EU job-search aid for redundant workers at French trucking firm Mory-Ducros

Around 2,500 redundant workers of the former French road haulage company Mory-Ducros, which closed in 2014, should get EU aid worth €6 million to help them back into work, said Budgets Committee MEPs in a vote on Wednesday. The European Globalisation Adjustment Fund aid still needs to be approved by Parliament as a whole and the Council of Ministers.

Global economic crisis

With 4,500 vehicles on the road each day, Mory-Ducros, France's former number two road haulage firm, ran into serious difficulties when the 3.5 tonne truck haulage market declined by 21% in global economic crisis years 2007 to 2012. Volumes to be transported decreased, while petrol prices rose and a price war broke out in the sector. By November 2013, the company was insolvent, finally closing in May 2014.

Around half of its employees were re-employed in a new company, but over 2,000 were left unemployed.

The French authorities applied for €6,052,200 in EGF aid to provide advice for the remaining 2,513 laid off workers. They will receive expert guidance on individual career paths and training to develop job search skills. The EGF contribution comes on top of other measures already taken by the French state.

Next steps

Parliament as a whole is to vote on the application at its plenary session on 15 April March. The Council, for its part, decides on 20 April.

Background

The European Globalisation Adjustment Fund was set up to provide additional support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation or the financial crisis and to help them find new jobs. Between 2014 and 2020, the annual ceiling of the fund is €150 million.

Redundant workers are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training. In most cases, national authorities have already started taking measures and have their costs reimbursed by the EU when their applications are finally approved.

In the chair: Mr Jean Arthuis (ALDE, FR)

REF. : 20150331IPR39738

Updated: ( 01-04-2015 - 10:57)