The European Commission has proposed to support 603 workers dismissed by a logistics company in Belgium with €2.2 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF).

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The funding will help the workers find new jobs through tailored guidance and advice, as well as training, and support to start their own business.

Belgium applied for EGF funding to help the workers dismissed by Logistics Nivelles SA, a provider of logistics services for food and drinks. Logistics Nivelles SA is a subsidiary of global transport and logistics company Kuehne + Nagel International AG. Kuehne + Nagel International AG closed its site in the Belgian region of Wallonia to concentrate operations in Kontich, in the region of Flanders.

The EU-funded support to the dismissed workers includes:

• advisory services
• job search assistance
• tailored vocational reskilling
• training in digital skills and languages

Participants can also receive advice on how to start their own business, and benefit from start-up grants of up to €15,000, as well as a monthly allowance of €350 in the first 12 months after launching their business.

In addition, the measures include bonuses for workers that successfully complete training courses to improve their IT and language skills. EU funding also supports a variety of allowances, for instance regular financial support while workers engage in job-search, continue their education or attend training.

The total estimated cost of these measures is about €2.5 million, of which the EGF will cover 85% (€2.2 million). The Walloon Region in Belgium will finance the remaining 15% (€380,000). Support to the eligible workers started after the first dismissals happened.

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

Background

The closure concerns the region of Wallonia in Belgium, where unemployment is higher (8.4%) than the average in Belgium (5.6% at national level, according to Statbel). In addition, the redundancies at Logistics Nivelles SA concern many low-skilled workers and people aged 50 years and older, whose chances to find work tend to be low in the regional labour market. These workers need additional and targeted support to increase their chances of finding new jobs and will particularly benefit from the proposed EGF support measures.

Under the EGF regulation 2021-2027, the Fund supports displaced workers and self-employed people who have lost their activity. EGF support is available for people affected by all types of unexpected major restructuring events, including the economic effects of the COVID-19 pandemic and Russia’s unjustified invasion of Ukraine, as well as 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.

Through its funding for the training and education of dismissed workers, the EGF contributes to EU’s efforts to support skills development. The European Year of Skills puts skills centre-stage, to support people so they get the right skills for quality jobs, and to help address skills shortages in the EU.