In this issue
• Restructuring support measures in focus: Supporting access to finance
• Case in focus: Job creation at Deutsche Post DHL
• Sector in focus: Job loss at Poczta Polsk

Eurofound

European Monitoring Centre on Change

European Restructuring Monitor

English

THIS ISSUE  Restructuring-related legal regulations in focus: Payment guarantee in case of employer insolvency  Case in focus: UK steel industry woes mirror EU steel crisis  Case in focus: Dutch retailerV&D closes with over 8,000 job lossesEF_ERM_Quarterly_0416.pdf: 29 downloads, before Oct. 1, 2020

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ERM Quarterly, Quarter 1, April 2016

THIS ISSUE   Restructuring-related legal regulations in focus: Payment guarantee in case of employer insolvency  Case in focus: UK steel industry woes mirror EU steel crisis  Case in focus: Dutch retailerV&D closes with over 8,000 job losse

DigitalCommons@ILR

Cornell University ILR School 
DigitalCommons@ILR 
International Publications Key Workplace Documents 
4-2016 
ERM Quarterly, Quarter 1, April 2016 
Eurofound 
European Monitoring Centre on Change 
European Restructuring Monitor 
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Thank you for downloading an article from DigitalCommons@ILR. 
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ERM Quarterly, Quarter 1, April 2016 
Abstract 
THIS ISSUE 
• Restructuring-related legal regulations in focus: Payment guarantee in case of employer 
insolvency 
• Case in focus: UK steel industry woes mirror EU steel crisis 
• Case in focus: Dutch retailerV&D closes with over 8,000 job losses 
Keywords 
European Union, restructuring, job creation, job loss 
Comments 
Suggested Citation 
European Foundation for the Improvement of Living and Working Conditions, European Monitoring Centre 
on Change, & European Restructuring Monitor (2016, April). ERM Quarterly: Quarter 1. 
This article is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/intl/567 
ERM quarterly April 2016
   IN THIS ISSUE
•	 Restructuring-related	legal	regulations	in	focus:	Payment	guarantee	in	case	of	
employer	insolvency
•	 Case	in	focus:	UK	steel	industry	woes	mirror	EU	steel	crisis
•	 Case	in	focus:	Dutch	retailer	V&D	closes	with	over	8,000	job	losses
Macroeconomic trends and prospects
In its latest World economic outlook (April 2016), the IMF has again lowered global growth forecasts for the coming 
year. Two factors cited for this more downbeat assessment are weak growth in developing economies, notably China, 
and ‘political discord’ in other major economies. This latter reference foregrounds a variety of developments: the UK 
referendum on EU membership in June, differences between EU Member States over migration, and national politics 
that are becoming more fragmented and polarised. Ireland and Spain have caretaker governments months after national 
elections. The IMF’s view is that political dysfunction is impacting on economic performance.
Nonetheless, aggregate labour market indicators in the EU continue to be positive. Year-on-year employment growth 
at 1% is near normal. Nearly six million new jobs have been created in the EU since the post-crisis trough in 2013. 
Unemployment rates continue to decline and are now lower than 9% in the EU28. Importantly, there is also a sign that 
indicators are improving for those most affected by the crisis. Youth and long-term unemployment rates are declining, and 
growth has been above average in countries such as Ireland, Spain and the Baltic states. 
The major restructuring story of the quarter – still unfolding – relates to the steel sector, where EU-based producers are 
succumbing to the pressures of weak international prices and a global supply glut with its origins in China. Possible closure 
of the Tata steel plants in the UK may cost tens of thousands of jobs. 
Job creation and job loss at a glance
The ERM recorded a total of 368 cases of restructuring between 1 January and 31 March 2016. Of these, 166 were cases 
of announced restructuring involving job loss, and 193 were cases involving announced job creation; 2 cases involved both 
job loss and job creation. These cases comprised a total of 76,093 job losses and 62,784 job gains. (In addition, there were 
seven large transnational cases.) 
Internal restructuring accounted for 72% of the announced job losses; this is a small decrease since the last quarter 
(76%). The proportion of announced job loss attributed to offshoring and relocation remained stable at 4%. In terms 
of geographical distribution, the UK recorded the greatest number of job losses (13,403 jobs), followed by Germany 
(11,544) and the Netherlands (10,450). Poland recorded the greatest number of job gains (10,073), followed by the Czech 
Republic (9,133) and the UK (6,840).
