Mobilisation of the European Globalisation Adjustment Fund: application EGF/2025/002 DE/Goodyear 2 - Germany
The European Parliament adopted by 577 votes to 47, with 15 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (EGF) in favour of workers made redundant following an application from Germany - EGF/2025/002 DE/Goodyear 2.
Parliament approved the proposal for a decision to mobilise the EGF to provide a financial contribution of EUR 3 085 166 in commitment and payment appropriations from the EU budget for the financial year 2025, in response to the request submitted by Germany following 1 171 redundancies at the Goodyear company (Goodyear Germany GmbH) in the Kassel and Darmstadt regions.
The contribution represents 60% of the total cost of EUR 5 141 944, which corresponds to expenses relating to personalised services of EUR 4 936 274 and expenses relating to preparation, management, information and publicity activities as well as control and reporting activities of EUR 205 670.
Events leading to the redundancies
Russia's aggressive war against Ukraine and rising inflation have impacted the cost of energy, materials, and labour, putting increasing pressure on Goodyear's margins. The company specialises in manufacturing rubber and plastics products, including tyres. It has been significantly affected by increasingly tough competition from cheap imports from Asia.
Beneficiaries
The application concerns 1 171 redundant workers affected by the closure of the Fulda production site and the partial shutdown of the Hanau production facilities. The total number of intended beneficiaries, who are expected to participate in the measures, is 915 displaced workers.
The majority of displaced workers have low levels of education and are aged 54 or older.
Goodyear redundancies have increased the annual unemployment rate in the Fulda region by more than 10 percent and have disproportionately affected male workers and those over 50, most of whom have outdated skills and qualifications that no longer meet the demands of today's labour market. It is therefore necessary to act quickly to prevent structural decline in the region and to promote the creation of high-quality, future-oriented jobs.
Personalised services
The personalised services to be provided to workers include the following actions: (i) substantial upskilling or re-skilling measures, (ii) guidance and counselling and vocational orientation and activation measures, (iii) business start-up advisory services and grants, (iv) job search assistance, (v) upskilling and top-ups incentives, (vi) training allowances, (vi) digital skills trainings.
Germany started providing personalised services to the targeted beneficiaries on 1 November 2024 and the period of eligibility for a financial contribution from the EGF will therefore start from that date, for a period of 24 months after the date of entry into force of the decision annexed to this resolution.
Parliament called for thorough final evaluations of the measures implemented, incorporating data on the number of workers successfully reintegrated into employment as well as those who have completed training and upskilling measures. It stressed the urgent need for coherent and coordinated competitiveness actions at EU level, developed in close cooperation with Member States, to safeguard jobs in the industrial sector and ensure social security in Europe.