EUROPEAN COMMISSION - PRESS RELEASE
€1.4 million from EU Globalisation Fund to help 680
workers in Portugal's shoe industry
Brussels, 17 August 2011 - The European Commission has approved an
application from Portugal for assistance from the EU Globalisation Adjustment Fund
(EGF). The grant of € 1.4 million will help 680 redundant workers in shoe
manufacturing to find new jobs. The Commission is making a proposal to the
European Parliament and the Council of the European Union to mobilise the
budgetary resources.
Introducing the proposal, EU Commissioner for Employment, Social Affairs and
Inclusion László Andor said: "The EGF is an effective financial instrument of the EU
to help workers facing large-scale redundancies. Those in the Portuguese shoe
manufacturing industry have been hit by changing world trade patterns as well as
the economic and financial crisis of the recent years. Today's decision will support
the former Rohde workers on the road to new jobs through training to give them the
necessary skills."
The Portuguese application relates to 974 redundancies in Rohde - Sociedade
Industrial de Calçado Luso-Alemã, Lda. - a shoe manufacturing company.
Rohde kept a stable position on the market despite the increasing difficulties due to
intensified competition mainly from Asia shoe producers. The situation of Rohde
was, however, affected by the decrease in sales and the reduced capacity to invest,
resulting from the financial and economic crisis. These circumstances, including the
declining orders from the parent enterprise based in Schwalmstadt, Germany,
affected the situation of the Rohde factory based in Santa Maria da Feira, Portugal,
and as a result, insolvency proceedings started in September 2009, leading to the
eventual closure of the factory and the dismissal of the workers.
The territory concerned is mainly the municipality of Santa Maria da Feira where
Rohde was established. In addition, the redundancies affect the contiguous
municipality of Ovar. These are located respectively within the Norte and Centro
regions. The loss of Rohde adds close to 1,000 workers to the job-seekers in the
two regions, which are suffering higher unemployment rates than the country as a
whole. Both regions were already accepted for EGF support in June 2009 (see
IP/09/998). Norte was accepted again for EGF support in September 2010 (see
IP/10/1089).
The package of EGF assistance for the ex-workers of Rohde - Sociedade Industrial
de Calçado Luso-Alemã, Lda will include skills recognition, vocational training,
grants for training at personal initiative, entrepreneurship training and support to
business creation, support to self-placement and hiring incentives. The total
estimated cost of this package is €2.23 million, of which the European Globalisation
adjustment Fund has been asked to fund €1.44 million. 680 of the 974 workers
made redundant will benefit from the EGF assistance.
IP/11/964
Background
There have been 78 applications to the EGF since the start of its operations in
January 2007, for a total amount of about €355 million, helping nearly 76,000
workers. EGF applications are being presented in a growing number of sectors, and
by an increasing number of Member States.
EGF applications relate to the following 25 sectors: automotive (Austria, Belgium,
Germany, France, Poland, Portugal, Sweden, Spain); textiles (Belgium, Italy,
Lithuania, Portugal, Spain); wearing apparel (Malta, Lithuania, Slovenia, Spain);
construction of buildings (Ireland, Italy, Lithuania, Netherlands, Spain); specialised
construction (Ireland); architectural and engineering (Ireland); machinery and
equipment (Denmark, Germany, Poland); printing industry (Netherlands); electronic
equipment (Austria, Netherlands, Portugal); retail trade (Czech Republic, Greece,
Spain); mobile phones (Finland, Germany); basic metals (Austria, Bulgaria);
domestic appliances (Italy, Lithuania); computers (Ireland); shipbuilding (Denmark);
furniture (Lithuania); carpentry and joinery (Spain); ceramics (Spain); stone/marble
(Spain); crystal glass (Ireland); shoe manufacture (Portugal); publishing
(Netherlands); wholesale trade (Netherlands); aircraft maintenance (Ireland); road
transport (Austria).
The EGF, an initiative first proposed by President Barroso to provide help for
people who lose their jobs due to the impact of globalisation, was established by
the European Parliament and the Council at the end of 2006. In June 2009, the
EGF rules were revised to strengthen the role of the EGF as an early intervention
instrument. It forms part of Europe's response to the financial and economic crisis.
The revised EGF Regulation entered into force on 2 July 2009 and applies to all
applications received from 1 May 2009 onwards.
As part of its proposal for the next Multiannual Financial Framework, the
Commission has proposed that the EU should continue to express solidarity with
redundant workers and the affected regions through the EGF also in the future.
Further information
EGF website
Video News Releases:
Europe acts to fight the crisis: the European Globalisation Fund revitalised
Facing up to a globalised world – The European Globalisation Fund
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Contacts :
Cristina Arigho (+32 2 298 53 99)
Maria Javorova (+32 2 299 89 03)
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