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European Edition
25th April 2024
 
THE HOT STORY
New legislation passed to protect workers employed by digital platforms
The European Parliament has passed new legislation to protect workers employed by digital platforms, such as couriers, drivers, and food delivery providers. The law creates a presumption of employment relationship, shifting the burden of proof to the platform to demonstrate that the worker is not an employee. The legislation aims to improve working conditions and prohibits firing workers based on algorithmic decisions. It also mandates human oversight for crucial decisions and imposes restrictions on processing personal data. Member States have two years to incorporate these rules into national law, which could lead to a broader review of employment contracts for workers under B2B agreements.
HIRING
Immigrants boost Spain's economy as labour shortages persist
Spain's economy is thriving, thanks to an influx of immigrants who are filling labour shortages in the tech and restaurant sectors. Immigrants, primarily from Latin America, have accounted for 64% of new jobs created and half of Spain's economic growth in 2023. The proportion of resident foreigners in Spain has risen to 18.1%, above the EU average. The ease of integration, shared language and culture, and recognition of Latin American qualifications have made Spain an attractive destination for immigrants. The country's unemployment rate, although still the highest in Europe, has fallen to its lowest since 2007. Spain's economy is benefiting from the migration wave, similar to the U.S., and is projected to grow the fastest among advanced economies. However, concerns about driving down wages and poor working conditions for Spaniards have been raised.
STRATEGY
Casino to cut thousands of jobs in transformation plan
French supermarket chain Casino has announced plans to cut between 1,293 and 3,267 jobs as part of its transformation plan to reduce debt and improve its financial situation. The company also intends to sell some of its hypermarkets and supermarkets, focusing its business on convenience stores. Casino, which is undergoing restructuring led by Czech billionaire Daniel Kretinsky, will invest €1.2bn to modernise its stores by 2028.
Adient restructures Europe business, cuts jobs
Automotive seating supplier Adient is restructuring its Europe business by cutting jobs and transferring work to countries with lower labour expenses. The company did not disclose the number of employees affected or the specific countries involved. Adient supplies seats to major European automakers and American giants Ford and General Motors. The restructuring plan is expected to result in a charge of about $125m in the company's fiscal second quarter. Adient aims to complete the plan by fiscal 2027 and anticipates about $60m in reduced annual operating costs.
WORKFORCE
French air traffic controllers cancel strike, flights still affected
Hundreds of flights have been cancelled at French airports despite the main air traffic controllers' union calling off a one-day strike after reaching a deal for higher pay. The cancellations affect airports in Paris, Marseille, and other parts of France. The strike was called off by the SNCTA union, which had demanded higher pay and other measures in response to a planned overhaul of French air-traffic control systems. However, disruptions are still expected due to the need to finalise details with smaller unions. European carriers complained of extensive disturbances to air travel, even for flights that were planned to fly over France. Airlines had already been forced to cancel over 2,000 flights and divert another 1,000 away from French airspace. German carrier Lufthansa and easyJet warned that flights over French airspace could still be affected. EasyJet CEO Johan Lundgren called the scale of the disturbances "totally unacceptable." 
Europeans ‘less hard-working’ than Americans, says Norway oil fund boss
Nicolai Tangen, chief executive of Norway’s $1.6tn oil fund, says Europe is less hard-working, less ambitious, more regulated and more risk-averse than the US – and the gap is getting wider.
REMOTE WORKING
UK air traffic boss defends engineers who work from home
Martin Rolfe, the CEO of the UK's air traffic services provider, has defended engineers who work from home, telling MPs the ability to problem solve remotely when called upon was "a bonus." NATS - formerly National Air Traffic Services – came under fire last year when an IT systems failure led to air traffic chaos and grounded flights, with Ryanair boss Michael O'Leary accusing engineers of "sitting at home in their pyjamas." Mr Rolfe has defended NATS’ staffing arrangements, telling the Transport Committee his organisation operated a "very similar model to almost all of the rest of critical national infrastructure." He insisted that there were always engineers on site to solve problems but noted that expert "design engineers" were needed for particularly complex issues. Remote working technology, he argued, enables these engineers to look into issues immediately.
