The European Globalisation Adjustment Fund (EGF) Implementation in Germany

The European Globalisation Adjustment Fund (EGF)

Implementation in Germany

The BenQ Case

• 2005: Siemens sold mobile phone business to the Taiwanese BenQ Group

• Restructuring failed

• September 2006: preliminary insolvency proceedings

• Take-over failed

• Business closed down

Situation at the end of 2006

• 3,303 employees were to be laid off

• Three business sites:

• North Rhine Westphalia: Kamp-Lintfort & Bocholt

• Bavaria: Munich

Social Plan

• Severance Payments

• 2 transfer companies to be established in: • North Rhine Westphalia • Bavaria

Transfer Companies

Support employees in the process of finding a new job by offering:

• Profiling

• Skill training

• Job application training

• Job placement

Employee Status

Joining a transfer company is voluntary as an alternative to dismissal:

• Termination agreement with the former employer

• New fixed-term employment with the transfer company

January 2007

About 2,500 out of 3,303 employees join transfer company:

• About 800 in Bavaria (TRAIN Company)

• About 1,750 in North Rhine Westphalia (PEAG Company)

• Fixed-term contract: from 1 January to 31 December 2007

Drawing up an EGF-based support scheme

Round table with all actors:

• Employer• Works Council • Trade Union (IG Metall) • Representatives of the Ministries of Labour of North Rhine Westphalia and Bavaria • Federal Employment Agency

Elements of the Support Scheme

• Transfer short-time allowance • Basic training, guidance, job placement• Specific individual training measures• Start-up counselling• Support for international job applications• Follow-up guidance in the new job• General support and advice beyond closure of the transfer company on 31 December 2007

Thank you for your attention!

Sabine BaunFederal Ministry of Labour and Social Affairs

Director of the Group „Social Europe“Sabine.Baun@bmas.bund.de