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Thursday, September 11, 2014

Budgets Committee approves aid for redundant workers

by  KG/EUROPA Redundant workers in the building industry in two Dutch regions, at a Greek bakery, and at a steel producer in Romania would receive European Globalisation Adjustment Fund aid to help them find new jobs. Moreover, redundant workers in wood product manufacturing in Castilla y León and in the food and beverage services industry in Aragón will receive aid too. Building industry in The Netherlands The Dutch authorities applied for support after 89 building firms in the Gelderland and Overijssel provinces were forced to make workers redundant due to a lack of orders linked to the global financial and economic crisis. The crisis led to declines in bank lending to small and medium-sized firms, public spending and house prices.. The €1,625,781 in EGF aid will pay for training and other measures to help to 475 redundant workers back into jobs. Bakery in Greece Ailing Greek baker Nutriart and its suppliers made 508 people redundant in the regions of Attica and Central Macedonia. The crisis meant households could no longer afford Nutriart’s fresh or frozen bakery products, and the companies’ management was disrupted by delays in payments from most of their clients. At the same time,Greek banks proved to be unable to provide credit. The €6,096,000 in EGF aid will pay for counselling, re-training and job-search assistance to help the 508 redundant workers back into work. It will also help pay for training for 505 young people without jobs and not in education in Central Macedonia, which has a youth unemployment rate of 60.4%. Steel producers in Romania The Romanian authorities applied for EGF aid to help 1,000 workers made redundant by steel product maker Mechel Campia Turzii and its supplier. Demand for finished and semi-finished steel products manufactured by these companies fell sharply mainly due to imports from China, which forced Mechel, one of the largest employers in the Cluj County region, to downsize. EGF aid has been requested five times for redundant steel workers, as the EU share of world steel production is in steep decline. The €3,571,150 EGF aid will help pay inter alia for vocational guidance, starting up new firms and providing mentoring after landing a job. Wood products in Castilla y León Workers in three firms in the Castilla y León region were made redundant due to shrinking global demand for builders' joinery and carpentry wood products. Firms in the region lost 37% of their export market in 2008-2011;and by 2013 22.3% of them had closed shop. This resulted in over 500 redundancies, exacerbating unemployment problems in a scarcely-populated region whose local economy is heavily dependent on wood products. The €700,000-worth of EGF aid will help about 400 of those made redundant to find new jobs through information sessions, occupational guidance, job search assistance and promotion of entrepreneurship. Food and beverages services in Aragón Spain requested EGF support for the ailing food and beverages service sector in Aragón, a region particularly heavily hit when former customers cut back on eating and drinking out in response to the financial and economic crisis. While the decline in the sector averaged 3.5% in Spain as a whole, in Aragón it reached 11%. The €960,000 in EGF support will help 280 redundant workers to find new jobs through counselling, re-training and job-search assistance.


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