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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“[email protected]