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29th November 2024
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THE HOT STORY
Spain introduces 'climate leave' for workers
Spain's leftist government has approved "paid climate leave" of up to four days for workers during weather emergencies. Labour Minister Yolanda Diaz said that the measure aims to ensure "no worker must run risks" during events such as the flooding last month which killed 230 people. Additionally, employees can opt for a reduced working day beyond the four-day leave. The new measure aims to "regulate in accordance with the climate emergency," Diaz told public broadcaster RTVE. If emergency authorities raise the alarm about a risk, "the worker must refrain from going to work," Diaz said. Economy Minister Carlos Cuerpo highlighted that the costs of extreme weather could double by 2050.
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HIRING
Foreign labour is needed, UK employers say
Net migration to the UK reached a record high of 906,000 in the year to June 2023, significantly exceeding earlier estimates of 740,000, according to the Office for National Statistics (ONS). The revised figure represents an upward adjustment of 166,000. However, the ONS noted a subsequent decline, with net migration falling to 728,000 by June 2024. Prime minister Sir Keir Starmer seized on the figures - which cover a period before Labour took office - to accuse the Conservatives of “running an open borders experiment.” Meanwhile, business leaders have responded angrily to Starmer's proposal to limit the hiring of foreign workers, arguing that immigration is essential to fill job vacancies. Starmer said companies have had an "overreliance on the easy answer of recruiting from abroad" but the prime minister's commitment to reducing net migration has raised concerns among businesses already facing increased hiring costs. Jane Gratton, deputy director of public policy at the British Chambers of Commerce, noted that "three-quarters of firms say they can't find staff they need."
WORKFORCE
Italy prepares for strike today
Italy is preparing for a general strike today, called by the CGIL and UIL unions, in response to the 2025 budget. The strike will last for eight hours across all public and private sectors, except for transport, where the strike has been limited to four hours due to a back-to-work order from Deputy Premier and Transport Minister Matteo Salvini. The unions have appealed against the order, saying: "We are asking for salary hikes, more funding for healthcare, education, public services and industrial policies." A total of 43 demonstrations are planned nationwide. CGIL's secretary general, Maurizio Landini, is leading the protest in Bologna and UIL's leader, Pierpaolo Bombardieri, will conclude the day's events in Naples.
Finland's HUS to cut 280 jobs in restructuring
The Helsinki and Uusimaa Hospital District (HUS) is set to make 280 employees redundant as part of restructuring efforts aimed at saving approximately €50m. The cuts will result in a reduction of around 778 person-years, although initial plans suggested up to 990 person-years could be affected. HUS has said that the redundancies will mainly impact administrative and support roles, with a slight 2.4% decrease in nursing staff. Jenni Sorvari, chief shop steward with the JHL union, expressed concerns about the implications of the cuts, saying: "It is frustrating and unbelievable that this is the solution being reached when the entire social and health care sector is suffering from a worker shortage." HUS aims to balance its budget, which requires addressing a deficit of around €140m by 2025.
Striking cement workers in Cyprus march on ministry
On November 22, cement workers in Cyprus intensified their two-week strike over overtime pay disputes by marching from Eleftheria Square to the Labour Ministry in Nicosia, where they submitted a letter of demands. Labour Minister Yiannis Panayiotou expressed concern over the escalating conflict, emphasizing the need for a "constructive stance from all sides" to restore normalcy in the construction industry. He warned that prolonged disputes could lead to greater economic costs. The Chamber of Commerce (Keve) criticised the unions for rejecting a proposal that included a 13% pay increase, and urged them to reconsider to prevent further economic repercussions.
STRATEGY
Heineken plan large-scale brewery in Dubai
Sirocco, a joint venture of Heineken and Dubai-based Maritime and Mercantile International, plans the Gulf’s first large-scale brewery in Dubai, in a move that is indicative of a loosening of conservative rules locally. The joint venture has secured all necessary permits and will start building the brewery late next year, with construction set for completion in 2027. The brewery will produce brands including Heineken, Kingfisher, Amstel and Birra Moretti. Heineken plans to expand its workforce to 190 full time employees from 60 currently. Dubai first allowed alcohol consumption and sale over two decades ago.
