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| U.S. Executive Assails Unions in France, Causing Furor | U.S. Executive Assails Unions in France, Causing Furor |
| (35 minutes later) | |
| PARIS — “How stupid do you think we are?” | PARIS — “How stupid do you think we are?” |
| With those choice words, and several more similar in tone, the chief executive of an American tire company touched off a furor in France on Wednesday as he responded to a government plea to take over a Goodyear factory slated for closure in northern France. | With those choice words, and several more similar in tone, the chief executive of an American tire company touched off a furor in France on Wednesday as he responded to a government plea to take over a Goodyear factory slated for closure in northern France. |
| “I have visited the factory a couple of times,” Maurice Taylor Jr., the head of Titan International, wrote to the country’s industry minister, Arnaud Montebourg, in a letter published in French newspapers on Wednesday. “The French work force gets paid high wages but works only three hours. They have one hour for their breaks and lunch, talk for three and work for three.“ | “I have visited the factory a couple of times,” Maurice Taylor Jr., the head of Titan International, wrote to the country’s industry minister, Arnaud Montebourg, in a letter published in French newspapers on Wednesday. “The French work force gets paid high wages but works only three hours. They have one hour for their breaks and lunch, talk for three and work for three.“ |
| “I told this to the French unions to their faces and they told me, ‘That’s the French way!’ ” added Mr. Taylor, a swaggering businessman who is nicknamed “the Grizz” by Wall Street analysts for his abrasive negotiating style. | “I told this to the French unions to their faces and they told me, ‘That’s the French way!’ ” added Mr. Taylor, a swaggering businessman who is nicknamed “the Grizz” by Wall Street analysts for his abrasive negotiating style. |
| His decidedly undiplomatic assessment quickly struck a nerve in France, where concerns about declining competitiveness and the divisive tax policies of President François Hollande’s government have led some economists to ask whether the nation is at risk of becoming the next sick man of Europe. | His decidedly undiplomatic assessment quickly struck a nerve in France, where concerns about declining competitiveness and the divisive tax policies of President François Hollande’s government have led some economists to ask whether the nation is at risk of becoming the next sick man of Europe. |
| Mr. Montebourg, who is known for lashing out at French corporate bosses without hesitation, initially seemed at a loss for words on how to respond to the American charge. “I do not want to harm French interests,” he said when asked about Mr. Taylor’s letter. Later, Mr. Montebourg released a letter to Mr. Taylor, calling the executive’s comments “extreme” and “insulting,” adding that they pointed to a “perfect ignorance” about France and its strengths, which continue to attract international investors. | Mr. Montebourg, who is known for lashing out at French corporate bosses without hesitation, initially seemed at a loss for words on how to respond to the American charge. “I do not want to harm French interests,” he said when asked about Mr. Taylor’s letter. Later, Mr. Montebourg released a letter to Mr. Taylor, calling the executive’s comments “extreme” and “insulting,” adding that they pointed to a “perfect ignorance” about France and its strengths, which continue to attract international investors. |
| French media outlets minced no words. “Incendiary!” “Insulting!” and “Scathing!” were just a few of the terms replayed on French newspaper Web sites and on the airwaves throughout the day. The French blogosphere lit up with hundreds of remarks condemning the “predatory“ American corporate culture that Mr. Taylor seemed to represent; other commentators who ventured to admit that there might be something to Mr. Taylor’s observations were promptly bashed. | French media outlets minced no words. “Incendiary!” “Insulting!” and “Scathing!” were just a few of the terms replayed on French newspaper Web sites and on the airwaves throughout the day. The French blogosphere lit up with hundreds of remarks condemning the “predatory“ American corporate culture that Mr. Taylor seemed to represent; other commentators who ventured to admit that there might be something to Mr. Taylor’s observations were promptly bashed. |
| And France’s main labor union wasted no time in weighing in. | And France’s main labor union wasted no time in weighing in. |
| Mickaël Wamen, the head of the Confédération Générale du Travail union at the Goodyear plant, in Amiens, said Mr. Taylor belonged in a “psychiatric ward.” | Mickaël Wamen, the head of the Confédération Générale du Travail union at the Goodyear plant, in Amiens, said Mr. Taylor belonged in a “psychiatric ward.” |
| A spokesman for Mr. Taylor did not immediately respond to calls for comment. France’s 35-hour workweek, its rigid labor market and the influence that labor unions hold over the workplace have long been a source of aggravation for businesses. Last month, after a government report warning that French competitiveness was slipping, labor unions and business leaders struck a deal to overhaul swaths of the labor code, a move Mr. Hollande said was needed to burnish France’s international allure as a place to do business. | A spokesman for Mr. Taylor did not immediately respond to calls for comment. France’s 35-hour workweek, its rigid labor market and the influence that labor unions hold over the workplace have long been a source of aggravation for businesses. Last month, after a government report warning that French competitiveness was slipping, labor unions and business leaders struck a deal to overhaul swaths of the labor code, a move Mr. Hollande said was needed to burnish France’s international allure as a place to do business. |
