Malta's application
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Malta's application

Malta's Application for assistance from EGF
 
Malta has applied for assistance from EGF because of a number of unforeseen redundancies which occurred in two large manufacturing companies as a result of economic globalisation. Since the redundancies affected a percentage of the labour force, urgent action was needed to be taken to reintegrate such workers into the labour market.
 
The Maltese application for EGF support was submitted to the European Commission on 12th September 2007 and concerns assistance consisting of €1,362,414 - of which €681,207 or 50% would consist of EGF contribution. The application was approved by the European Parliament Budgetary Authorities on 10th April, 2008.
 
The main aim of this application was to assist workers which were made redundant through the closure / relocation of two manufacturing companies, namely VF Ltd and Bortex Clothing Ind. Co. Ltd. operating in the textile industry in Malta.  The application was based upon 675 job losses of which 562 are a consequence of the closure of VF Ltd. and 113 of a delocalisation of part of the production of Bortex clothing Ind. LTD. to the company’s production site in Tunisia. These redundancies were brought about by major structural changes in the pattern of world trade, in particular an increase of imports of textiles into the EU and a delocalisation of manufacturing to lower cost countries outside the EU.

 
Through EGF funds, Malta implemented the following actions and measures to reintegrate these redundant workers into the labour market:
 
Profiling: Each employee was provided with information about employment and training opportunities and was also be assisted to identify courses which could help him or her develop new or updated skills to enhance his/her possibilities for employment;

 Occupational Guidance: Each redundant employee was offered the possibility to consult recognised occupational guidance officers;

Training and Testing: Each redundant employee was offered the possibility of undertaking training measures or trade testing in order to validate his/her experience. The courses or trade tests should be in areas that are relevant to update or acquire new skills to make the redundant workers more employable;

Entrepreneurial Start-Ups: Start-up grants will be offered to those redundant employees that would want to start-up a new business venture;

Redeployment Scheme: Employers engaging redundant employees were offered a redeployment grant corresponding to half the minimum national wage for a maximum of 17 weeks.

Job-search Allowance: A job search allowance was offered per week to redundant employees between months seven and twelve of their unemployment (as they are entitled to unemployment benefits for the first six months). The job-search allowance will be conditional upon active participation in labour market measures, in consultation with the Employment and Training Corporation employment advisors. 

     Final Report