Possibility of EU aid for Seagate workers
06 November 2007
Jim Allister MEP has identified a possible source of EU funding to assist workers facing redundancy at Seagate Technologies and is urging the local Departments to investigate and avail of it.
In a statement Mr Allister explains:-
“In January 2007 the EU set up the European Globalisation adjustment Fund (EGF). This new fund was introduced to cope with situations arising from large-scale redundancies resulting from structural changes in world trade patterns, but inclusive of economic relocation to third countries, where the impact on a region is significant. I believe the situation prevailing in Limavady could qualify and thereby open the door to personalized support to the affected workers. The Fund is foreseen to offer: job search and mobility allowances; counselling; new ICT skills and other forms of training, entrepreneurial support to workers who have been made redundant. It will help individual workers but not, of course, companies. Whereas the European Social Fund is also relevant, it consists of multi-annual programmes in support of strategic, long-term anticipation and management of change and restructuring in the 2007-2013 period, with activities such as life-long-learning, the EGF is a response to a specific crisis; it will provide one-off, time limited individual support geared directly to helping workers who have suffered trade-related redundancies.
It seems to me, therefore, that an application might be warranted. It would require matched 50% national funding, but the opportunity to draw down significant EU aid should not be ignored.
With the fund only entering into force this year, so far there has been no pay outs, but 4 projects have been recommended by the Commission to the Budgetary Authority. These include two from France in support of workers made redundant in the automobile industry and one from Germany and another from Finland, both arising from redundancies in the mobile phone sector.
Following the devastating blow for Limavady and district of the loss of Seagate Technologies, I trust both DEL and DETI will carefully examine the possibilities which arise under the EGF. I have written accordingly to Sir Reg Empey and Mr Nigel Dodds today.”
