Sport Closure of Bridgestone: “It is wrong to say that the State cannot do everything”

21:17  22 september  2020
21:17  22 september  2020 Source:   liberation.fr

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We get that the kneejerk reaction out there will be Bridgestone should simply cut prices – that way they’ll sell more. Well, that ’s essentially what the company did last year with its extensive Buy 2, Get 1 Free promotion – it moved a lot Oh look at that the WGC Bridgestone Championship a WGC event.

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Des salariés devant l'usine du fabricant japonais de pneumatiques Bridgestone à Béthune, le 16 septembre. © Stephane DUBROMEL Employees in front of the plant of the Japanese tire manufacturer Bridgestone in Béthune, on September 16. Fiodor Rilov, lawyer at the Paris bar and specialist in legal proceedings against layoff plans, severely judges the response of politicians to the closure of the Bridgestone plant in Béthune. For him, the announcement of the Japanese company has "no justification".

Closing the Bethune plant, the only possible option to "safeguard the competitiveness of its operations in Europe," lamented last week the Bridgestone group. While the government seeks to negotiate an alternative to limit social damage (863 jobs at stake), the employees are resigned . Fiodor Rilov, lawyer at the Paris bar, has been leading legal proceedings against plans for layoffs for fifteen years. He notably defended the workers at Goodyear and obtained the suspension of a General Electric social plan in Villeurbanne. He returned to Liberation on the announcement of the closure of the Bethune plant.

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What do you think of Bridgestone's decision?

I see no valid justification for this decision. There is simply a desire of this company to increase its profit level. The Bridgestone group's operating profit was 4 billion in 2018 and 3 billion in 2019, far ahead of Michelin and Goodyear in the global competition.

Is political mobilization coming at the right time?

Policy intervention is belated, hypocritical and cynical. Most of the tools that prevent the dismantling of a factory like Bridgestone have been dismantled. Today I can no longer seize a summary judge to request the suspension of a dismissal plan, due to the lack of justification, and this until the employees have received their dismissal letter. This is the result of the system put in place by Emmanuel Macron when he was at the Ministry of the Economy. In addition, until now there was still a window to ask a judge to examine the conditions under which dismissals were considered with regard to the safety and health of employees. But since June, this has not been possible. The state, through the Ministry of Labor, has taken legal action to have this type of appeal quashed.

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Does the state no longer have any legal means of contesting a layoff plan or a site closure?

It is wrong to say, in the name of a form of fatalism, that "the state cannot do everything"! Companies that have received state or local government aid owe them a debt. This opens up possibilities for legal action in an administrative court for anything that has not been reimbursed. The state could also issue a decree requesting reimbursement of these aids and subsidies. However, it does so because of an ideological blockage. Some in government believe that large corporations should have the freedom to cut jobs.

Could the Ministry of the Economy take specific action against the closure of Bridgestone?

The tax authorities could examine the price of tires when they leave Béthune. They are then invoiced to a company located in a soft tax country before being resold on the French or European market. The profit margin is taxed elsewhere and therefore escapes French taxation. This technique called "transfer pricing" is tolerated in France, but if we apply the general tax code, questions arise.

Will the management of Bridgestone be obliged to sell the site if a buyer presents itself?

No, she can refuse. In most cases, a company that relocates its production does not want the assets it leaves behind to be bought by a serious buyer who would become a competitor. Especially if the takeover project is in the same industry. However, this type of refusal is a violation of competition law because it prevents a new entrant from entering the market. In this case, the employee representatives can take legal action to contest this refusal to sell and claim very heavy compensation. A procedure of this type has already been initiated in Hauts-de-France by employees of the Stora Enso pulp mill.

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