| With unemployment above 10 percent and growth slowing, the government has also been desperate to avoid large-scale layoffs. Mr. Montebourg has even brandished the threat of nationalization to try to save jobs. PSA Peugeot Citroën, ArcelorMittal, Sanofi and Air France all announced big job cuts last year as Europe’s long-running debt crisis hit their bottom lines. | With unemployment above 10 percent and growth slowing, the government has also been desperate to avoid large-scale layoffs. Mr. Montebourg has even brandished the threat of nationalization to try to save jobs. PSA Peugeot Citroën, ArcelorMittal, Sanofi and Air France all announced big job cuts last year as Europe’s long-running debt crisis hit their bottom lines. |
| So it was no surprise that Mr. Montebourg approached Titan International last year to ask if it would take over the Goodyear factory, which was scheduled to close because of labor disputes and sagging profitability — a move that would threaten 1,173 jobs. | So it was no surprise that Mr. Montebourg approached Titan International last year to ask if it would take over the Goodyear factory, which was scheduled to close because of labor disputes and sagging profitability — a move that would threaten 1,173 jobs. |
| Titan had already considered taking over the Goodyear factory’s farm tire operations. But it dropped the plan in 2011 after union representatives opposed a deal, saying they suspected Titan would close production of passenger-vehicle tires if the group took over. Tensions between Mr. Taylor and the union were evident at the time in a Titan news release, which included Mr. Taylor’s observation that “only a nonbusiness person would understand the French labor rules.” | Titan had already considered taking over the Goodyear factory’s farm tire operations. But it dropped the plan in 2011 after union representatives opposed a deal, saying they suspected Titan would close production of passenger-vehicle tires if the group took over. Tensions between Mr. Taylor and the union were evident at the time in a Titan news release, which included Mr. Taylor’s observation that “only a nonbusiness person would understand the French labor rules.” |
| In January, Mr. Montebourg tried to entice Titan back to the negotiating table, saying he hoped unions would put “some water in their wine, that managers put some wine in their water, and that Titan would drink the wine and the water of both” and reach an accord. | In January, Mr. Montebourg tried to entice Titan back to the negotiating table, saying he hoped unions would put “some water in their wine, that managers put some wine in their water, and that Titan would drink the wine and the water of both” and reach an accord. |
| But last month, as union workers protested en masse at the Amiens site, with a large police presence, Goodyear told workers it would close the plant and cut its French work force by 39 percent. | |
| In his letter, dated Feb. 8, Mr. Taylor explained his reasons for refusing to come back to the negotiating table. “Goodyear tried for over four years to save part of the Amiens jobs that are some of the highest-paid, but the French unions and the French government did nothing but talk,” Mr. Taylor wrote. | In his letter, dated Feb. 8, Mr. Taylor explained his reasons for refusing to come back to the negotiating table. “Goodyear tried for over four years to save part of the Amiens jobs that are some of the highest-paid, but the French unions and the French government did nothing but talk,” Mr. Taylor wrote. |
| “Sir, your letter says you want Titan to start a discussion,” he added. “How stupid do you think we are? Titan is the one with the money and the talent to produce tires. What does the crazy union have? It has the French government.“ | “Sir, your letter says you want Titan to start a discussion,” he added. “How stupid do you think we are? Titan is the one with the money and the talent to produce tires. What does the crazy union have? It has the French government.“ |
| He said his company would seek to produce cheaper tires in India or China, where he said Titan would pay the workers less than one euro an hour, and then sell the tires back to the French. He predicted that Michelin, the French tiremaker, would not be able to compete with lower prices and would have to halt production in France within five years. | He said his company would seek to produce cheaper tires in India or China, where he said Titan would pay the workers less than one euro an hour, and then sell the tires back to the French. He predicted that Michelin, the French tiremaker, would not be able to compete with lower prices and would have to halt production in France within five years. |
| “You can keep your so-called workers,” he wrote. “Titan is not interested in the Amiens factory.” | “You can keep your so-called workers,” he wrote. “Titan is not interested in the Amiens factory.” |
| In his response, Mr. Montebourg reacted strongly to what he called Mr. Taylor’s “condemnable calculation” and noted that France and its European partners were working to stop illegal dumping of imports. | In his response, Mr. Montebourg reacted strongly to what he called Mr. Taylor’s “condemnable calculation” and noted that France and its European partners were working to stop illegal dumping of imports. |
| “In the meantime,” he added, “rest assured that you can count on me to have the competent government agencies survey your imported tires with a redoubled zeal.” | “In the meantime,” he added, “rest assured that you can count on me to have the competent government agencies survey your imported tires with a redoubled zeal.” |
This article has been revised to reflect the following correction: | |
| Correction: February 20, 2013 | |
An earlier version of this article misstated the status of the Goodyear factory in Amiens. While it is scheduled for closure, it remains open; it is not closed. The error was repeated in a picture caption. |