* Comparing the quarter to the four-quarter moving average; ++ = >100%; + = >50%; 
excludes country or sector if quarter average and 2015 Q4 <1,000 job losses or gains. 
Source: ERM, January–March 2016
2016 Q1 Announced job loss Announced job gain
EU28 + Norway 76,093 62,784
EU28 + Norway, 
change on 
previous quarter
+ 25% + 29%
Big increases* by 
country
Greece ++, Netherlands ++, 
Denmark ++, Estonia ++, 
Belgium +
Austria ++, Czech Republic ++, 
Spain +, Ireland +, France +, 
Romania ++, Slovakia +
Big increases* by 
sector
Utilities (energy) +, 
Retail ++, Education ++, 
Professional services ++, 
Administration & support 
services +
Utilities (energy) ++, 
Accommodation & food 
services ++, Information & 
communication +
Internal 
restructuring,
72%
Merger or 
acquisition,
2%
Offshoring or 
relocation,
4%
Bankruptcy or 
closure,
22%
Note: Percentages refer to announced job losses.
European Monitoring Centre on ChangeEMCC | 
Reasons	for	announced	job	losses
ERM quarterly April 2016Page 2
Sectoral distribution of job losses and gains
The figure plots the top NACE Rev. 2 one-digit sectors in terms of announced job loss and job creation, as reported 
to the ERM in first quarter of 2016. The manufacturing and retail sectors reported the most job losses (-21,193 and 
-13,982, respectively), but each sector also showed large increases in the number of jobs created (17,882 and 12,557, 
respectively). The financial services sector accounted for 22% of job losses, with 13,857 job cuts announced.
Announced	job	gains	
Manufacturing  17,882
Retail 12,557
Information and communication 10,920
Transportation and storage  6,902
Administration and support services 3,402
Announced	job	losses
Transportation and storage -4,433
Electricity, gas, etc. supply -9,289
Financial and insurance activities -13,857 
Retail  -13,982
Manufacturing -21,193
European Monitoring Centre on ChangeEMCC | 
-25,000 -20,000 -15,000 -10,000 -5,000  -  5,000  10,000  15,000  20,000
ERM-announced job losses and gains, top five sectors, Q1 2016 
Manufacturing
Retail
Information and communication
Transportation and storage
Administration and support services
Transportation and storage
Electricity, gas, etc. supply
Financial and insurance activities
Manufacturing
Retail
Top 5 cases of job loss and job creation
Date Company   Job losses Location   Sector  Type of restructuring
16/02/2016        V&D   8,000 Netherlands   Retail   Closure 
15/01/2016        EDF      3,550 France   Utilities  Internal restructuring 
03/02/2016        Unicredit   2,700 Italy   Financial services  Internal restructuring  
06/03/2016 Npower   2,400 UK   Utilities  Internal restructuring 
10/02/2016 NMBS-SNCB   2,293 Belgium   Transportation & storage  Internal restructuring
The biggest job loss recorded by the ERM in the first quarter of 2016 relates to the bankruptcy of Dutch retailer V&D. 
The closure affected not only employees of the company but also many contractors whose businesses were ancillary 
activities for V&D (see the ‘Case in focus’ below). In France, 3,550 jobs will be cut nationally by EDF, the utilities 
company. This follows the end of the regulated tariffs for professional customers, which will impact EDF’s market share by 
30%. The utilities sector has seen job losses in the UK as well. Npower, a German-owned energy company, experienced 
difficulties with its billing system and lost 6%–7% of its UK customers in 2015; in early March 2016, it announced 2,400 
job cuts. The third-biggest case of job loss was in the banking sector in Italy, where Unicredit bank announced 2,700 
job cuts. After negotiations, it was agreed that these would take the form of incentivised early dismissals, compensated 
in part by the recruitment of at least 500 people on new apprenticeship contracts. In Belgium, the national rail transport 
company NMBS-SNCB is undergoing a restructuring following a new management contract with the Belgian 
government that foresees a 20% gain in productivity, 6% of which is to be achieved through staff cost reductions.
