€1.5 million from European Globalisation Adjustment Fund to support dismissed workers in Greece

Today, the European Commission proposes to support 206 workers made redundant in businesses producing household appliances in Attica, Greece, with €1.5 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF). The funding will help these people find new jobs through tailored guidance and advice, training and support to start their own business.

Commissioner for Jobs and Social Rights, Nicolas Schmit, said: “With today’s proposal, the EU is actively helping more than 200 workers who have lost their jobs in Attica, Greece. With €1.5 million of financial assistance from the European Globalisation Fund, we can help them find their way back into the labour market through training and education programmes, job search advice and support to set up their own business.”

Greece applied for EGF support to help the dismissed workers of six manufacturers of household appliances located in the Greek region of Attica. The dismissals occurred because of a combination of different factors, including domestic supply shortages of electrical components and high productions costs, along with difficulties to adapt to the digital transformation and the automation of production processes.

The support to the dismissed workers includes advisory services and individual job search assistance; training in digital skills and tailored vocational training, leading to a certification, where possible, or support to obtain higher education qualifications. Participants can also receive advice on how to start their own business coupled with a start-up grant of up to €22,000. The support includes allowances for the dismissed workers to participate in these measures.

The total estimated cost of these measures is about €1.8 million, of which the EGF will cover 85% (€1.5 million). The Public Investment Programme of the Greek Ministry of Economy and Development will finance the remaining 15%. Support to the eligible workers will start once the funding is approved by the European Parliament and the Council.

Background

The redundancies occurred in six producers of household appliances located in the Greek region of Attica from 1 April to 1 October 2021. Despite the improvement of the past years, the unemployment rate in Greece remains one of the highest in the EU (13.2% in the fourth quarter of 2021). In Attica, the region affected by the redundancies, the number of registered job seekers remains 3.8% higher than before the pandemic (fourth quarter of 2019). In addition, 81% of the dismissed workers have an educational background corresponding to lower secondary education or less. The Greek authorities therefore argue that without additional personalised support these workers will struggle to find new employment.

Under the EGF regulation 2021-2027, the Fund supports dismissed workers and self-employed people who have lost their activity. EGF support is more easily available for people affected by restructuring: all types of unexpected major restructuring events can be eligible for support, including the economic effects of the COVID-19 crisis, as well as larger economic trends like decarbonisation and automation. Member States can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.

Overall, since 2007, the EGF has made available €668 million in 173 cases, offering help to more than 166,000 people in 20 Member States. EGF-supported measures add to national active labour market measures.