on 35h and delocalisation..france laments!

Posted by Analyse at 6:53 PM

Monday, November 22, 2004

globalization has always been an interesting topic / polémique and each point of view varies depending on which sector we belong. it brought an irreversible impact on the market that demands competitivity - a cut-throat competition at that.

many industries delocalize their production mainly because of exorbitant manpower cost. how could they compete with asia, for example, where manpower cost is divided into 15 for most countries. add to the fact that taxes are far lower in these countries. we haven't even talked about productivity and overall production cost which is way advantageous compared to here.

i have seen french industries closing to migrate in east europe or asia. this really hurts! some companies try to dissimulate it by staying in france, but then, they dont expand their production here anymore, they create jobs elsewhere. unemployment rate never stopped to soar, i've heard insecurities everywhere! to control it, the government implemented the famous 35h/week from 39h/week to promote job creation. to no avail! they just lowered down productivity and tagged french people as fainéants (lazy). it didn't really solve the unemployment problem.

now, they talk about reviewing the 35 heures and not everybody is willing to give it up. i guess france has a problem with the word change. they are always reluctant and afraid of change - even if they see right infront of their eyes what's happening. and who will say yes? here, we have an average of 0.83 day/month of RTT (réduction de temps du travail = effect of 35h), that adds up to our already-long vacations.

the government will surely do something to at least keep the industries which are still in France by lowering patronal charges, increase the budget for research and development to create jobs, help entrepreneurs to start their business, etc. delocalisation will nevertheless continue. that's the price we pay. we have to be competitive. we have to think global.



3 comments:

Dutched Pinay on Expatriation said...

outsourcing is one of the brainchilds of globalization. in fact this will be a good topic to expound.... coz outsourcing in the past was popularized by payroll and production-manufacturing outsourcing, for example those semi conductors. but now, many other business processes which 5 years ago we would never thought be outsourced are being outsourced!

its cost cost cost. P&L. margins. labor costs are so high in western countries when for the same quality it can be done somewhere in timbukto for only a fraction of the cost. that simple really.

i do think though that france is more stubborn than the germans haha oopps..

Matapoor said...

the french have a different way althogether. i think.

as for the germans, they are slowly learning. but some old farts are still resisting.

Analyse said...

misst,

it's the name of the game since years now, and everybody's got to play, or else, you're out. most of the french people, esp those beyond management side see globalization as a menace. us, we see it as a reality which we have to face.

laurent and i are always branded as capitalists by friends, oh well. we have to admit that our asian counterparts bring profit while we drink our café here in france - morning, after lunch and at 4pm. so where do u want to produce???

im asian and im here...my work attitude is of course different - pinay pa rin. im sure a lot of them think that im a menace - a product of globalization - and sometimes, they just let me feel it!

matapoor,

france is not 'le pays du grève' (a nation of rallies/manifestations) for nothing. they are the spoiled brat type that if the government propose something, you expect them on the road the next day.

ewan ko ba sa mga to, they always complain. and sometimes on just small matters, i find it ridiculous!!