The European Globalisation Adjustment Fund (EGF) Implementation in Germany.

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Presentation transcript:

The European Globalisation Adjustment Fund (EGF) Implementation in Germany

The BenQ Case 2005: Siemens sold mobile phone business to the Taiwanese BenQ Group Restructuring failed September 2006: preliminary insolvency proceedings Take-over failed Business closed down

Situation at the end of ,303 employees were to be laid off Three business sites: North Rhine Westphalia: Kamp-Lintfort & Bocholt Bavaria: Munich

Social Plan Severance Payments 2 transfer companies to be established in: North Rhine Westphalia Bavaria

Transfer Companies Support employees in the process of finding a new job by offering: Profiling Skill training Job application training Job placement

Employee Status Joining a transfer company is voluntary as an alternative to dismissal: Termination agreement with the former employer New fixed-term employment with the transfer company

January 2007 About 2,500 out of 3,303 employees join transfer company: About 800 in Bavaria (TRAIN Company) About 1,750 in North Rhine Westphalia (PEAG Company) Fixed-term contract: from 1 January to 31 December 2007

Drawing up an EGF-based support scheme Round table with all actors: Employer Works Council Trade Union (IG Metall) Representatives of the Ministries of Labour of North Rhine Westphalia and Bavaria Federal Employment Agency

Elements of the Support Scheme Transfer short-time allowance Basic training, guidance, job placement Specific individual training measures Start-up counselling Support for international job applications Follow-up guidance in the new job General support and advice beyond closure of the transfer company on 31 December 2007

Thank you for your attention! Sabine Baun Federal Ministry of Labour and Social Affairs Director of the Group „Social Europe“