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European Edition
24th April 2024
 
THE HOT STORY
European Parliament bans sale of goods made with forced labour
The European Parliament has approved rules to ban the sale, import, and export of goods made using forced labour in the EU. The move was driven by concerns about human rights in China's Xinjiang province. The United States enacted a similar law in 2021 to protect its market from products potentially tainted by human rights abuses in Xinjiang. National authorities in the EU will be able to investigate suspicious goods, supply chains, and manufacturers. If a product is found to have been made using forced labour, it will no longer be allowed to be sold in the EU market.
LEGAL
Meta spokesperson convicted in absentia of justifying terrorism in Russia
A court in Russia has convicted the spokesperson of US technology company Meta, which owns Facebook and Instagram, of justifying terrorism. Andy Stone was sentenced to six years in prison in absentia. The charges stem from Stone's remarks in 2022 following Moscow's invasion of Ukraine, where he announced temporary changes to Meta's hate speech policy. Stone's statement allowed for forms of political expression that would normally violate the company's rules. The Russian authorities opened a criminal case against Stone, describing his statement as "illegal calls to violence and killings of Russian citizens." Stone was also barred from administering websites for four years. Meta declined to comment on the verdict. In April 2022, Russia barred Meta CEO Mark Zuckerberg from entering the country.
Most UK managers support Labour's workers' rights reforms
More than 70% of managers in the UK support the opposition Labour party's proposed changes to employment law, including flexible working and family-friendly policies, according to a survey by the Chartered Management Institute (CMI). The survey also revealed that 80% of managers believe workers' rights should be a top priority in national policies. Despite warnings from business groups, many managers believe that the proposed changes can positively affect workplace productivity. Rupert Soames, president of the Confederation of British Industry, has urged Labour to soften its proposals, but Anthony Painter, director of policy at the CMI, suggests that some City bosses who oppose the plans may want to check in with their own management teams. Labour has pledged to bring in its "new deal for working people" within 100 days of winning power. It includes a ban on zero-hours contracts and "fire and rehire" practices, as well as ensuring workers have rights such as sick pay and parental leave from the first day of employment. Other proposals include the "right to switch off" to protect employees' work-life balance.
STRATEGY
ASML to create 20,000 jobs in Eindhoven expansion
Chip giant ASML is set to create up to 20,000 jobs with a potential expansion in Eindhoven, marking a major win for the Dutch tech industry. ASML's expansion plans will likely involve the Brainport Industries Campus (BIC) west of the city, a significant victory for the outgoing Cabinet's backroom negotiations with the company, nicknamed "Project Beethoven." The decision to explore BIC for expansion aligns with ASML's desire to stay close to its existing facilities in Veldhoven, fostering collaboration and innovation. "BIC is an interesting option for us, which we are now exploring together with the municipality of Eindhoven," said ASML CFO Roger Dassen.
Spanish cava producer Freixenet plans temporary layoffs due to drought
Spanish cava producer Freixenet has presented a plan to temporarily lay off 615 workers, close to 80% of the company's workforce, due to the drought affecting the Penedes area in Catalonia. The layoff plan is an exceptional measure caused by the lack of grapes resulting from the severe drought that has been affecting the sector since 2021. Vineyards in Catalonia's Penedes region are suffering from the driest period in 1,200 years. Freixenet becomes one of the first companies in Catalonia to present a temporary layoff plan. The plan is expected to come into force in May. "The measure, implemented as an exercise of responsibility, is aimed at guaranteeing the viability of the business and preserving employability in order to face external causes and force majeure caused by the severe drought," said Freixenet. Spain's ERTE law allows companies facing exceptional circumstances to temporarily lay off employees. The company did not specify when workers would be allowed to return to work. Spain has experienced its warmest January since records began in 1961 and last year was the country's second warmest.
Alantra cuts Germany staff by half amid investment banking slump
Alantra's German unit has cut staff numbers by half as the Spanish firm reorganises its investment banking business due to a drought in dealmaking. The firm's Frankfurt office now has fewer than 20 employees, down from 35 at the end of last year. Alantra decided to move its investment banking headquarters to London as part of the reorganisation. The changes come after a 23% drop in revenue for 2023, prompting a 30% cut in performance-related compensation. Jan Caspar Hoffmann is stepping down as CEO of Alantra Germany, but will continue to work on client projects. Some departures followed a decision to award little or no variable compensation for the second consecutive year. Last year was the worst for mergers and acquisitions in a decade.
