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Applying to EGF: Lithuania’s Experience Director of EU Structural Support Department Ministry of Social Security and Labour of the Republic of Lithuania Nijolė Mackevičienė nmackeviciene@socmin.lt Meeting of the EGF Contact Persons, Brussels, 6 March 2008
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Presentation plan 1.Key facts about the application 2.Administration system 3.Application timetable 4.Main problems (1) 5.Intervention timetable 6.Main problems (2) 7.Positive experience 8.Recommendations
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1. Key facts about the application Sector: textile and clothing. Company affected: “Alytaus tekstilė”, cotton text. producer. No. of redundancies: 1089. No. targeted for assistance: 700, of which: –78% females; –60% low-qualified (ISCO groups 7 and 8); –13% non-qualified (ISCO group 9); –36% pre-retirement age; –8% with longstanding health problem or disability. Intervention criterion: Art. 2(a), EGF Regulation. Planned budget: € 1,179,884.
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2. Administration system Managing authority Intermediate body Institution responsible for the evaluation of globalization consequences European Social Fund Agency Paying authority Audit institution
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3. Application timetable Decision of the Government to apply, allocation of responsibility 05-09-2007 Official information about planned group redundancy 31-10-2007 Last workers dismissed 22-11-2007 4-month reference period 30-10-2007 – 29-02-2008 Draft application for EC’s comments 30-01-2008 Planned official application submission date (10 weeks after the end of 4-months) 09-05-2008 Planned completion of intervention 09-05-2009
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4. Main problems (1) Establishment of clear timetables: –the text of Regulation provides rather vague guidance. Not all affected workers could be targeted: –e.g. those who left voluntarily earlier due to long-standing failure of “Alytaus tekstilė” to pay salaries. Intervention planned and implemented at the same time, which causes difficulties with: –Availability of adequate resources (for intervention, which has not been formally approved by relevant budget authority); –Co-ordination and complementarity between related interventions and meeting their multiple eligibility requirements: national and EGF or (alternatively) ESF.
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5. Intervention timetable First workers from the target group registered in labour exchange 07-11-2007 Start of assistance to jobseekers 07-11-2007 Individual employment plans prepared within 30 days from registration Start of occupational guidance 12-01-2008 First job-search allowances paid 06-12-2007 Start of training 10-01-2008 Start of outplacement assistance 17-01-2008 Start of entrepreneurship promotion 2 nd quarter 2008
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6. Main problems (2) Eligibility of job-search allowances: –49% of the total budget; –Early feedback from the EC considering them passive measures and thus ineligible for EGF; –In Lithuanian context they are time-limited financial measures, designed specifically to support a package of individually tailored active measures - individual employment plan, strictly conditional on smooth implementation of the plan, with size of payments diminishing over time.
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7. Positive experience Early decision of the Government to apply; Early and clear allocation of institutional responsibilities (no co-ordination problems); Building on previous experience with ESF programmes; Monitoring and early anticipation of mass redundancy by labour exchange; Availability of external expertise to assist with collection of data, conducting analysis and developing a case for EGF intervention; Instant availability of advise from the EC services; Instant availability of examples from other Member States in more advanced stages of application.
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8. Recommendations Address challenges: –provide further clarification of timetables and eligibility (EC); –reconsider possibilities for targeting all the affected groups (EC). Multiply positive experience: –ensure smooth functioning of national mechanisms for early warning on the negative effects of globalisation (MS); –decide early to apply (MS); –build on the existing national institutions and procedures (MS); –facilitate peer learning (MS and EC) and provide early guidance (EC).
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THANK YOU FOR YOUR ATTENTION! E-mail: nmackeviciene@socmin.ltnmackeviciene@socmin.lt Telephone: +37062044971
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