Diplomatic Manoeuvring
France is experiencing high unemployment and labour unrest, with jobs disappearing. Due to its socialist ideology the country established a strong union movement in the 1940s, although union activities have long since ceased to represent most of the manufacturing in the country. The social contract in employment standards, though, is just that, a universal one endorsed and supported by the government, and with the new government of President Francois Hollande, the country is more committed than ever to workers' rights.Permanent positions have gradually given way, as has occurred elsewhere in the developed world, to part-time jobs, jobs with little social security and longevity. But there is a minimum wage and despite the prevailing economic conditions, that minimum wage remains on a steady rise, not a descent, representing roughly half the salary value of a permanent average job. The normal work week is 35 hours, with a minimum of five weeks of paid annual leave. Guarantees that leave little need for union mobilization.
Traditionally, when factories temporarily close, employees are still paid their full salaries. What they lose are their transport and meal subsidies under union contracts. Suppliers of factories like Peugot send their employees home when the car manufacturer has a temporary shut-down, but they too receive half their pay for up to four months a year with government covering a portion of the hourly rate under a provision named "technical unemployment".
An international ruckus has recently arisen with Maurice Taylor, chief executive of Titan International labelling French workers as lazy. His company was invited to take over a Goodyear plant in Amiens. Mr. Taylor wrote, in his rejection of that invitation: "I have visited that factory a couple of times. They get one hour for breaks and lunch, talk for three and work for three. I told this to the French union workers to their faces. They told me that's the French way!"
"Your words, as extremist as they are insulting", responded French Industry Minister Arnaud Montebourg, "are evidence of perfect ignorance of our country, France. Be assured you can count on me to inspect your tire imports with a redoubled zeal", he fulminated rashly, unbecoming a French government minister. Neither respondent seems to care to be particularly diplomatic in conveying their impressions. Industry Minister Montebourg, on the other hand, has descended to outright threats of retaliation for lack of respect of the French work ethic.
"Your letter shows the extent to which your political class is out of touch with [real] world problems", responded Mr. Taylor to Minister Montebourg's thudding clout. "You call me an extremist, but most businessmen would agree that I must be nuts to have the idea to spend millions of U.S. dollars to buy a tire factory in France paying some of the highest wages in the world. Your letter did not mention why the French government has not stepped in to rescue this Goodyear tire factory.
"The extremists are in your government, who have no idea how to build a business. Your government let the wackos of the communist union destroy the highest-paying jobs. At no time did Titan ask for lower wages; we asked only if you want seven hours' pay, you work at least six."
The succeeding chapters in this little saga should be interesting...
Labels: Communications, Controversy, Culture, France, Industry, Political Realities, United States
posted by Pieface @ Sunday, February 24, 2013
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