Bruxelles, 04/05/2012 (Agence Europe) -On Friday 4 May 2012, the European Commission offered to give Spain €1.6 million from the European Globalisation Adjustment Fund (EGF) to help 350 redundant footwear industry workers in the Valencia region back into work.
EU Commissioner for Employment, Social Affairs and Inclusion László Andor commented: “Spanish shoe industry workers have been hit hard by rising global competition. This proposal for €1.6 million from Europe's Globalisation Fund would help them to get new jobs by training them in new skills.” The funds, requested by the Spanish authorities, would help former workers from 143 mostly small enterprises in the Valencia region. The proposal now goes to the European Parliament and the EU's Council of Ministers for approval.
Explaining its decision, the commissioner does not blame the recession, but rather increased competition from shoes produced elsewhere in the world. In December 2011, the European summit failed to reach agreement on extension of a provision whereby workers losing their jobs because of the economic crisis from 2008 onwards would have been able to benefit from EGF cash (see EUROPE 10507).
Spanish footwear manufacturers are facing competition from China, India and new arrivals like Vietnam and Indonesia. Imports of shoes into the EU grew by 6% in 2006-2009, but exports fell by 16.4%, leading to the bankruptcy of 11.5% of European shoe manufacturers in 2008 alone and a 20% cut in employment. The figures for Spain are even worse, with 35.96% of its shoe manufacturers going out of business in 2006-2010 and employment contracting by 31.80 %, including the loss of 10,663 direct jobs, during the same period. (JK/transl.fl)