EC to support redundant workers in shipbuilding sector in Spain

14 September 2020 (Last Updated September 14th, 2020 13:08)

The European Commission is set to provide Spain with €2m to support 500 shipbuilding workers, who were laid off in Galicia.

EC to support redundant workers in shipbuilding sector in Spain
Headquarters of the European Commission in Brussels, Belgium. Credit: EmDee.

The European Commission is set to provide Spain with €2m to support 500 shipbuilding workers, who were laid off in Galicia.

The financing will be provided from the European Globalisation Adjustment Fund (EGF).

The declining market share of the EU in shipbuilding around the world and increasing global competition have had dire consequences for the ancillary shipbuilding industry in Spain.

After 960 workers were made redundant from ancillary enterprises to shipyards in Galicia between May last year and February, Spain requested the EGF to provide support.

Approximately 500 redundant workers are scheduled to take part in EGF co-financed support measures.

The programme aims to provide career guidance, job search support, opportunities to acquire new skills through vocational training, and counselling and guidance after finding another job.

Additionally, workers will receive various incentives, including, covering the costs of family caregivers and providing financial support to encourage quick re-employment.

The total cost of the package is estimated to be €3.4m, of which EGF will provide €2m. Regional authority, the Xunta de Galicia, will grant the remaining amount.

The proposal will be sent to the European Parliament and the European Council for approval.

Commissioner for Jobs and Social Rights Nicolas Schmit said: “The European Globalisation Adjustment Fund is a clear example of EU solidarity.

“It provides funding for mentoring and retraining to workers who have lost their jobs due to globalisation or the economic crisis. The European shipbuilding sector is greatly affected by globalisation and a loss of global market share with increased competition from outside the EU.

“We want to help the workers made redundant in Galicia by providing €2m for their reskilling and upskilling efforts to find new job opportunities in other sectors.”

In April, Finland-based shipyard Meyer Turku started negotiations to lay off workers amid the Covid-19 pandemic.