After being declared bankrupt, Alu Ibérica LC S.L., located in the Galicia region of Spain, arranged for a €1.2 million loan from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to fund new jobs for 303 of its ex-employees. On March 16, the European Commission joined in to support the initiation.
This €1.2 million investment will aid the ex-Alu Ibérica workers to find new opportunities through enhanced vocational training, specific job profiling, expert guidelines and customised career paths.
Spain promptly opted for the EGF funding to completely support the Alu Ibérica workers already abandoned by the company after it declared bankruptcy. Alu Ibérica excelled in producing primary aluminium from mined bauxite ore but had to shut down its operations owing to ever-increasing energy and raw material prices.
The EU-funded scheme proposes to support the dismissed workers with relevant industry knowledge, training them with pursuable I.T. skills, warehouse operating conduct and logistical protocols. It is being claimed that each worker would receive a sum of €200 per month for a duration of six months until they become equipped enough to re-enter the job market.
The calculative cost for all the extensive preparedness is almost €1.5 million, of which the EGF grant will cover a major 85 per cent or €1.2 million. The Galacia Region in Spain will contribute 15 per cent, or €225,000, of the required funding.
The workers are receiving active support from the associations just after their dismissal on May 2022. Other important measures are underway from the European Globalisation Adjustment Fund for Displaced Workers (EGF) as of March 2023. The Commission’s proposals need to get attested by the European Parliament and the Council.
The Russian-Ukraine crisis has taken its toll on the aluminium industry since it has energy-intensive operations. It has been more than one year since the war broke out, and global economic stability has been hampered extensively. The European nations need to make ends meet to avail usual commodities for daily use. The prevailing energy crisis and rising raw material prices have indulged many big aluminium smelters in closing down temporarily or forever, like Alu Ibérica LC S.L.
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