EU FUNDS COULD HELP ERICSSON WORKERS

A MIDLANDS MEP is urging the government to apply for an EU fund to help the 700 people facing redundancy at Ericsson to find another job.

Liberal Democrat Liz Lynne has said that “UK has been dragging its feet” when it comes to applying for the European Globalisation Adjustment Fund.

It allows EU governments to apply for millions of pounds to support specialist retraining and advice for workers being made redundant due to the financial crisis.

Ms Lynne said: “This announcement by Ericsson is terrible news for Coventry and for the 700 workers affected.

“The recently reformed globalisation adjustment fund could offer real help to staff in finding other work. The threshold for applications was recently cut from 1,000 job losses to 500 and the total amount of money available to governments to fund retraining was increased.

“To qualify, redundancies must affect staff in permanent contracts, not temporary workers.

“From all the information Ericsson has released, it looks as if these conditions would be met and funding could be available, but the UK government must apply for it.

“If accepted, the EU would meet three quarters of the cost of retraining programmes, as long as the government undertakes to fund the rest.

“This would offer a real chance for staff facing redundancy to get top quality retraining and help to find new work suiting their skills as soon as possible.”

It comes after Ericsson announced it would be pulling the plug on its Research and Development site in Ansty Park.

It opened four months ago, but Ericsson wants to relocate to cheaper countries.

Public and private sector organisations came together last week to plan the taskforce in a bid to limit further damage to the region’s economy.

The meeting, chaired by the Coventry, Solihull and Warwickshire Partnership (CSWP), came as the city’s MPs met with trade union Unite to plan a fight for favourable redundancy terms, and to save as many jobs as possible.

Business secretary Lord Mandelson is urging more talks with the Swedish telecommunications giant in a government attempt to alter its cost-cutting plans to move its research and development work abroad.

The taskforce, similar to one set up when French car giant Peugeot pulled the plug on its Ryton factory, will help match any redundant workers to vacancies and provide re-skilling and training.