The European Commission has announced to support former workers of vending machine company – Selecta in France who have lost their jobs due to Coronavirus
The European Commission has announced to support 473 former workers of vending machine company – Selecta in France who have lost their jobs due to Coronavirus (COVID-19).
The European Commission would be providing them a financial assistance of € 4 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF).
The EGF is a special European Union (E.U.) instrument to express E.U. solidarity with European workers or the self-employed that were displaced due to restructuring, and to help them find new jobs. As a general rule, the EGF can be activated when a single company (including its suppliers and downstream producers) lays off over 200 workers, by SMEs in various sectors in the same region or in a particular sector in one or more neighbouring regions.
The E.U. funding will help the workers in France to find new jobs through tailored guidance and advice, develop new skills and start their own business.
Speaking on the occasion, the Commissioner for Jobs and Social Rights – Nicolas Schmit said, “Many people across Europe have been hit hard by the economic crisis caused by the COVID-19 pandemic. Today, the EU is showing solidarity with 473 former Selecta employees in France with €4 million from the European Globalisation Fund. The funding goes towards personalised training courses and job-search support, or towards starting their own business.”
Following a drop in sales of products by vending machines because of the COVID-19 related restrictions on mobility and the use of remote working, France applied for EGF support to help dismissed workers at Selecta. The fall in the number of workers in offices and of visitors to other places where Selecta’s vending machines are located, such as railway stations, resulted in a drastic fall in turnover per machine. Faced with economic difficulties, the enterprise had to restructure its activities and dismissed 473 workers.
The region of Île-de-France (32%) and the city of Lille (13%) were most affected by Selecta displacements. Due to a difficult employment situation in these places and given that one third of the displaced workers have a low level of education, French authorities expect that the workers impacted by Selecta’s restructuring will be in need of personalised support to find new jobs.
Under the EGF support, the French workers will learn new skills through vocational training, job search assistance and funding to start their own business. They will also benefit from psychological support, advisory services and counselling. Job-search allowances are also included in the support measures. Those who start a new job can receive a bonus and contributions to the cost of moving to a new place. Former workers starting their own business can receive training in business creation and up to € 6,000 to cover set-up costs.
The total cost of these measures is in tune of € 4.8 million, of which, EGF will cover € 4 million or 85% and Selecta will finance the remaining 15%. Support to the eligible workers started in April 2021, shortly before the first layoffs.
Going ahead, the proposal will now require approval from European Parliament and European Council.
