Decision (EU) 2018/847 on the mobilisation of the European Globalisation Adjustment Fund following an application from Belgium — EGF/2017/010 BE/Caterpillar

Ce que fait l'acte

to mobilise the European Globalisation Adjustment Fund (EGF) to assist Belgium faced with redundancies in the machinery sector. PROPOSED ACT: Decision of the European Parliament and of the Council. CONTENT: the rules applicable to financial contributions from the European Globalisation Adjustment Fund are laid down in Regulation (EU) No 1309/2013 of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006. In this context, the Commission considered the request to mobilise the EGF to assist Belgium and stated the following: The Committee on Budgets adopted the report by Eider GARDIAZABAL RUBIAL (S&D, ES) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund to the amount of EUR 4 621 616 in commitment and payment appropriations to assist Belgium in the event of redundancies in the machinery sector. The European Globalisation Adjustment Fund (EGF) is designed to provide additional support to workers who suffer the consequences of major structural changes in world trade patterns. Belgian request : Belgium submitted application EGF/2017/010 BE/Caterpillar for a financial contribution from the EGF, following 2 287 redundancies in Caterpillar Solar Gosselines and its 5 suppliers in the economic sector of the manufacture of machinery and equipment in the Hainaut region in Belgium. Given that the redundancies are expected to have a significant adverse effect on the local economy, Members agreed with the Commission that the conditions set out in Article 4(1) of the EGF Regulation are met and that Belgium is entitled to a financial contribution of EUR 4 621 616 under that Regulation, which represents 60 % of the total cost of EUR 7 702 69. Reason for the redundancies : Belgium argued that the redundancies are linked to major structural changes in world trade patterns due to globalisation, to worldwide competition in the construction and mining machinery sectors, and to the consequent decrease in the Caterpillar Group’s share in the machinery market. While being aware of the decline in production of the mining sector in Europe and the dramatic decline in EU-28 exports in that sector since 2014, the increase in the European steel price and the high production costs for machines resulting therefrom, in particular compared to China, Members regretted that the Caterpillar Group has decided to allocate the volumes produced in the Gosselies plant to other production units in France (Grenoble) and to other plants outside Europe, including China and South Korea, which resulted in an abrupt shut down of the Gosselies site and the making redundant of 2 300 workers. They also deplored the total lack of information and respect for workers and union representatives, who received no information prior to the closure of the company and that this brutal decision was not made in consultation with the local and regional authorities. Package of personalised services : Members noted that Belgium is planning five types of actions for the redundant workers: individual job search assistance,…