Guest article by Ken Kinlock
One of the major problems for a US company having manufacturing in France and other European countries is that you can’t layoff people to conform to market and industry changes.
GE’s acquisition of Alstrom is an excellent example. The market is declining but you can’t reduce the workforce. “Positions in France won’t be affected due to stipulations in an agreement when GE bought Alstom SA’s energy business in 2015, the GE spokesperson said.” Even worse, GE Power will add 1000 jobs in France to meet the agreement they made when the French government approved the deal. So, every other location will reduce employment while France increases, even when the market is declining. Does this make sense?
This reinforces my previous note that “GE has made many poor LARGE acquisitions over the past fifty years and Altrom has many of the same problems that Machine Bull acquisition had for GE and why it lost the computer game against IBM.