Coronavirus: €1.2 million to support 300 dismissed workers in the Basque metal sector
The Commission yesterday proposed 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. 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.
Commissioner for Jobs and Social Rights, Nicolas Schmit, yesterday said:
"The economic crisis caused by the COVID-19 pandemic has hit many people and industries hard. Today the EU is showing solidarity to 300 former workers in the metal sector in the Basque region in Spain, by making available €1.2 million from the EGF. This money will help those affected workers find new jobs with additional skills, or to start their own business. In times of crisis it is of utmost importance that we invest in people.”
As a consequence of the COVID-19 pandemic, in 2020, a third of all enterprises manufacturing fabricated metal products in Spain experienced a decrease between 30% and 50% of both production and turnover, compared to the previous year. Thanks to the EGF, 300 workers laid off from Basque businesses in this sector will receive targeted active labour market support to help them return to work.
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.
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