Dividends and France orders some fuel staff back to work as it seeks to tackle refineries strike

Every successful company builds up goodwill and the larger it becomes the more the government comes to rely on it to be successful. The company knows this, the government knows this and if the company has issues which the government wants solved, the government often directly or openly indirectly help the company. In some industries it is easier to see and in the news is a really good example.

In an article by Dominique Vidalon and Tassilo Hummel of Reuters, in France the union CGT has been striking for more money against the refineries of ExxonMobil and TotalEnergies SK. (the biggest oil company in France is called Total). The walkouts and unplanned maintenance at the refineries had more than 60% of France’s refinery capacity shutdown. This has resulted in gasoline shortages at the gas stations with over 31% of service stations having supply problems.

In France, the unions are large and have considerable sway in the political system. It is not uncommon to see massive demonstrations lead by the unions when they do not like government policy. Esso France has told the press it has offered 6.5% raises and a bonus of $4,022). The union wants 10% pay increases and the bonus. France’s Prime Minister Elisabeth Borne announced the government was prepared to take action if necessary to ensure the refineries produce gasoline and the trucks can distribute the gas throughout the country.

Linking to dividend paying stocks, when companies are successful, they make profits and can pay dividends which is good for shareholders. On the other side of the equation is some workers will feel they are not compensation as well because …. or how the pie is sliced is an issue. With successful companies, management often has the government on its side because of the size and scope of the company operations. This can be good or not so good, depending on the situation but it is the reality. Elections matter for the continuing health of the company.

There are more questions than answers, till the next time – to raising questions.

Advertisement

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s