“All these redundancies occurred in the Spanish province of Alicante in sectors that are not linked, which proves that the impact of the financial and economic crisis on employment is ever more widespread,” said EU Commissioner for Employment, Social Affairs and Inclusion László Andor. He added: “The EGF is one of the ways the EU can help redundant workers back into work and I am confident these workers will benefit from the training support the fund can provide.”

Textiles sector

The Spanish application relates to 544 redundancies in 143 enterprises operating in the textiles sector. Since the end of the World Trade Organisation Multi-Fibre Arrangement at the end of 2004, imports of textile and clothing articles into the EU from lower-cost countries have been increasing exponentially and EU producers, including those in Spain, are faced with a highly competitive market.

The economic and financial crisis put extra pressure on the sector and aggravated the existing difficulties. Traditionally, the trend in the European textile sector is considered to be linked to the behaviour of household consumption. As a result of the crisis demand for industrial products decreased due to declining consumer confidence and the lack of cash, with redundancies as a consequence.

At local level these redundancies represent, in the five municipalities most affected, 35.13 % of the unemployment increase in the manufacturing sector during the period April 2009-January 2010.

The package of EGF assistance for the former workers of the textile industry will help 350 of the most disadvantaged back into employment by offering them various options of training, promotion of entrepreneurship and accompaniment towards business creation, intensive job-search assistance and allowances and incentives. The total estimated cost of the package is almost €3.2 million, of which the European Union has been asked to provide EGF assistance of €2 059 466.

Cutting, shaping and finishing of stone sector

The Spanish application relates to 528 redundancies in 66 enterprises operating in cutting, shaping and finishing of stone for construction. The demand for finished natural stone products (flooring, facing of buildings, etc) is closely linked to demand in the construction sector, which is influenced by the number of new-builds and demand for renovations and upgrading. In 2009 the construction sector experienced a significant downturn, mainly due to the decrease in private investment for residential purposes.

The number of workers dismissed in cutting, shaping and finishing of stone in the province of Alicante, relatively stable in the period 2005-2007, increased by 405 % in the two subsequent years. Traditionally the major economic sectors in Alicante have been the manufacture of shoes along with leather, textiles and marble.

The employment outlook in the affected area seems particularly fragile, given the impact of the crisis in the textile enterprises already mentioned and the fact that the cutting, shaping and finishing of stone has been considered during recent years as the safety net for the workers made redundant in other sectors.

The package of EGF assistance for the workers made redundant in cutting, shaping and finishing of stone will help the 300 most disadvantaged back into employment by offering them information, screening and occupational guidance, training and retraining, promotion of entrepreneurship and training in business management, a monitor on equal opportunities, and incentives. The total estimated cost of the package is almost €2,2 million, of which the European Union has been asked to provide EGF assistance of €1 422 850.

Background

There have been 65 applications to the EGF since the start of its operations in January 2007, for a total amount of about €373.6 million, helping more than 70,000 workers. EGF applications relate to the following sectors: automotive (France, Spain, Portugal, Austria, Germany, Sweden); textiles (Italy, Malta, Lithuania, Portugal, Spain and Belgium); mobile phones (Finland and Germany); domestic appliances (Italy); computers and electronic products (Ireland and Portugal); mechanical/electronic (Denmark and Germany); repair and maintenance of aircraft and spacecraft (Ireland); crystal glass (Ireland); ceramics and natural stone (Spain); construction (Netherlands, Ireland and Lithuania); carpentry and joinery (Spain); electrical equipment (Lithuania) publishing and printing industry (Netherlands), furniture (Lithuania), retail trade (Czech Republic and Spain) and wholesale trade (Netherlands). Final reports from the earlier cases supported by the EGF show strong results in helping workers stay in the labour market and find new jobs.

The EGF, an initiative first proposed by President Barroso to provide help for people who lose their jobs due to the impact of globalisation, was established by the European Parliament and the Council at the end of 2006. In June 2009, the EGF rules were revised to strengthen the role of the EGF as an early intervention instrument. It forms part of Europe's response to the financial and economic crisis. The revised EGF Regulation entered into force on 2 July 2009 and applies to all applications received from 1 May 2009 onwards.