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Minister for Training, Skills and Innovation, John Halligan, T.D. today (28 March 2017) noted the publication of the final report on the Lufthansa Technik Airmotive Ireland (LTAI) EGF programme on www.egf.ie, following its submission by the EGF Managing Authority in the Department of Education and Skills to the European Commission.

LTAI was an aircraft maintenance, repair and overhaul facility in Rathcoole, which closed in 2014 resulting in 424 redundancies (including 9 former employees of two suppliers). Ireland sought and received approval for a programme of labour market supports under the European Globalisation Adjustment Fund (EGF) on the basis of the sectoral link between this closure and the foreseen closure of PWA International (also in Rathcoole) and the significant SR Technics job losses in Dublin in 2009/2010 (the subject of an EGF programme 2009-2011).

The programme targeted 250 of the redundant workers and also availed of the option to include a similar number of young people, Not in Employment, Education or Training (NEETs). The estimated expenditure under the approved programme was €4.151m, assuming full take-up of all funding, with the EU co-financing 60% (€2.491m) of the expenditure.

A total of 253 workers and 171 young NEET persons were assisted under the EGF programme.

Commenting on the programme’s outcomes, Minister Halligan said,
“I am pleased that the EGF has assisted more than 420 people to upskill and retrain through an innovative mix of mainstream and tailored supports in the areas of guidance, training, second and third level education and enterprise supports. I am also pleased to report that at the end of the programme over 73% of the former LTAI workers who took up EGF co-financed supports were back in employment. I also note that more than 40% of the young people who similarly undertook one or more of the suite of interventions have also gained employment.”

The Minister added that “A total of 253 affected workers took up EGF supports over the lifetime of the programme. This represents over 100% of the originally targeted group of 250. It goes without saying that this is an excellent programme participation rate result. In addition to this, 171 of the 200 targeted NEET persons availed of EGF supports, which at 85% of that target group, is also a very strong take-up rate and follows a similarly positive participation by young persons included in the recently completed EGF programme for redundant workers from the Andersen Ireland jewellery plant in West Limerick. As with that programme the NEET persons who undertook supports under EGF Lufthansa received considerable support and interaction from a range of service providers and in particular from the SOLAS EGF Coordination Unit.”

LTAI is the 9th finalised EGF programme of 10 approved programmes managed by the Department. A smaller programme in support of 108 workers at the PWA International aircraft maintenance facility and an equivalent number of NEET persons, which commenced in June 2015, operates until June 2017.

Commenting on expenditure under the programme, the Minister stated “The final eligible expenditure under the Programme is €2.983 million. This represents a utilisation rate of 72% of the approved EU allocation which exceeds the average EU utilisation rate of some 57%.”

Note for Editors

The European Globalisation Adjustment Fund (EGF) is an EU co-financing instrument to assist Member States support workers made redundant as a result of the adverse impacts of globalisation or the global economic and financial crisis, by providing 60% co-financing for approved active labour market programmes of guidance, training, education and enterprise supports. The Fund stands outside the Multi-annual Financial Framework, drawing from savings across the EU budget, subject to a maximum annual amount of €150m.

Eligible redundancy situations are those involving at least 500 redundancies in a specific company (including suppliers/downstream producers) in a 4 month period, or at least 500 redundancies in a specific sector in a 9 month period. However, applications can be considered where these criteria are not entirely met and Member States can substantiate that exceptional circumstances pertain and that the redundancies have a serious impact on employment and the local, regional or national economy. These exceptional circumstances cases cannot exceed 15% of the annual maximum amount available to the EGF. The last three Irish programmes in respect of Andersen Ireland, LTAI and PWAI have been approved on this basis.

In this programme, the Irish authorities availed of a new optional measure available for the 2014-20 round, which permits those Member States whose youth unemployment rates exceeded 25% to 2012 to assist an equivalent number of young persons as targeted redundant workers within an EGF programme, where the young persons are under 25 years of age and not in employment, education or training (NEETs). Ireland, along with Greece and Belgium have availed of this option to date.

For further details see www.egf.ie