Today, the Commission proposed to support 632 workers in Belgium, who were dismissed by machinery and paper enterprises Purmo and Sappi, with €700,000 from the European Globalisation Adjustment Fund for Displaced Workers (EGF) .
In July 2024, Belgium applied for EGF funding to help workers in the Flemish province of Limburg who were laid off by Purmo (machinery) and Sappi (paper) to find new employment. Many of the redundancies involve lower-skilled workers aged 50 years and older, some of them with a migrant background, who typically face more challenges in finding work in the Flemish labour market.
The territories concerned by the redundancies, Lanaken and Zonhoven, are less prosperous than the other parts of the Limburg province and Flanders. In these territories, the job seeker-to-vacancy ratio is double the average ratio in Flanders, highlighting the critical need for personalised support to help workers with a successful job transition.
The EGF funding will help pay for counselling and vocational orientation, job search assistance, as well as skills training in vocational, digital and language skills.
The total estimated cost of these measures is €1.2 million, with 60% (€700,000) covered by the EGF and the remaining 40% (€500,000) financed by the Flemish Employment and Vocational Training Service (VDAB). 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
Sappi is a company active in the paper sector. In recent years, increased digitalisation has led to a decline in demand for woodfree coated paper products, resulting in a growing overcapacity in this sector in Europe. As a result, Sappi closed its site in December 2023, laying off 567 workers.
Purmo is a company active in the machinery sector, including heating systems. Changes in consumer purchasing habits have led to a sharp decline in the demand for panel radiators in the EU, in favour of alternative greener heating solutions. In early 2024, Purmo decided to cease the production of 50-mm panel radiators, laying off 114 workers.
Of the 681 workers dismissed by Sappi and Purmo, 632 are expected to benefit from the measures funded by the EGF. The remaining workers chose not to participate, either because they had already found new jobs or because they were not interested in pursuing a job transition .
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 intervened in 181 cases, allocating €698 million to provide help to more than 169,000 people in 20 Member States. EGF-supported measures complement national active labour market measures.