Date  Company   Job gains Location  Sector 
04/02/2016 Amazon    3,000  Czech Republic  Retail 
22/01/2016 Amazon    2,500  UK   Retail 
15/01/2016 Skoda Auto   2,000  Czech Republic  Manufacturing 
01/01/2016 Lufthansa   1,850  Germany  Transportation & storage 
09/02/2016 GFI Informatique   1,800  France   Information & communication
The two biggest recruitment cases in the last quarter were those announced by Amazon. The US online retailer will hire 3,000 
workers in the Czech	Republic and 2,500 in the UK. In both cases, the new positions encompass warehouse and office 
personnel. Škoda	Auto, also based in the Czech Republic, will create 2,000 new jobs to extend the production capacity of its 
plant in Kvasiny, catering for the production of two new car models for the Volkswagen Group. Lufthansa announced 1,850 
new jobs, mainly for pilots, first officers and some crew staff. In total, the company seeks to create 4,000 new jobs across 
Austria, Germany and Switzerland. GFI	Informatique, an IT services company located in France, has announced it will recruit 
1,800 employees in 2016, targeting mainly engineers, technicians and supervisors.
ERM quarterly April 2016
Page 3
rESTrUcTUrINg-rElaTEd lEgal rEgUlaTIoNS IN focUS 
Payment	guarantee	in	case	of	employer	insolvency
EU Directive 2008/94/EC on the protection of employees in the event of the insolvency of their employer invites Member 
States to implement a system that maintains a wage guarantee fund to ensure the payment of claims arising from an 
employment relationship that are not yet settled at the point of time of insolvency of the employer.
According to the directive, funds for the payments are provided by the state, but governments can choose to raise funds 
through employers’ and employees’ contributions to complement the fund in part or in full. According to the information 
collected in the ERM database, six countries use state funds exclusively: Croatia, the Czech Republic, Estonia, Germany, 
Norway and Spain. Other countries, such as Belgium, Ireland, the Netherlands and the UK, require additional employee 
contributions. In Bulgaria, employers have not had to contribute to the fund since 2015. In general, the fund maintenance is 
assigned to a central agency or institution, but in Sweden payments are delegated to regional entities.
Some Member States extended the coverage of their wage guarantee funds to other categories of workers than those 
indicated in the directive (full-time, part-time, fixed-term and temporary salaried workers). For example, Austria, the Czech 
Republic, Denmark, Estonia, Germany, Luxembourg, Norway, Poland, Slovenia and the UK include domestic workers in their 
coverage. In the Netherlands, domestic workers are covered only if their working time is more than three days per week. In 
most countries, legislation explicitly excludes fund access for relatives and shareholders of a company, while in Croatia and 
Estonia top managers are excluded from the guarantee.
The maximum amount of payments guaranteed ranges from the average pay of the last three months indicated in the 
directive – applied, for example, in Estonia and Romania – to a sum related to number of years worked for the insolvent 
employer and established by law, such as in France. 
Wage guarantee funds across the EU vary in terms of wage components covered: in Italy, all claims related to income 
(including sickness, pregnancy and holidays) and some payments related to the termination of the employment contract are 
eligible, while in Slovakia, for example, severance pay is excluded. 
Different practices are in place for the application-filing process; in many countries, employees are responsible for filing 
the application directly with the institution managing the fund. The process is slightly different in Hungary, where the public 
employment services deal with application filing, and in France, where applications are filed by the administrator of the 
insolvency procedure. In Belgium, access to funds is automatic for workers in sectors where collective agreements are in 
place, and claims are paid out by the employment services.
Workers’ claims usually have priority over those of other creditors. The interval between approval of a claim and payment 
ranges from 5 days under French law to 12 months under Belgian law. In Hungary, workers are treated like all other 
creditors and their claims do not have priority.
An example of the effectiveness of such wage guarantees in case of employer insolvency is that implemented in Germany. 
According to the German	Federal	Employment	Agency, in April 2015, 130,649 workers’ claims were satisfied and 
8,075 were rejected. In 2014, the number of satisfied claims was 93,152 and 6,858 claims were rejected.
Details of wage	guarantee	funds	in	each	of	the	Member	States	and	Norway are included in the ERM database 
on restructuring-related legislation. The database provides an overview of selected national legislative rules related to 
restructuring.  You can browse the database, leave comments on specific legislation or give general feedback at: 	
www.eurofound.europa.eu/observatories/emcc/erm/legislation. 
caSE IN focUS 
UK	steel	industry	woes	mirror	EU	steel	crisis
The UK steel industry faces a worrying future with the announcement in recent months of large job losses. The main factor 
is an international slump in steel prices, primarily due to the oversupply of steel from China. An additional problem for UK 
producers has been relatively high energy prices. 
