European Commission proposes €2 million to help 500 workers made redundant in shipbuilding and ancillary sectors in Galicia, Spain

Today, the European Commission proposes to provide Spain with €2 million from the European Globalisation Adjustment Fund (EGF) to help 500 former workers of sectors ancillary to shipbuilding in Galicia to find new jobs.

Nicolas Schmit, Commissioner for Jobs and Social Rights, said: “The European Globalisation Adjustment Fund is a clear example of EU solidarity. It provides funding for mentoring and retraining to workers who have lost their jobs due to globalisation or the economic crisis. The European shipbuilding sector is greatly affected by globalisation and a loss of global market share, with increased competition from outside the EU. We want to help the workers made redundant in Galicia by providing €2 million for their reskilling and upskilling efforts to find new job opportunities in other sectors.”

The EU’s declining market share in global ship production and the increased global competition have led to dire consequences for the ancillary shipbuilding industry in Galicia. Spain requested support from the EGF after 960 workers in ancillary enterprises to shipyards in Galicia were laid off between May 2019 and February 2020.

Around 500 redundant workers are expected to participate in the support measures co-financed by the EGF. The package aims to provide them with career guidance, support in their job search, opportunities to learn new skills by means of vocational training, and tutoring and guidance after finding another job. In addition, workers will have access to various other incentives, such as a contribution to expenses for family carers and financial support to encourage quick re-employment. The total estimated cost of the package is €3.4 million, of which the EGF would provide €2 million. The remaining amount will be provided by the regional authority, the Xunta de Galicia.

The Commission’s proposal will now go to the European Parliament and the Council for approval.