On Monday, the Committee on Budgets approved Denmark’s request for support from the European Globalisation Adjustment Fund for Displaced Workers (EGF). MEPs acknowledged that “the Danish slaughterhouse sector is in a structural crisis”.
Danish Crown is a group of food companies engaged in the butchery, processing and sale of pork and beef. Since 2005, the number of pigs slaughtered in Denmark has decreased by 20%, largely due to the shift of many Danish farmers from raising pigs for slaughter to raising piglets for export at a lower economic cost. As a result, Danish Crown decided to close one of its six slaughterhouses in Denmark, laying off 390 workers.
National co-financing
The total estimated cost of these measures is €3.1 million, with 60% (€1.9 million) covered by the EGF and the remaining 40% (€1.2 million) financed by the Danish Business Authority, the municipalities of Frederikshavn, Aalborg, Hjørring and Brønderslev, which were affected by the dismissals, and by Danish Crown.
Tailor-made support for dismissed workers
The EGF support package includes advisory services, job search assistance, and training. The training helps workers to reskill for different industries and services, and increase digital and other skills sought after by employers. Another focus will be on language skills, as 41% of the dismissed workers are not fluent in Danish. Workers will receive an allowance while engaged in training or looking for employment.
Next steps
The draft report by Janusz Lewandowski (EPP, PL) recommending that Parliament approve the aid was passed by 25 votes, none against and 1 abstention. Approval by plenary is expected during the 22-25 April plenary session in Strasbourg.
Background
The European Globalisation Adjustment Fund for Displaced Workers (EGF) is a special EU instrument to express EU solidarity with European workers or the self-employed that were displaced due to restructuring, and to help them find new jobs. As a general rule, the EGF can be activated when a single company (including its suppliers and downstream producers) lays off over 200 workers, by SMEs in various sectors in the same region or in a particular sector in one or more neighbouring regions. The EGF has an annual budget of €210 million for 2021-2027. It can fund from 60% to 85% of the cost of projects designed to help workers made redundant find another job or set up their own businesses. National or regional authorities implement and manage EGF cases. Each project runs for two years.
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