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Commission proposes €3.6 million from Globalisation Fund to help 1000 redundant workers in Romanian steel industry

07/05/2014 Commission proposes €3.6 million from Globalisation Fund to help 1000 redundant workers in Romanian steel industry

The European Commission has proposed to provide Romania with €3.6 million from the European Globalisation Adjustment Fund (EGF) to help 1 000 former workers of the steel products manufacturer SC Mechel Campia Turzii SA and the downstream producer SC Mechel Reparatii Targoviste SRL to find new jobs.

The measures co-financed by the EGF would help 1 000 workers in finding new jobs by providing them with:

  • career guidance and skills assessment,
  • training,
  • support to entrepreneurship, and
  • a variety of allowances.

One of the flagship measures will be to help 250 of the workers to set up a cooperative enterprise that will manufacture sports equipment.

The total estimated cost of the package is €7.14 million, of which the EGF would provide half.

Romania applied for support from the EGF following the dismissal of more than 1 500 workers in Mechel Campia Turzii and in Mechel Reparatii Targoviste in the Cluj region of Romania. The dismissals were the result of increased competition from steel products manufacturers elsewhere in the world.

The proposal now goes to the European Parliament and the EU's Council of Ministers for approval.