Support to workers affected by imminent job displacement in enterprises undergoing restructuring - Timeline

Draft opinion of the Committee

Amendment

The EESC stresses the need to integrate social economy players into the skills and employment support ecosystem. It also advocates tailored support measures for vulnerable groups, such as disadvantaged, disabled and older workers, ensuring that the amendments improve social inclusion and equity.

The EESC stresses the need to integrate social economy players into the skills and employment support ecosystem where appropriate . It also advocates tailored support measures for vulnerable groups, such as disadvantaged, disabled and older workers, ensuring that the amendments improve social inclusion and equity.

Outcome of the vote

In favour:

68

Against:

88

Abstention:

5

Draft opinion of the Committee

Amendment

The EESC points out that regions in the EU experience varying levels of economic resilience. Regions heavily reliant on specific industries, such as coal or manufacturing, are particularly vulnerable to job displacement. Tailored support for these regions is essential to ensure that restructuring does not deepen regional inequalities. Regional and local authorities together with social partners should be actively involved in the decision-making process regarding the implementation of support measures. Their insights into local labour market conditions and needs can make the proposed measures more effective. The EESC suggests establishing frameworks for monitoring and evaluating the effectiveness of support programmes at regional level. This will help ensure that measures are adjusted based on real-time data and feedback from affected communities.

The EESC points out that regions in the EU experience varying levels of economic resilience. Regions heavily reliant on specific industries, such as coal or manufacturing, are particularly vulnerable to job displacement. Tailored support for these regions is essential to ensure that restructuring does not deepen regional inequalities. Regional and local authorities together with social partners should be actively involved in the decision-making process regarding the implementation of support measures. Their insights into local labour market conditions and needs can make the proposed measures more effective. The EESC suggests that the frameworks provided by EGF for monitoring and evaluating the effectiveness of support programmes at regional level are rigorously used . This will help ensure that measures are adjusted based on real-time data and feedback from affected communities.

Outcome of the vote

In favour:

67

Against:

101

Abstention:

5

Draft opinion of the Committee

Amendment

All companies receiving aid should be required to submit comprehensive transition plans that include legal obligations related to the climate and digital transitions, an assessment of anticipated employment impacts across various worker categories, a skills analysis for affected workers , occupational health and safety considerations, mitigation strategies such as upskilling, redeployment and job-sharing, as well as the implementation of clawback mechanisms to ensure accountability in the use of funds and adherence to these plans

The EESC has earlier called for a just transition package for a just transition policy package for the world of work through anticipation and management of change , with social dialogue and collective bargaining as leading principles[3]. This policy package should include measures such as for instance creating strong incentives for companies to: prioritise the upskilling of current employees to fill skills gaps; to develop , publish and regularly update company transition plans that anticipate change and develop strategies to manage the possible impacts; and encourage increased apprenticeship and training levy contributions in accordance with national models to partially fund the training of workers at regional level[4].

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Outcome of the vote

In favour:

67

Against:

111

Abstention:

5

Draft opinion of the Committee

Amendment

Need for a comprehensive and coherent strategy for anticipating and managing change at company level

Anticipating and managing change at company level

Outcome of the vote

In favour:

69

Against:

111

Abstention:

13

Draft opinion of the Committee

Amendment

The objective of the proposed measures is to promote the socially responsible management of restructuring processes by enterprises. In the EU internal market, socially responsible restructuring is intrinsically linked to effective social dialogue and active employee involvement, both of which are core principles of the European Pillar of Social Rights (EPSR). A range of legal instruments, such as Directive 98/59/EC[5] on collective redundancies, already exists to ensure the implementation of these principles before, during and after restructuring takes place. Early anticipation is also an essential element in seeking to alleviate the social consequences of restructuring.

The objective of the proposed measures is to promote the socially responsible management of restructuring processes by enterprises. In the EU internal market, socially responsible restructuring is intrinsically linked to effective social dialogue and active employee involvement according to national practices , both of which are core principles of the European Pillar of Social Rights (EPSR). A range of legal instruments, such as Directive 98/59/EC[5] on collective redundancies, already exists to ensure the implementation of these principles before, during and after restructuring takes place. Early anticipation is also an essential element in seeking to alleviate the social consequences of restructuring.

ELI: http://data.europa.eu/eli/dir/1998/59/oj.

ELI: http://data.europa.eu/eli/dir/1998/59/oj.

Outcome of the vote

In favour:

65

Against:

117

Abstention:

5

Draft opinion of the Committee

Amendment

The EESC calls for greater coherence and alignment between these funds and other support mechanisms. Clear provisions should be established to prevent duplication, ensure complementarity and promote joint planning and implementation. Given the current climate of economic uncertainty, a comprehensive assessment of the adequacy of all available funding sources is essential. This evaluation should consider whether the existing financial framework is sufficient to address the scale and nature of labour market disruptions . Coordination between national and EU authorities is crucial, alongside robust auditing and evaluation frameworks. The proposal should also acknowledge the importance of aligning with other EU policies, such as trade, industrial and social policies, to ensure a cohesive approach to labour market challenges and job displacement issues.

