Budgets MEPs back €1.36 million in EU aid for redundant workers in Finland

More than 500 workers made redundant by electrical manufacturer Broadcom Communications Finland and two suppliers should get EU aid worth €1.36 million to help them find new jobs, said the Budgets Committee on Tuesday. The European Globalisation Adjustment Fund (EGF) aid still needs to be approved by Parliament as a whole and the EU Council of Ministers.

Chipset developer Broadcom Communications closed down all its activities in Finland in response to the relocation of manufacturing away from Europe, mostly to Asia. As a result, the company made, 568 workers redundant across Finland, including 424 in the worst-hit region,, Northern Ostrobothnia.

The redundancies are part of a trend affecting the entire Finnish electronics industry, which culminated in Nokia´s announcement of large-scale redundancies in 2011.

The measures co-financed by the EGF would use coaching and training schemes, start-up grants, and hiring incentives to help over 500 redundant workers to find new jobs

The total estimated cost of the operation towards which the EGF would contribute is €2.2 million. The remainder would be paid by the Finnish authorities.

Background

The European Globalisation Adjustment Fund contributes to packages of tailor-made services to help redundant workers find new jobs. Its annual ceiling is €500 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 the measures and will get their costs reimbursed from the EU when their applications are finally approved.

Next steps

The European Parliament as a whole will vote on the aid application at its July plenary session. The EU Council of Ministers also needs to approve it, at a meeting scheduled for 13 July.

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

REF. : 20150622IPR69256