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European Edition
22nd January 2024
 
THE HOT STORY
Hungary to limit visas for non-EU workers to protect local jobs
Hungary will limit the number of visas issued to temporary workers from outside the European Union and ban them from certain professions in order to protect local jobs. Prime Minister Viktor Orban's government will issue a maximum of 65,000 visas for temporary workers from countries outside the EU. Orban's government has also compiled a list of 300 jobs that workers from outside the EU will not be allowed to take. Hungary's rolling three-month unemployment rate was 4.3% in the September-November period. "The government will protect Hungarian families and jobs, which means that by law, it is only possible to hire foreign workers if there are no Hungarian workers to fill the vacancies," a government statement said.
LEGAL
UK judge rules against manager who wanted to work from home
Elizabeth Wilson, a senior manager at the UK's Financial Conduct Authority, has had her demand to work from home full-time quashed by a judge, who said the regulator was within its rights to deny the request. Judge Robert Richter wrote in a judgement made last month and only just published: "It is the experience of many who work using technology that [remote working] is not well suited to the fast-paced interplay of exchanges which occur in, for example, planning meetings or training events when rapid discussion can occur on topics.” He also pointed to “a limitation to the ability to observe and respond to non-verbal communication which may arise outside of the context of formal events but which nonetheless forms an important part of working with other individuals.” Lawyers said they expect more legal disputes over the issue as employers increasingly demand staff spend more time in the office.
WORKFORCE
Germany's GDL train drivers' union plans week-long strike
Germany's GDL train drivers' trade union is planning a strike that will run for almost a full week starting in the early hours of Wednesday. The union has rejected Deutsche Bahn's (DB) latest offer. This will be the fourth strike in the ongoing pay dispute between DB and GDL. The GDL is seeking increased pay and reduced hours, while DB's latest offer includes a 4.8% pay increase and the option for employees on shift rotations to reduce their workload. The GDL is calling for an extra €550 a month before tax and an immediate reduction in shift workers' hours. DB argues that reducing hours by this much would worsen personnel shortages. Martin Seiler, Deutsche Bahn's head of personnel, criticised the GDL for using strikes as a means of self-promotion. The strike will start at 2 a.m. on Wednesday and continue until 6 p.m. the following Monday.
Modest rise in unemployment in UK expected this year
The number of workers at risk of redundancy in UK businesses rose by 58% in 2022, reaching 278,149. The increase reflects efforts by businesses to cut costs and offset the impact of weak demand and higher interest rates. Despite this surge, redundancy notices remain significantly lower than pre-pandemic levels. Historically, an average of 381,000 dismissal notices were sent to the government annually between 2016 and 2019. Yael Selfin, chief economist at KPMG UK, said the figures indicated that there would be "a gradual rise in unemployment over the coming year, but may not point at a significant acceleration." Ellie Henderson, an economist at Investec, said that government support to cushion the blow to the economy from the pandemic "artificially prolonged the life of struggling companies, effectively preventing redundancies that would likely have happened had the schemes not been in place."
Finland's air traffic faces near standstill as trade union declares two-day strike
Finland's air traffic is set to come to a near standstill after the Trade Union for the Public and Welfare Sectors JHL, along with other unions, declared a two-day strike. The strike, beginning on February 1, will significantly impact air travel across the nation. This industrial action follows previous strikes, such as the one on October 5, 2023, which caused notable disruptions at Helsinki Airport. The upcoming strike is scheduled to commence at 12:01 am on Thursday, February 1, 2024, and will continue until 11:59 pm on Friday, February 2, 2024. It will affect almost all major Finnish airports, excluding Halli and Utti. JHL's Interim President, Håkan Ekström, emphasized that the strike is a form of political industrial action, not aimed at employers, but rather as a response to the government's policies perceived as detrimental to employee rights.
REMUNERATION
Minimum wage workers in the Netherlands to see increase in income
Employees in the Netherlands earning the minimum wage and working over 36 hours per week will see an increase in their income this year. The minimum wage is now calculated per hour instead of per month, week, or day. According to ADP Nederland, those who work 40 hours a week and earn minimum wage will receive payment for four extra hours per week compared to last year. This change results in a net increase of €205 per month in the construction sector, €254 in the metal and technology sector, and €112-€116 in the government and healthcare sectors. Average salary workers will also see their income improve, with a monthly increase of €74 in the metal and technology sector and government, and €73 in healthcare, welfare, and transport. However, young people under 21 may have a lower net salary due to the decrease in the pension participation age.
STRATEGY
British nuclear start-up drops UK plans, invests £4bn in France instead
A British nuclear start-up, Newcleo, has decided to abandon its plans to build a power plant in Cumbria, UK, and will instead invest £4bn in France. The company, which is developing an advanced modular reactor (AMR) that uses nuclear waste for fuel, had hoped to access the UK's waste stockpile at Sellafield. However, the UK government ruled out giving private companies access to the stockpile. Newcleo will now expand its development in an undisclosed location in France, creating around 1,000 jobs.