In October 2015, it was confirmed that the SSI steelworks plant in Redcar was to close with the loss of 2,200 jobs. The 
plant had been in receivership since earlier in October. The century-old plant had only re-opened in 2012 after a previous 
closure in 2010. 
It is Tata Steel, however, that has had the highest profile in recent months, following the announcement of a number of 
job cuts, first at the end of 2015 and followed in January 2016 by the announcement of a further 1,050 cuts. At the end 
of March 2016, it announced that it would sell off its loss-making operations in the UK. Tata has 13 sites in total in the 
European Monitoring Centre on ChangeEMCC | 
ERM quarterly April 2016
Page 4
About the ERM 
The European Restructuring Monitor (ERM) is a unique EU-wide dataset on larger-scale restructuring events. It monitors 
the announced employment effects of restructuring in the EU28 and Norway.  The ERM is updated on a daily basis 
and data can be used for statistical analysis. It relies on reports in selected media titles. The data for this report were 
extracted on 7 April 2016. For more, visit the European	Restructuring	Monitor	web	page.
This issue is based on contributions from Eleonora Peruffo, Lena Jacobs, John Hurley and Andrea Broughton (EU-level correspondent).
EF/16/25
European Monitoring Centre on ChangeEMCC | 
UK, following its acquisition of the British–Dutch steel company Corus Group in 2007. Port Talbot in South Wales and 
Scunthorpe in north-east England employ the largest numbers, around 4,000 workers each. The Port Talbot plant is 
reported to be losing around GBP 1 million a day.
Compensation	to	steelworkers	for	lack	of	job	loss	notice
In the case of the recent Redcar steel plant closure, three trade unions (the GMB, Unite and the Community Trade 
Union) made a claim to the UK Employment Tribunal for a protective award compensating employees for an employer’s 
failure to inform and consult about a collective redundancy. The Tribunal ruled that SSI UK (in liquidation) failed to 
comply with these legal obligations and on 21 March 2016 agreed compensation equivalent to 90 days’ pay.
Overall, it is thought that around 40,000 jobs are dependent on the steel industry in the UK. There have been calls for 
temporary nationalisation in the event that Tata fails to find a buyer for its UK plants. The only company to have made a bid 
so far is Liberty Steel, although other interested parties are expected to come forward. 
Opposition Labour Party MPs have accused the UK government of blocking EU plans to help the EU’s struggling steel 
industry by imposing tariffs on below-cost, subsidised Chinese, Russian and Belarussian steel imports. EU steel producers 
have not been able to benefit from Europe’s rising demand for steel as the car industry and construction sectors recover. 
The European Commission estimates that China produces 325 million tonnes of excess steel a year, more than double 
Europe’s annual production. The EU steel industry as a whole is suffering as a result; the European Steel Association 
Eurofer estimates that more than 90,000 jobs in the EU steel industry have been cut since 2009, a 22% reduction in the 
total European steel workforce. 
The European Commission has sought to end the rules under which tariffs on goods dumped on the EU market are 
calculated. Fixed duties on dumped goods are much higher in the US than in the EU and take effect much sooner after 
infringements. Although moves to make it easier to impose penalties on dumping countries are supported by France and 
Germany, they have been actively blocked by the UK and other Member States since first proposed in 2013. 
 
caSE IN focUS 
Dutch	retailer	V&D	closes	with	over	8,000	job	losses
Dutch retailer V&D, which has been in operation for 128 years, was declared bankrupt in December 2015. The bankruptcy 
eventually led to the direct loss of at least 5,000 jobs and the closure of 62 stores, as well as a series of redundancies in 
related companies, which have resulted in the same number of job losses again. In January, the company Coolinvestments 
declared an interest in acquiring V&D, but the deal fell apart after stakeholders could not agree on a business plan. 
La Place, a restaurant chain operating within the department stores, was also declared bankrupt. The supermarket chain 
Jumbo acquired La Place but will be able to save only the 60 restaurants located outside of V&D premises. The 3,000 
workers at V&D locations will be made redundant. Jumbo has also let go the toilet matrons, the independent cleaning 
contractors who leased the toilets in the chain for a monthly fee. 
