EU globalisation fund at the rescue of jobless workers
01 Mar '06
2 min read
The European Commission is set to approve details of a globalisation fund worth €500 million per year, aimed at helping workers adapt to the restructuring of key industries in the most harshly affected regions.
"The main idea behind this fund is not to help companies or protect failing sectors but to help people get through a difficult situation," social policy commissioner Vladimir Spidla said.
On Wednesday (1 March), the commission will adopt a concrete plan outlining the precise conditions that must be fulfilled for a country to apply for the financial injection for its citizens.
Under the rules, the money could be used in cases where the dismantling of a major company or industry sector affects 1000 people or one percent of workers within a certain region.
The fund could be put towards the training of employees to prepare them for other jobs, as well as for helping them out financially for up to 18 months before they are laid off, in the form of income support allowances or complementary wage allowances for workers over 50.
It is estimated that the resources could help around 35,000 to 50,000 people working in the textile or automobile industry or any other sectors that may decline due to global pressures.
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