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European Globalisation Adjustment Fund assistance for redundant Thomas Cook employees

Question écrite de M. Dinesh DHAMIJA - Commission européenne


Subject: European Globalisation Adjustment Fund assistance for redundant Thomas Cook employees

On 23 September, the UK operation of the world’s oldest tour operator, Thomas Cook, declared bankruptcy. The collapse has put 22 000 jobs at risk worldwide, including 9 000 in the UK. The compulsory liquidation of the company, which serves 19 million customers per year and runs hotels, flights and cruises across 16 countries, has immense negative effects on customers, and thousands of employees, suppliers and partners.

In view of the fact that:

– the European Globalisation Adjustment Fund (EGF) was created to offer additional support to employees suffering the consequences of major structural changes in world trade patterns and as a result of the continuation of the global financial and economic crisis;

– no concrete measures have been taken to minimise the impact on employees in this case;

– the number of redundancies involved is vast;

Could the Commission please state:

1. Whether this particular case meets the eligibility criteria laid down in the EGF Regulation (after the respective application by the Member State)?

2. What measures are planned to support the redundant employees of Thomas Cook?

3. Whether, in the event that the EGF were to be mobilised, a no-deal Brexit would have an impact on the supporting measures?

Réponse - Commission européenne

Diffusée le 19 novembre 2019

Answer given by Ms Thyssen on behalf of the European Commission

(15 November 2019)

1. The European Globalisation Adjustment Fund (EGF) can provide assistance to dismissed workers to help them find new employment, in accordance with the criteria defined in the EGF Regulation (1). The first step to mobilise the EGF is for the Member State concerned to submit an application (2).

The dismissals must result from major structural changes in world trade patterns due to globalisation provided that these redundancies have a significant adverse impact on the local, regional or national economy.

This can, in particular, be demonstrated by a serious shift in Union trade in goods and services, or a rapid decline of the Union market share in a given sector or a delocalisation of activities to third countries. Alternatively, the EGF can provide assistance in cases that result from a global economic and financial crisis. The European Commission assesses each application according to its merit.

2. A financial contribution from the EGF may be made for active labour market measures that form part of a coordinated package of personalised services as stipulated in Article 7 of the EGF Regulation.

In addition, the European Social Fund (ESF) may support actions to help dismissed workers, notably through retraining, reskilling and job counselling. The relevance and availability of such ESF support is to be determined by each Member State concerned. The Commission stands ready to consider changes to the OP, if necessary.

⋅1∙ Regulation (EC) No 1309/2013, OJ L 347 of 20.12.2013, p 855.

⋅2∙ The relevant EGF contact persons details are available on the EGF website under ‘How to Apply’: https://ec.europa.eu/social/main.jsp?

catId=581&langId=en




| | ) 3. If the EGF were to be mobilised, following an application from the UK and according to the relevant provisions of Articles 8 and 15 of the EGF Regulation, the decision will be subject to the legal provisions in force at that time. Since the scope of application of the EGF includes EU Member States only, the UK would no longer be able to benefit from EGF support in case of a no-deal scenario.

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