© dimitry romanchuck Business | December 13, 2012

EUR 15.1M support for former Nokia, Flextronics & Saab workers

It is finally through. The EU Council adopted, on 6 December, seven decisions mobilising a total amount of EUR 24.3 million under the European Globalisation Adjustment Fund (EGF).
This will provide support for workers made redundant in seven EU member states. Several of these cases concern the electronics sector.

- So will the EGF support former Flextronics employees in Denmark with EUR 1.4 million. It notes that the assessment by the Danish authorities shows that "only 153 of 303 workers dismissed would choose to participate in the measures".

- Laid off Nokia employees in both Finnland and Romania have been granted EUR 5.3 million and EUR 2.9 million respectively. The EGF has already acted in favour of 1'337 workers dismissed as a result of the re-location of Nokia from Germany to Romania in 2008. Now, 3 years later, the EGF "must act again as the production plant opened in Cluj, following the closure in Germany, was closed down in 2011 as a result of re-location to Asia".

In the latest decision, Romania has requested assistance for 1'904 redundancies, 1'416 of which are targeted for assistance in SC Nokia Romania SRL and one supplier in Romania. Finland has requested assistance for 1'000 redundancies, all of which are targeted for assistance, in Nokia plc (Salo) in Finland.

- Workers affected by the bankruptcy of Swedish car manufacturer Saab will be supported with EUR 5.5 million. Interesting here is the note that - although the bankruptcy of Saab led to a 20% increase in unemployment in the region of Trollhättan - Swedish authorities targeted only 1'350 of 3'239 dismissed workers for EGF support. It subsequently "calls on the Swedish authorities to use the EGF to its full potential for dismissed workers".

Furthermore, the EGF will also pay out EUR 9.2 million in support to dismissed workers in Austrian mobile social services sector (EUR 5.2 million), to workers made redundant at Italian manufacturers of mopeds and motorcycles (EUR 2.7 million) and to dismissed workers in the Spanish metal products sector (EUR 1.3 million).


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