Applying to EGF: Lithuania’s Experience

Director of EU Structural Support DepartmentMinistry of Social Security and Labour of the

Republic of Lithuania

Nijolė Mackevičienė

nmackeviciene@socmin.lt

Meeting of the EGF Contact Persons,

Brussels, 6 March 2008

Presentation plan

1. Key facts about the application2. Administration system3. Application timetable4. Main problems (1)5. Intervention timetable 6. Main problems (2)7. Positive experience8. Recommendations

1. Key facts about the application• Sector: textile and clothing.• Company affected: “Alytaus tekstilė”, cotton text.

producer.• No. of redundancies: 1089.• No. targeted for assistance: 700, of which:

– 78% females; – 60% low-qualified (ISCO groups 7 and 8);– 13% non-qualified (ISCO group 9); – 36% pre-retirement age; – 8% with longstanding health problem or disability.

• Intervention criterion: Art. 2(a), EGF Regulation.• Planned budget: € 1,179,884.

2. Administration system

• Managing authority

• Intermediate body

• Institution responsible for the evaluation  of globalization consequences

• European Social Fund Agency

• Paying authority

• Audit institution

3. Application timetable

Decision of the Government to apply, allocation of responsibility

05-09-2007

Official information about planned group redundancy

31-10-2007

Last workers dismissed 22-11-2007

4-month reference period 30-10-2007 – 29-02-2008

Draft application for EC’s comments 30-01-2008

Planned official application submission date (10 weeks after the end of 4-months)

09-05-2008

Planned completion of intervention 09-05-2009

4. Main problems (1)• Establishment of clear timetables:

– the text of Regulation provides rather vague guidance.

• Not all affected workers could be targeted:– e.g. those who left voluntarily earlier due to long-standing

failure of “Alytaus tekstilė” to pay salaries.

• Intervention planned and implemented at the same time, which causes difficulties with: – Availability of adequate resources (for intervention, which

has not been formally approved by relevant budget authority);

– Co-ordination and complementarity between related interventions and meeting their multiple eligibility requirements: national and EGF or (alternatively) ESF.

5. Intervention timetable

First workers from the target group registered in labour exchange

07-11-2007

Start of assistance to jobseekers 07-11-2007

Individual employment plans prepared within 30 days from registration

Start of occupational guidance 12-01-2008 First job-search allowances paid 06-12-2007 Start of training 10-01-2008 Start of outplacement assistance 17-01-2008

Start of entrepreneurship promotion 2nd quarter 2008

6. Main problems (2)• Eligibility of job-search allowances:

– 49% of the total budget;

– Early feedback from the EC considering them passive measures and thus ineligible for EGF;

– In Lithuanian context they are time-limited financial measures, designed specifically to support a package of individually tailored active measures - individual employment plan, strictly conditional on smooth implementation of the plan, with size of payments diminishing over time.

7. Positive experience• Early decision of the Government to apply;

• Early and clear allocation of institutional responsibilities (no co-ordination problems);

• Building on previous experience with ESF programmes;

• Monitoring and early anticipation of mass redundancy by labour exchange;

• Availability of external expertise to assist with collection of data, conducting analysis and developing a case for EGF intervention;

• Instant availability of advise from the EC services;

• Instant availability of examples from other Member States in more advanced stages of application.

8. Recommendations• Address challenges:

– provide further clarification of timetables and eligibility (EC);

– reconsider possibilities for targeting all the affected groups (EC).

• Multiply positive experience:

– ensure smooth functioning of national mechanisms for early warning on the negative effects of globalisation (MS);

– decide early to apply (MS);

– build on the existing national institutions and procedures (MS);

– facilitate peer learning (MS and EC) and provide early guidance (EC).

THANK YOU FOR YOUR ATTENTION!

E-mail: nmackeviciene@socmin.lt

Telephone: +37062044971