Two sports retailers, Aktiesport and Perry Sport – both owned by parent firm Unlimited Sports Group – were also 
declared bankrupt as a result of the V&D closure. At the time of the declaration, Aktiesport employed 1,150 people, and 
Perry Sport employed 850. A deal was recently reached with UK retailer JD Sports, which will acquire both companies for 
an undisclosed sum. Of the 187 stores, 55 will close immediately, with a total loss of around 1,000 jobs.
In total, more than 10,000 jobs have been directly affected by the bankruptcy and subsequent closure of V&D, a case study 
on the interconnected nature of the market and how the closure of such a large company has impacts beyond those on its 
direct employees. 


Cornell University ILR School 
DigitalCommons@ILR 
International Publications Key Workplace Documents 
4-2015 
ERM Quarterly, Quarter 1, April 2015 
Eurofound 
European Monitoring Centre on Change 
European Restructuring Monitor 
Follow this and additional works at: https://digitalcommons.ilr.cornell.edu/intl 
Thank you for downloading an article from DigitalCommons@ILR. 
Support this valuable resource today! 
This Article is brought to you for free and open access by the Key Workplace Documents at DigitalCommons@ILR. 
It has been accepted for inclusion in International Publications by an authorized administrator of 
DigitalCommons@ILR. For more information, please contact catherwood-dig@cornell.edu. 
If you have a disability and are having trouble accessing information on this website or need materials in an 
alternate format, contact web-accessibility@cornell.edu for assistance. 
ERM Quarterly, Quarter 1, April 2015 
Abstract 
In this issue 
• Restructuring support measures in focus: Supporting access to finance 
• Case in focus: Job creation at Deutsche Post DHL 
• Sector in focus: Job loss at Poczta Polska 
Keywords 
European Union, restructuring, job creation, job loss 
Comments 
Suggested Citation 
European Foundation for the Improvement of Living and Working Conditions, European Monitoring Centre 
on Change, & European Restructuring Monitor (2015, April). ERM Quarterly: Quarter 1. 
This article is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/intl/444 
ERM quarterly April 2015
   IN THIS ISSUE
•	 Restructuring	support	measures	in	focus:	Supporting	access	to	finance
•	 Case	in	focus:		Job	creation	at	Deutsche	Post	DHL
•	 Sector	in	focus:		Job	loss	at	Poczta	Polska
Macroeconomic trends and prospects
Economic recovery in the EU has some positive tailwinds at last. These come in three forms; reduced oil prices are a 
significant boon to the EU as it is a major net importer; the ECB’s decision to adopt unconventional monetary policy 
options previously implemented in other developed economies (quantitative easing) appears to be providing positive 
stimulus; and this has contributed to lowering the value of the euro against other currencies, boosting demand for 
European exports. Forecast growth for 2015 in the most recent forecast from DG ECFIN was 1.7% in the EU (somewhat 
higher than the 1.3% achieved in 2014). Labour markets appear to be firmer than at any time since the global financial 
crisis: aggregate	unemployment	in	the	EU28	has	declined	steadily	to	98.%	since	the	third	quarter	of	2013	
(225	KB	PDF); unemployment rates were lower in 22 of the Member States in February 2015 compared to a year 
earlier; and job vacancy rates are increasing. Growth, however, remains reliant on consumer demand, with investment 
continuing to lag. The strange combination of booming stock markets, very loose monetary policy, deflation and below-par 
growth also suggests that episodes of financial instability cannot be discounted.
Job creation and job loss at a glance 
The ERM recorded a total of 254 cases of restructuring between 1 January and 31 March 2015. Of these, 123 were 
cases of announced restructuring involving job loss and 129 were cases involving announced job creation; two cases 
involved both job loss and job creation. These cases comprised a total of 43,023 job losses and 61,448 announced job 
gains. Internal restructuring accounted for 76% of the announced job losses – seven percentage points higher than in the 
previous quarter. The proportion of job losses attributable to bankruptcy and closure stood at 15% of the total, merger 
and acquisition declined from 9% in the previous quarter to 5% in the first quarter of the year, whereas offshoring and 
relocation remained somewhat stable (4%). In this quarter, the announced job gains in the ERM outnumbered job losses, 
after two consecutive quarters showing the opposite trend. In terms of geographical distribution, Germany recorded the 
greatest number of announced job losses (8,847 jobs), followed closely by Poland (8,235 jobs). Other countries recording 
high number of job losses were the UK (5,859) and Sweden (4,533). Germany also recorded the highest number of job 
gains (16,035), followed by the UK (12,495), Portugal (7,325) and Poland (7,255).  
