MEPs say yes to EU support for 500 former truck industry workers in Sweden

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European Parliament Plenary Session Press Release  /  April 13, 2016

A proposal to grant €1,793,710 (US$2.02 million) in European Union (EU) aid to Sweden to help find new jobs for 500 workers made redundant by Volvo Trucks, mainly at the Umeå plant, and by four of its suppliers and downstream producers, was approved by the European Parliament on Wednesday.

The employees were laid off due to difficulties faced in recent years by European manufacturers in competing with newly emerging Asian truck manufacturers. Heavy truck production in the EU fell in 2014, as did exports of heavy commercial vehicles, buses and coaches, while overall imports of commercial vehicles into the EU rose. Volvo therefore decided to boost efficiency by cutting costs to meet existing and expected global competition.

The redundancies are a challenge for Västerbotten county (of which Umeå is the capital). Most of the redundant Volvo workers are from Umeå, but others from Gothenburg and Eskilstuna are also included in the scheme. Volvo's optimisation programme also affected subcontractors, especially in Umeå.

The resolution by rapporteur Victor Negrescu (S&D, RO) was approved by 585 votes to 82, with 7 abstentions.

Background

The European Globalisation Adjustment Fund contributes to packages of tailor-made services to help redundant workers find new jobs. Its annual ceiling is €150 million.

Redundant workers are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training. In most cases, national authorities have already started the measures and will have their costs reimbursed by the EU when their applications are finally approved.

Related reading:

http://www.bigmacktrucks.com/topic/44047-european-commission-proposes-almost-18-million-euro-from-globalisation-fund-to-support-former-volvo-trucks-workers-in-sweden/#comment-324651

http://www.bigmacktrucks.com/topic/33165-volvo-to-restructure-truck-manufacturing-in-europe/#comment-212024