Explanatory Memorandum to COM(2023)210 - Globalisation Fund application from Belgium - EGF/2023/001 BE/ LNSA - Main contents
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| dossier | COM(2023)210 - Globalisation Fund application from Belgium - EGF/2023/001 BE/ LNSA. |
|---|---|
| source | COM(2023)210  |
| date | 06-06-2023 |
1.The rules applicable to financial contributions from the European Globalisation Adjustment Fund for Displaced Workers (EGF) are laid down in Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013 1 .
2.On 17 February 2023, Belgium submitted an application EGF/2023/001 BE/LNSA for a financial contribution from the EGF, following displacements in Logistics Nivelles SA (LNSA) and one supplier in Belgium.
3.Following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of Regulation (EU) 2021/691, that the conditions for awarding a financial contribution from the EGF are met.
| EGF application | EGF/2023/001 BE/LNSA | |
| Member State | Belgium | |
| Region(s) concerned (NUTS 2 level 2) | Province Brabant Wallon (BE31) 3 | |
| Date of submission of the application | 17 February 2023 | |
| Date of acknowledgement of receipt of the application | 3 March 2023 | |
| Date of request for additional information | 3 March 2023 | |
| Deadline for provision of the additional information | 24 March 2023 | |
| Deadline for the completion of the assessment | 14 June 2023 | |
| Intervention criterion | Article 4(2), point (a), of Regulation (EU) 2021/691 | |
Primary enterprise | Logistics Nivelles SA (LNSA) | |
| Sector(s) of economic activity (NACE Revision 2 division) 4 | Division 52 (Warehousing and support activities for transportation) | |
Number of subsidiaries, suppliers and downstream producers | 1 | |
| Reference period (four months): | 23 August 2022 – 23 December 2022 | |
| Number of displacements during the reference period (a) | 542 | |
| Number of displacements before or after the reference period (b) | 61 | |
| Total number of displacements (a + b) | 603 | |
| Total number of eligible beneficiaries | 603 | |
| Total number of targeted beneficiaries | 603 | |
| Budget for personalised services (EUR) | 2 484 363 | |
| Budget for implementing EGF 5 (EUR) | 49 000 | |
| Total budget (EUR) | 2 533 363 | |
| EGF contribution (85 %) (EUR) | 2 153 358 |
Procedure
4.Belgiun submitted application EGF/2023/001 BE/LNSA within 12 weeks of the date on which the intervention criteria set out in Article 4(2), point (a), of Regulation (EU) 2021/691 were met, on 17 February 2023. The Commission acknowledged receipt of the application and requested additional information from Belgium on 3 March 2023. Such additional information was provided within 15 working days of the request. The deadline of 50 working days of the receipt of the complete application within which the Commission should finalise its assessment of the application's compliance with the conditions for providing a financial contribution expires on 14 June 2023.
Enterprises and beneficiaries concerned
5.The application relates to displaced workers whose activity has ceased in Logistics Nivelles SA (LNSA) (447 workers) and SuperTransport SA/NV, a supplier of Logistics Nivelles (95 workers). The total number of eligible workers is 542.
6.Logistics Nivelles operated in the economic sector classified under the NACE Revision 2 division 52 (Warehousing and support activities for transportation). The displacements in this enterprise are located in the NUTS 2 region of Brabant Wallon (BE31).
7.Belgium submitted the application under the intervention criteria of Article 4(2), point (a), of Regulation (EU) 2021/691, which requires the cessation of activity of at least 200 displaced workers over a reference period of four months in an enterprise in a Member State, including workers displaced in suppliers and downstream producers and / or self-employed persons whose activity has ceased.
8.The reference period of four months for the application runs from 23 August 2022 to 23 December 2022.
9.The cessation of activity during the reference period occurred as follows:
–447 displaced workers in LNSA,
–95 displaced workers in SuperTransport SA/NV, a supplier of LNSA.
10.Pursuant to Article 6, first paragraph, point (a), in conjunction with Article 5, first paragraph, point (c), of Regulation (EU) 2021/691, the cessation of activities of the displaced workers during the reference period has been calculated from the date of the de facto termination of the contract of employment or its expiry.
