BAe Merger

  morddwyd 21:53 13 Sep 2012
Locked

Anyone else having misgivings about the possible merger of BAe and EADS?

I know size is now everything to compete on world markets, but although it's a merger it surely cannot be good for British industry?

EADS is the bigger partner and BAe could be inexorably subsumed.

The French have an enviable record in looking after French jobs.

  natdoor 09:24 09 Oct 2012

Nothing wrong with that if done in a fair and honourable way.

  Strawballs 12:56 10 Oct 2012

Natdoor and morddwyd that was the point I was making about the French looking after it's industry far better than British government before I got shouted down by FE using examples of French strikes, they strike because they can without having to jump through hoops and giving a months notice as to when it will happen.

  Forum Editor 13:25 10 Oct 2012

Strawballs

"I got shouted down by FE using examples of French strikes, they strike because they can without having to jump through hoops and giving a months notice as to when it will happen."

How ridiculous of you to accuse me of shouting you down - I did no such thing. I simply engaged with your argument, and if you can't defend it without getting upset when someone disagrees with you it might be better not to take part.

The French government introduced (in 2008) a new law requiring French transport workers to give at least 48 hours notice of their intention to join strike action. This legislation was driven by the fact that - as I've already mentioned - French Transport workers are notorious for their habit of staging strikes with little or no notice. It was felt that the French people were at least entitled to have some warning that their trains and buses etc. were about to stop running.

How effective has the law been? The French unions have routinely ignored it completely, and have continued with their militant policy of striking whenever the mood suits them.

The French government 'looks after its industries' no better than our own government as far as labour relations go. In fact in the transport sector the industry has to look after itself - the government has failed dismally, particularly where its National railways are concerned. Those workers are among the most militant in Europe.

  Strawballs 14:11 10 Oct 2012

What's the point of introducing laws if they are not going to enforce them and as I said before what that French firm did with the TV factory here would be illegal in France so yes they are looking after their industry better than the British Government.

  Forum Editor 14:22 10 Oct 2012

Strawballs

I can see that you're determined not to give up on this, so I will. I've lost the energy to continue.

  Strawballs 14:30 10 Oct 2012

Why give up on a fact!!

  Forum Editor 14:33 10 Oct 2012

It has been announced this morning that the two companies have decided to cancel their plans for a merger.

The main point of disagreement appears to have been the insistence by our government and the heads of the two companies involved that directors appointed by the French, German and UK governments should not sit on the top board of the merged group.

Our government had two main concerns - that control of the UK business would end up in Paris or Berlin, and that British jobs might be threatened. The other important factor was that the US government was worried about undue French and German influence over the merged company. BAe wants more contracts from the Pentagon.

It's likely that these two companies will continue to talk behind the scenes, to see if they can arrive at a workable proposal for some time in the future.

  johndrew 15:10 10 Oct 2012

It's likely that these two companies will continue to talk behind the scenes, to see if they can arrive at a workable proposal for some time in the future.

Personally, I hope that all future negotiations, whether internal or government, fail as I believe any such merger would be detrimental to both our sales, employment and economy - not to mention the independence of our national defence.

There are some functions that require independence from European interference and control. Allowing any level of outside control in such an important element of our sovereignty would, I believe, cause our political and military independence to be breached.

  Forum Editor 15:39 10 Oct 2012

johndrew

To be technically correct, their was no question of any outside control of an element of our sovereignty - neither of the two companies is nationalised.

There was certainly a concern about our national security however, and I think that's what you meant. The political aspects of the case relate to our worry about governments appointing directors to the main board, and that was certainly something that our government wanted to avoid.

Our ability to manage our own national defence policies and contracts in the strictest of confidence is obviously of paramount importance.

  oresome 16:22 10 Oct 2012

We now need a change of management at BAe.

Someone who can develop a strategy for the company on it's own in a world where many of it's customers are spending less on the products it manufactures.

Much shareholders money has been wasted on a proposed merger which was always going to be beset with political difficulties and has laid bare the weak business plans of the company.

This thread is now locked and can not be replied to.

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