In a letter published in Wednesday’s edition of Les Echos, a French financial newspaper, Maurice Taylor, chairman and chief executive of Titan International, told French Industrial Renewal minister Arnaud Montebourg that France can keep its “so-called workers” who earn a high pay despite working “only three hours” each day.
Taylor’s letter, dated February 8, was in response to an approach by Montebourg to see if Titan, which makes agricultural tyres, was willing to take over any of the operations at a Goodyear factory in the town of Amiens that is set for closure.
Spelling out why his company walked away, Taylor said:
According to Taylor, Goodyear had tried for over four years to save part of the 1,173 Amiens jobs that are some of the highest paid, but the French government and trade unions “did nothing but talk.”
Goodyear announced on Jan. 31 it will close its main French plant and cut its workforce in the country by 39 percent amid labour disputes and falling auto demand in Europe.
Taylor also warned that Chinese factories were already shipping tyres in France and across Europe, threatening companies like France’s Michelin. “In five years Michelin won’t be able to produce tyres in France. France will lose its industrial business because of its government.”
“How stupid do you think we are?” Taylor asked.
Taylor’s letter is expected to relaunch a national debate over France’s declining competitiveness, hindered in recent months by the high tax policies of Francois Hollande’s socialist government.
Last year, French industrialist Louis Gallois warned that the economy is facing a serious “crisis of confidence” and called for a “competitive shock therapy” to stem the industrial decline that has eroded the global competitiveness of French companies.
In its last annual review of the French economy, the IMF pointed out that France’s productivity woes predates the region’s crisis and warned that its risks to growth could be even more severe if reforms are not introduced in time.