11.In addition to the workers already referred to, the eligible beneficiaries include 61 displaced workers whose activity ceased before or after the reference period of four months. All these workers ceased their activity within the six months before the start of the reference period on 23 August 2022 and/or between the end of the reference period and the day before the adoption of this proposal, pursuant to Article 6, first paragraph, point (b), of Regulation (EU) 2021/691, as required by Article 6, second paragraph, of Regulation (EU) 2021/691. A clear causal link can be established with the event that triggered the cessations of activity of the displaced workers during the reference period as required by Article 6, second paragraph, of Regulation (EU) 2021/691..
12.The total number of eligible beneficiaries is 603.
13.The event giving rise to these displacements is Kuehne + Nagel 6 (K+N)’s decision to close down its Belgian subsidiary LNSA.
14.The entrerprise has been facing financial difficulties in the past years. In 2020, LNSA’s losses were higher than the total budget and a capital increase was necessary to offset the losses. In 2021, the losses were again higher than expected. LNSA could not continue in business in the long or medium term without profit or without breaking even 7 .
15.LNSA provides logistics services regarding fresh and dry food products, wines and spirits to Carrefour. With a view to renewing the contract with Carrefour, K+N carried out a study to define a future network, which would improve services at competitive costs. Based on the study results, K+N decided to turn its regional distribution of fresh and dry foods into a national distribution. That is, instead of delivering to northern stores from Logistics Kontich NV (Kontich) 8 and to southern stores from LNSA, to make all deliveries from Kontich and close LNSA down.
16.Kontich was preferred because its productivity is 25% higher than LNSA, the differences in stocks (shrinkage 9 ) are lower and its geographical location more convenient, which means shorter delivery times and lower transport costs.
Expected impact of the displacements as regards the local, regional or national economy and employment
17.In 2022 Q4, the unemployment rate in Wallonia (8,4%) was 2,8 percentage points higher than the unemployment rate at national level (5,6%) 10 . In December 2022, the job demand rate (share of unemployed registered job seekers in the active population) in Wallonia was 13,4%, that is 1,3 percentage points higher than in December 2021 11 .
18.Although LNSA is located in province Brabant Wallon, the redundancies concern also Hainaut where 86,3% of the dismissed workers live. In February 2023, the number of registered job seekers has increased by 9,8% year-over-year in Hainaut and by 3,7% in Brabant Wallon 12 .
19.Age is associated with difficulties in job search in Brabant Wallon, where those aged 50 or more accounted for 30% of the registered job-seekers in February 2023 13 . More than half (53,3%) of LNSA former workers are older than 45.
20.While the COVID-19 crisis has accelerated the search for more qualified workers in the Belgian labour market 14 , LNSA workforce is essentially made up of handler profiles. So, these workers might find it difficult to re-integrate into employment; even more so in stable contracts, as the sector favours short contracts.
21.The Walloon authorities argue that the displacements in LNSA will have a particular impact on two categories of workers (the low skilled and those aged 50+) that are already disadvantaged in the regional labour market.
22.Besides, the economic situation (rise in inflation, increase in prices of raw materials and energy, etc.) influenced by the current geopolitical context reduces enterprises’ margins and their competitiveness. For 2023, IWEPS (Wallonia's Institute for Evaluation, Foresight and Statistics) forecasts a limited increase for Wallonian GDP of 1,1% 15 (1,4 percentage points less than in 2022). In these circumstances, LNSA former workers will need additional and targeted support to increase their chances of finding new jobs.
23.Belgium has described how the recommendations set out in the EU Quality Framework for anticipation of change and restructuring have been taken into account.
24.Logistics Nivelles complied with Belgian law on collective redundancies, which establishes a mandatory procedure for informing and consulting workers' representatives. The procedure makes it possible to explore any possibility of avoiding or reducing the number of redundancies. It also seeks to mitigate the consequences of job loss through complementary social measures, such as support for redeployment or retraining of redundant workers. The negotiations secured a specific budget of EUR 1 500 per worker to cover for retraining costs.