The EESC calls for greater coherence and alignment between these funds and other support mechanisms. Clear provisions should be established to prevent duplication, ensure complementarity and promote joint planning and implementation. Given the current climate of economic uncertainty, a comprehensive assessment of the adequacy of all available funding sources is essential. This evaluation should consider whether the existing financial framework is sufficient to address the scale and nature of labour market transitions . Coordination between national and EU authorities is crucial, alongside robust auditing and evaluation frameworks. The proposal should also acknowledge the importance of aligning with other EU policies, such as trade, industrial and social policies, to ensure a cohesive approach to labour market challenges and job displacement issues.

Outcome of the vote

In favour:

68

Against:

117

Abstention:

0

Draft opinion of the Committee

Amendment

The current European Commission proposal claims that enterprises undergoing restructuring often have limited resources to support affected workers. However, this assumption requires further scrutiny, particularly regarding the means available in the enterprises and the potential risk that the measures co-financed by the EGF are not actually going towards the workers facing imminent risk of displacement but rather towards the rest of the company’s workforce. Further scrutiny is also required regarding the potential risk of poor corporate management that may have contributed to the need for restructuring . Involvement of workers’ representatives in identifying training needs and co-designing courses can be a good prerequisite to ensure effective scrutiny. The proposal could also emphasise the importance of involving affected workers in the planning and implementation of support measures, ensuring that their voices are heard and their specific needs are met. Transparency regarding the company’s economic and financial situation and sufficient opportunities for talking to the workers at risk will help the representatives to play this role.

The current European Commission proposal indicates that enterprises undergoing restructuring often have limited resources to support affected workers. Involvement of workers’ representatives in identifying training needs and co-designing courses in line with national practices can be a good prerequisite to ensure effective scrutiny. Article 7(4) of the EGF Regulation already emphasises the importance of involving affected workers in the planning and implementation of support measures, ensuring that their voices are heard and their specific needs are met. Transparency regarding the company’s economic and financial situation and sufficient opportunities for talking to the workers at risk , in line with the existing legislation and the national industrial relations systems, will help the representatives to play this role.

Outcome of the vote

In favour:

59

Against:

113

Abstention:

4

Draft opinion of the Committee

Amendment

Another element for further scrutiny is the size of enterprises eligible for support. The proposed threshold for EGF applications requires at least 200 workers to be at risk of redundancy. Small and medium-sized enterprises (SMEs), which provide approximately 80 % of employment in the EU , fall outside the scope and are often the most vulnerable during transitions. As shown by the OECD Programme for the International Assessment of Adult Competencies (PIAAC), which measures the cognitive and workplace skills of individuals, workers in SMEs participate less in formal and informal job-related training than workers in large firms, with an average difference of 15 percentage points across countries . Furthermore, workers for subcontractors of the restructuring company who are affected by imminent job displacement are ineligible for the packages provided for under the fund . Both types of companies may lack the administrative and financial capacity to manage such transitions responsibly.

Another element for further scrutiny is the size of enterprises eligible for support. The proposed threshold for EGF applications requires at least 200 workers to be at risk of redundancy. Small and medium-sized enterprises (SMEs), which provide approximately 80 % of employment in the EU are often the most vulnerable during transitions and are covered in line with Article 4(3) and 4(4) of the EGF Regulation . As shown by the OECD Programme for the International Assessment of Adult Competencies (PIAAC), which measures the cognitive and workplace skills of individuals, workers in SMEs participate less in formal and informal job-related training than workers in large firms, with an average difference of 15 percentage points across countries. These companies may lack the administrative and financial capacity to manage such transitions responsibly.

Outcome of the vote

In favour:

59

Against:

115

Abstention:

3

Draft opinion of the Committee

Amendment

The EESC urges the Commission to exercise caution regarding the limited resources available in the EGF and to undertake further investigation to establish stronger safeguards and concrete criteria to ensure that funds are prioritised for and effectively reach vulnerable workers. This should include clearer definitions of company eligibility for support. Just transition plans should be mandatory for all enterprises receiving aid, particularly in sectors undergoing digital and green transitions. Such plans should encompass elements including legal obligations related to the climate and digital transitions, anticipated employment impacts across various worker categories, skills assessments of affected workers , and mitigation strategies such as up- and reskilling, redeployment and job-sharing. Preference should be given to training packages that are offered during working hours without income loss to strongly encourage participation .

The EESC urges the Commission to exercise caution regarding the limited resources available in the EGF and to undertake further investigation to assess if there is a need to establish stronger safeguards and concrete criteria to ensure that funds are prioritised for and effectively reach vulnerable workers.

Outcome of the vote

In favour:

64

Against:

108

Abstention:

2

Draft opinion of the Committee

Amendment

Given the pace of digital transformation, the EESC advocates more focused training on digital and technological skills, ensuring workers are prepared for the evolving job market. Emotional and psychological impacts of job displacement are significant but often overlooked[6]. The proposal should also include provisions for mental health services and counselling to support workers during the transition period.

