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The European Globalisation Adjustment Fund for Displaced Workers (EGF) was set up by the European Union in late 2006 to support to workers (not companies or institutions) who have been made redundant as a result of trade liberalisation, so that they can either remain in employment or find a new job quickly. It provides counselling; job search and mobility allowances; new ICT skills and other forms of training; entrepreneurial support, including micro-credits.
Since 2007 EGF has received more than 100 applications from 20 EU member states for programs that would support more than 100,000 workers who either lost their jobs due to globalization (56%) or as a result of the global economic and financial crisis (44%). The hardest-hit industries were in automobile manufacturing (22.5%), machinery and equipment (13.5%), textile and apparel (12%), computers, mobile phones and ICT (11.6%) and construction (9.6%). [1]
The Fund is activated upon request of a member state when a company (whether national, multinational or SMEs) lays off more than 1,000 people either in an enterprise, or in a sector within a region, due to structural changes in world trade. The Fund seeks to intervene when redundancies have a significant impact on a region or a sector and therefore there is an EU dimension in terms of scale and impact.
The EGF is open to all persons who work legally in the EU. It operates under the principle of subsidiarity, and in a system of shared management between the European Commission and the member state. Responsibility for implementing the EGF lies with the authorities of the member states. The maximum amount available through the EGF is €500 million per year for the period of 2007 to 2013.
Since 1 January 2007, the EGF has been funding active labour market policies helping workers made redundant as a result of globalisation, for example through:
It complements support provided by the employers and national authorities concerned in terms of active labour market policy measures; it does not fund passive social protection measures such as retirement pensions or unemployment benefits. Member states can also use EGF money to publicize activities highlighting the EGF's role in their support for workers.
The EU Structural Funds, in particular the European Social Fund (ESF), consist of multi-annual programmes [2] in support of strategic, long-term goals, and management of change and restructuring in the 2007–2013 period, with activities such as lifelong learning. The EGF is a response to a specific, European-scale crisis; it provides one-off, time-limited individual support geared directly to helping workers who have become redundant for reasons related to international trade.
The European Commission proposed that, in addition to its current scope, the Fund should be able to support workers made redundant as a result of the global financial and economic crisis on 16 December 2008. In addition, it proposes to reduce the threshold of redundancies from the current 1,000 to 500, to extend the period of each case from 12 to 24 months, and to increase its contribution from 50% of total cost to 75% (the rest being contributed by the member state). This proposal was submitted to the Council and the European Parliament in December 2008. It is expected that the amendment will be adopted in mid-2009. There is a need of this fund because the difference in labour costs at the international level remains an important determinant of the geographical distribution of production, because the large apparel companies are constantly seeking production bases lower labour costs. Additionally, the ongoing globalisation of trade has intensified this situation. The search for lower labour costs have led to significant changes in the image of global apparel industry. The production of clothing gradually moved from Europe to Asia, which now accounts for nearly 45% of global garment production. [3]
Unemployment, according to the OECD, is persons above a specified age not being in paid employment or self-employment but currently available for work during the reference period.
Laurent Fabius is a French politician serving as President of the Constitutional Council since 8 March 2016. A member of the Socialist Party, he previously served as Prime Minister of France from 17 July 1984 to 20 March 1986. Fabius was 37 years old when he was appointed and is, so far, the youngest Prime Minister of the Fifth Republic.
Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed people. In the United States, benefits are funded by a compulsory governmental insurance system, not taxes on individual citizens. Depending on the jurisdiction and the status of the person, those sums may be small, covering only basic needs, or may compensate the lost time proportionally to the previous earned salary.
Vladimír Špidla is a Czech politician who served as Prime Minister of the Czech Republic from July 2002 to August 2004 and as European Commissioner for Employment, Social Affairs and Equal Opportunities from November 2004 to February 2010. He also served as chief adviser to Prime Minister Bohuslav Sobotka from 2014 to 2017.
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK benefit from a minimum charter of employment rights, which are found in various Acts, Regulations, common law and equity. This includes the right to a minimum wage of £8.91 for over-25-year-olds under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempts to limit excessively long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995.
The European Trade Union Confederation (ETUC) is the major trade union organisation representing workers at European level. European integration has reinforced the EU's role in economic, employment and social policy throughout the 28 Member States. The ETUC is a European social partner, which means that the European Commission consults it when developing social and economic policies. It also negotiates autonomous agreements and work programmes with European employers. And it coordinates the national and sectoral policies of its affiliates on social and economic matters, particularly in the framework of the EU institutional processes, including European economic governance and the EU Semester.
