HP obviously didn't get the message that it is illegal to lay people off in France. As I noted last week, the French government was less than impressed with HP's plans to downsize its European operations, and in particular its French ones where it is planning to cut a quarter of the workforce. So HP have been referred to theEU for judgement:
France could be heading for a clash with Hewlett-Packard after President Jacques Chirac on Tuesday asked for the US computer maker to be referred to the European Commission over its plan to cut 1,240 jobs in France.
Mr Chirac told the government's monthly employment committee to ensure the US group respected French employment law. HP is cutting 6,000 jobs in Europe by 2008 out of 14,500 jobs worldwide, with its Grenoble research headquarters the hardest hit site in Europe.
“Given the reach of the plan across Europe, he also asked the government to [refer it to] the European Commission,” a person close to Mr Chirac told AFP on Tuesday.
A commission official said: “It is hard to see what the commission can do about an individual company laying off workers.”
For possibly the first time ever I am forced to agree with an EU commissioner. Mind you the EU isn't the only the only avenue l'Escroc & Vile Pin are working on. As with Nestlé there is also the threat of internal French law:
Mr Chirac has instructed his ministers to prepare an appropriate response to Hewlett-Packard's plan and make sure the company shows "full respect" for labour laws in France, where over 1,000 jobs are to be cut.
That same EU Observer article points out that (some) French "workers" and politicians are upset at their government's plan for slight "reforming" Fench labour laws. One suspects that the EU and other member states are laughing at the whole thing:
However, analysts argue that Mr Chirac's idea to address Brussels on HP's move is surprising, as the European Commission will not be able do anything to prevent it.
On top of this, the EU executive has recently sent opposite signals to the French authorities concerning Paris' protectionist initiatives, criticising a plan to set up a list of strategic French sectors and companies in which foreign takeovers should be forbidden.
The issue is yet another point to add to a list of topics for the upcoming extraordinary summit in London - due on on 27–28 October - in which Europe's leaders will discuss the challenges of globalisation and the pressure on the bloc's economy and social models.