Home / Knowledge / News / Textiles / Fund set to help workers in clothing & furniture industries
Fund set to help workers in clothing & furniture industries
01
Feb '10
The European Commission has approved applications from Lithuania for assistance under the European Globalisation Adjustment Fund (EGF). The Commission will now make proposals to the European Parliament and the Council to mobilise the budgetary resources. If approved, the total of € 1 185 569 requested will help 491 redundant workers in the clothing sector and 636 workers in the furniture manufacturing sector to get back into employment.

"Both the furniture manufacturing and clothing sectors have been particularly hard hit by the effects of the financial and economic crisis", said Employment Commissioner Vladimír Špidla. " I am therefore glad that the Lithuanian authorities have chosen to apply for EGF funding. I'm also confident that the planned measures will help these workers to return to employment".

Furniture-manufacturing sector
The Lithuanian application relates to 1 469 redundancies in 49 enterprises operating in the furniture manufacturing sector, one of the first sectors to be affected by the economic and financial crisis as a direct consequence of the slow-down in construction activity, both in Lithuania and elsewhere.

The Lithuanian furniture industry exported over 50% of its production in 2008, but exports dropped by 20.1% in value terms during the first half of 2009. The volume of furniture production in Lithuania also decreased during the first and second quarters of 2009 compared with the previous quarter by 17.33% and 7.23% respectively, with redundancies as a consequence.

These redundancies have a serious impact on the country because unemployment in Lithuania is amongst the highest in the EU, and has risen sharply since the start of the economic and financial crisis. Although the furniture manufacturing industry is largely based in rural areas, the redundancies have an effect on the country as a whole.

The package of EGF assistance for the former workers of the furniture manufacturing industry will help 636 of the most disadvantaged back into employment by offering them employment incentives, career guidance and retraining. The total estimated cost of the package is almost €1 018 597, of which the European Union has been asked to provide EGF assistance of €662 088.

Clothing sector
The Lithuanian application relates to 1 154 redundancies in 45 enterprises operating in the clothing or wearing apparel sector. Unemployment in Lithuania is amongst the highest in the EU and has risen sharply since the start of the economic and financial crisis, increasing by 10.9% in a 12 month period to reach 16.7% in July 2009. The wearing apparel industry has been badly affected, losing 21.1% of its jobs in Lithuania between the second half of 2007 and the second half of 2008 alone. The economic crisis has exacerbated this tendency, and because of the concentration of women in the sector, has contributed to a doubling of the female rate of unemployment in Lithuania during the year to July 2009.

Must ReadView All

Textiles | On 19th Jan 2017

Pakistan imposes duty on Indian fine cotton yarn

A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a...

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search