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U.S. CEO to France: ‘How Stupid Do You Think We Are?’

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Re: U.S. CEO to France: ‘How Stupid Do You Think We Are?’

#41
post #23

I have an idea that the differences in work ethic across Europe may be partly to do with climate and partly to do with language. In France, the verb 'work' is travailler . Traditionally this meant literally to toil, a chore, an obligation. In Germany, the word werken means to build, create, do. The German word more aligned with travailler is arbeit. This lack of correlation in the word work I believe may explain the…

> In Germany, the word werk means to build, create, do.

'Werk' is a noun being either a factory or a creation of an artist. But to work still means 'arbeiten' in German.

'werken' in the sense of 'to work' is dutch. Maybe you mean this?

Other than that: I can tell you that my German colleagues aren't really more motivated or hardworking than my French, English or Polish colleagues. That hard working German stereotype is a nice stereotype but it isn't really all too true.

Re: U.S. CEO to France: ‘How Stupid Do You Think We Are?’

#43

> Titan had to pay millions to Washington lawyers to sue the Chinese tire companies because of their subsidizing. Titan won. The government collects the duties. We don't get the duties, the government does. This is how tariffs work. You don't tax imports to fork over free money to domestic companies. The point is to increase the cost of the imported good to compensate for illegal (from the WTO's point of view) Chines…

> I'm confused as to why he thinks those taxes should go to Titan.

Probably because from 2000–2005, under U.S. law [0], anti-dumping duties did get disbursed to the U.S. companies that brought successful anti-dumping complaints. This is illegal under WTO rules, however, and Congress repealed the law after the WTO authorized retaliatory sanctions against the U.S.

0. http://en.wikipedia.org/wiki/Byrd_Amendment

Re: U.S. CEO to France: ‘How Stupid Do You Think We Are?’

#44
post #9
post #3

I don't get why you'd ever send a letter like this (except anonymously, or if you were a politician). There is no upside beyond just "Sorry, we're not interested -- our new investments are focused on Asia, where demand for tires is growing 200%/yr. Sincerely, CEO." There is downside -- you might provoke some tariffs in EU/France, or disinvestment from the pension fund, or whatever.

While scathing, it is also very informative. "Not interested" and a vague "lookin' better elsewhere" doesn't get into the reality of "why?" Methinks he did them a great service in being brutally honest. Those trying to solve the obvious problems will make much greater progress with such a letter in hand, rather than the usual apologetic tact. "Helpful are the wounds of a friend..." I'm sure he would, in fact, like to…

Over at the daily mail they added a bit to the WSJ story, namely that even French officials have said the same.

http://www.dailymail.co.uk/news/article-2281645/Maurice-Tayl...

As in Christine Lagarde, now head of IMF, did not have good comments about the work her own people do

Re: U.S. CEO to France: ‘How Stupid Do You Think We Are?’

#46
What's amusing about the letter is that it shows how even executives buy into cultural stereotypes to justify their activities.

The substance of the letter is this: we'd rather buy an Indian or Chinese tire company to get the government subsidies and take advantage of the low cost of labor.

The stuff about French workers only working three hours a day is fluff, and on top of that almost certainly exaggerated out of context and/or apocryphal.

See: http://www.oecdbetterlifeindex.org/topics/work-life-balance/

The French work on average 1,554 hours per year, about 10% lower than the OECD average of 1,749. Is that 10% breaking the backs of French tire manufacturing? Of course not. Consider that South Koreans work on average 2,193 hours per year, a staggering 25% higher than the OECD average. Why doesn't Titan manufacture tires in South Korea?

The answer is that relatively small differences in the number of hours people worked aren't driving the economics here. The French work somewhat less than say Americans, but also make somewhat less money than say Americans (last I checked, manufacturing jobs paid on an hourly basis). To be accurate, the letter could have said: "we won't manufacture tires in France because the French work 6.5 hours per day on average versus 7.5 per day for Americans." But that would have sounded stupid. Hence the need to exaggerate and say: "the French only work 3 hours per day!"

What's driving the economics is, as the letter points out, $1/hour wages in China or India, where people are happy to get so little money because those countries are poor and have low standards of living relative to western countries. The rest is just handwaving and fluff.

Re: U.S. CEO to France: ‘How Stupid Do You Think We Are?’

#48

Wow, what a total jerk. Regardless of the differences between US, Chinese, Indian and French work ethics the least you could do as a CEO is to learn how to write a polite refusal. When you don't have to insult someone it is probably better not to. Because those pesky French just might publish your less than elegant letters, your stockholders might read those letters and could very well think: "This guy runs the compa…

I like people who tell it like they see it. Sure, he could tone it down a bit, but I would prefer he does not. When you guard your words and hold back how you really feel, you are not doing anyone any favors.

Saying nice, comforting things to them (while they fail and people lose their jobs) would be a greater injustice than being honest and frank. I bet no one else has ever spoken that directly about the matter. Sometimes, that's precisely what is needed.

Re: U.S. CEO to France: ‘How Stupid Do You Think We Are?’

#49
post #23

I have an idea that the differences in work ethic across Europe may be partly to do with climate and partly to do with language. In France, the verb 'work' is travailler . Traditionally this meant literally to toil, a chore, an obligation. In Germany, the word werken means to build, create, do. The German word more aligned with travailler is arbeit. This lack of correlation in the word work I believe may explain the…

Well, you are wrong on the etymology of 'travail' (as is everybody else), but maybe you got it less wrong

(And curiously, in the latin languages it's all the same root)

The real origin is this: http://en.wikipedia.org/wiki/Tripalium

"A tripalium is a three-staked instrument of torture."

Re: U.S. CEO to France: ‘How Stupid Do You Think We Are?’

#50

Earlier quoted context omitted.

France is one of most productive countries in the world, when measured as GDP per hour-worked: http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP...

Right, but that is partly or wholly because French unemployment is higher than it is in the US with the result that the less productive workers do not have jobs and consequently are not included in the statistic. If we use a different statistic, namely, GDP per capita, France is significantly lower than the US.

I dont think the unemployment affects the stats that much but anyway the US has a higher GDP per capita and higher GDP per hour worked than France. I was just replying to the common stereotype that France is significatively less productive than other european countries (say, Germany).

Another fact that contradicts that stereotype is France's position as a recipient of foreign direct investment:

http://en.wikipedia.org/wiki/List_of_countries_by_received_F...

Why would people invest so much in a supposedly "lazy" country?

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