Capitalism Under Fire - Again

Capitalism Under Fire – Again

Strikes in France this week centered on the major American company, Caterpillar, which is threatening to cut a substantial number of workers from its workforce in France despite earning more than $3.5 billion in profits in 2008. The French workers are rightfully upset at the company for reducing their workforce in the face of such gains, but in the company’s defense, they are acting rationally in the capitalist model. 2009 began with major losses for the construction industry worldwide, meaning demand for the heavy machinery that Caterpillar provides will likely slow down substantially this year. To prevent a loss, the company is streamlining its workforce, especially in areas where labor costs are high, like France. The company did offer to compromise with the workers if they agreed to work more hours in the workweek, but as might be expected from previous negotiations with French workers, their union refused. Thus, the dilemma in the French town of échirolles is a reflection of what is happening in many parts of the world – capitalist-driven companies are taking cover from a worsening global economy, and workers are grasping for help as their downfall becomes imminent. What will be interesting to see in this case is how well the French social system will cushion the fall for the workers.

http://www.nytimes.com/2009/04/17/world/europe/17strike.html?_r=1&ref=world

Kevin Fandl