Coronavirus: €1.2 million to support 300 dismissed workers in the Basque metal sector
Today, the Commission proposes to support 300 former workers in the metal sector in the Basque region in Spain, who lost their jobs due to the COVID-19 pandemic.
© Shutterstock / Norenko Andrey
The proposed €1.2 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) will help these workers find new jobs through further education or training, or to start their own business. This is the first application of the EGF under the new regulation for 2021-2027.
The €1.2 million in support from the EGF will help the Basque authorities finance measures ranging from career guidance and individualised job-search support, to acquiring new or additional skills, vocational and on-the-job training, and support and funding to start an own business.
Training will also help improve digital skills and therefore contribute to the digital transition in the metal industry. Participants can receive allowances for participating in these support measures.
The total estimated cost of the support measures is €1.4 million, of which the EGF will cover 85% (€1.2 million). The Basque public employment service (Lanbide) will cover the remaining amount. Lanbide has already begun offering support to the displaced workers.
The Commission's proposal requires approval by the European Parliament and the Council.
Background
In the second quarter of 2020, Spain introduced strict lockdown measures necessary to contain the COVID-19 pandemic. This has had a significant impact on the activity and turnover of the businesses operating in the manufacture of fabricated metal products sector, with negative consequences on employment and on the liquidity of businesses.
Under the new EGF regulation 2021-2027, the Fund continues to support workers and self-employed whose activity has been lost. The new rules allow supporting more people affected by restructuring events: all types of unexpected major restructuring events can be eligible for support, including the economic effects of the COVID-19 crisis, as well as larger economic trends like decarbonisation and automation. Member States can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.