EU provides €3m for redundant German Vallourec employees

The European Commission has proposed to support 835 workers dismissed in the German steel industry with €3 million ($3.3m) from the European Globalisation Adjustment Fund for Displaced Workers (EGF).

In November 2023, Germany applied for EGF funding to help the workers dismissed by steel tubes producer Vallourec, after the company decided to close its German tube mills to move production to Brazil.

The support includes guidance, such as counselling and vocational orientation, job search assistance like job scouting or participation in job fairs, as well as training offers, Kallanish learns from a Commission bulletin. Former workers can also receive funding of up to €22,000 for starting their own business. They can receive allowances when they participate in support measures such as training courses, and bonus payments or salary top-ups when they start a new job.

The total estimated cost of the measures is about €5 million, of which the EGF will cover 60%, or €3m. The remaining 40%, or €2m, will be financed through the German federal budget and the German Public Employment Service.

EGF support is available for people affected by all types of unexpected major restructuring events, including the economic effects of Russia’s invasion of Ukraine and other sources of geopolitical instability. Also included are larger economic trends like decarbonisation and automation. Member states can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.

Christian Koehl Germany