Employees impacted by the bankruptcy of Belgian automotive company Van Hool are set to receive support from an EU aid package amounting to €8 million. This decision came after Parliament approved Belgium’s request for assistance from the European Globalisation Adjustment Fund for Displaced Workers (EGF) with a vote count of 598 in favor, 48 against, and 5 abstentions.
Members of the European Parliament noted that “the European automotive and supplier industry is facing unprecedented pressure from both external and internal challenges, such as distortion of competition and high-energy costs.”
Van Hool, known for producing coaches, buses, trolleybuses, and trailers, declared bankruptcy in April 2024. The company’s financial struggles were attributed to a significant drop in sales caused by the COVID-19 pandemic and further intensified by Russia’s war against Ukraine, rising inflation, and supply chain disruptions. Consequently, 2,400 workers lost their jobs; among them, one-third were aged 50 or over, with 80% possessing outdated skillsets.
The aid package will fund various support measures including counseling, vocational orientation, job-search assistance, and training in new professional and digital skills. The total value of the support package is €9.4 million – with €8 million coming from the EGF and €1.4 million provided by Belgium’s Flemish Employment and Vocational Training Service (VDAB). These support measures have been available since the layoffs occurred.
Under the EGF Regulation for the period between 2021-2027, displaced workers and self-employed individuals who have lost their jobs due to major restructuring events are eligible for support. This includes economic impacts from unexpected events like the COVID-19 pandemic or geopolitical tensions such as Russia’s invasion of Ukraine. Member states can apply for funding when at least 200 workers lose their jobs within a specified reference period.
Upon receiving an application detailing redundancies and planned support measures from a member state, the Commission evaluates it against EGF criteria. If deemed suitable, a proposal to mobilize funds is made which requires approval from both Parliament and Council. Since its inception in 2007, the EGF has intervened in 182 cases providing €700 million to assist more than 170,000 people across 20 Member States.
