Following the Council on 3 June 2021, on 7 June 2021 the European Parliament also approved the mobilization of the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support the labor market reintegration of redundant workers from the GMH Guss Group. The 476 former employees of the GMH Guss Group foundries will now receive support of around EUR 1.1 million in EGF funding to help them find new career prospects. Germany has now submitted its eleventh successful EGF application.
The reason for the redundancies at the GMH Guss Group were negative effects of globalisation. The GMH Guss Group produced castings for the automotive and mechanical engineering sector. Due to a shift in the manufacture of foundry products for car and truck production and mechanical engineering abroad, in particular to Asia and Eastern Europe, production at the German foundries slumped by 8.9% in 2019. As a result, insolvency proceedings were opened over the assets of GMH Guss GmbH and four of its subsidiaries. The subsidiaries had to be closed in full or in part.
The planning and implementation of the EGF support measures is being handled by the appointed transfer service provider BOB Transfer. The EGF is intended to support the redundant employees with training, advice, vocational preparation and orientation and other measures to help them find work and acquire new skills. The total volume of funding, including national funds, is around EUR 1.8 million.
European Globalisation Fund
The European Globalisation Adjustment Fund (EGF) was launched at the beginning of 2007.