The European Commission has proposed a €700,000 grant to compensate 632 Belgian workers who were laid off by heating technology company Purmo and paper company Sappi.
The funding would be made available through the European Globalisation Adjustment Fund for Displaced Workers (EGF).
In July, Belgium applied for EGF funding to help workers in the Flemish province of Limburg who were laid off by Purmo and Sappi to find new employment.
The Sappi paper mill in Lanaken closed at the end of last year, resulting in 567 job losses. At radiator manufacturer Purmo in Zonhoven, 114 workers were laid off. 632 workers from the two companies will benefit from the funds. The rest have either found new jobs or are not interested in pursuing a job transition.
Many of those concerned are lower-skilled workers aged 50 or older. Some are of migrant backgrounds and the European Commission noted that they typically face greater challenges finding work in the Flemish labour market. In addition, Lanaken and Zonhoven are areas with fewer job opportunities than elsewhere in Flanders. The job seeker-to-vacancy ratio in these areas is double the average in Flanders.
In a press release the European Commission highlighted a "critical need for personalised support" to help these workers transition to new jobs.
Retraining and help with job hunting
The funding will go towards counselling and vocational orientation, job search assistance, and skills training in vocational, digital and language skills.
The total estimated cost is €1.2 million, 60% of which (€700,000) will be covered by the EGF. The remaining 40% (€500,000) will be financed by the Flemish Employment and Vocational Training Service (VDAB).
"The European Globalisation Adjustment Fund is a concrete expression of EU solidarity towards workers at their most vulnerable moment. Thanks to it, the 632 workers who lost their job in the machinery and paper sectors in Belgium will be able to retrain, acquire new skills and receive help as they look for a new job and relaunch their careers," said Nicolas Shmidt, EU Commissioner for Jobs and Social Rights.
The Commission's proposal now requires approval from the European Parliament and the Council. Last month, the EU approved €2.7 million in funding from the same EGF pot for Belgian workers laid off from Match and Smatch supermarket chains.