Volkswagen to exit China's Xinjiang region
Volkswagen has said it is to sell its factory and test track in Xinjiang for "economic reasons." China has been accused of numerous human rights abuses in the region, including so-called re-education camps and forced labour targeting Uyghurs and other minority groups. The Uyghur people are a Turkic-speaking and predominantly Muslim ethnic group that inhabit Xinjiang. The German company will transfer its factory in Urumqi and a test track in Turpan to the Shanghai Motor Vehicle Inspection Center (SMVIC). The decision comes as Volkswagen has struggled in the Chinese market, losing its status as the best-selling auto brand to BYD.
TK Maxx announces entry into Spain
TK Maxx, the American retailer known for offering branded products at discounted prices, has announced plans to enter the Spanish market as part of its global expansion strategy. The decision comes after years of research and planning, with TJX Companies CEO Ernie L. Herrman stating that the timing is right for the move. With the long-term goal of opening over 100 stores nationwide, the first outlets are expected to launch in early 2026.
WORKPLACE
How to navigate French workplace culture
The FT presents a guide to navigating the modern French workplace, based on interviews with foreign and French employees, observing that "it is not all 35-hour weeks [and] long holidays."
RISK
Ikea warns of potential hit from Trump tariffs
US president-elect Donald Trump’s plan to impose new tariffs on goods entering the US risks higher prices for shoppers, Ikea has said. Ingka Group, the main Ikea retailer that runs 90% of the group’s stores, said the new trade tariffs would make selling furniture and homeware at low prices “more difficult.” Ingka Group chief executive Jesper Brodin said the company had “never experienced a period of benefit” when high tariffs had been imposed, telling CNN “In general, we don’t believe tariffs will support international companies and international trade. At the end of the day, that risks ending up on the bills of customers . . . Tariffs make it more difficult for us to maintain the low prices and be affordable for many people, which in the end is our goal.” He said “We will need to understand and adapt.” Ingka said profits fell to €806m in the year to September, compared to €1.5bn a year earlier.
DIVERSITY, EQUITY, & INCLUSION
Deloitte appoints its first female head of UK audits
Deloitte has appointed Allee Bonnard as the first woman to lead its audit and assurance business in the UK. As of January 1, Bonnard, who currently leads Deloitte's financial services audit practice in the UK, will take over from Paul Stephenson, who has been managing partner for audit and assurance for the past four years. Bonnard says she is "hugely proud" to be the first woman to be made the Big Four firm's top auditor in the UK, adding: "While we have made significant strides on gender equality, we know there's still more to do to ensure all of our diverse talent are given the opportunity to thrive." While women make up about half of the Big Four's overall workforce, they account for less than a third of partners. 
INTERNATIONAL
Disney settles suit over women's pay
Disney has agreed to pay $43.3m to settle claims that it systematically paid female middle managers less than men in similar roles over an eight-year period. Lawyers for the nine female plaintiffs had argued that Disney paid women at least $151m less than men in comparable roles across various divisions of the company, in violation of California workplace sex discrimination laws. Disney continued to deny any wrongdoing in the proposed settlement agreement. “We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case, and we are pleased to have resolved this matter,” a Disney spokesperson said. The suit was originally filed by LaRonda Rasmussen in 2019. “I strongly commend Ms Rasmussen and the women who brought this discrimination suit . . . They risked their careers to raise pay disparity at Disney,” Lori Andrus, a partner at law firm Andrus Anderson, said in a statement.
Iraq tries to stem influx of illegal foreign workers
Authorities in Iraq, which is emerging from decades of conflict as an unexpected destination for many seeking employment opportunities, are trying to regulate the number of foreign workers. The labour ministry says the influx of hundreds of thousands of foreigners working without permits is mainly from Syria, Pakistan and Bangladesh. Current Iraqi law caps the number of foreign workers a company can employ at 50%, but the authorities now want to lower this to 30%. "Today we allow in only qualified workers for jobs requiring skills" that are not currently available, labour ministry spokesman Nijm al-Aqabi told AFP. 
 


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