Toulouse, We have a Problem
Airbus, the flower of pan-European industrial cooperation and, importantly, nearby Toulouse’s largest employer, is in major disarray. The results are pretty sad, definitely shocking: Airbus has gone from world #1 aircraft builder to industrial basket case in an amazingly short time. Layoff of 12000 workers in France, Germany, England and Spain is announced. Some heads are rolling, others are making the usual silly noises.
The problems, it seems, boil down to an innovative type of mismanagement over the years, whereby Airbus’ major players, European countries working together in apparent and noteworthy harmony, have actually been working together in petty old-European (read French vs. German) rivalries and these have kept Airbus from honestly and frankly confronting the challenges that any major global business confronts on a daily basis. (Disclaimer: I am not a major global business, but I’m pretty sure that they face challenges on a daily basis.)
Segolène Royal, socialist candidate for president, who did not mention ‘Industry’ or ‘Economic Development’ once in her 100-point platform for modernising France, has called for a moratorium (ie, cancellation) of the French layoffs.
It is Martin Malvy, though, President of our local Regional Council here in Midi-Pyrénées, and pure non-reconstructed socialist (and incidently, brother of my late companion’s first husband), who takes the prize for political silliness. He has just proposed that the various French regions should each take a stake in the capital of Airbus.
Putting this in perspective, the French central government (aka, the Republic) has long held the title for worst/sleaziest business management in the known universe. Bull, Credit Lyonnais, Air France, France Telecom, Total were, during their state-owned stints, but a few breathtaking examples of how badly a company can be run.
What Martin Malvy is grandly suggesting is, given the dire straits that Airbus is in, and the dismal private sector management record of the Republic, why not give the bickering, conflictual regional governing bodies, who have no experience managing an enterprise of this weight, a shot?
Embarrassing.
