Decision (EU) 2015/2458 on the mobilisation of the European Globalisation Adjustment Fund (application from Ireland — EGF/2015/006 IE/PWA International)

What it is

to mobilise the European Globalisation Adjustment Fund (EGF) in order to assist Ireland in dealing with redundancies in its aviation maintenance sector. PROPOSED ACT: Decision of the European Parliament and of the Council. CONTENT: Article 12 of Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 provides that the EGF is not to exceed a maximum annual amount of EUR 150 million (2011 prices). The rules applicable to financial contributions from the European Globalisation Adjustment Fund (EGF) 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. The Committee on Budgets adopted the report by Victor NEGRESCU (S&D, RO) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, for an amount of EUR 442 293 in commitment and payment appropriations in order to assist Ireland in dealing with redundancies in its aviation maintenance sector. Members recalled that the Union set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns or of the global financial and economic crisis and to assist their reintegration into the labour market. Irish application : Ireland submitted application EGF/2015/006 IE/PWA International for a financial contribution from the EGF following 108 redundancies in PWA International Ltd (PWAI), operating in the NACE Rev. 2 division 33 ('Repair and installation of machinery equipment') in the NUTS level 2 region of Southern and Eastern Ireland. All redundant workers are expected to participate in the measures. Given that the application does not fulfil the traditional eligibility criteria set down by the EGF Regulation in terms of number of redundancies and is submitted under the intervention criteria of Article 4(2) of that Regulation, which allows for derogation under exceptional circumstances, Ireland is entitled to a financial contribution under that Regulation. Nature of the redundancies : Members noted that Ireland specialised in the Maintenance Repair and Overhaul (MRO) sector in the 1990's, which served it well at that time, but made it particularly vulnerable to the recent trend to locate MRO activity near centres of global aviation expansion, i.e. Asia. Members also noted that although the South Dublin unemployment rate (11.61 %) is only slightly higher than the national average (10.83 %), these figures conceal pockets of considerable local disadvantage and that the closure of PWAI has had a serious impact on employment and on the local, regional or national economy. According to members, the EGF should be reformed to either clarify the derogation criteria set out in Article 4(1) of the EGF Regulation, or lower the threshold of 500 workers being made redundant. A package of personalised services : Members welcomed the fact that, in order to provide workers with speedy assistance, the Irish authorities decided…

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