European Globalisation Adjustment Fund
The European Globlisation Adjustment Fund (EGF) aims to help workers made redundant as a result of changing global trade patterns to find another job as quickly as possible. The fund was launched by the European Union in 2007 and aims to provide up to €500 million a year in support to eligible areas across the EU.
While EU Structural Funds take a strategic and long-term approach towards change management, employment and lifelong learning, the EGF provides one-off, time-limited individual support geared to helping workers who are 'severely and personally affected by trade-adjustment redundancies'.
Starting from 1st January 2007, the EGF is funding active labour market policies focused entirely on helping workers affected by globalisation-related redundancies, for example through:
Job-search assistance, occupational guidance, tailor-made training and re-training including IT skills and certification of acquired experience, outplacement assistance and entrepreneurship promotion or aid for self-employment;
Special time-limited measures, such as job-search allowances, mobility allowances or allowances to individuals participating in lifelong learning and training activities;
Measures to stimulate in particular disadvantaged or older workers, to remain in or return to the labour market.
It is intended to complement the support already provided by employers and national authorities in terms of active employment measures. It is not intended to fund passive social protection measures such as retirement pensions or unemployment benefits, which are the competence of the Member States.
Who could benefit from EGF?
Malta’s Application for assistance from EGF
Malta has applied for assistance from EGF because of a number of unforeseen redundancies which recently occurred in two large manufacturing companies as a result of economic globalisation. Since the redundancies affected a percentage of the labour force, urgent action needed to be taken to reintegrate such workers into the labour market.
The Maltese application for EGF support was submitted to the European Commission on 12th September 2007 and concerns assistance consisting of €1,362,414 - of which €681,207 or 50% would consist of EGF contribution.
The main aim of this application is to assist workers which were made redundant through the closure / relocation of two manufacturing companies, namely VF Ltd and Bortex Clothing Ind. Co. Ltd. operating in the textile industry in Malta. The European Commission is currently assessing the Maltese application.
Through EGF funds, Malta aims to implement the following actions and measures to reintegrate these redundant workers into the labour market:
Profiling: Each employee will be provided with information about employment and training opportunities and will also be assisted to identify courses which could help him or her develop new or updated skills to enhance his/her possibilities for employment;
Occupational Guidance: Each redundant employee will have the possibility to consult recognised occupational guidance officers;
Training and Testing: Each redundant employee will be offered the possibility of undertaking training measures or trade testing in order to validate his/her experience. The courses or trade tests should be in areas that are relevant to update or acquire new skills to make the redundant workers more employable;
Entrepreneurial Start-Ups: Start-up grants will be offered to those redundant employees that would want to start-up a new business venture;
Redeployment Scheme: Employers engaging redundant employees will be offered a redeployment grant corresponding to half the minimum national wage for a maximum of 17 weeks.
Job-search Allowance: A job search allowance will be offered per week to redundant employees between months seven and twelve of their unemployment (as they are entitled to unemployment benefits for the first six months). The job-search allowance will be conditional upon active participation in labour market measures, in consultation with the Employment and Training Corporation employment advisors. This grant will be given for a maximum of six months.
Contacts
The Planning and Priorities Coordination Division is the National Focal Point for EGF in Malta.
Click here to contact the National Focal Point for advice and assistance.
Links
Further information on this mechanism may be accessed from the European Globalisation Adjustment Fund website set up by the European Commission - DG Employment, Social Affairs and Equal Opportunities.