Airbus, the airline that has laid off nearly 300 workers in France, may get 3.7 million euros from the European Globalization Fund for Displaced Workers (EGF) in a bid to reduce losses from the pandemic proposed by the European Commission.
According to a UNHCR press release, the funding will help those who have lost their jobs due to the pandemic find new ones through advice on starting their own businesses and business start-up grants, TheSchengen.com reports.
Although the European Commission proposal requires approval by the European Parliament and the European Council, thanks to the European Globalization Adjustment Fund (EGF), 297 former Airbus workers will be assisted, and the estimated €3.7 million will help finance business training and start-up grants amounting to up to into euros. 15,000 per participant.
Accommodation, food and transportation costs related to participation in the training will also be covered to some extent. Additionally, former workers who accept new job offers may be eligible for a pay increase if it is lower than their previous job.
Nicholas Schmidt, Commissioner for Jobs and Social Rights, said EU solidarity is crucial, especially in times of crisis.
“Through the European Globalization Adjustment Fund, we will empower 297 people in the aviation sector in France who have lost their jobs due to the COVID-19 pandemic to re-launch their careers through targeted business creation advice and grants to help them set up their own business,” Schmidt noted.
Due to the COVID-19 pandemic and the travel ban imposed by the governments, the aviation sector has taken a severe hit as the economic crisis has reduced the interest of air transport customers. In addition, plans to purchase new aircraft have been postponed or canceled, and many aircraft have been grounded ahead of schedule as part of the airlines’ restructuring plans.
In other words, the estimated total cost was 4.4 million euros, 85 percent of which (3.7 million euros) will be covered by the European Globalization Adjustment Fund, while the remaining amount (700,000 euros) will be provided by Airbus.
Airbus’ commercial aircraft generated 67 percent of Airbus’ total revenue. As of April 2020, production levels have fallen by a third and Airbus’ workforce has been reduced accordingly.
The initial restructuring plan expected to cut 4,248 jobs in France, but with the measures introduced by the French government to revive the economic sectors affected by the epidemic, the number of layoffs was reduced to 2,246 jobs.
On the other hand, the European Globalization Fund has, since 2007, allocated more than 652 million euros in 166 cases, providing assistance to nearly 164,000 people in all 20 member states.