the european globalisation adjustment fund (egf) implementation in germany
TRANSCRIPT
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The European Globalisation Adjustment Fund (EGF)
Implementation in Germany
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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
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Situation at the end of 2006
• 3,303 employees were to be laid off
• Three business sites:
• North Rhine Westphalia: Kamp-Lintfort & Bocholt
• Bavaria: Munich
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Social Plan
• Severance Payments
• 2 transfer companies to be established in: • North Rhine Westphalia • Bavaria
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Transfer Companies
Support employees in the process of finding a new job by offering:
• Profiling
• Skill training
• Job application training
• Job placement
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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
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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
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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
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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
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Thank you for your attention!
Sabine BaunFederal Ministry of Labour and Social Affairs
Director of the Group „Social Europe“[email protected]