Brussels, 06/03/2007 (Agence Europe) - EFFAT, the European Federation of the Trade Unions from the Agriculture, Food and Tourism sectors, has called on Mariann Fischer Boel, Agriculture Commissioner, to “carefully consider all the social consequences of the restructuring of the sugar industry”. EFFAT mainly regrets that the temporary scheme for the restructuring of the sugar industry, set in place by the reform of 2006 (to encourage companies to give up production), provides for subsidies to be given equally to all parties concerned (employers, shareholders, beet growers, workers). We recall that Ms Fischer Boel's services plan to improve implementation of the restructuring programme for the sugar sector as it has not yet given the hoped-for results (EUROPE 9373).
Beet growers are sure to receive at least 10% of the aid whereas, at the same time, the workers do not enjoy any guarantees at all, EFFAT protests in a letter recently sent to Ms Fischer Boel. This European federation does not accept the fact that workers have to “keep on struggling to get a fair share”.
EFFAT takes two examples to illustrate its comments. In Italy, many social demonstrations preceded the conclusion, in February 2006, of a “tripartite” national agreement taking into account the demands of workers and of their representatives. The situation is very different in Ireland, where workers in Greencore are being “treated with total contempt by the management” and the Ministry of Agriculture (EUROPE 9326). Closure of the Irish company took place on 12 May 2006 and the 330 workers made redundant only received the minimum redundancy payments (two weeks pay per year of service). The Labour Court called for improved compensation but the management have so far refused to apply the court's decision. This situation is all the more unacceptable, in EFFAT's opinion, as support as high as €146 million from the restructuring fund has to be shared by all the stakeholders and Greencore has unveiled plans to build a €1.1 billion town centre on its former sugar factories.
Furthermore, as a consequence of the provisions of the 2006 regulation, in many countries compensation offered to the workers in application of poor national legislations are “not attractive enough”, EFFAT explains, calling for the workers of the sugar industry to be entitled to just entitlements and a minimum percentage of the temporary restructuring fund, similarly to the farmers if the privilege of the latter is to be maintained. Finally, EFFAT concludes, “social plans have to be successfully concluded before the restructuring plans are approved by the national authorities in charge of the management of the fund”.
EFFAT also publishes a provisional list of member states in which companies of the sugar sector have closed down since entry into force of the reform, thus directly affecting over 4,000 workers:
2006: Austria (Agrana, Hohenau), in Belgium (Iscal Sugar, Veurne); Denmark (Danisco, Assens); Finland (Danisco, Salo); Germany (Norzucker, Wierthe and Munzel); Ireland (Greencore, Mallow); Italy (five Eridania Sadam sites, five Coprob/Italia Zuccheri sites, as well as three SFIR plants); Poland (British Sugar, Unislaw and Dobre, one Pfeifer & Langen site, as well as five factories of KSC Polskie Cukier); Slovakia (the Rimavská Sobota site of the Agrana group); Spain (Ebro Puleva, in Ciudad Real, Azucarera del Guadalfeo SA in Guadalfeo, as well as Azucareras Reunidas de Jaén SA, in Linares).
2007/2008: Czech Republic (three Eastern Sugar sites); France (possible closure in 2008 of the Saint Louis Sucre plant in Marseilles); Germany (Elsdorf site of Pfeifer & Langen); Greece (closure expected in 2008 of two factories of the EBZ group); Hungary (Eastern Sugar in Kaba); Italy (last factory of SFIR in Pontelagoscuro); Latvia (the units of Liepajas Cukurfabrika and Jelgavas Cukurfabrika); Poland (a factory of the KSC Polskie Cukier group); Slovakia (the Dunajská Streda site belonging to Eastern Sugar); Slovenia (closure foreseen in 2008 of the Tovarna Sladkorja plant in Ormoz); Spain (Acor plant in Valladolid); Sweden (Danisco, in Köpingebro and UK (two British Sugar factories in York and Allscott).
Abandonment of quotas for 2006 and 2007
According to the requests filed by companies of the sugar sector, dating from mid-February, abandonment of quotas reach a little over 676,000 tonnes of sugar for the current 2007/2008 period: - 158,000 tonnes in Greece, 24,860 t in Italy, 16,678 t in Spain, 19,500 t in Portugal, 56,087 t in Finland, 108,093 t in Hungary, 102,473 t in Czech Republic, 70,133 t in Slovakia, 53,000 t in Slovenia and 66,505 t in Latvia. Also, Spain and France have called for activation of the restructuring fund for 5,00 t and 27,664 t of isoglucose respectively.
For the 2006/2007 marketing year, abandonment of sugar quotas totalled 1,148,896 tonnes (Italy 778,737 tonnes (half its quota); Spain 93,119 tonnes; Sweden 42,562 tonnes; Portugal 35,218 tonnes (half its quota); and Ireland 199,260 tonnes (its entire quota) plus 320,717 tonnes of inulin syrup in Belgium (215,246 tonnes), the Netherlands (80,950 tonnes) and France (24,521 tonnes).
The EU provided €730/tonne in aid for restructuring the sugar industry in marketing years 2006/2007 and 2007/2008. This will fall to €625/tonne in marketing year 2008/2009. (lc)