€3 million in EU aid for 915 dismissed workers in Germany

On Tuesday, MEPs approved EU aid for 915 former Goodyear employees in Hanau and Fulda, Germany.

The Budgets Committee approved, with 29 votes in favour, 1 against, and 2 abstentions, Germany’s request for €3,085,166 in EU aid through the European Globalisation Adjustment Fund for Displaced Workers (EGF). Workers dismissed following the closure of Goodyear’s tyre production site in Fulda and the partial shutdown of its plant in Hanau, Germany, are set to benefit from EU support. The funds will cover 60% of the total costs of the planned reintegration measures, such as career guidance, acquiring new skills, support for business start-ups, and help with job-search. German authorities began supporting workers in November 2024, shortly after the layoffs occurred, the EGF will retroactively cover costs.

In 2024, Goodyear restructured due a significant decline in demand, rising costs, and increasing competition from low-cost imports from Asia. MEPs noted in the draft report that most displaced workers have a low level of education (56% with lower secondary education or less) and are aged 54 or older (42%). They highlighted that the redundancies at Goodyear pushed the annual unemployment rate in the Fulda region above 10%. This disproportionately affected male workers and those over 50, many of whom hold outdated qualifications and skills that no longer match current labour market demands.

Plenary is set to vote on this file during its first October session in Strasbourg.

Background

Under the EGF regulation 2021-2027, the fund supports displaced workers and self-employed people who have lost their job due to unexpected major restructuring events. EGF support is available for those affected by all types of unexpected major restructuring events, including the economic effects of the COVID-19 pandemic and Russia's unjustified invasion of Ukraine as well as broader trends, such as decarbonisation and automation. Member states can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.

Once a member state applies detailing the redundancies and planned support measures, the Commission evaluates it. If the application meets the EGF criteria, then the Commission proposes mobilising funds, which must be approved by the European Parliament and the Council. According to the Commission, the EGF has been used in 183 cases since 2007, allocating €709 million to provide help to more than 172,000 people in 20 EU countries.