Note: * Comparing the quarter to the four-quarter moving average; ++ = >100%; + = 
>50%; excludes country or sector if quarter average and 2015 Q1 <1,000 job losses/
gains. 
Source: ERM, January–March 2015.
2015 Q1 Announced job loss Announced job gain
EU28 43,383 61,448
EU28 change -46% 42%
Big increases* by 
country
Poland ++;  
Portugal +; Sweden +
Spain ++ ; Portugal ++;  
Germany ++;  
Bulgaria ++;  Croatia+
Big increases* by 
sector
none Transportation/storage ++;  
Real estate ++;  
Health ++; Financial services ++; 
Accomodation/food +
Note: Percentages refer to announced job losses.
European Monitoring Centre on ChangeEMCC | 
ERM quarterly April 2015Page 2
Top 5 cases of job loss and job creation
Date Company Job losses Location Sector Type of restructuring
13/01/2015        Poczta Polska 5,000 Poland Transportation and storage    Internal restructuring 
06/02/2015        Siemens    3,300 Germany Manufacturing Internal restructuring 
11/03/2015        Ericsson 2,200 Sweden Manufacturing Internal restructuring 
28/01/2015 Tesco     2,000 UK Retail Internal restructuring 
04/03/2015 PKO BP 1,100  Poland Financial services Internal restructuring
The largest-scale restructuring event reported in the quarter was that of Polish national postal operator Poczta	Polska, 
which announced a voluntary redundancy programme affecting 5,000 jobs across the country. According to trade unions, 
the number of dismissals may be much higher, totalling 8,000. Poczta Polska implemented a large employment reduction 
programme in 2013 with 4,000 announced job cuts. The second largest restructuring concerns German multinational 
Siemens, which announced the loss of 3,300 administrative jobs in Germany as part of a much larger restructuring 
programme affecting 7,800 jobs worldwide. Compulsory redundancies are ruled out under an ongoing deal with trade 
unions and the works council. Meanwhile, Swedish telecom company Ericsson announced 2,200 redundancies across 
various locations in Sweden, mainly affecting the research and development (R&D) and supply divisions, and to a lesser 
extent, sales and administration. Another 2,000 job losses were announced by UK hypermarket retail chain Tesco with 
the closure of 43 stores in the UK as part of wider efforts to cut costs. And, finally, a significant employment reduction 
was also announced by Polish commercial bank PKO	BP, which is to cut over 1,000 jobs in 2015 in Poland. 
Date  Company   Job gains Location  Sector 
22/01/2015 DHL Delivery   10,000  Germany  Transportation and storage 
04/02/2015 Aldi    5,000  UK   Retail 
11/03/2015 Audi    4,000  Germany  Manufacturing 
03/02/2015 Ministério da Saúde  3,900  Portugal   Health/social work 
09/01/2015 Carrefour   3,000  Spain   Retail
By far, the largest case of job gains in the quarter is that of Deutsche	Post	DHL announcing up to 10,000 jobs in 
Germany (see feature). The new hires will be employed by new regional firms created under the subsidiary DHL	
Delivery and their employment will be based on local collective agreements resulting in lower pay. The move was 
harshly criticised by the German postal and transport union. Recruitment drives were also announced by supermarket 
chains Aldi in the UK (5,000) and Carrefour in Spain (3,000). In the same quarter, car manufacturer Audi announced 
4,000 new jobs in Germany as a result of increased revenues. The company has consistently increased staff numbers in 
Germany over the past three years, creating about 5,500 jobs. Another large instance of job creation was announced 
in Portugal by the Ministério	da	Saúde (Ministry of Health), which unveiled plans to hire around 2,000 nursing 
professionals and 1,900 doctors in health centres and hospitals in a bid to improve staffing levels in the National Health Service.
Sectoral distribution of job losses and gains
The figure plots the top NACE Rev.2 one-digit sectors in terms of announced job loss and job creation, as reported 
to the ERM in the first quarter of 2015. Manufacturing saw the most restructuring activity, accounting for 41% of 
all announced job losses and 26% of announced job gains. The transport and storage sector accounted for 15% of 
announced job losses and 21% of total job creation. A comparatively sizeable number of new jobs was also announced in 
retail, accounting for 20% of all job gains – twice the sector’s share of announced job loss during the quarter. 
