Employment, Social Affairs & Inclusion

News 27/04/2021

Globalisation: European Commission proposes € 1.1 million to support 500 dismissed foundry workers in Germany

Today, the European Commission proposes to support close to 500 former workers of the metal-works factories of GMH Guss in Germany, who lost their employment after several client companies relocated their production to countries outside the European Union.

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The proposed €1.1 million from the European Globalisation Adjustment Fund (EGF) will help those people to find new jobs through guidance and vocational orientation, trainings to develop or acquire new skills, and support for starting up their own business.

Commissioner for Jobs and Social Rights, Nicolas Schmit, said: "The EGF is a clear sign of EU solidarity with workers and self-employed who face job losses due to major structural changes. The €1.1 million of financial support from the EGF proposed today will help close to 500 former workers of GMH Guss in Germany to find a way back into employment through mentoring and retraining.”

GMH Guss and its subsidiaries are suppliers to the automotive and shipbuilding industry. After clients of the company relocated their production to non-EU countries in Eastern Europe and Asia, Germany applied for EGF support to workers dismissed in four subsidiaries of GMH Guss. The EGF assistance will extend the duration of some of the individual active labour market measures and complement standard measures provided by the public employment services with personalised support.

The measures co-financed by the EGF range from job search assistance, guidance counselling and vocational orientation, to acquiring additional skills and advice on starting up an own business. Mentoring after reemployment and a training allowance are also part of the support package.

The total estimated cost of the measures is €1.8 million, of which the EGF will provide €1.1 million. The remaining amount will be financed by the German authorities.

The Commission's proposal will need to be approved by the European Parliament and the Council.

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