The Commission has proposed to mobilise €8 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 2,400 workers dismissed after the bankruptcy of Belgian coach manufacturer Van Hool.
Between 2012 and 2019, Van Hool was selling an average of 427 coaches per year in Europe. In 2020, sales began dropping, due to the COVID-19 pandemic. The war of aggression against Ukraine, rising inflation and disrupted supply chains added further pressure on the company.
When it went bankrupt in April 2024, it severely impacted the labour markets in and around Mechelen, with unemployment rising up to 32% in the municipality of Berlaar. One in three dismissed workers are 54 years and older, and one in four have lower formal qualifications, making it especially challenging for them to find new jobs. To help these workers, Belgium applied for EGF support in October 2024.
The EGF will contribute €8 million (85%) to a €9.4 million package of support measures that include:
- counselling
- vocational orientation
- job-search assistance
- training in new professional and digital skills
Belgium’s Flemish Employment and Vocational Training Service (VDAB) is financing the remaining 15% (€1.4 million). Belgian authorities began providing support immediately after the layoffs.
Background
Since 2007, the EGF has intervened in 182 cases, allocating €700 million to provide help to more than 170,000 people in 20 Member States. Recent data from Eurofound show that large-scale restructuring events typically last over a year, with the most extensive cases taking nearly three years.
The proposal will now be submitted to the European Parliament and the Council for their approval.
Sources
Details
- Publication date
- 26 March 2025
- Author
- Directorate-General for Employment, Social Affairs and Inclusion