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European Edition
16th April 2024
 
THE HOT STORY
Demand for labour drives migration to the Netherlands
The demand for labour is the main driving force behind migration to the Netherlands, according to a report by the Netherlands Bureau for Economic Policy Analysis (CPB). The CPB found a clear link between the economy and migration, with more migrants coming to the Netherlands during periods of economic growth. Temporary contracts in the Dutch labour market also encourage employers to attract more migrant workers. The CPB emphasized the importance of considering the long-term employability of migrants and developing a labour migration policy that aligns with the direction of the Dutch economy. The agency urged the government to learn from past experiences, as many migrant workers who were initially intended to stay temporarily ended up staying permanently. The CPB also highlighted the role of the social safety net in the permanent settlement of guest workers in the 20th century. The impact of the minimum wage increase on immigration remains unclear. The CPB's report provides valuable insights for shaping effective migration policies in the Netherlands.
STRATEGY
BASF begins layoff process at Harjavalta site in Finland
Germany's BASF has started the layoff process at its Harjavalta site in Finland due to permitting issues. The change negotiations, required in Finland for layoffs, will last for six weeks. The decision follows the cancellation of a temporary permit for a new plant for cathode materials. BASF had received initial approval in 2020 but faced objections from NGOs. The company has invested a significant amount in the project, and the delay has long-term financial implications. BASF stated that the negotiations were initiated due to the lengthy permitting process and uncertain outcomes. However, a decision by the authorities could still be made this year.
Tesla to cut more than 10% of its workforce
Tesla will lay off more than 10% of its global electric vehicle workforce, which had 140,473 employees as of December. Founder Elon Musk told staff: "There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle." The company is set to report its quarterly earnings later this month but has already reported a decline in vehicle deliveries in the first quarter, its first in nearly four years.
HEALTH & SAFETY
All Dutch trains to stop in protest against attacks on staff
All trains in the Netherlands will come to a halt for three minutes on Saturday night in protest against attacks on ticket collectors and other rail staff. The action, initiated by the NS and railway workers unions, follows a serious incident where a female ticket collector was assaulted. A minor has been arrested in connection with the attack.
LEGAL
Climate inaction could precipitate legal consequences after European court ruling
Governments and companies that are lax on climate action should be worried after a European human rights court ruling against the Swiss government. The ruling sets a precedent for climate cases and improves the odds for other similar cases to win at the top court. The Swiss case successfully argued that the government violated the human rights of elderly women by failing to combat climate change. This ruling has direct implications for seven other climate cases, including two against the Norwegian government. A victory in these cases could limit new oil and gas projects across Europe. However, the dismissal of other cases may pose challenges for pending climate litigants. Climate lawsuits are adding to the challenges facing Europe's industry and may affect its attractiveness for investors. Overall, the ruling strengthens the cases of climate litigants and highlights the importance of climate action in relation to human rights.
Man with disabilities takes UK government to court over climate change 'hibernation'
A disability rights campaigner, Doug Paulley, is taking the UK government to court over the impact of climate change on people with disabilities. Paulley, who has diabetes, nerve damage, and a heart condition, claims that he had to "hibernate" during a heatwave in 2022 due to the effects of climate change. He argues that the government's plan to adapt to a warming world is unlawful and insufficient. The European Court of Human Rights recently ruled that the Swiss government had violated the human rights of older women by failing to protect them from the adverse effects of climate change. Paulley hopes this ruling will support his case. The legal challenge will be heard in the High Court in June. Friends of the Earth and a man affected by coastal erosion are also involved.
HIRING
PageGroup cuts jobs amid challenging market
PageGroup has continued to cut jobs in a challenging market, reducing its fee earner headcount by 1.7% in the first quarter of 2024. The company has slashed over 1,300 positions since 2022. The global jobs market slowdown and technology sector redundancies have contributed to the job cuts. Despite the challenges, PageGroup's CEO intends to maintain headcount at existing levels to capitalise on market improvements. The company's gross profits decreased by 12.8% in Q1, driven by poor trading in Continental Europe. The uncertain economic conditions have also impacted profitability, with longer hiring processes and declining profits in both permanent and temporary recruitment. Other recruiters, such as Robert Walters and Hays, are also expected to announce updates on their trading performance.