Given the pace of digital transformation, the EESC advocates more focused training on digital and technological skills, ensuring workers are prepared for the evolving job market. Emotional and psychological impacts of job displacement can be significant but often overlooked[6]. The Member States should consider incorporating in their national systems provisions for mental health services and counselling to support workers during the transition period.

Outcome of the vote

In favour:

67

Against:

110

Abstention:

3

Draft opinion of the Committee

Amendment

The EESC reiterates the importance of prioritising support for disadvantaged groups during labour market transitions, including younger and older workers, people with disabilities, those at risk of poverty , low-skilled workers and those in precarious employment . Monitoring mechanisms must be strengthened to ensure that EGF resources effectively target these groups and deliver measurable outcomes. Enhanced coordination mechanisms and clearer eligibility criteria are needed to ensure that support reaches the most vulnerable workers.

The EESC reiterates the importance of paying particular attention to support for disadvantaged groups during labour market transitions, including younger and older workers, people with disabilities, those at risk of poverty and low-skilled workers. Monitoring mechanisms should be strengthened to ensure that EGF resources effectively target these groups and deliver measurable outcomes. Enhanced coordination mechanisms could be considered to ensure that support reaches the most vulnerable workers.

Outcome of the vote

In favour:

63

Against:

115

Abstention:

3

Draft opinion of the Committee

Amendment

Therefore, in the application, both not only the enterprise but also the workers’ representatives should in the application confirm compliance with the procedures followed by the enterprise for consulting the targeted beneficiaries or their representatives.

Outcome of the vote

In favour:

64

Against:

119

Abstention:

4

Draft opinion of the Committee

Amendment

The EESC supports provisions allowing workers to remain eligible for assistance after their employment relationship has been terminated. Furthermore, it advocates the possibility of follow-up applications by Member States, ensuring that workers affected by large-scale restructuring receive continuous support even after their initial termination.

The EESC supports provisions allowing workers to remain eligible for assistance after their employment relationship has been terminated. Furthermore, it advocates the possibility of follow-up applications by Member States, ensuring that workers affected by large-scale restructuring receive continuous support even after their initial termination while respecting the emergency character of the EGF .

Outcome of the vote

In favour:

59

Against:

115

Abstention:

1

Draft opinion of the Committee

Amendment

The EESC calls for enhanced scrutiny to ensure that the proposal enables EGF support to be effectively directed towards workers facing imminent risk of job loss, rather than the workforce as a whole. Particular attention must also be given to employees of SMEs and subcontractors, who are currently excluded from the scope despite their heightened vulnerability and limited access to training and transition support during restructuring processes. It is essential that support measures are adequately tailored to the specific needs of all workers at risk of job loss, and that the quality and effectiveness of the support packages are guaranteed.

The EESC calls for enhanced scrutiny to ensure that the proposal enables EGF support to be effectively directed towards workers facing imminent risk of job loss, rather than the workforce as a whole. It is essential that support measures are adequately tailored to the specific needs of those workers at risk of job loss covered by EGF , and that the quality and effectiveness of the support packages are guaranteed.

Outcome of the vote

In favour:

59

Against:

115

Abstention:

3

Draft opinion of the Committee

Amendment

The Committee stresses the need to integrate social economy players into the skills and employment support ecosystem. Tailored support measures for vulnerable groups, such as disadvantaged, disabled and older workers, should be prioritised to ensure greater social inclusion and equity.

The Committee stresses the need to integrate social economy players into the skills and employment support ecosystem where appropriate . Tailored support measures for vulnerable groups, such as disadvantaged, disabled and older workers, should be paid particular attention to ensure greater social inclusion and equity.

Outcome of the vote

In favour:

63

Against:

115

Abstention:

1

Draft opinion of the Committee

Amendment

The EESC suggests incorporating mental health support services as a fundamental component of the assistance provided to displaced workers. Access to counselling and psychological support can significantly aid workers in coping with the emotional challenges associated with job loss and transition.

The EESC suggests that Members States should consider incorporating mental health support services in their national system as a component of the assistance provided to displaced workers. Access to counselling and psychological support can significantly aid workers in coping with the emotional challenges associated with job loss and transition.

Outcome of the vote

In favour:

67

Against:

110

Abstention:

3

Draft opinion of the Committee

Amendment

The EESC calls for comprehensive monitoring frameworks to be established to regularly evaluate the effectiveness of support programmes. This should include qualitative and quantitative measures to assess the impact on displaced workers and the overall labour market, ensuring that support is responsive to changing needs.

The EESC underlines the importance of comprehensive monitoring frameworks provided by EGF to be rigorously used to regularly evaluate the effectiveness of support programmes. This should include assessing the impact on displaced workers and the overall labour market, ensuring that support is responsive to changing needs.

Outcome of the vote

In favour:

65

Against:

113

Abstention:

3