Stock exchange dismissal

A stock exchange dismissal is a Licenciement, whose corollary is the increase in the course of the action of the company which removes employment. The expression is thus employed only for the companies dimensioned in purse.

These suppressions of employment, when they lead to dismissals, are qualified the immoral ones by a certain category of politicians, trade unions and people directly concerned with the dismissals, which led the French left parties to wonder about possible retaliatory measures when the company which removes uses made of the benefit. This appears paradoxical with the movement altermondialist insofar as it is the left into large party which in France allowed this return of the shareholder in the Années 1980.

This expression with the pejorative character is prone to controversy because it would imply, in addition to the direction explained at the beginning of this paragraph, that dismissals are carried out with an aim of increasing the stock exchange courts of the company, which was not shown. The concept of stock exchange dismissal thus remains an assumption.

Example in France

In France, in September 1999, the company Michelin published semi-annual benefit in rise of 20%, at the same time as she announced 7 500 suppressions of employment. The following day, the stock exchange courts of the action increased by 12%. This incident is at the origin of a private bill in France aiming at preventing this practice. There were other examples of this practice as to Danone, Hewlett-Packard, or Moulinex.

Remain to be seen if the rise of the course of the action is related on the advertisement of very the good performances (what seems to be a reasonable proposal) or to the advertisement of the suppressions of employment.

The example of the Michelin company is that to which one refers in a quasi unanimous way when one wants to describe the phenomenon of the stock exchange dismissals. This case seems to confirm the idea that it is only about one belief supported by a phenomenon of dissonance cognitive: one forgets to very consider the advertisement of the financial good performances in the explanation of the rise of the course of the action.

Perceptions of the stock exchange dismissals

In certain countries, the image near the public of these dismissals is very bad, it tends to reinforce the thesis that the company misses consideration for its employees. When the effect on the stock exchange courts is interpreted like their main aim, the dismissals known as stock exchange are médiatisés sometimes enough. The trade unions can use the argument to try to improve the Protection plan of employment by requesting a reduction of laid off manpower or an improvement of the conditions made from the fired people. Is this negative perception of paid these dismissals called wage schizophrenia by certain economists (in particular of the current conventionnalist or regulationnists, like Frederic Lordon ( Pension funds, trap with idiots? ) or Thomas Coutrot ( the néo-liberal company, new capitalist Utopia? ). Indeed, the pressure exerted by finance comes sometimes from the salary savings, which amounts saying that wage-earning indirectly exerts a pressure on him even.

This type of dismissal is sometimes interpreted like a lack of morality, in particular when the company is profit and that the leaders neglect to give transparent information on the economic bases of this action, while preserving substantial wages or advantages.

Economic justifications

The suppressions of employment generally correspond to a will of the leaders to restructure the company, in order to increase its economic performance and to ensure its survival in a competing world where the positions of market are quickly called into question.

In this direction, preventive dismissals can avoid the later disappearance of the company with suppression of all its employment according to the leaders of the companies.

The financial actors favorable to this decision of management would thus tend to buy the action. The increase in its course can also nourish the speculative movement . The actors on the market, knowing historically that the advertisement of a plan of dismissal makes increase the stock exchange courts, will tend to buy the action increasing thus mechanically its price, in optics to sell it in the short run.

See too

Reference

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