The EGF’s annual budget is around EUR500 million and it is designed to help workers find new jobs or acquire new skills. The fund is especially directed toward people laid off following changes in world trade, like when a large business shuts down or moves outside the EU, or because of the economic and financial crisis. In the latter case, EGF financing is available between May 1, 2009 and December 30, 2011, although the European Commission has proposed extending this period until December 31, 2013.
EGF offers assistance with job searching, professional orientation, general training and professional reconversion, mentorship and promoting the entrepreneurial spirit. The fund can also finance special individual support measures, through allowances for job seeking, mobility and participation in training programs.
The fund does not finance social protection measures like pensions and unemployment aid, which are the domain of member states.
The EGF’s beneficiaries are laid off workers exclusively.
Applications for assistance through the EGF may be filed only by member states. Individuals, representative bodies and businesses affected by layoffs that want to receive EGF support must address the relevant national authorities.
Labor Minister Sulfina Barbu has requested an application be prepared as soon as possible, to help the 2,200 employees affected by the layoffs at Nokia.
Finnish mobile giant Nokia plans to close its manufacturing facility in Jucu, Cluj county by the end of 2011, the company said in a press release Thursday, citing the need to cut costs and bring efficiency to the business.
The company said it plans to focus its phone manufacturing in its high-volume Asian factories, which provide greater scale and proximity benefits.
The planned closure of the factory combined with adjustments to supply chain operations is estimated to impact approximately 2,200 employees, the company said, adding laid off employees would benefit from severance payments.
Nokia started mobile phone production at Jucu in February 2008, following an investment of EUR60 million.