Brussels (The Brussels Morning Newspaper) – The European Commission proposed to back 365 workers dismissed in Belgium by the retail chain Match-Smatch with €2.7 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF).
In June 2024, Belgium applied for EGF funding to support workers in the Walloon region who were fired by Match-Smatch to find new employment. Many of the redundancies involve lower-skilled employees aged 50 years and older, who typically meet more challenges in uncovering work in the Walloon labour market.
How will the EGF support start-ups and self-employed workers?
The EGF funding will allow to pay for advisory services, job search offerings, as well as skills training in vocational, digital, and language skills. In addition, the discharged workers can receive guidance on forming their own businesses and benefit from start-up grants of up to €15,000. Hiring incentives for companies recruiting former Match-Smatch employees are also part of the package. Additional allowances will be assembled available to workers participating in job search, training, and education movements, as well as backing for self-employed people in the initial months of launching their businesses.
The total calculated cost of these actions is €3.1 million, with 85% (€2.7 million) covered by the EGF and the remaining 15% (€469,688) funded by the Walloon region. Support from the Belgian authorities for eligible workers began shortly after the dismissals. The EU Commission‘s proposal now needs approval from the European Parliament and the Council.
Why did Match-Smatch sell two-thirds of its stores?
In 2022, Match-Smatch executed an action plan to curb losses and restore financial stability, but it failed. To stop further losses, Match-Smatch sold two-thirds of its stores to various retailers; however, workers of unsold stores and the head office were laid off. Belgium requested EGF co-financing to help the laid-off workers in Wallonia (notably in Hainaut, Liège and Namur), at the request of the Walloon region.
Under the EGF regulation 2021-2027, the Fund helps displaced workers and self-employed people who have misplaced their activity due to unexpected major restructuring events. Since 2007, the EGF has assigned €696 million in 180 cases, providing support to more than 169,000 people in 20 Member States. EGF-supported efforts complement national active labour market measures.
