New French president puts US companies on notice
Threatens financial fallout for firing workers
- Duration 8:43
- Date May 12, 2012
Threatens financial fallout for firing workers
Also in this playlist...
This transcript is automatically generated
We told you there would be pull out little.
Did we know it would be -- -- welcome everybody I'm Neil Cavuto had talked about France putting America.
In the Fryer.
French president elect -- I don't I've been practicing that -- US companies that he is going to make things on them to let my info.
If those companies fire workers there.
This after General Motors said that it was considering.
Closing a plant in eastern France.
An advisor to -- telling a French radio states and and I quote here we will started arm wrestle with management so they realize that there is a former morality and economic life.
That respected workers as part of the values of a big company so if our companies are getting the French kiss off over there.
Are we looking at more broken hearts please use.
Today gimmick doubt no doubt has broken any unit time that was since he Garret a count upon a -- -- what camp Gary what do you think.
They'll be a definite effect look when you have socialist economic dictators over there telling companies what to do and how many employees that have.
That's nothing but trouble what if the man drops and it has been drop -- in Europe.
And you don't need that certain amount employees that is -- directly affect your profits.
Globally and -- -- -- start looking at home to do something about it that means may be losing some people here so nothing good comes out of something like that's.
Mean that isn't even a threat I mean that that's just.
That's that's like my peoples.
Did the event.
An estimated that if this isn't a browser and then -- -- version does a -- and what this is actually what it's -- as a foreign company doing business in France this is actually nothing new.
It's tough talk the company's foreign why have had to deal with some of the most restrictive labor practices across the whole of Europe in France.
He of high payroll taxes you have very.
Big severance packages you have to pay to workers have invited you get back -- history.
-- -- which is -- auto parts company a few years ago went through something very similar where the French government.
Is laid a -- people off when it was closing a plant of Britain's government actually came out and told other companies not to do business.
With this company it is it par for the course of doing business spreads it only hurts France I don't think.
If F backed companies can get out of the country it won't hurt us.
And -- Think they would really do if if a company just said we we got a -- at least some of these workers.
Would they shut the plant down would -- to -- Chavez type deal.
Well it's -- question because the rules there are so restrictive so they might I mean if if they just -- General Motors is well aware of this this has been one of General Motors has.
Big problems in Europe because they've been wanting to cut capacity.
And it's so -- a call -- but.
But today -- point they knew this I mean it's against the law to do it there the way we would do it here and so yeah I think.
They could face those kind of repercussions -- on I think companies like GM.
Have to decide do we wanna be and and Europe or do we not -- to be in Europe to be a perfectly valid decision to get out but it would be a long term decision.
You know Jim would -- -- wondered about part of this coming here to the United States.
To meet with President Obama.
Who's not a big fan of US companies setting up shop.
Or hiring overseas.
I think you -- because he I think the president probably idolize this guy if you look at they had their way at the -- the president operates an -- European socialists to pass style system -- If you can't fire anybody.
Then you aren't going to hire anybody doesn't make any sense -- what is the message and those workers over there they can show up late they can do whatever they want to not be productive.
And they're not gonna get fired.
I think GM modest they have hand towel -- -- were out of here.
Let France isn't the only place they can build cars in Europe anyway so.
This is a disaster well policy its European style socialism on steroids in the -- would I have to -- in the first place.
Would like just a little delayed a couple things quickly Neil I'll let it Gary -- just good because you said something when he's got up here where you called old line they a dictator you know.
That's a loaded expression in Europe and I think it would be better if we didn't use.
Emotionally charged expressions like that he's not a dictator he was just elected president of France and I also don't think oh this is now and I don't give a grade I think -- -- -- -- D'Amato.
I don't want to say you don't wanna saw the president of that it's not -- longer -- does not want to talk.
Now Gary to your point of just just abusing people of the -- you think this guy's a dictator -- What do you call somebody that's in this first date comes out and is talking 75%.
Tax brackets what do you call somebody that's didn't -- eating a -- -- -- -- -- I decided I got older and them it's called.
It's called economic dictating of policy and he ended the worry is we have not seen the likes of somebody like this.
For many many years we already know that it's liberal over there.
I think he's taken it to the umpteenth power right out of the get go and they will be repercussions I guarantee you American companies that do business over there.
Are in the -- -- right now talking about this today on how they're gonna go we have.
Mozilla yeah I'll cross -- on now and by his case he reverted and and took on more capitalist tendencies.
When the socialists think that what what even -- here.
I -- I.
Kind of feel that way even the Wall Street Journal seemed to suggest this -- he can say one thing 75% tax -- But -- know ultimately.
Bit millionaires will be faced with that can.
Keep their French citizenship but -- about the country and not have to pay it.
He's got to worry about 10% unemployment and driving American business.
Out of the country and keeping out potential new business out of France is not gonna help bring down that unemployment rate and if he's.
You can call the left as you can call him a liberal -- -- a socialist but if he's a pragmatist.
He will do something that is more.
Free market and more capital.
Can look at any company is establishing a shop in another country has to play by that country's rules now if -- GM if you're anyone.
And you realize that the austerity measures are on hold to put it mildly and France they're not going to be enacted nearly as swiftly if at all.
So you're still on the hope for paying people to retire at the age whatever they can retire tickets like right nineteen or something inference -- -- But another word about all that it can't exist and -- -- on on the line forward -- -- -- your wallet to do it what would possibly compel.
Any company to -- is set up operations in France -- the food which we must agree is phenomenal go ahead.
Look we see the same thing -- in this country -- -- California has lost a ton of their business because of regulation and taxes Illinois.
Has lost a ton of business because of regulation and taxes.
Now you multiply that for perhaps and I don't know in in answer your question I don't know why you'd want to set up in France I mean it might tell you Saddam with.
-- with some with your sales over there but if there's other countries in Europe Ireland has a very friendly corporate tax structure you can build cars there instead.
Yeah so I don't know exactly firing on all cylinders known what opponent and you -- they have that they're far more friendly to their employees.
And so I -- -- are attracting business at the ire of the rest of Europe okay -- out of let the the -- there's a market there so if you're GM you decide whether or not you want to be in the market.
Or not you know and by the way the president President Obama will will have an instinct conversation with the new president of France because President Obama is a 27%.
Of GM and at least in the form of the United States government I mean.
We have to be interested in what's best for GM here and -- that includes shutting down capacity in France it'll be interesting to see how the president advocates for that or not.
I don't think he would -- for keeping those workers in France that's Arnold sent.
Well that happens to be consistent with what General Motors wants right now so I agree with -- but not out of not necessarily out of some sort -- -- -- Laying people off -- that country's already can be prohibitively expensive for company -- -- couldn't severance that's required that won't be some that 35 hour work week man.
-- I want you somewhere that.
Beautiful accent talking to the -- because that would really put him in its place.
Who would you meet with the -- wouldn't you know and then you throw back clintons -- into people's -- absolutely.
Absolutely in there and -- -- -- -- it or.