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Tuesday, 16 July, 2024
Home BUSINESSFinland rejected EGF for layoffs at universities
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Fri, 03 Feb, 2017 09:32:12 PM
Fresh application for axed Microsoft employees submitted
FTimes-FNN Report, Feb 3

Finland has withdrawn the application submitted to the European Globalisation Adjustment Fund (EGF) concerning support for funding employment services for those laid off from the University of Helsinki and Aalto University.

The application has been withdrawn as European Commission recently decided that the EGF fund would not be granted regarding public sector layoffs, said a government press release on Friday.

The European Commission considered that in the projects concerning the public sector the link to the economic crisis is too weak to justify the granting of EGF support. 

Finland is not the only Member State asked to withdraw an application relating to layoffs in the public sector before their processing by EU institutions.

“The key issue here is to secure the necessary services and measures for those laid off from the universities that will help them find new jobs. We gave the commitment to organising the services when this application was being prepared, and we will keep this promise,” said Minister of Justice and Employment Jari Lindström.

The services will be organised by means of national funding. The costs will be lower than estimated in the application for EGF funding as the number of people laid off from universities who have sought employment services has been smaller than expected.

The ministry, however, decided to continue to apply for EGF support and submitted application for EGF funding to support the about 1 000 persons laid off from Microsoft on Wednesday. 

The amount of support applied for from the European Commission is EUR 5.8 million.

“Through EGF action we can address large-scale structural changes that may place certain regions and sectors into an unreasonably difficult position. Now the opportunities in the ICT sector are mainly in small and medium-sized companies, where the conditions and demand may also change quite rapidly. The EGF support will make sure that various kinds of guidance, advisory and training services can be offered to people faced with layoffs as quickly as possible,” said Lindström.

The supports applied for is to be used for services to people laid off from Microsoft in 2016. In October 2016 the EU gave a decision concerning funding to support those laid off from Microsoft in 2015.

During spring 2017 Finland will submit applications concerning support for those laid off from Anttila and Stockmann.

In EGF support the EU’s funding share is 60 per cent and the national contribution is 40 per cent. In cases of major structural change, EGF support is granted for active employment policy measures, such as different forms of training, education, promotion of mobility, pay subsidies and start-up grants.

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