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Commission proposes €840,000 from Globalisation Fund to help redundant building materials workers in Spain

16/09/2013 Workers and building materials

The European Commission has proposed to provide Spain with €840,000 from the European Globalisation Adjustment Fund (EGF) to help 300 workers made redundant in the manufacture of building materials in Comunidad Valenciana (Spain), to find new jobs.

The funds, requested by the Spanish authorities, would help former workers from 140 small and medium-sized businesses. The proposal now goes to the European Parliament and the EU's Council of Ministers for approval.

Spain applied for support from the EGF following the dismissal of 630 workers in 140 small and medium sized companies making building materials such as plasterboard and concrete products in the region of the Comunidad Valenciana.

The dismissals were the result of increased competition from building materials produced elsewhere in the world, compounded by the economic crisis. China increasingly dominates the world market in building materials, with countries such as India continuing to increase their production.

The EGF co-financed measures would help the 300 workers facing most difficulties in finding new jobs by providing them with one-to-one counselling and guidance; skills assessment and outplacement; general training and re-training; individual vocational training; entrepreneurship promotion and support; outplacement incentives, job-search allowance and a contribution to commuting expenses.

The total estimated cost of the package is €1.68 million, of which the EGF would provide €840,000.