam || 25 || Stolwijk Grafax BV, Diemen || 27 Drukkerij Raat & De Vries, Amsterdam || 15 || Uitgeverij Buijten & Schipperheijn, Amsterdam || 1 Grafisch Bedrijf W&E BV, Almere || 4 || Indrukwekkend BV, Heiloo || 1 Total enterprises: 26 || Total dismissals: 551 || 9.
The break-down of the targeted workers is as
follows: Category || Number || Percent Men || 358 || 65,0 Women || 193 || 35,0 EU citizens || 518 || 94,0 Non EU citizens || 33 || 6,0 15-24 years old || 99 || 18,0 25-54 years old || 303 || 55,0 55-64 years old || 138 || 25,0 > 64 years old || 11 || 2,0 10.
Of the targeted workers 22 are disabled. 11.
In terms of occupational categories, the
break-down is as follows: Category || Number || Percent Manager || 39 || 7,1 Professional || 110 || 20,0 Technicians || 116 || 21,1 Clerical support workers || 66 || 12,0 Service and sales workers || 66 || 12,0 Plant and machine operators and assemblers || 154 || 27,9 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 of
Noord-Holland and Flevoland. Noord-Holland is the province situated in the
north-western part of the Netherlands. With more than 2,5 million people
sharing an area of 2 670 km2, Noord-Holland is the
country’s second most densely populated province. Flevoland, the youngest
province of the Netherlands, consists almost entirely of polders. It was
created during the last century with the exception of the former islands of Urk
and Schokland. Flevoland borders the provinces of Friesland and Overijssel and
is connected to Gelderland, Utrecht and Noord-Holland by bridges and dams. 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 van Amsterdam (government vocational training centre
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.
The economic situation of both provinces
deteriorated in 2009 and its economic growth was negative (-3,9 % in
Noord-Holland and -2,8 % in Flevoland) compared with the previous year. Of
the almost 2 000 graphic media enterprises in the Netherlands 20 %
are located in Noord-Holland and represent 20 % of the jobs in the graphic
media sector while in Flevoland there are 51 graphic media enterprises representing
2,3 % of the jobs in the sector. During 2008 and 2009 employment in the
graphic media enterprises located in Noord-Holland contracted by 15,5 %.
In the neighbouring province of Flevoland the job contraction was 3,2 %.
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. Thus between February 2009 and
February 2010 the number of people searching for a job increased by 10,1 %
in Noord-Holland and 10,4 % in Flevoland. Furthermore, 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 2 730 959 and
the expenditure for implementing the EGF at EUR 113 789 (4 % of
the total amount). The total contribution requested from the EGF is EUR 1 849 086
(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 || 551 || 193 || 106 456 Information and helpdesk || 551 || 86 || 47 314 Work to work counselling || 207 || 3 606 || 746 355 Outplacement || 165 || 4 479 || 738 981 Job interview training || 165 || 1 419 || 234 203 Guidance for starting one's own company || 28 || 4 578 || 128 191 Education || 231 || 2 495 || 576 281 Recognition of prior experience (APL): || 55 || 2 785 || 153 178 Sub total personalised services || || 2 730 959 Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006) Management || || 28 447 Information and publicity || || 28 447 Control activities || || 56 895 Sub total expenditure for implementing EGF || || 113 789 Total estimated costs || || 2 844 748 EGF contribution (65 % of total costs) || || 1 849 086 * 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 1 849 086, 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 2 657 165
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 eight cases currently discussed by the Budgetary
Authority for a total amount of EUR 34 580 464. This available
amount will be used to cover the amount of EUR 1 849 086 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/2010/030 NL/Noord-Holland and Flevoland 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 26
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media') in the NUTS II regions of Noord-Holland (NL32)
and Flevoland (NL23), 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 1 849 086. (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 1 849 086 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)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. […].