Today, the Commission proposed to support 365 workers dismissed in Belgium by the retail chain Match-Smatch with €2.7 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF).
In June 2024, Belgium applied for EGF funding to help workers in the Walloon region who were laid off by Match-Smatch to find new employment. Many of the redundancies involve lower-skilled workers aged 50 years and older, who typically face more challenges in finding work in the Walloon labour market.
The EGF funding will help to pay for advisory services, job search assistance, as well as skills training in vocational, digital and language skills. In addition, the dismissed workers can receive guidance on starting their own businesses and benefit from start-up grants of up to €15,000. Hiring incentives for enterprises recruiting former Match-Smatch workers are also part of the package. Additional allowances will be made available to workers participating in job search, training and education activities, as well as support for self-employed people in the initial months of launching their businesses.
The total estimated cost of these measures is €3.1 million, with 85% (€2.7 million) covered by the EGF and the remaining 15% (€469,688) financed by the Walloon region. Support from the Belgian authorities for eligible workers started shortly after the dismissals.
The Commission's proposal now requires approval from the European Parliament and the Council.
Background
In 2022, Match-Smatch implemented an action plan to curb losses and restore financial stability, but it failed. To prevent further losses, Match-Smatch sold two-thirds of its stores to various retailers; however, employees of unsold stores and the head office were laid off.
Belgium asked for EGF co-financing to support the laid-off workers in Wallonia (notably in Hainaut, Liège and Namur), at the request of the Walloon region.
Under the EGF regulation 2021-2027, the Fund supports displaced workers and self-employed people who have lost their activity due to unexpected major restructuring events.
Since 2007, the EGF has allocated €696 million in 180 cases, providing help to more than 169,000 people in 20 Member States. EGF-supported measures complement national active labour market measures.