25.Wallonia's regional legislation 16 provides for specific support for redundant workers, in the form of a redeployment unit (cellule de reconversion) 17 by the Regional Public Employment and Vocational Training Service (Forem), at the request of workers’ representative organisations. The redeployment unit does not constitute an obligation for the employer, nor for Forem. The implementation of the EGF co-financed measures will be managed through such a redeployment unit.
26.Regarding the activities undertaken to assist the displaced workers, Belgium has reported that national labour law 18 on the active management of restructuring requires enterprises undergoing restructuring to set up an employment unit (cellule pour l’emploi) 19 , whose purpose is to provide workers laid off in the context of collective redundancies with 30 hours of outplacement services in a period of three months (60 hours in six months for workers aged 45+). The services of the employment unit started immediately after the displacements.
27.Belgium has confirmed that the measures described below receiving a financial contribution from the EGF will not also receive financial contributions from other Union financial instruments.
28.The coordinated package of personalised services complements actions funded by other national or EU funds (see outplacement services described in paragraph 26) .
Procedures for consulting the targeted beneficiaries or their representatives or the social partners as well as local and regional authorities
29.Belgium has indicated that the co-ordinated package of personalised services has been drawn up in consultation with targeted beneficiaries, their representatives, and the social partners, in compliance with Article 7 i of Regulation (EU) 2021/691.
30.Aiming to prepare a sound package of tailored measures to support LNSA workers’ efforts to return to work, Forem, trade unions (FGTB 20 and CSC 21 ), and other partners met on 6 April, 11 May and 21 June 2022, to better understand workers' retraining needs. The social counsellors who accompanied the workers after their dismissal were also consulted. These meetings resulted in a coordinated package of EGF measures that complements the standard measures proposed by the employment unit.
Targeted beneficiaries
31.All 603 displaced workers are expected to participate in the measures. Pursuant to Article 8(7), point (f), of Regulation (EU) 2021/691, the provided breakdown of these workers by gender, age group and educational level is as follows:
| Category | Number of expected beneficiaries | ||
| Gender: | Men: | 586 | (97,2 %) |
| Women: | 17 | (2,8 %) | |
| Non-binary | 0 | (0,0 %) | |
| Age group: | Below 30 years: | 27 | (4,5 %) |
| 30-54 years: | 450 | (74,6 %) | |
| Over 54 years: | 126 | (20,9 %) | |
| Educational level | Lower secondary education or less 22 | 294 | (48,8 %) |
| Upper secondary 23 or post-secondary education 24 | 277 | (45,9 %) | |
| Tertiary education 25 | 32 | (5,3 %) |
32.Pursuant to Article 8(7), point (h) of Regulation (EU) 2021/691, the personalised coordinated package to be provided to displaced workers consists of the following measures:
–Information services, occupational guidance and outplacement assistance. This set of services expands the standard activities in support of Logistics Nivelles former workers carried out by Forem's employment unit on behalf of the dismissing enterprise. The standard offer will be extended beyond the mandatory period and additional specific services such as individual coaching, active job-search and job-matching services will be proposed. Particular attention will be paid to vulnerable people in a situation of psychological distress, indebtedness, or recognised disability through professionals specialised in assisting these groups.
–Training, retraining and vocational training. Workers will have access to the standard training offer of Forem and its partners. Specific job search modules will be deployed as well. In addition, after the profiling and agreement of individual projects with the vocational counsellor, specific training will be offered to cater for the identified needs. A module to improve IT skills and gain digital autonomy, specifically developed for logistics workers 26 , is also on offer. This module complements the module to develop digital skills that is part of Forem's standard training offer.
–Support towards business creation. The measure aims at workers who wish to launch their own business. It will include a diagnosis and guidance phase, awareness-raising actions on entrepreneurship, information sessions on the potential for business creation through territorial economic diagnoses and networking with relevant entrepreneurs and with certified coaches in business creation.
–Contribution to business creation. The workers who start a business or an activity as self-employed persons will receive a contribution up to EUR 15 000. The contribution will be paid in two installments, after proving the start and development of the business activity with supporting documents.