Société Générale to cut hundreds of jobs in France
Société Générale is reportedly preparing to cut hundreds of jobs in its home market as part of CEO Slawomir Krupa's cost-cutting efforts. The French bank is expected to announce the redundancies in the coming weeks, with more than 500 roles potentially affected.
CORPORATE
Poland's largest company visited by anti-corruption agency
Officers from Poland's anti-corruption agency have visited the headquarters of Orlen, the country's largest company, as the new government prepares to take over the management of state-controlled firms. The Central Anti-Corruption Bureau is conducting procedural activities at energy company Orlen at the request of regional prosecutors. The visit comes as Poland undergoes a transition from nationalist rule to the European mainstream. Orlen has faced criticism for controversial purchases and for helping the previous government keep gasoline prices low. The new administration plans to replace boards at state-run companies. The company's supervisory board is set to vote on changes on February 6. Orlen's Chief Executive Officer, Daniel Obajtek, has promised to step down if his party loses the vote. 
Signa’s insolvent Galeria Stores attract buyer interest
Buyers are interested in Germany’s Galeria Karstadt Kaufhof department store chain as they seek assets hit by the insolvency of Rene Benko’s Signa empire. Bloomberg says a potential sale could offer another new start for a chain that spanned 170 locations at its peak. “There are more than two interested parties,” insolvency administrator Stefan Denkhaus said in emailed comments to Bloomberg, declining to give further details. Galeria, hit by changing retail habits and the pandemic, filed for its third insolvency in four years earlier this month amid the financial meltdown of its owner.  
TECHNOLOGY
Accenture to open 10 AI hubs worldwide
Accenture is set to open 10 innovation hubs for generative artificial intelligence (AI) globally, according to CEO Julie Sweet. The company plans to double its number of AI specialists to 80,000, following a three-year $3bn investment, and aims to help clients maximise generative AI, which creates visual works or text based on simple prompts. Consulting firms see this area as a potential growth engine, particularly after economic uncertainty and a slowdown in dealmaking. Sweet also emphasised the need for companies to partner with governments to train workers for new AI-related jobs.
INTERNATIONAL
Red Sea region urged to enhance security to protect seafarers amid rising attacks
Countries in the Red Sea region are being urged to enhance security to protect seafarers as attacks on merchant shipping continue to worsen. The Iran-allied Houthi militia in Yemen has been responsible for attacks on ships since November, affecting trade between Asia and Europe. Arsenio Dominguez, Secretary-General of the International Maritime Organization, emphasized the need to uphold freedom of navigation to ensure the flow of goods by sea. The International Transport Workers' Federation has expressed concern about seafarers' safety and called for it to be the top priority. The Houthis are currently holding 25 crew members from the hijacked Galaxy Leader vessel, and the Indian Navy recently rescued the crew of a U.S.-owned vessel after a Houthi attack. In December, areas considered warlike and high risk were extended into the southern area of the Red Sea as part of a negotiated measure between seafarers and commercial shipping companies, known as the IBF. "This designation triggers increased costs for shipowners, as seafarers covered by IBF agreements are entitled to double their basic pay, along with double compensation for death or disability," David Ashmore, employment lawyer at global law firm Reed Smith, said. Approximately 12% of global trade passes through the Red Sea.
Thousands of Indian men seek jobs in Israel
Thousands of men in India's Harayana state queued for jobs during a recent recruitment drive to send workers to Israel due to a labour shortage caused by the offensive in Gaza. Masons, painters, electricians, plumbers, and farmers were among those looking for work in Israel, with some willing to risk going into a conflict zone for the opportunity to earn five times more money than they would at home. Unemployment in India is a key concern. The urban unemployment rate is 6.6% and over 17% of workers under 29 are unemployed. Israel plans to bring in about 70,000 foreign workers to boost its construction sector, including workers from China and India. Around 13 million Indian nationals work overseas as labourers, professionals, and experts. India and Israel signed an agreement last year to allow more than 40,000 Indians to work in Israel in the nursing and construction sectors.
OTHER
Aldi in Ireland invests €15m in reverse vending machines
Aldi has invested €15m in installing reverse vending machines across its network of 161 stores in Ireland ahead of the launch of the deposit return scheme that will commence from the beginning of February. Shoppers who buy a drink in a plastic bottle or an aluminium or steel can featuring the Re-turn logo will now pay a small deposit in addition to the price of the drink; when they return the empty, undamaged container to their local retail outlet, the deposit will be paid back in full. The deposit is to be 15c for containers from 150ml to 500ml and 25c for containers over 500ml and up to three litres. Aldi Ireland’s managing director of buying and services Colin Breslin urged shoppers to embrace the new initiative. “This is a substantial but worthwhile investment for both business and the environment,” said Junior Environment Minister Ossian Smyth.
 


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