Four Ways to Fire a Frenchman | 41 comments (41 topical, editorial, 0 hidden)

Re: Four Ways to Fire a Frenchman (none / 0)

One must also consider whether a company is required to give advance notice of factory closings or large workforce reductions. This caused Compaq computer difficulty in the 1990s.

"Compaq acquired Digital in June 1998 but quickly ran into problems. European labor rules and work councils prevented Compaq from reducing staff quickly, and the company faced a number of problems integrating sales forces, said analysts. The company had announced 17,000 layoffs worldwide would result from the merger, as well as facilities consolidation and closings. But the process proceeded more slowly in Europe than other areas and is only now [July 1999] nearing completion."
http://news.com.com/Compaq+still+dogged+by+Digital+transition/2100-1001_3-228056.html

In the U.S. a company can close a non-unionized plant or liquidate a division overnight, with no advance notice to employees and with no requirement for any sort of service award or early retirement. Some local governments require advance notice, but often these do not have to be made public.

That's what employers want everywhere. The question is whether the overall result is better or worse than the more rigid contract approach.

by asdf on Tue Mar 28th, 2006 at 09:18:34 PM EST

Re: Four Ways to Fire a Frenchman (none / 1)

Of course we should also consider whether Compaq engaged with local regulations competently and whether the time it took is a product of the regulations or Compaq's incompetence.

From the couple of people I know who worked for Compaq in Europe when Digital was taken over, the general lack of planning by Compaq turned what would have been at most a six month situation into a year long one.

It's also worth noting that the "year" quoted includes not just employee issues, but also disposal of other assets (e.g. land) which make the whole measurement period somewhat skewed in itself.

by Metatone (metatone [a|t] gmail (dot) com) on Wed Mar 29th, 2006 at 04:12:57 AM EST
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Re: Four Ways to Fire a Frenchman (none / 1)

Most of these companies that complain are usually foreign companies that want to do it the same way it is done back home and ignore local law, and complain when, gasp, the locals dare want to apply local law.

Most big groups that are competent handle the law well enough. I know that GE (France) files every year for a "plan social", goes through all the procedures under French law, and then goes on to fire people as they care to under their global "six sigma" management practices (fire the worst 10% every year).

A large company that complains about being blocked by the law really is incompetent. I can understand small employers being overwhelmed, but big companies? Please.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Mar 29th, 2006 at 04:59:14 AM EST
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Re: Four Ways to Fire a Frenchman (none / 1)

Most of these companies that complain are usually foreign companies that want to do it the same way it is done back home and ignore local law, and complain when, gasp, the locals dare want to apply local law.

Country of Origin Principle, anyone?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Wed Mar 29th, 2006 at 05:01:22 AM EST
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Re: Four Ways to Fire a Frenchman (none / 0)

Heh, whoever wrote that into the directive needs identifying and then tarring and feathering.

by Metatone (metatone [a|t] gmail (dot) com) on Wed Mar 29th, 2006 at 12:55:15 PM EST
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Re: Four Ways to Fire a Frenchman (none / 0)