–Incentives and allowances: (1) Job-search and training allowances. Workers will receive EUR 2 per hour of effective participation in training or job-search activities. (2) Bonus for improving IT skills. Workers, who follow the module for access to digital autonomy will receive a lump sum of EUR 400 conditional on their active participation and completion of the training. The bonus aims to reduce digital illiteracy by encouraging former LNSA workers to improve their IT skills. (3) Bonus for improving languages skills. Workers who follow an intensive language training module organized by Forem or a language immersion course in an enterprise to improve their Dutch, English or German language skills as part of a specific job search will receive a lump sum of EUR 500. The objective of the bonus is to encourage the development of cross-disciplinary language skills to facilitate workers’ reintegration into jobs. (4) Return-to-school allowance. A monthly allowance of EUR 350 will be granted to workers who embark on secondary and tertiary studies full-time for at least one year, or qualifying training of at least 3 months to acquire the necessary skills for jobs that are in demand and for which recruiting is difficult, linked to critical functions 27 , or significantly gender-unbalanced. (5) Allowance towards business creation. To support the workers while setting up their business, a monthly allowance of EUR 350 for a maximum of 12 months will be granted.
33.The training to gain digital autonomy mentioned above that complements Forem's standard training to develop digital skills, together with a module on circular economy and efficient use of resources are in line with the requirements set out in Article 7(2) of Regulation (EU) 2021/691. The module on circular economy and efficient use of resources developped for former Swissport workers (EGF/2020/005 BE) 28 is part of Forem's standard training offer co-financed by ESF+. It is therefore not budgeted in this proposal. Besides, resource efficient economy is at the core of the training offer of Forem environment training center 29 .
34.The proposed actions, here described, constitute active labour market policy measures within the eligible actions set out in Article 7 of Regulation (EU) 2021/691. These actions do not substitute passive social protection measures.
35.Belgium has informed that the 30/60 hours of outplacement services that are the legal obligation of the employer began immediately after the displacements. The EGF co-financed redeployment unit took over after the end of the legal obligation without time gap.
36.Belgium has provided the required information on measures that are mandatory for the enterprise concerned by virtue of national law or pursuant to collective agreements. In accordance with Article 9(1) of Regulation (EU) 2021/691, Belgium has confirmed that a financial contribution from the EGF will not replace such measures.
37.The estimated total costs are EUR 2 533 363, comprising expenditure for personalised services of EUR 2 484 363 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 49 000.
38.The total financial contribution requested from the EGF is EUR 2 153 358 (85 % of total costs).
39.Pursuant to Article 8(7), point (m) of Regulation (EU) 2021/691, Belgium has specified that the national pre-financing and co-funding is provided by Wallonia.
| Measures | Estimated number of participants | Estimated cost per participant (EUR) 30 | Estimated total costs (EUR) 31 |
| Personalised services (measures under Article 7(2), second subparagraph, point (a), of Regulation (EU) 2021/691) | |||
| Information services, occupational guidance and outplacement assistance (reconversion: accompagnement/orientation/mobilisation) | 603 | 2 924 | 1 762 914 |
| Training, retraining and vocational training (formations et modules spécifiques) | 300 | 364 | 109 200 32 |
| Support towards business creation (dispositif d'accompagnement à l'entrepreneuriat) | 60 | 2 028 | 121 681 |
| Contribution to business creation (bourse de lancement) | 12 | 10 000 | 120 000 |
| Sub-total (a): Percentage of the package of personalised services | – | 2 113 795 | |
| (85,08 %) | |||
| Allowances and incentives (measures under Article 7(2), second subparagraph, point (b), of Regulation (EU) 2021/691) | |||
| Incentives and allowances (allocation de recherche d'emploi et de formation, prime numérique, prime langue, allocation de reprise d'études, allocation d'entrepreneuriat) | 603 | 615 | 370 568 |
| Sub-total (b): Percentage of the package of personalised services: | – | 370 568 | |
| (14,92 %) | |||
| Activities under Article 7 i of Regulation (EU) 2021/691 | |||
| 1. Preparatory activities | – | 0 33 | |
| 2. Management | – | 20 000 | |
| 3. Information and publicity | – | 15 000 | |
| 4. Control and reporting | – | 14 000 | |
| Sub-total (c): Percentage of the total costs : | – | 49 000 | |
| (1,93 %) | |||
| Total costs (a + b + c): | – | 2 533 363 | |
| EGF contribution (85 % of total costs) | – | 2 153 358 |
40.The costs of the measures identified in the table above as measures under Article 7(2), second subparagraph, point (b), of Regulation (EU) 2021/691 do not exceed 35 % of the total costs for the coordinated package of personalised services. Belgium confirmed that these measures are conditional on the active participation of the targeted beneficiaries in job-search or training activities.
