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A solution for the workers

This is the second attempt M. Sarkozy is trying to save big hiring companies from going out of business. SeaFrance has gone bankrupt and a Tefal factory will be putting out of work about 500 more very soon in a remote area of France.
The proposition that is coming all the time in order to save the situation is the participation to the company capital as it's going bankrupt; of course, who wants to bare the risk in a moment when banks gives no more credit to the failing companies.
So the idea is that in order to make everyone accountable for a company's success and perenity, Government may see a way to impose to company they have help built and save from bankrupcy to open their capital to their workers up to 30%. The deal can be put in formula that includes the reduction of the salaries relatively to the gain the shares will be providing to their income.
In that way, the workers will be sharing the success of the companies, they will never oppose a decision to cut in expenditures, the company will gain in competitiveness as the cost of production will decrease. It will be more difficult for managers to sell off a company who is still profitable, even if the profit level does not feet the thirst of capitalist tycoons.
The mesure can be a job saving system for the whole occidental countries experiencing job crises and debt crises.
I am not a specialist, this is just an idea to explore...

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  • Jan 20 2012: If I understand correctly, it's suggested that companies given government bailouts are required to give 30% of their shareholdings to their workers. My challenge is that it is not the government providing the bailout - it is the taxpayers. So the true situation is that the entire taxpayer population gives money to a failing company, and then that failing company is restructured so that the employees own a minority shareholding. It seem the deal is not a good one for the taxpayer. I suggest that a better solution is to let the company fail and then the workers and management can buy it from the administrators. They will be able to get private finance if it is a good company. This is capitalism - good companies thrive, bad ones fail. Interfering by government bailouts creates moral hazard and is bad for everyone.
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      Jan 20 2012: I have said that 30% should be given for free, it will be payed by the employees themselves. Besides, I have taken a clear example of Seafrance, which just failed in France. Most of the reason the company fail is that the Mother conpany which is SNCF, partly owned by the french government has decided to close the branch as they are not getting the level of profit the hoped they had. So the easy way for them is to close it down and go on. But then unprepared workers (about 880) have now to face two choices: either they accept that their firing indemnisation is used to constitute the fund to run the new company, or they just accept without any notice to go on wellfare. It is not an easy choice.
      I do believe this is a capitalistic system, but if we do not give it a human figure, it will be definitely failing us all. Many people are stressing today the failure of the system, and most economist do not have a clear view as per how to handdle it, the solutions might not be laying in their traditional capitalistic way of things.
      I believe there are alternatives.

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