Announced	job	losses	
Manufacturing   17,717
Transportation/storage  6,443
Financial/insurance  6,028
Retail 4,357
Information/communication  3,593
Announced	job	gains
Health   3,900
Information/communication  4,316 
Retail  12,356
Transportation/storage   13,110
Manufacturing   15,905
Source: ERM, January–March 2015
ERM-announced	job	losses/gains,	top	five	sectors	(one-digit),	2015	Q1
European Monitoring Centre on ChangeEMCC | 
ERM quarterly April 2015
Page 3
rESTrUcTUrINg SUpporT mEaSUrES IN focUS 
Supporting	access	to	finance	
Access to finance is a major challenge for European 
companies, in many cases exacerbated by credit 
restrictions after the global financial crisis. According 
to a survey	on	access	to	finance	published	by	
the	European	Commission, smaller, younger and 
more innovative companies are often unable to secure 
the finance they need to realise the growth they have 
planned. At EU level, several initiatives aim at assisting 
companies to access finance, while at national level 
a variety of financial support instruments has been 
established to help companies prepare for business 
expansion, internationalisation and innovation. 
As regards innovation, R&D or investments, several 
governments offer subsidies to businesses. An example 
is the Bulgarian	National	Innovation	Fund	(NIF), 
which offers grants for feasibility studies, innovation or 
further development of products, processes or services. 
Using a different approach, the Estonian	grant	for	
the	development	of	knowledge	and	skills	in	
companies	cofinances training and participation in 
conferences for employees and managers as well as the 
use of counselling services, with the aim of improving 
companies’ competitiveness.
Some of the national measures provide favourable 
credits to companies. In the framework of the Go	
International	Slovenia programme, enterprises 
intending to establish export relations for the first time 
or to expand their international coverage get access to 
credits provided by a state-owned bank.
Other initiatives offer a loan guarantee for firms having 
difficulties in securing access to bank credits without 
such collateral. The Italian	SMEs	guarantee	fund, for 
example, guarantees up to 80% of the credit amount a 
small or medium-sized enterprise (SME) has negotiated 
with its bank (up to a limit of €2.5 million). Also 
addressing SMEs, the Dutch	growth	facility offers 
financial institutions a guarantee of up to 50% for risk 
capital related to business growth or business transfer.
In some countries, such as Austria, Germany, 
Luxembourg and Spain, there exist platforms 
organised by the government or business organisations 
that match companies looking for investors with 
‘business angels’ who provide both capital and their 
expertise, experience and contacts with networks.
caSE IN focUS 
Job	creation	at	Deutsche	Post	DHL
The first quarter has seen significant announced job 
creation at the German postal services organisation 
Deutsche Post DHL. In January 2015, the company 
announced that it intended to create up to 10,000 new 
jobs in Germany by 2020. The jobs will be created in its 
parcel delivery business, which is growing rapidly. The 
organisation estimates that a total of 25,000 new jobs 
could be created by 2025. Along with other former postal 
services monopolies around Europe, Deutsche Post has 
experienced a reduction in its letter delivery business 
but an expansion in parcel deliveries, due in particular to 
the rise of online retailing. However, the parcel delivery 
business is becoming increasingly competitive, with 
organisations such as online retailer Amazon also carrying 
out more of its own deliveries.
One specific aspect of the announcement relates to 
the employment terms being offered. The new jobs at 
Deutsche Post DHL will be created in the organisation’s 
subsidiary DHL Delivery and the employees will not 
therefore be paid in accordance with the pay rates 
of Deutsche Post’s in-house agreement, but rather in 
accordance with collectively agreed rates of pay for 
the logistics sector, which are lower. This development 
has been criticised by the trade union ver.di, which has 
accused Deutsche Post of side-stepping its in-house pay 
agreement. Deutsche Post has countered that its pay 
costs were too high and that, by doing this, it has enabled 
the creation of a large number of open-ended contracts. 
A company spokesperson stated that: parcel delivery 
is not sustainable under existing wage agreements; its 
personnel costs were around twice as high as those of 
its competitors; and attempts to negotiate more ‘market-
adjusted’ rates with the union in house had so far failed.
Overall, the parcel delivery sector is experiencing 
considerable restructuring and growth, with the 
emergence of new multinationals. At present, Deutsche 
Post DHL is the world’s largest logistics company, 
employing around 435,000 people worldwide, with a 
turnover of €55 billion in 2013. Recent developments 
include an announcement made in April 2015 by the US 
delivery company Fedex of a potential merger with the 
Dutch parcels delivery firm TNT Post, in order to deliver 
in Europe. TNT Post competes directly with Royal Mail in 
the UK, under the brand name Whistl.
