France fines General Electric with 50 million for creating 25 jobs out of 1,000 promised

The Government of France has imposed a fine of 50 million euros to General Electric (GE) after having generated 25 net jobs in the country in the last three years, instead of the 1,000 jobs to which it committed as a requirement to take over Alstom’s energy business.

The Minister of Economy and Finance of France, Bruno Le Maire, has confirmed this sanction to the American company after having met with them on Tuesday. The firm had until December 31, 2018 to meet the quota of 1,000 net jobs generated.

Le Maire had already warned several times in recent months that France would impose a fine of this amount in case the company did not generate the jobs to which it committed.

Specifically, the 50 million euros will go towards the creation of a re-industrialization fund. GE has also underlined its commitment to long-term growth in France, especially in the renewable energy market.

The company has argued that the “evolution of energy markets”, as well as the “acceleration” of the energy transition, “severely” limited the gas turbine market. This meant that the firm could not incorporate 1,000 net workers to its workforce in France.

However, the US company has stressed that during the last three years has invested nearly 1 billion euros and has hired about 3,000 people.

The commitment to incorporate 1,000 net workers in France clashed directly with the restructuring plan approved at the end of 2017, which included the dismissal of 12,000 workers worldwide belonging to its energy division, GE Power, to which the acquired assets were incorporated to Alstom.

Sign Up for Our Newsletters

You May Also Like

Zhou Qunfei; One of the world’s self-made richest women

Who is Zhou Qunfei? One of the world’s self-made richest women in…

Volkswagen will change its logo for the new electric era

It’s time for changes in Volkswagen. Nothing better than leaving bad things…

Pepsi to buy energy drink maker Rockstar Energy for US $3.85 billion

PepsiCo said last Wednesday it would buy Rockstar Energy Beverages for $…