Nijole Mackeviciene Ministry of Social Security and Labour EGF in LITHUANIA Nijole Mackeviciene Ministry of Social Security and Labour EU Parliament, Committee on Employment and Social Affairs 1 March 2012

Topics Lithuanian EGF experience Lithuanian views on proposal for a regulation of EGF 2014-2020

EGF administration in Lithuania Managing Authority - Ministry of Social Security and Labour Tripartite Council (social partners) under the Ministry of Social Security and Labour Institution responsible for assessment of globalisation, financial and economic crisis consequences - Ministry of Economy Lithuanian Labour Exchange and local labour exchanges - Intermediate Authority and project promoters

Key facts about Lithuanian applications Case “Alytaus tekstile“ “Snaigė“ 3 sectoral applications Art. of EGF Regulation 2 a 2 c 2 b Implementation period November 2007 – May 2009 August 2009 - July 2011 October 2009 - October 2011 Number of target group 600 480 1933 dismissed: Construction of buildings Manufacture of furniture Manufacture of wearing apparel Funds 4,5 mln. Eur 600 thou Eur (EGF 50 % + national) 397 thou Eur (EGF 65% + national) Total 3,5 mln. Eur (EGF 65 % +national)

Lithuania is one region according NUTS 2

Results

Active labour market measures Employment support law approved by Parliament Additional measures approved by the Government Job search assistance Employment incentives Training and retraining Temporary financial aid Entrepreneurship promotion Training allowances Support  for improving qualification Outplacement assistance (subsided employment, support for acquisition of professional skills, public works) Promotion of job seeking Support for mobility of workers

Experience EGF is specific, targeted, based on individual needs of redundant workers; Revised EGF regulation (including financial and economic crisis, reducing threshold till 500 , increasing co-funding rate till 65 %) ; Flexibility transferring money in the financial plan of the application Long timing procedure of approval of applications; Contribution of national funding; Sectoral projects are more challenging that single enterprise project; No possibilities to involve new enterprises after approval of application in sectoral projects

Views on proposal for a regulation of EGF 2014-2020 extension of regulation scope: for workers made redundant as a result of major structural changes in world trade patterns due to globalisation, unexpected crisis, workers changing or adjusting their previous agricultural activities. added value giving support for farmers, workers with fixed-term contracts, temporary agency workers and owner-managers of micro, small and medium-sized enterprises and self-employed workers.

Disagreement Article Content Article 1 part 3 “a minimum of 50 % of workers participating in these actions find stable employment within a year from the date of application” Article 4 number of dismissed workers 500

Articles for discussion Content Article 7, part 1 “The cost of investments in physical assets for self-employment and business start-up or for changing or adjusting activity may not exceed EUR 35 000” Article 13 “The Commission, in its assessment of such cases, will decide whether the 65 % co-funding rate is justified”

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