- Galicia’s shipbuilding industry hit hard by increased global competition
- EU to co-fund career guidance, job search support, training, and tutoring and guidance after finding another job
Former shipbuilding workers from Galicia should receive €2,054,400 in EU aid to help them re-integrate into the labour market, following a Budgets Committee vote on Monday.
Spain requested support from the European Globalisation Adjustment Fund (EGF) after 960 workers were laid off in 38 small and medium-sized companies in the shipbuilding ancillary sectors in Galicia between May 2019 and February 2020. Around 500 redundant workers are expected to participate in the support measures co-financed by the EGF.
The EU’s declining market share in global ship production and increased external competition in the sector have had dire consequences on the ancillary shipbuilding industry in Galicia, according to the Commission’s proposal.
This is the first application to be examined under the 2020 EU budget and the seventh in the shipbuilding sector. The EGF aid will cover 60% of the total cost, which amounts to €3.4 million. The package aims to provide the former workers with career guidance, support in their job search, opportunities to learn new skills through vocational training, and tutoring and guidance after finding another job.
The draft report by rapporteur Valérie Hayer (RENEW, FR) recommending that Parliament approve the aid was passed by 37 votes to 1, with 2 abstentions.
Next steps
To take effect, the aid has to be approved by a plenary vote in Parliament, scheduled for the 19-23 October session, and by the Council.
Background
The European Globalisation Adjustment Fund was set up to help workers made redundant due to major changes in world trade patterns or as a result of unexpected financial and economic crises. Since its conception in 2007, the Fund has received 161 applications. Some €636 million has been requested to offer help to more than 151,000 workers and 4,429 young people who are not in employment, education or training.
