Budgets Committee approves €840,000 in EU aid for redundant workers in Spain | WPN World People News

The European Globalisation Adjustment Fund contributes to packages of tailor-made services to help redundant workers find new jobs. The annual ceiling of the fund is €500 million.

Redundant workers are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training. In most cases, national authorities have already started the measures and will get their costs reimbursed from the EU when their applications are finally approved.

The Budgets Committee approved on Thursday €840,000 in European Globalisation Adjustment Funding to help 300 workers who lost their jobs in the construction sector in Valencia get back on to the labour market. The decision still needs to be endorsed by Parliament as a whole and Council.

Some 140 enterprises in the region of Valencia face serious difficulties as the production of non-metallic mineral products (such as concrete, fibreglass insulation products and tiles) has declined significantly since 2008. This negative trend applies to the entire EU but production in Spain has declined more steeply.

Consequently, some 630 workers were made redundant in Valencia. Of these, roughly 300 are expected to take up the measures designed to help them back into work.

Fewer demand for building construction in Spain

Manufacturers of building materials in the Valencia region were hit because the financial crisis had an enormous impact on the demand for new construction projects. In addition they face fierce competition from low-cost countries such as China, Spanish authorities say. The manufacturing sector accounts for 26% of total employment in the region.

Spain applied for help for the enterprises in May 2013. The authorities will receive €840,000 to help the redundant workers in Valencia.

Source: European Parliament