Pitfalls When Doing Business Abroad
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Anders Moller(not a XING member)Sweden: "Toys-r-us", Labor union dispute
I believe in Europe it's extremely difficult to get the staff (or the public in general) to accept a non-European policy. E.g. when “Toys-r-us” (American toy retailer) opened shop in Sweden, they refused to sign a general labor union contract (they preferred to negotiate directly with the employees).
As many of you know, Toys-r-us isn’t a “two-bit” operation, but the Swedish labor unions are powerful here in Sweden. It was a long and bitter battle.
Eventually Toys-r-us had to sign the contract.
- 29 Jan 2006, 10:52 am
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---(not a XING member)Re: Sweden: "Toys-r-us", Labor union dispute
Comment about the economy in transition and unions: Lithuania - unions do not play powerful role, they are viewed as left over of the bitter Soviet-Social tradition. How ever forces of globalisation are at strong positive swing, unemployment is going down and foreign companies attracted by flexible working society which is protected by strong labour legislation, minimum loan and other social securities.
Should Germany go the path of adopting minimum loan legislation and abandon unions backed tradition of the tariff loan? It is hot political topic in Germany, but unemployment is even hotter. What is your opinion about substituting German tariff tradition with minimum wage legislation, would that be strong enough voice for social justice or maybe total freedom is the way or maybe third way is possible? any calls on that?
- 01 Feb 2006, 4:52 pm
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Christian Pfäffli(not a XING member)Re^3: Sweden: "Toys-r-us", Labor union dispute
Hello Sam
Referring to your input and having myself lived in Germany for the last 6 years, in some of your thoughts I agree with you.
But the misery of Germany has nothing to do with the reunification, although especially politicians like to express this point. It has more to do with that necessary infrastructure changes like the ones Finland, as an example, had in the early 90's, have never been done in Germany. Germany kind of lives still in the 60's. Germany, which as a powerful country, is extremely important for Europe and worldwide, has to blaim itself for having lived 30 years above "its income".
Concerning the solidarity taxation, the Germans themselves made one of the most stupid mistakes one can do. They reinvented every function in East Germany one more time. As an example, the education system in East Germany was far more better that in West Germany, but still it had to go. Of course, when nothing useful is kept and everything has to be done from the scratch, the investment is also very high. Furthermore, the people in former "East Germany" are still treated like B-class people with lower salaries, pensions etc. So my question is, was it really a reunification or just a fulfillment of a political dream, which tenders to be very expensive for each German. Conserning your idea of having every European to pay for the mistakes West Germany has done and is still doing in former "East Germany", we, the taxpayers are already throwing enough money into this project through the European Union.
Best Regards
Christian
- 01 Feb 2006, 9:33 pm
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---(not a XING member)Re^4: Sweden: "Toys-r-us", Labor union dispute
Sam I think you picket that point very good : “Re-training of large number of former industrial workers for totally new kind of competencies and jobs.” In this large number of re-training working force survival income for worker has to be assured. There has to be balance between unemployment payouts and working salary. The lack of the balance is sorting for even less motivation for relocation because of work.
Christian picked on good point about past life above the income. Now it is the question of is it worth in re-arranging times to put minimum value on one working hour and say that this is margin for the “past life above the income.”
From a Socio-Economic prospective is it the solution, so called Scandinavic way?
- 02 Feb 2006, 4:40 pm
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Christian Pfäffli(not a XING member)Re^6: Sweden: "Toys-r-us", Labor union dispute
Sam
Where do you get your figures, 20-25%?
Still I agree that the Scandinavian model is nothing for Germany. The problems in Germany are much deeper and also the infrastructure is different.
Best regards
Christian
- 16 Feb 2006, 2:25 pm
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