Today, the European Commission proposed to support 835 workers dismissed in the German steel industry with €3 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF).
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In November 2023, Germany applied for EGF funding to help the workers dismissed by steel tubes producer Vallourec, after the company decided to close its German tube mills to move production to Brazil.
The support includes guidance, including counselling and vocational orientation, job search assistance like job scouting or participation in job fairs, as well as training offers. Former workers can also receive funding of up to €22,000 for starting their own business. They can receive allowances when they participate in support measures such as training courses, and bonus payments or salary top-ups when they start a new job.
The total estimated cost of the measures is about €5 million, of which the EGF will cover 60% (€3 million). The remaining 40% (€2 million) will be financed through the German Federal budget and the German Public Employment Service. Support to the eligible workers started in December 2023, with displaced workers being able to benefit from the entire range of support measures since January 2024.
The Commission’s proposal requires approval by the European Parliament and the Council.
Background
French steel company Vallourec S.A. decided to sell its German tube mills location in Mülheim and move production to Brazil in November 2021. As no successor was found to operate the facilities, it has been decided to close the sites in three phases, with the last group of workers expected to leave the company by 1 January 2025.
Under the EGF regulation 2021-2027, the Fund supports displaced workers and self-employed people who have lost their activity. EGF support is available for people affected by all types of unexpected major restructuring events, including the economic effects of Russia’s unjustified invasion of Ukraine and other sources of geopolitical instability, as well as larger economic trends like decarbonisation and automation. Member States can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.
Overall, since 2007, the EGF has made available €691 million in 178 cases, offering help to more than 168,000 people in 20 Member States. EGF-supported measures add to national active labour market measures.
Through its funding for the training and education of dismissed workers, the EGF contributes to the EU’s efforts to support skills development. The European Year of Skills puts skills centre-stage, to support people so they get the right skills for quality jobs, and to help address skills shortages in the EU.