1. 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

2. Topics Lithuanian EGF experience
Lithuanian views on proposal for a regulation of EGF

3. 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

4. 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
July 2011
October 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)

5. Lithuania is one region according NUTS 2

6. Results

7. 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

9. 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

10. 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.

11. 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

12. 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”

13. THANK YOU!