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Minister English welcomes EU approval of tenth Irish EGF programme – targeting former PWA International workers

The Minister for Skills, Research and Innovation, Damien English, T.D. today welcomed the EU budgetary authority’s approval of the Irish application under the European Globalisation Adjustment Fund (EGF) to assist 108 former workers of the closed aircraft maintenance facility of PWA International in Rathcoole, Co. Dublin and a similar number of young persons under the age of 25 years not in employment, education or training (NEETs).

He said “This is the tenth successful EGF application made by the Irish authorities since 2009. To date, some ten thousand redundant workers have been assisted through the Fund. This is a clear and tangible instrument of EU solidarity which allows approved programmes of guidance, training, education and enterprise supports to be delivered to eligible workers who have lost their jobs through adverse globalisation impacts”.

Approving this programme, the EU will contribute 60% or €442,293 towards programme expenditure on support measures aimed at re-integrating the PWA International workforce and a similar number of NEETs into sustainable employment. This will be the third successive Irish EGF programme which avails of the special arrangements introduced until the end of 2017, whereby Member States can assist young people not in employment, education or training residing in regions eligible under the Youth Employment Initiative up to a number equal to the redundant workers supported.

The Irish authorities will fund the remaining 40% of the programme. National funding is currently being provided for services through the budgets of providers such as SOLAS, Education and Training Boards, Local Enterprise Offices, Higher Education Institutes and the Department of Social Protection together with a measure of funding from the National Training Fund.

The programme will run until 19th June 2017 and provides for a package of measures to assist the 216 targeted beneficiaries at an estimated cost of €737,156. This is the smallest EGF programme submitted for co-funding support by Ireland to date and amongst the smallest ever across the EU. The PWA International application was accepted by the EU authorities despite its modest scale as an exceptional circumstance in the context of the previous mass redundancies at S R Technics and Lufthansa Technik Airmotive Ireland. These companies, too, operated in the aviation maintenance, repair and overhaul sector and the closure of their plants in 2009 and 2014 respectively saw a loss of some 1,500 jobs, many of them highly skilled in the Dublin and eastern region.

The local EGF Coordination Unit office established by SOLAS and located in Tallaght will coordinate EGF programme supports and supports have been provided to workers from PWAI International since earlier this year in anticipation of subsequent EU approval. The Consultative Forum established to assist in the implementation of the LTAI programme will be utilised to support this Programme and Minister English noted that his officials would liaise with the EGF Coordination Unit and other partners to maximise engagement with the programme.

ENDS

Notes for Editors:

The European Globalisation Adjustment Fund (EGF) is an EU co-funding instrument to provide support for workers made redundant and self-employed persons whose activity has ceased as a result of major structural changes in world trade patterns due to globalisation, as a result of a
continuation of the global financial and economic crisis, or as a result of a new global financial and economic crisis, and to assist them with their reintegration into the labour market. The EGF has a maximum annual budget of EUR 150 million for the period 2014-2020 and funds 60% of the
cost of approved projects.

Since 2009 Ireland has made ten successful EGF applications. EU co-funding has to date contributed over €38m of total EGF expenditure to date of some €60m on the seven closed EGF programmes. A further €4m in EU contributions is available for co-funding the two ongoing EGF programmes which finish in 2016. These programmes are in support of over 700 redundant workers and NEET persons on foot of plant closures at the Andersen Ireland jewellery manufacturing plant in Rathkeale, Co. Limerick and the Lufthansa Technik Airmotive Ireland aviation MRO plant in Rathcoole, Co. Dublin. Some 10,000 persons have been assisted on completed and ongoing EGF programmes to date in Ireland.

Approved EGF programmes are of 24 months duration. To be eligible for assistance there must be 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. The EU Regulation provides that in small labour markets or in exceptional circumstances, applications can be made where these criteria are not entirely met and the Member State can substantiate that there is a serious impact on employment and the local, regional or national economy.

Originally established in 1989, PWA International, a Maintenance Repair and Overhaul (MRO) enterprise and a joint venture between United Technologies Corporation's Pratt & Whitney (P&W) and Singapore Airlines Engineering Company (SIAEC), was closed on a phased basis over 18 months ending in June 2015, in order to consolidate the company’s operations in North America and Asia. This closure following the closure of the SR Technics’ plant at Dublin Airport in 2009 and the Lufthansa Technik Airmotive Ireland’s plant at Rathcoole in 2014, with the loss of some 1,500 jobs.