EU fund could be a lifeline to sacked Ericsson staff - MEP (Oswestry Liberal Democrats)

EU fund could be a lifeline to sacked Ericsson staff - MEP

November 12, 2009 1:07 PM
Originally published by Liz Lynne MEP

Liz Lynne is calling for the UK government to apply for EU help to fund retraining for Ericsson workers facing redundancy.

A recently reformed EU budget could throw a lifeline to the 700 workers facing the sack at the Sony Ericsson research plant at Coventry, says local LibDem Euro MP Liz Lynne.

Ericsson, whose mobile phone business is making losses, unexpectedly announced this week that they are to abandon their new research facility at the showpiece Ansty Park site in Coventry and relocate research and development activities overseas.

Now local MEP Liz Lynne has urged the UK government to apply to an EU fund to help the 700 staff facing redundancy to find another job. The European Globalisation Adjustment Fund allows EU governments to apply for millions of pounds to support specialist retraining and advice for workers being made redundant due to the financial crisis.

Liz Lynne, who is Vice President of the European Parliament's Employment and Social Affairs Committee, said: "This announcement by Ericsson is terrible news for Coventry and for the 700 workers affected.

"The recently reformed Globalisation Adjustment fund could offer real help to staff in finding other work. The threshold for applications was recently cut from 1000 job losses to 500 and the total amount of money available to governments to fund retraining was increased. To qualify, redundancies must affect staff in permanent contracts, not temporary workers.

"From the information Ericsson has released, it looks as if these conditions would be met and funding could be available, but the UK government must apply for it."

"If accepted, the EU would meet three quarters of the cost of retraining programmes, as long as the government undertakes to fund the rest. This would offer a real chance for staff facing redundancy to get top quality retraining and help to find new work suiting their skills as soon as possible.

"Many EU governments have been applying for help from this fund, which has been changed specifically to help deal with the financial crisis, but the UK has been dragging its feet.

"I strongly urge the UK Government to immediately apply for assistance from the fund - to help Ericsson employees and also for every other major company that is shedding jobs in the UK."

Liz Lynne welcomed reports that local councils are setting up a task force to help workers and to minimise the impact of the redundancies on plans to develop the Ansty Park site as a technology showpiece. Ericsson only opened their research facility there this spring.

ENDS

Notes: Ericsson's announcement that it is to close its brand new R&D centre at Ansty Park with the loss of 700 jobs is a serious blow for Coventry's plans to develop the site as a technology showpiece.

There is also now doubt that Tata JLR will open their research centre at the site, which could have provided up to 2000 jobs.

Under recent changes made to the EU's Globalisation fund, the EU will now contribute 75 % towards agreed programmes to help workers, with the rest being contributed by the Member State.

Warwickshire County Council and Rugby Borough Council are working with partners to set up a task force to minimise the economic impact of the news and to develop a clear way forward to support those local employees and local businesses affected by Ericsson's decision.

A meeting is being set up through the Coventry, Solihull & Warwickshire Partnership to take this forward. Warwickshire County Council says Ansty Park remains a key development opportunity for Warwickshire and the sub-region. Advantage West Midlands says it is still committed to the long term future of the site and plans to start work next year on the £40 million Manufacturing Centre at Ansty Park, which would create 150 permanent jobs, remain on schedule.

Oswestry Liberal Democrats