Today, the European Commission proposes to support 320 dismissed workers in the automotive sector in the Aragón region in Spain, who lost their jobs due to the COVID-19 pandemic.

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The proposed €1.4 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) will help these people find new jobs through further education or training.

The lockdown measures introduced during the COVID-19 pandemic and the shortage of semiconductors forced car companies to interrupt or significantly slow down their production. Despite the wide and successful use of short-time work schemes, some manufacturers had to shut down production leading to job losses. Thanks to the EGF, 320 workers laid off from 50 Aragón businesses in the automotive sector in Spain will receive targeted active labour market support to help them return to work.

The €1.4 million of EGF funds will help the Aragón authorities finance measures ranging from career guidance and individualised job-search support, to acquiring new or additional skills, to advice on starting an own business. Training will also help improve digital skills and knowledge on new industrial production processes, therefore contributing to the digital transition in the car industry. Participants can receive allowances for taking part in these measures and a contribution to their commuting expenses.

The total estimated cost of the support measures is €1.7 million, of which the EGF will cover 85% (€1.4 million). The region of Aragón will cover the remaining amount (€0.3 million). Aragón’s public employment service (INAEM) will contact workers eligible for support and will manage the measures.

The Commission's proposal requires approval by the European Parliament and the Council.