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Minister Cannon disappointed at EU decision not to extend the period of the EGF crisis-related derogation
The Minister of State for Training and Skills, Ciarán Cannon TD, has expressed his disappointment at the EU decision not to extend the European Globalisation Fund (EGF) crisis-related derogation, which has been of such benefit to Irish workers recently made redundant.
Speaking at the end of the EU Employment Council in Brussels yesterday the Minister said, "I presented a strong case for extending the crisis-related derogation. I explained to my EU colleagues that we should demonstrate solidarity with workers whose futures are threatened by redundancy.
"While a number of other European member states agreed with me, I was disappointed that there was not sufficient support, and the crisis-related derogation must now lapse at the end of the year.
"The EGF will continue for another two years and I would hope that we can benefit from that fund to assist Irish workers made redundant as a result of globalisation. The proposed application for EGF support for Talk Talk workers will be pursued and it is intended that this application will be made to the European Commission despite this development".
This funding has helped 13,000 redundant workers and came from six successful applications under the crisis-related derogation since it was set up, by Dell, Waterford Crystal, SR Technics and, most recently, three applications from the construction sector.
The EGF was introduced in 2006 to help member states provide support for re-training and up-skilling of workers made redundant as a result of changes in world trade patterns. The Fund was amended in 2009 to help deal with redundancies arising from the financial crisis. Applications for this crisis-related derogation can only be made until the end of 2011.
While the EGF provided for 50/50 co-financing between the EU and member states, under the crisis-related derogation, the EU provided 65% of the funding. Furthermore, the crisis-related derogation reduced the minimum number of redundancies concerned to 500.
The European Commission had proposed to extend this crisis-related derogation for a further two years. This would have required the support of a majority of EU member states.