The European Commission has proposed mobilising €8 million to support 2,400 workers made redundant following the bankruptcy of the Belgian bus and coach manufacturer Van Hool.
Van Hool went bankrupt last April, which had severe repercussions on the labour markets in Mechelen and surrounding areas, according to the European Commission.
One in three dismissed workers is aged 54 or over, and one in four is low-skilled, making it particularly challenging for them to find new employment.
Belgium requested assistance from the European Globalisation Adjustment Fund (EGF) for the redundant workers last October.
The fund will contribute €8 million towards a €9.4 million support package, including advisory services, career guidance, job search assistance, and training in new professional and digital skills. The Flemish Employment and Training Service (VDAB) will finance the remaining €1.4 million.
Since 2007, the EGF has intervened in 182 cases, allocating €700 million to support over 170,000 people in 20 member states.
In the case of Van Hool, the Commission attributes the decline in sales in 2020 to the Covid-19 pandemic. The Russian war in Ukraine, rising inflation, and supply chain disruptions have further strained the company.
The Commission’s proposal still needs to be approved by the European Parliament and the Council of the EU.
