Parliament approved €840,000 in European Globalisation Adjustment Fund (EGAF) aid on Tuesday to help 300 redundant building workers in Valencia (Spain) to back into the labour market. The aid was approved by 603 votes, with 71 against and 17 abstentions.
Some 630 workers were made redundant by Valencian manufacturers of non-metallic mineral products (such as concrete, fibreglass insulation products and tiles) due to low demand in Spain’s crisis-hit construction sector. Of these laid-off workers, roughly 300 are expected to take up the measures designed to help them back into work.
The manufacturing sector accounts for 26% of total employment in the region. The negative trend caused by the crisis applies to the entire EU, but production in Spain has declined more steeply than elsewhere, exacerbated by low-cost competition from China, authorities say.
The EGAF contributes to packages of tailor-made services to help redundant workers find new jobs. The annual ceiling of the fund is €500 million. Parliament’s decision still needs to be endorsed by Council.