41.In accordance with Article 7(2), fourth subparagraph, of Regulation (EU) 2021/691, Belgium confirmed that the costs of investments for self-employment, business start-ups and employee take-overs will not exceed EUR 22 000 per beneficiary.
42.Belgium started providing the personalised services to the targeted beneficiaries on 1 August 2022 34 . The expenditure on the measures will therefore be eligible for a financial contribution from the EGF from 1 August 2022 until 24 months after the date of the entry into force of the Financing Decision.
43.Belgium started incurring the administrative expenditure to implement the EGF on 22 September 2021. The expenditure for preparatory, management, information and publicity, control and reporting activities shall therefore be eligible for a financial contribution from the EGF from 22 September 2021 until 31 months after the date of the entry into force of the Financing Decision.
44.The application contains a description of the management and control system required under Article 23 of Regulation (EU) 2021/691, which specifies the responsibilities of the bodies involved. Belgium has notified the Commission that the financial contribution will be managed and controlled by the same bodies that manage and control the ESF+.
45.Belgium has provided all necessary assurances regarding the following:
–the principles of equality of treatment and non-discrimination will be respected in access to the proposed measures and their implementation,
–the requirements laid down in national and EU legislation concerning collective redundancies have been complied with,
–LNSA, which has continued its activities after the lay-offs 35 , has complied with its legal obligations and provided for its workers accordingly,
–any double financing will be prevented,
–the financial contribution from the EGF will comply with the procedural and material Union rules on State aid.
Contents
- BUDGETARY IMPLICATION
- SUMMARY OF THE APPLICATION
- ASSESSMENT OF THE APPLICATION
- Eligibility of the application
- Intervention criteria
- Calculation of displacements and of cessation of activity
- Eligible beneficiaries
- Description of the events that led to the displacements and cessation of activity
- Expected impact of the displacements as regards the local, regional or national economy and employment
- Application of the EU Quality Framework for anticipation of change and restructuring (QFR)
- Complementarity with actions funded by national or Union funds
- Procedures for consulting the targeted beneficiaries or their representatives or the social partners as well as local and regional authorities
- Targeted beneficiaries and proposed measures
- Proposed measures
- Estimated budget
- Period of eligibility of expenditure
- Management and control systems
- Commitments provided by the Member State concerned
- Budgetary proposal
- Related acts
46.The EGF shall not exceed a maximum annual amount of EUR 186 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 36 .
47.Having examined the application in respect of the conditions set out in Article 13(1) and (2) of Regulation (EU) 2021/691, and having taken into account the number of targeted beneficiaries, the proposed measures and the estimated costs, the Commission proposes to mobilise the EGF for the amount of EUR 2 153 358, representing 85 % of the total costs of the proposed measures, in order to provide a financial contribution for the application.
48.The proposed decision to mobilise the EGF will be taken jointly by the European Parliament and the Council pursuant to Article 15(1), first subparagraph, second sentence, of Regulation (EU) 2021/691 and, as laid down in point 9 of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources 37 .
49.At the same time as it presents this proposal for a decision to mobilise the EGF, the Commission will present to the European Parliament and to the Council a proposal to transfer to the relevant budgetary line the amount of EUR 2 153 358.
50.At the same time as it adopted this proposal for a decision to mobilise the EGF, the Commission adopted a decision on a financial contribution that constitutes a financing decision within the meaning of Article 110 of Regulation (EU, Euratom) 2018/1046 38 . That financing decision will enter into force on the date on which the Commission is notified of the approval of the budgetary transfer by the European Parliament and the Council pursuant to Article 15(2), first subparagraph, of Regulation (EU) 2021/691.