LEGAL
Employers in Malta have legal duty to protect employees from sexual harassment
The National Commission for the Promotion of Equality (NCPE) in Malta has emphasized that employers have a legal duty to protect their employees from sexual harassment. This duty applies to both the public and private sectors, and employers must take action against individuals found guilty of sexual misconduct, even if there are pending court proceedings. The NCPE highlights that sexual harassment is a form of gender-based violence and an abuse of power, and it is often underreported due to fear and concerns about lack of protection. Employers must take sexual harassment seriously and implement necessary measures to safeguard their employees. Failure to do so not only endangers employees but also discourages others from reporting their cases.
REGULATION
Commerzbank fined for anti-money laundering breach
German financial watchdog BaFin has ordered Commerzbank to pay a fine of €1.45m for breaching its anti-money laundering duties. The regulator said the bank and one of its former units had "breached their supervisory duties" and violated anti-money laundering obligations. According to BaFin, the bank did not update customer data on time and did not provide proper security measures, which resulted in inadequate due diligence in three cases.
RISK
EU insurance regulator calls for action on climate risks
Petra Hielkema, the chair of the EU’s insurance regulator, has said urgent action is needed to protect Europe from climate risk amid concerns that some areas could be rendered uninsurable.
INTERNATIONAL
Flexible work arrangements prompt companies in Singapore to rethink workplace policies
The recently announced guidelines on flexible work arrangements have prompted Singapore-based companies to rethink their workplace policies. Many local employers, including those with flexible work arrangements already in place, see the potential for increased productivity and employee satisfaction, but smaller firms appear less convinced. Larger firms are already well down the flexi-work path. Companies like Google and Dropbox have embraced flexible work cultures, allowing employees to work from anywhere. The new guidelines adopt a broad definition of flexible working arrangements that employers must fairly consider and be open to offering. While flexible work arrangements may boost productivity for large companies, smaller firms such as start-ups have noted the need to strike a balance between employee satisfaction and job responsibilities. Both small and larger companies in Singapore agree that flexible work arrangements may help cut costs while attracting and retaining talent.
Google fires at least 20 more workers who protested its $1.2bn contract with Israel
Google has fired at least 20 more workers in the aftermath of protests over the company's supply of technology to the Israeli government. The total number of terminated staff now exceeds 50, according to the group representing the workers. The protests were centred on Project Nimbus, a $1.2bn contract signed in 2021 for Google and Amazon to provide cloud computing and AI services to the Israeli government. The contract has faced backlash from employees and activists since it was signed, but the objections have grown amid Israel’s ongoing military campaign in Gaza. Dozens of employees occupied company offices in New York City and Sunnyvale, California. The group organising the protests, No Tech For Apartheid, accused Google of attempting to quash dissent and silence its workers. The company disputed the group's claims and stated that every terminated employee was personally involved in disruptive activity.
North Korean animators may have helped create popular western cartoons despite sanctions
North Korean animators may have helped create popular television cartoons for big western firms, including Amazon and HBO Max, despite international sanctions on North Korea, a research report has found. The report discovered files on a North Korean internet server that included animations and instructions related to projects for foreign studios. The researchers observed that the files contained editing comments and instructions in Chinese, suggesting a go-between was responsible for relaying information between the production companies and the animators. The report could not determine the identity of the person or entity involved. The report also noted that North Korea's premier animation house, April 26 Animation Studio, has previously worked on international projects and is under sanctions. The researchers assessed with high confidence that the animation contracts had been outsourced to North Korea by a front company in China.
OTHER
European parliament approves rules to give consumers right to repair products
The European Parliament has approved rules that give consumers the right to have worn-out products repaired by producers, in an effort to reduce waste and make goods last longer. The new EU policy will require manufacturers to offer repairs for various products, including fridges, vacuum cleaners, televisions, and washing machines. Consumers will have the choice between a repair or a replacement for faulty products while still under guarantee, with the guarantee being extended by 12 months if the product is repaired. After the guarantee expires, consumers can still claim a repair for free or at a reasonable price. The EU will also ban manufacturers from using software or hardware that obstructs repairs. The European Commission estimates that 35 million metric tons of waste and 260 million tons of greenhouse gas emissions are generated each year from still-usable consumer goods being thrown away. The law still needs approval from EU countries to enter into force.
 


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