2011/2125(BUD)

Mobilisation of the European Globalisation Adjustment Fund: redundancies in printed circuit board manufacturing in Austria

Procedure completed

2011/2125(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in printed circuit board manufacturing in Austria
RoleCommitteeRapporteurShadows
Lead BUDG MATERA Barbara (EPP)
Opinion EMPL
Lead committee dossier: BUDG/7/06289
Subjects
Links

Activites

  • 2011/10/07 Final act published in Official Journal
  • 2011/09/14 Budgetary text adopted by Parliament
    • T7-0369/2011 summary
    • Results of vote in Parliament
  • 2011/08/23 Budgetary report tabled for plenary, 1st reading
  • 2011/08/23 Budgetary report tabled for plenary, 1st reading
  • 2011/07/18 Draft budget approved by Council
  • #3107
  • 2011/07/18 Council Meeting
  • 2011/07/13 Vote in committee, 1st reading/single reading
  • 2011/07/12 Prev Adopt in Cte
  • 2011/07/01 Deadline Amendments
  • 2011/06/23 Committee referral announced in Parliament, 1st reading/single reading
  • 2011/06/17 Committee draft report
  • 2011/06/10 Non-legislative basic document published
    • COM(2011)0339 summary
  • 2011/06/10 Date
  • 2011/06/10 Non-legislative basic document
    • COM(2011)0339 summary
    • DG Budget, LEWANDOWSKI Janusz

Documents

AmendmentsDossier
3 2011/2125(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in printed circuit board manufacturing in Austria
2011/01/07 BUDG 3 amendments...
source: PE-469.743

History

(these mark the time of scraping, not the official date of the change)

2012-02-09
activities added
  • date
    2011-06-10
    docs
    • url
      http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2011&nu_doc=0339
      text
      • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in printed circuit board manufacturing in Austria.

        PROPOSED ACT: Decision of the European Parliament and of the Council.

        CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

        The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

        The Commission services have carried out a thorough examination of the application submitted by Austria to mobilise the EGF. The main elements of the assessment are as follows:

        Austria:EGF/2010/008 AT/AT&S: on 11 March 2010, Austria submitted application EGF/2010/008 AT/AT&S for a financial contribution from the EGF, following redundancies in AT&S in Austria. The application was supplemented by additional information up to 22 February 2011.

        In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Austria argues that the production of printed circuit boards (PCBs) in Europe has for some time followed the same trend as the European mobile phone sector, i.e. mass production is being transferred to low-wage economies, mainly Asia and more specifically China. A large part of mobile phones and devices are produced in Asia, and almost three quarters of the world's PCB volume is produced there (proximity factor). Austria further argues that by approving several EGF applications in the mobile phone sector, the Commission has already recognised in the past that such a transfer of production  capacities represents a structural shift in world trade patterns.

        Following the drop in demand for circuit boards (- 40% in the business year 2008/2009 as compared to the previous year), AT&S decided in November 2008 to transfer its entire PCB mass production from Leoben to Shanghai resulting in a far-reaching downsizing of the Styrian site and a chain of lay-offs over more than a year. Only small and medium-sized batch production for the European market remains in Austria, supplying mainly the EU's automotive and industrial sectors.

        Austria submitted the application under the intervention criterion of Article 2(c) of Regulation (EC) No 1927/2006. This provision allows applicants to derogate from the requirements of Articles 2(a) and 2(b) in small labour markets or in exceptional circumstances when redundancies have a serious impact on employment and the local economy. In this case the applicant must specify which of the main eligibility requirements its application fails to meet, and thus from which it is seeking a derogation.

        The Austrian authorities specified that the application seeks to derogate from Article 2(a), where the normal threshold is at least 500 redundancies over a four-month period. The application cites 167 redundancies in the AT&S Leoben site over the four-month reference period from 1 September 2009 to 31 December 2009, all calculated in accordance with the second indent of the second paragraph of Article 2 of Regulation (EC) No 1927/2006.

        The Commission services consider that the 167 redundancies in question along with the redundancies due to the same cause before the four-month reference period have a serious impact on employment and the economy at local and NUTS III level, and that, in combination with the particularity in respect of the mass redundancy notification rules in Austria, the exceptional circumstances criterion of Article 2(c) of Regulation (EC) No 1927/2006 is met.

        On the basis of the application from Austria, the proposed contribution from the EGF to the coordinated package of personalised services is EUR 1 221 128, representing 65% of the total cost.

        IMPACT ASSESSMENT: no impact assessment was carried out.

        FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

        The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year, as required by Article 12(6) of Regulation (EC) No 1927/2006.

        By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

        An amount of EUR 8 523 405 remains available on the EGF Budget line 04.0501 after adoption by both arms of the Budgetary Authority of two Decisions totalling an amount of EUR 777 390, and taking into account the four cases currently discussed by the Budgetary Authority for a total amount of EUR 38 308 155. This available amount will be used to cover the amount of EUR 1 221 128 needed for the present application.

      title
      COM(2011)0339
      type
      Non-legislative basic document published
      celexid
      CELEX:52011PC0339:EN
    body
    type
    Non-legislative basic document published
  • body
    EP
    date
    2011-06-10
    type
    Date
  • date
    2011-06-10
    docs
    • url
      http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2011&nu_doc=0339
      text
      • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in printed circuit board manufacturing in Austria.

        PROPOSED ACT: Decision of the European Parliament and of the Council.

        CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

        The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

        The Commission services have carried out a thorough examination of the application submitted by Austria to mobilise the EGF. The main elements of the assessment are as follows:

        Austria:EGF/2010/008 AT/AT&S: on 11 March 2010, Austria submitted application EGF/2010/008 AT/AT&S for a financial contribution from the EGF, following redundancies in AT&S in Austria. The application was supplemented by additional information up to 22 February 2011.

        In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Austria argues that the production of printed circuit boards (PCBs) in Europe has for some time followed the same trend as the European mobile phone sector, i.e. mass production is being transferred to low-wage economies, mainly Asia and more specifically China. A large part of mobile phones and devices are produced in Asia, and almost three quarters of the world's PCB volume is produced there (proximity factor). Austria further argues that by approving several EGF applications in the mobile phone sector, the Commission has already recognised in the past that such a transfer of production  capacities represents a structural shift in world trade patterns.

        Following the drop in demand for circuit boards (- 40% in the business year 2008/2009 as compared to the previous year), AT&S decided in November 2008 to transfer its entire PCB mass production from Leoben to Shanghai resulting in a far-reaching downsizing of the Styrian site and a chain of lay-offs over more than a year. Only small and medium-sized batch production for the European market remains in Austria, supplying mainly the EU's automotive and industrial sectors.

        Austria submitted the application under the intervention criterion of Article 2(c) of Regulation (EC) No 1927/2006. This provision allows applicants to derogate from the requirements of Articles 2(a) and 2(b) in small labour markets or in exceptional circumstances when redundancies have a serious impact on employment and the local economy. In this case the applicant must specify which of the main eligibility requirements its application fails to meet, and thus from which it is seeking a derogation.

        The Austrian authorities specified that the application seeks to derogate from Article 2(a), where the normal threshold is at least 500 redundancies over a four-month period. The application cites 167 redundancies in the AT&S Leoben site over the four-month reference period from 1 September 2009 to 31 December 2009, all calculated in accordance with the second indent of the second paragraph of Article 2 of Regulation (EC) No 1927/2006.

        The Commission services consider that the 167 redundancies in question along with the redundancies due to the same cause before the four-month reference period have a serious impact on employment and the economy at local and NUTS III level, and that, in combination with the particularity in respect of the mass redundancy notification rules in Austria, the exceptional circumstances criterion of Article 2(c) of Regulation (EC) No 1927/2006 is met.

        On the basis of the application from Austria, the proposed contribution from the EGF to the coordinated package of personalised services is EUR 1 221 128, representing 65% of the total cost.

        IMPACT ASSESSMENT: no impact assessment was carried out.

        FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

        The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year, as required by Article 12(6) of Regulation (EC) No 1927/2006.

        By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

        An amount of EUR 8 523 405 remains available on the EGF Budget line 04.0501 after adoption by both arms of the Budgetary Authority of two Decisions totalling an amount of EUR 777 390, and taking into account the four cases currently discussed by the Budgetary Authority for a total amount of EUR 38 308 155. This available amount will be used to cover the amount of EUR 1 221 128 needed for the present application.

      title
      COM(2011)0339
      type
      Non-legislative basic document
      celexid
      CELEX:52011PC0339:EN
    body
    EC
    commission
    • DG
      Budget
      Commissioner
      LEWANDOWSKI Janusz
    type
    Non-legislative basic document
  • date
    2011-06-17
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE467.188
      type
      Committee draft report
      title
      PE467.188
    body
    EP
    type
    Committee draft report
  • date
    2011-06-23
    body
    EP
    type
    Committee referral announced in Parliament, 1st reading/single reading
    committees
  • body
    EP
    date
    2011-07-01
    type
    Deadline Amendments
  • body
    EP
    date
    2011-07-12
    type
    Prev Adopt in Cte
  • date
    2011-07-13
    text
    • The Committee on Budgets adopted the report drafted by Barbara MATERA (EPP, IT) on the proposal for a decision of the European Parliament and of the Council on mobilisation of the European Globalisation Adjustment Fund for an amount of EUR1 221 128 in commitment and payment appropriationsin respect of redundancies in printed circuit board manufacturing in Austria.

      Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

      Given that Austria has requested assistance in respect of cases concerning 167 redundancies (of which 74 targeted for assistance) in the enterprise AT&S specialized in the printed circuit boards manufacturing in the district of Leoben located in the region of Eastern Upper Styria, and that this application fulfils the eligibility criteria set up by the EGF Regulation, Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount.

      Members recall the institutions' commitment to ensuring a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing one-off, time-limited individual support geared to helping workers who have suffered redundancies as a result of globalisation and the financial and economic crisis.

      They also recall that:

      • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
      • the information provided by the Commission on the coordinated package of personalised services to be funded from the EGF includes detailed information on the complementarity with actions funded by the Structural Funds (the committee reiterates its call to present a comparative evaluation of these data in the Commission annual reports as well);
      • the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds.

      Members welcome the fact that, following repeated requests from the Parliament, for the first time the 2011 budget shows payment appropriations of EUR 47 608 950 on the EGF budget line 04 05 01. This dedicated allocation will avoid transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the various policies objectives.

    body
    EP
    committees
    type
    Vote in committee, 1st reading/single reading
  • date
    2011-07-18
    body
    type
    Draft budget approved by Council
  • date
    2011-07-18
    body
    CSL
    type
    Council Meeting
    council
    General Affairs
    meeting_id
    3107
  • date
    2011-08-23
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2011-0279&language=EN
      type
      Budgetary report tabled for plenary, 1st reading
      title
      A7-0279/2011
    body
    type
    Budgetary report tabled for plenary, 1st reading
  • date
    2011-08-23
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2011-0279&language=EN
      type
      Budgetary report tabled for plenary, 1st reading
      title
      A7-0279/2011
    body
    EP
    type
    Budgetary report tabled for plenary, 1st reading
  • date
    2011-09-14
    docs
    body
    EP
    type
    Budgetary text adopted by Parliament
  • date
    2011-10-07
    text
    • PURPOSE: to mobilise the European Globalisation Adjustment Fund in respect of redundancies in printed circuit board manufacturing in Austria.

      NON-LEGISLATIVE ACT: Decision 2011/653/EU of the European Parliament and of the Council on mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/008/AT/AT&S from Austria).

      CONTENT: the European Parliament and the Council have decided that for the general budget of the European Union for the financial year 2011, the European Globalisation Adjustment Fund (EGF) shall be mobilised to provide the sum of EUR1 221 128 in commitment and payment appropriations.

      This amount is to assist in respect of redundancies in printed circuit board manufacturing in Austria.

      Noting that the application from Austria fulfils the eligibility criteria set up by the EGF Regulation (Regulation (EC) No 1927/2006), the European Parliament and the Council have decided to mobilise the requested amount.

      To recall, the European Globalisation Adjustment Fund (EGF) was established to provide additional support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation and to assist them with their reintegration into the labour market. The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual ceiling of EUR 500 million.

      The scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis.

    type
    Final act published in Official Journal
    docs
committees added
  • body
    EP
    responsible
    True
    committee
    BUDG
    date
    2011-06-27
    committee_full
    Budgets
    rapporteur
    • group
      EPP
      name
      MATERA Barbara
  • body
    EP
    responsible
    False
    committee_full
    Employment and Social Affairs
    committee
    EMPL
links added
other added
  • body
    EC
    dg
    Budget
    commissioner
    LEWANDOWSKI Janusz
procedure added
dossier_of_the_committee
BUDG/7/06289
reference
2011/2125(BUD)
title
Mobilisation of the European Globalisation Adjustment Fund: redundancies in printed circuit board manufacturing in Austria
geographical_area
  • Austria
stage_reached
Procedure completed
subtype
Mobilisation of funds
type
BUD - Budgetary procedure
final
subject

code AGPLv3.0+, data ODBLv1.0, site-content CC-By-Sa-3.0
© European Union, 2011 – Source: European Parliament