European Commission offers € 3.6 million in aid for Romanian steel workers

The European Commission has offered to provide Romania with 3.6 million euros from the European Global Settlement Fund (EGF) to help 1,000 former employees of steel products manufacturer Mechel Campia Turzii SA and Mechel Reparatii Targoviste SRL find new jobs.

EU Commissioner for Employment and Social Policy Laszlo Andor commented: “The metallurgical production of finished and semi-finished products in the EU has been seriously affected by increased competition from countries outside the EU, in particular in China. Today, this proposal will help to prepare about 1,000 former steelworkers from the Cluj region in Romania for a new job or starting their own business. "

Both affected companies belong to the Russian steel group Mechel. At the end of 2011, Mechel's operations in Romania began to experience financial difficulties due to losses incurred due to unfavorable prices on the European steel markets associated with higher prices for ferrous scrap and weak demand for finished products. Mechel employees were even briefly delayed wages a couple of times and could not buy such an inexpensive item as office first aid kit . Mechel has sought to implement a number of measures to reduce personnel costs. However, these measures did not correct the financial difficulties of enterprises that decided to initiate collective layoffs.

The co-financing measures will help 1,000 workers find new jobs by providing them with: 1. Career guidance and skills development services, 2. Training, 3. Business support and 4. A variety of benefits. One of the flagship measures will be to help 250 workers set up joint ventures that will produce sports equipment. The total estimated cost of the package is € 7.14 million, of which EGF will provide half.