CORPORATE
More foreign CEOs are leading French companies
For a little while now, a quiet revolution has been under way in France Inc., writes Albertina Torsoli for Bloomberg. Foreign-born CEOs are running some of the country's most-strategic companies, something that would have been unthinkable just a few decades ago. With some of them succeeding in the briefs they've been given, the trend may be here to stay. The moves have come on the watch of President Emmanuel Macron, a former investment banker who has pushed to re-industrialise France, seeking to attract more tech companies to rival the hubs of London, Frankfurt and Berlin, and also to woo diverse international talent. "The world has become a lot more flexible and very global, and CEO hires reflect this," observes Philippe Waechter, chief economist at Ostrum Asset Management. "The older generation didn't have such an open culture."
HIRING
Randstad reports disappointing Q1 earnings
Randstad, the world's largest employment agency, reported first-quarter core earnings of €177m ($188.5m), falling 33% year-on-year and below analysts' expectations of €181m. The decline in earnings was attributed to challenging market conditions. 
WORKFORCE
Finland's private education sector strike ends after two days
A two-day strike in Finland's private education sector, involving 1,500 staff at 16 schools and daycare centres, has come to an end. The strike was called by the teacher trade union (OAJ) and public sector trade unions Jyty and JHL, as they seek a new collective agreement. The strike affected around 19,000 pupils and students. The strike excluded principals and tasks related to final exams. Public schools were not affected. This follows previous strikes in the education sector protesting government plans to cut sick pay and unemployment benefits. Two years ago, teachers joined a major municipal worker strike, resulting in weeklong school closures.
French air traffic controllers threaten further strikes over May holiday weekend
With predictions that this week's strike will lead to 'massive' disruption for travellers, the largest union representing French air traffic controllers has threatened further action over the May holiday weekend.
REMOTE WORKING
Dutch cities divided over work from home plan for sex workers
Cities in the Netherlands are divided on whether sex workers should be allowed to work from home. Sex work has been legal in the Netherlands since 2000, and a few regions have allowed sex workers to operate independently from home. The government is now seeking to regulate the sector to reflect the increase in home-based and online work. Sex workers would be required to meet strict conditions to receive a permit from their local authority. But many Dutch regions are not happy with the prospect of working from home in the industry. A poll of 150 municipalities by Nos, the Netherlands' largest news organisation, found many thought it would be a "nuisance" for local residents. "If sex work takes place in the private sphere, it is difficult to gain insight into possible abuses," a representative for the municipality of Kaag en Braassem in South Holland told Nos. The city of Tilburg told Nos: "Unlicensed sex workers actually become more vulnerable to coercion, violence and blackmail."
RISK
BlackRock triples spending on home security for Larry Fink
BlackRock, the world's largest asset manager, has spent nearly $800,000 on security for its CEO, Larry Fink. The company has faced a backlash over its ESG investment push but also for its perceived lack of action on decarbonisation, prompting the increased security measures. The expenses included $564,000 for upgrading security systems at Fink's home and $217,000 for bodyguards.
INTERNATIONAL
Korean company abandons English names for employees
Kakao Games, the gaming subsidiary of Korean tech giant Kakao, is abandoning its tradition of using English names for employees. CEO Han Sang-woo announced the change, stating that employees will now be addressed by their Korean names. The company said it aims to create a more unified and respectful corporate culture by using job titles and the honorific "nim" to address employees. The decision comes after complaints from workers about the confusion caused by using both English and Korean names. The change in naming system is part of Kakao's efforts to undergo a corporate makeover following scandals and internal friction. Kakao Games will also introduce a new compensation system based on performance, and the company is also planning to eliminate managing director positions to foster better internal communication.
Hong Kong bankers cut as China deals slow
About 200 Hong Kong bankers have lost their jobs in the past year as the slowdown in China deals continues, according to a report by Bloomberg Intelligence. Senior Hong Kong bankers earn 40%-70% more than their peers in Singapore, but this higher compensation may become a "curse" as employers look to cut costs. The report suggests that more global banks may trim their workforces in Hong Kong due to China's slowdown. The decline in investment banking staff in Asia is attributed to a lack of deals, deteriorating US-China relations, a crackdown on private enterprise, and a property crisis. Hong Kong's IPO market has been depressed, with proceeds falling to the lowest level in over two decades. The job market in wealth and private banking, however, remains stable.
OTHER
Research finds link between surname order and grading quality
A new study has found that students who had surnames that came later in the alphabet received lower grades than those at the top of roll call. The research from the University of Michigan found also found that these students tend to receive ruder comments on their work and have lower grading quality, measured by post-grade complaints from students. Associate professor and first author Dr Jun Li said: “We spend a lot of time thinking about how to make the grading fair and accurate. But even for me it was really surprising. It didn't occur to us until we looked at the data and realised that sequence makes a difference.” Study co-author Helen Wang said: “Our conclusion is this may be something that happened unconsciously by the graders that's actually creating a real social impact.” The reason for the findings is unclear, but researchers suggest that teachers might get tired and irritable as they pass through the alphabet.
 


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