Brussels, 11/09/2008 (Agence Europe) - On Tuesday 9 September, the European Commission presented to the European Parliament and to the EU Council of Ministers a draft decision recommending intervention from the European Globalisation Adjustment Fund, further to redundancies in the Delphi Automotive Systems España company and the bankruptcy of Lithuanian company, Alytaus Teksile.
The application for intervention by the fund presented by the Spanish authorities concerns 1 589 redundancies, of which 1 521 occurred in Delphi Automotive Systems España S.L.U (“Delphi”) in Puerto Real, Spain, a manufacturer of components for the automobile industry that belongs to the US-based Delphi Automotive Systems Holding Inc. (United States). 68 other redundancies were amongst suppliers to Delphi during the period 31 July 2007 to 30 November 2007 (EUROPE 9709). The redundancies were due to relocation of the production of motor vehicle components to the tax free zone of Tangier (Morocco), a decision sealed by a memorandum of understanding between Delphi USA and the Moroccan government the day after closure of the Porto Real plant. The Commission considers that convincing elements were provided to show that the redundancies arose from the major changes that took place in the structure of global trade entailing serious economic upheavals affecting the local economy. The European Globalisation Adjustment Fund's proposed contribution is €10.47 million.
The Commission also considers that the 1 089 job losses caused between 30 October 2007 and 29 February 2008 by the bankruptcy of Alytaus Tekstilé, a Lithuanian textile company, also arose from the impact of globalisation, in this case Asian competition in the sector. The Commission suggests intervention from the fund by way of €298 994. (O.L./transl.jl)