The postal services sector has experienced a degree 
of industrial unrest in recent years. In 2009 and 2010, 
workers at Deutsche Post DHL organised a campaign in 
support of improvements to working conditions and 
European Monitoring Centre on ChangeEMCC | 
(Continued	overleaf) (Continued	overleaf)
ERM quarterly April 2015
Page 4
About the ERM 
The European Restructuring Monitor (ERM) is a unique EU-wide dataset on larger-scale restructuring events. It monitors 
the announced employment effects of restructuring in the EU28 and Norway.  The ERM is updated on a daily basis 
and data can be used for statistical analysis. It relies on reports in selected media titles (three to five per country). 
All announcements involving the reduction or creation of at least 100 jobs, or affecting 10% of the workforce in sites 
employing 250 people or more, are taken into account. Given that the ERM relies on selected media titles, its coverage 
of restructuring activity in each Member State is indicative and cannot be considered representative. Nevertheless, ERM 
data do generate a good picture of labour market restructuring, which is broadly consistent with data coming from more 
representative sources such as the European Union Labour Force Survey.  The data for this report were extracted on 7 
April 2015.  As the ERM continually updates cases in light of new information on recent cases, data reported here may 
not correspond exactly to later extractions. For previous editions of the quarterly, more details of ERM data collection 
and other ERM-related publications, please refer to the European	Restructuring	Monitor	web	page
This issue is based on contributions from Sara Riso, John Hurley, Irene Mandl and Andrea Broughton (EU-level correspondent).
EF/15/22
European Monitoring Centre on ChangeEMCC | 
Similarly, initiatives exist to attract foreign investors to 
invest in promising national businesses. CzechInvest	–	
Investment	and	Business	Development	Agency, for 
example, files applications for investment incentives with 
the relevant governing bodies in the Czech Republic and 
provides information on the national economic situation 
if foreign investors want to get involved in domestic 
companies.
Financial support instruments targeted at the management 
of change – to handle current restructuring events – seem 
to be less widespread. In Cyprus,	state	guarantees	
for	loans	granted	to	businesses facing financial 
problems are provided to state-owned enterprises in 
financial difficulties; these guarantees can ensure the 
long-term viability of businesses seeking access to 
finance. The French	national	fund	for	the	renewal	
of	disadvantaged	areas provides funding for SMEs 
undergoing economic restructuring in their region.
More information on public and social-partner based 
measures supporting companies and employees in 
restructuring is available at Eurofound’s	restructuring	
support	instruments	database. 
trade union recognition in the company’s international 
locations, including a ‘campaign for respect’ and 
a global week of action. In the UK, Royal Mail 
announced in March 2014 its intention to cut 
1,300 jobs in order to reduce costs. Royal Mail was 
privatised in October 2013 and is reported to have 
shed 50,000 jobs over 11 years in an attempt to adapt 
to new circumstances, such as a shift from letter 
to parcel deliveries. The company narrowly avoided 
strike action from postal workers at Christmas 2013, 
following a new agreement on pay and conditions.
caSE IN focUS 
Job	loss	at	Poczta	Polksa
The biggest case of announced job loss in the first 
quarter also took place in the postal sector. In January, 
Poczta Polska, the Polish national postal operator, 
announced a new job reduction plan affecting about 
5,000 workers. The redundancies are expected to be 
implemented by the end of 2015. While the conditions 
of the restructuring programme are still being 
negotiated with the local trade unions, it is thought 
likely that the job cuts will occur through voluntary 
measures. Union representatives have expressed fears 
that the job cuts envisaged could be as high as 8,000 
and have said that strike action remains a possibility. 
According to previous announcements, the company 
shed 4,000 jobs in both 2013 and 2014. Poczta Polska 
employs around 78,000 workers across the country 
and while still wholly state-owned is considered likely 
to seek at least partial privatisation in coming years. As 
of 2013 and the final stage of EU postal liberalisation, 
Poczta Polska is in competition with other companies 
for all forms of postal delivery (letter, courier and 
bulk). 
rESTrUcTUrINg SUpporT mEaSUrES IN focUS 
Supporting	access	to	finance	(contd)
caSE IN focUS 
Job	creation	at	Deutsche	Post	DHL	(contd)