CORPORATE
Lufthansa reports loss, cuts outlook after strikes
Lufthansa has reported an operating loss of €849m in Q1, far worse than the €273m loss in the same period last year. The airline attributed the higher loss to strikes, which had a significant impact on earnings. Lufthansa has cut its forecast for the full year's operating profit to €2.2bn, down from the previous expectation of €2.7bn. The German aviation sector has faced strikes in recent months as workers demanded higher pay to combat inflation. Lufthansa has reached deals with major staff unions to avoid further industrial action. The airline expects second-quarter profits to be lower than last year due to wage disputes affecting short-term demand. Lufthansa also warned that the Middle East conflict and geopolitical uncertainties pose risks to its full-year financial outlook. Flights to and from Tehran have been suspended since April 6 due to regional tensions, and more destinations in the Middle East have been suspended following Iran's attack on Israel.
WORKFORCE
UK lawyers admit to padding time sheets
An anonymous online poll has revealed that 35.5% of lawyers in the UK admitted to "time dumping" or adding time to clients' bills that was not actually incurred. The poll for RollonFriday, which received nearly 900 responses, found 13% said that they do so "regularly," 12.6% were "occasionally" guilty and nearly 10% considered themselves "rarely" culpable. Lawyers at City law firms have blamed time dumping on the longstanding practice of firms billing in six-minute units. They noted that it is not difficult to list, say, 100 units on a timesheet when in fact only 90 units were incurred. Jamie Hamilton, a director at RollOnFriday, said that some instances of bill padding were tolerated "because [clients] are happy that they've got the result they wanted at a price they think is reasonable." Colin Passmore, chairman of the City of London Law Society, said: "Clearly this is not a practice I would condone . . . I would expect people to have regard to their obligation to act with integrity."
INTERNATIONAL
Volkswagen expands production and research facilities in China
Volkswagen will invest €2.5bn to expand its production and research facilities in Anhui province, China. The German automaker aims to regain its position as China's top-selling car brand and prevent a decline in sales. The investment will be used to expand Volkswagen's production and innovation hub in Hefei, Anhui. Ralf Brandstätter, Volkswagen's China chief, stated that the investment demonstrates the firm's ambition to enhance local innovative strength. China accounts for 69% of global electric car sales, and Volkswagen will also use the investment to establish factories for two new models in collaboration with Chinese EV manufacturer Xpeng. The first model, a mid-sized SUV, is set to be produced in 2026. The move comes as Volkswagen faces tough competition from local automakers and newcomers like Xiaomi. 
India emerges as global hiring hotspot
Wealth surge, China pivot, and a fear of missing out have made India a new global hiring hotspot. The employment market is booming, with stories of ghosted employers, million-dollar trading jobs, and private bankers demanding up to a 50% pay hike. Signs of expansion are everywhere, with international firms like Optiver and Citadel Securities opening offices in Mumbai and Gurugram. Local firms like ICICI Securities are also growing rapidly. India's economy is expanding at over 7% per annum, and the government is making it easier to do business. The market is especially hot in the wealth industry, with private bankers and wealth managers seeing significant pay increases. However, there are doubts about the sustainability of the boom and concerns about the rising pay scales. Despite this, India's moment as a global hiring hotspot seems to have arrived.
EEOC urges Workday to face class action lawsuit
The US Equal Employment Opportunity Commission (EEOC) has filed an amicus brief urging Workday, the human resources software firm, to face a proposed class action lawsuit. The lawsuit alleges that Workday violated federal anti-bias laws by using AI-powered software to discriminate against job applicants for other employers. The EEOC argues that Workday qualifies as an "employment agency" under Title VII of the Civil Rights Act of 1964. The lawsuit was filed by Derek Mobley, who claims he was turned down for over 100 jobs due to his race, age, and mental health conditions. Workday denies any wrongdoing. The EEOC warns employers about the legal liability of discriminatory AI tools. The case is scheduled for a hearing on May 7.
 


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