EUROPEAN GOVERNMENTS have voted to scrap an initiative for workers made redundant due to the financial crisis, a scheme from which Ireland has drawn down €61.5 million.
The vote, which took place at a meeting of employment ministers in Brussels, means that workers made redundant by Talk Talk in Waterford and the insurer Aviva will not have the opportunity to receive special aid from the scheme next year.
Money from the initiative has already been used to help former staff at computer company Dell, Waterford Crystal, aircraft maintenance firm SR Technics and thousands of redundant construction workers.
In addition to the €61.5 million contribution from the European Commission, the Government provided €31.5 million. The funding is being used to pay for retraining and education programmes, career guidance and for the grants help workers to start new businesses.
The money was drawn from a special commission fund established to help European workers who lose their jobs as a result of new trade patterns due to globalisation.
A “crisis derogation” was introduced in 2009 to enable member states to make applications for aid to help workers made redundant due to the financial crisis.
This expires at the end of the month.
EU employment commissioner László Andor proposed an extension to the derogation at yesterday’s meeting but the proposal was voted down by a blocking minority of member states.
Mr Andor told reporters last night that the vote was a source of “disbelief” as the scheme was introduced at a time of crisis when large-scale redundancies were still being made.
