Re: In France, you see, companies don't grow because it's too costly to hire while it's against the law to fire. Hence, since they rarely add jobs, French businesses under-perform, under-produce and under-employ. Think of it: It's awfully tough to increase output without a growing workforce to produce it.
A ridiculous statement, to be sure. First, French companies --like their foreign counterparts-- grow through mergers with, and acquisitions of, competitors, not through hiring. Just ask steel tycoon Lakshmi Mittal(*). Second, it's never been against French law to fire workers. The problem is that the employer has to grant each and every fired worker a "golden parachute" of sorts, hence making mass layoffs a bit costly....
As for the claim that "it's awfully tough to increase output without a growing workforce to produce it", it completely misses the effect of automation and computerization of production. Nowadays, modern companies can churn out ever more products just by adding a few more robots and computers or merely by quickening the pace of the assembly line.(**)
Gus
(*) Mittal reveals Arcelor plan to France
Finance minister says government would like to see more details about the project as Mittal works to gain European support.
March 1, 2006: 9:01 AM EST
PARIS (Reuters) - France said Wednesday it has received the outline of Mittal Steel's industrial project for European rival Arcelor, for which it has made a $23 billion bid.
"We received a six-page fax of the executive summary yesterday," French Finance Minister Thierry Breton told reporters at a news briefing.
Breton said the government hopes to receive more details of Mittal's industrial project in the days to come, and added it that it is too early to make a decision on what it has seen of Mittal's plan so far.
Mittal founder Lakshmi Mittal is trying to persuade leading European governments to support his bid for Arcelor, which has hit a wall of opposition from the continent's political establishment.
Mittal, the world's third-richest man, has offered a mix of cash and shares to buy out Arcelor, and on current prices his offer values Arcelor at about 19 billion ($22.7 billion).
[...]
money.cnn.com
(**) Below capacity
Commenting on the survey, Mark Wealleans, of Liverpool-based manufacturer Ley Rubber, said he thought prospects for the UK's manufacturers were "not looking great for the next 12 months".
"Europe is in a much better position than we are and the states is in a much better position than we are, with lower interest rates for investment," he told BBC One's Breakfast.
The regional trends results were taken from the 904 replies to the CBI's quarterly industrial trends survey received between 12 December and 8 January.
Last week, CBI said 42,000 manufacturing jobs will go in the first three months of this year, slightly lower than the 45,000 lost in the final three months of 2001.
It said 74% of UK factories were now working below capacity, their worst performance for 20 years.
news.bbc.co.uk |
