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

Pic: UKFT

Textiles | On 6th Apr 2020

UK extends COVID-19 business interruption loan scheme

The UK Fashion & Textile Association (UKFT) has announced that the...

Pic: Shutterstock

Apparel/Garments | On 6th Apr 2020

GMAC urges buyers to fulfil purchase contracts

The Garment Manufacturers Associations in Cambodia (GMAC) has...

Pic: Shutterstock

Information Technology | On 6th Apr 2020

Odd Concepts attracts funds despite Covid-19 crisis

Odd Concepts, an AI-based fashion tech company, has been able to...

Interviews View All

Deepak Jain, Baggout

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Manfred Mentges, Sedo Treepoint GmbH

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Amardeep Singh, Orient Craft

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Ravindra Jain, Ashish Baid,

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Mirella Sardini,

Mirella Sardini

A leading manufacturer of automated machinery and equipment for the...

Marco Girola,

Marco Girola

With its commitment to innovation and deep technical expertise,...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Urs Stalder, Sanitized AG

Urs Stalder
Sanitized AG

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

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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

Leave your Comments


April 2020

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


Advanced Search