Proposal for a Decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund following an application from Portugal – EGF/2018/002 PT/Norte – Centro – Lisboa wearing apparel
7. On 24 April 2018, Portugal submitted application EGF/2018/002 PT/Wearing apparel for a financial contribution from the EGF, following 1,161 redundancies from Ricon Group and Têxtil Gramax Internacional – firms operating in the wearing apparel sector. These redundancies were distributed across the regions of Norte, Centro an Lisboa. The redundancies occurred in the nine months following 1 May 2017.
8. In its application, Portugal argues these redundancies are the result of structural changes in world trade patterns due to globalisation – particularly following the end of the Multifibre Arrangement in 2014. It argues that increased import levels have put a downward pressure on clothing prices, which in turn has had a negative impact on the financial positions of enterprises operating in the sector. In many cases this has led to these firms moving production off-shore.
9. It is envisaged that around 730 redundant workers will participate in the active labour market policy measures proposed in the application to assist the workers made redundant through a package of personalised services. Actions will include: training and retraining, allowances for costs such as travel to training and promotion of entrepreneurship through grant funding and training .
10. Following assessment of Portugal’s application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met. The Commission proposed to mobilise the EGF for €4,655,883 (£4,064,249). This represents 60% of the total costs of the proposed actions.