The Diplomat
The European Parliament yesterday approved a request from Spain to help in finding employment for 303 workers who were laid off by Alu Ibérica in Galicia, an aluminum factory that had to close due to the rising cost of energy and raw materials.
The value of the aid is 1.2 million euros, from the European Globalization Adjustment Fund for Dismissed Workers (EGF). MEPs acknowledged that “the COVID-19 pandemic and the Russian aggression against Ukraine have reduced economic competitiveness throughout the Union, including Spain”. In addition, business margins in Spain and their competitiveness have been squeezed by the current rise in inflation, in particular the increase in raw materials and energy prices.
These high prices and the downward pressure on the price of aluminum, resulting from excess production capacity in China, contributed to the bankruptcy of Alu Iberica. MEPs underline the impact of the company’s closure on the local labor market and the economy of the city of A Coruña, with an unemployment rate well above the EU average.
The dismissed workers will need extra support to find a new job in the regional labor market, taking into account that 35% of them are 45 years old or older. This age group represents 60% of the job seekers registered in A Coruña.
The funding will provide the workers with information services and preparation workshops, occupational guidance, training, intensive job search assistance and tutoring after reinsertion into the labor market. The total estimated cost of these measures is around 1.5 million euros, of which the EGF will cover 85% (1.275 million euros). The Autonomous Community of Galicia will finance the remaining 15% (225,000 euros).
The report prepared by Eider Gardiazabal Rubial (S&D, Spain), which recommended that the European Parliament approve the aid, was supported by 585 MEPs, 30 voted against and 11 abstained, according to the European Parliament office in Madrid.
The Globalization Adjustment Fund supports redundant workers and the self-employed who have stopped working. Since 2007, the EGF has made EUR 690 million available to countries in 176 cases, providing assistance to more than 168,000 people in 20 Member States, according to the Commission. EGF-supported measures complement national active labor market measures.
