Former steel workers who were laid off by two Mechel companies in Romania are likely to receive EU funding to find new jobs or set up their own companies.

The European Commission plans to give Romania some EUR 3.6 million from its European Globalisation Adjustment Fund (EGF) to support 1,000 employees laid off by two industrial producers in the country. The proposal was sent for approval to the European Parliament and to EU’s council of ministers.

The proposal for funding for former employees of Mechel Câmpia Turzii and Mechel Reparații Târgoviște came after Romania requested financial aid from EGF to support up to 1,500 workers laid off by the two companies. Both companies were part of the Russian group Mechel, which faced difficulties in Romania, and laid off people, prior to selling its companies.

The total estimated cost of the package is EUR 7.14 million, of which the EGF would provide half.
The EU funding would cover career guidance and skills assessment, training, support to entrepreneurship, and some allowances. One of the measures will be to help 250 of these laid off workers to set up a cooperative enterprise that will manufacture sports equipment.

The European Globalisation Adjustment Fund provides support to people losing their jobs as a result of major structural changes in world trade patterns due to globalization.

The EGF has a maximum annual budget of EUR 150 million for the period 2014-2020. It can fund up to 60 percent of the cost of projects designed to help workers made redundant find another job or set up their own business.

The EGF can be used only where over 500 workers are made redundant by a single company (including its suppliers and downstream producers), or if a large number of workers are laid off in a particular sector in one or more neighbouring regions.

editor@romania-insider.com