Trade Adjustment Assistance (TAA) is a federal program of the United States government to act as a way to reduce the damaging impact of imports felt by certain sectors of the U.S. economy. The current structure features four components of Trade Adjustment Assistance: for workers, firms, farmers, and communities. Each cabinet-level department was tasked with a different sector of the overall Trade Adjustment Assistance program. The program for workers is the largest, and administered by the U.S. Department of Labor. The program for farmers is administered by the U.S. Department of Agriculture, and the firms and communities programs are administered by the U.S. Department of Commerce.
Flexicurity is a welfare state model with a pro-active labour market policy. The term was first coined by the social democratic Prime Minister of Denmark Poul Nyrup Rasmussen in the 1990s.
Decent work is employment that "respects the fundamental rights of the human person as well as the rights of workers in terms of conditions of work safety and remuneration. ... respect for the physical and mental integrity of the worker in the exercise of his/her employment."
The European Social Fund+ (ESF+), created by merging the existing European Social Fund with the EU Fund for European Aid to the Most Deprived (FEAD) and the EU Programme for Employment and Social Innovation (EaSI) in 2021, is the European Union's main financial instrument for supporting employment in the member states of the European Union as well as promoting economic and social cohesion. ESF+ spending amounts to around 10% of the EU's total budget.
The European Metalworkers' Federation (EMF), founded in 1971, is a federation of 68 metalworkers' unions from 31 countries, representing a combined total of 6.5 million affiliates. It is based in Brussels, Belgium, the general secretary is Ulrich Eckelman and Bart Samyn is the Deputy General Secretary. The organisation was dissolved on 15 May 2012, to become a part - together with EMCEF and ETUF-TCL - of the newly created organisation industriAll European Trade Union on 16 May 2012
The Commissioner for Jobs and Social Rights is a member of the European Commission. The position was previously titled as the Commissioner for Employment, Social Affairs, Skills and Labour Mobility until 2019.
In Italy, unemployment benefits are guaranteed by the Constitution. Article 38 states "[...] workers have the right to the provision of financial support sufficient to meet their needs in case of accidents at work, ill health, disability, old age and involuntary unemployment [...]". Esping-Andersen traces in this persistency the origins of the chronically high Italian unemployment rates.
The Italian welfare state is based upon the corporatist-conservative model, as described by Gøsta Esping-Andersen, one of the world's foremost sociologists working on the analysis of welfare states.
On 26 November 2008, the European Commission proposed a European stimulus plan amounting to 200 billion euros to cope with the effects of the global financial crisis on the economies of the members countries. It aims at limiting the economic slowdown of the economies through national economic policies, with measures extended over a period of two years.
European labour law regulates basic transnational standards of employment and partnership at work in the European Union and countries adhering to the European Convention on Human Rights. In setting regulatory floors to competition to for job-creating investment within the Union, and in promoting a degree of employee consultation in the workplace, European labour law is viewed as a pillar of the "European social model". Despite wide variation in employment protection and related welfare provision between member states, a contrast is typically drawn with conditions in the United States.
Ebrahim Patel is a South African cabinet minister, who holds the position of Minister of Trade, Industry and Competition. He previously served as Minister of Economic Development from 2009 to 2019.
Just Transition is a framework developed by the trade union movement to encompass a range of social interventions needed to secure workers' rights and livelihoods when economies are shifting to sustainable production, primarily combating climate change and protecting biodiversity. It has been endorsed internationally by governments in different arenas, including the International Labour Organization (ILO), the United Nations Framework Convention on Climate Change (UNFCCC) in the Paris Agreement, and the Katowice Climate Conference (COP24) and the European Union.
International labour law is the body of rules spanning public and private international law which concern the rights and duties of employees, employers, trade unions and governments in regulating the workplace. The International Labour Organization and the World Trade Organization have been the main international bodies involved in reforming labour markets. The International Monetary Fund and the World Bank have indirectly driven changes in labour policy by demanding structural adjustment conditions for receiving loans or grants. Issues regarding Conflict of laws arise, determined by national courts, when people work in more than one country, and supra-national bodies, particularly in the law of the European Union, has a growing body of rules regarding labour rights.
Andrey Grishev Novakov is a Bulgarian politician from the GERB political party and a member of the European parliament (MEP) as part of the political group of the European People's Party EPP. He is the youngest Member of the European Parliament and one of the youngest in the history of this institution.