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European Edition
2nd May 2024
 
THE HOT STORY
Exxon oil traders in Belgium protest mandatory move to London
Unions say that around 37 trading-related jobs are at stake as Exxon Mobil plans to move its trading floor from Brussels to London. Protesters gathered outside Exxon's Brussels office to voice their concerns over the job cuts. The move is part of the company's expansion in trading, but employees are dissatisfied with the terms being offered. The new contracts would tie half of a trader's pay to undisclosed performance criteria. The majority of affected traders do not want to relocate to London due to family concerns and unsatisfactory moving conditions. Exxon is trying to avoid triggering official negotiations with employees by favouring informal bilateral conversations. Over the past three years, more than 300 employees have left their jobs in Brussels, with trading-floor departures accounting for a further 6%.
LEADERSHIP
Some of PwC’s London partners believe Middle East colleagues swung leadership vote
PwC faces a backlash from staff over allegations that Middle Eastern partners prevented the appointment of a woman as the firm's new boss. Senior partners in London believe that voters in Saudi Arabia, the UAE, and other parts of the Middle East played a decisive role in the victory of Marco Amitrano over his two female rivals. The failure to appoint a woman is seen as a missed opportunity. PwC Middle East represents about 25% of the total partners who can vote, making their votes potentially decisive. PwC insists that the election was fair and transparent. Amitrano denies that sexism played a role in his appointment.
REMOTE WORKING
London employers are letting more staff work entirely from home
Over a fifth of white-collar jobs in London are now fully remote, as employers in the UK capital embrace working from home to attract staff seeking higher pay without the high living costs. A survey by recruiter Hays found that the proportion of remote jobs in London has risen from 18% to 22%, making it equal to the east of England as the UK region with the highest number of fully remote jobs. Lorraine Twist, a finance director at Hays, says remote contracts are attractive to candidates who can enjoy a London salary without the commute and high property prices. The survey also revealed that the proportion of London staff working entirely in the office has decreased, while hybrid jobs have also declined. The findings suggest that parts of the UK labour market remain tight as firms compete for talent.
WORKFORCE
Czech government approves pension system changes
The Czech government has approved changes to the country's pension system, aiming to save billions of dollars per year. The reform includes raising retirement ages and lowering pensions for future retirees. The retirement age will be delayed by seven months for individuals currently aged 52, and pensions for future retirees will be reduced by about 8%. The changes are necessary to address fiscal pressure caused by an aging population and low birth rates. Prime Minister Petr Fiala stated that the reforms aim to prevent a collapse of the pension system and secure dignified pensions for the younger generation. The reform also allows for earlier retirement for individuals in physically demanding or risky professions.
LEGAL
Dutch shipping companies escape prosecution for exploiting North Korean workers
Dutch shipping companies accused of profiting from the exploitation of North Korean workers will not face prosecution, according to the Court of Appeal in the Netherlands. La Strada International, a human rights NGO, had filed a complaint against several Dutch companies that had ships built at a Polish shipyard where North Koreans were exploited. The court ruled that there was insufficient evidence to establish a direct link between the violations and the accused companies. The ruling has been described as a "huge disappointment" by La Strada International. Lawyer Barbara van Straaten stated that the outcome shows that current legislation does not provide sufficient protection for victims of these crimes.
Inviting a woman to a work meeting because she's ‘pretty' is sex discrimination, UK tribunal rules
An employment tribunal in the UK has ruled that calling a female colleague a "pretty woman" at work constitutes sex discrimination. The case involved an accounts manager, Emma Nunn, who sued her employers after her boss invited her to a meeting because a male client liked "pretty women." The judge said that the comments reduced Nunn's value to the business and would not have been made to a male colleague. Nunn, who felt humiliated and undermined, resigned from her job and is now set to receive compensation. The tribunal heard that Nunn and her boss had a longstanding friendship, which led to a blurring of their working relationship. While the tribunal found that this dynamic was encouraged by both parties, it upheld Nunn's complaint about the "pretty woman" comment. The judge concluded that the comment was sexual in nature and made because of Nunn's gender. A further hearing will determine the compensation to be awarded.
STRATEGY
Air France-KLM weighs job cuts to reduce expenses
Air France-KLM is considering job cuts as part of its efforts to reduce expenses, according to financial CEO Steven Zaat. The airline reported a loss of €480m in the first quarter, the largest quarterly loss since the pandemic. Lufthansa is also taking cost-cutting measures, with an operational loss of €849m. Air France-KLM and Lufthansa are both facing challenges due to the ongoing strikes and have reached wage agreements with unions. The industry is grappling with the impact of the pandemic and is exploring ways to control costs and ensure survival.
Barclays cuts hundreds of roles in investment bank
Barclays has reportedly started cutting hundreds of roles, including at its investment bank, as the group looks to cut costs and improve its share price. The cuts will impact several hundred employees in Barclays' global markets, investment banking, and research divisions. The news comes as Barclays implements its biggest restructuring since the financial crisis, designed to save £2bn in costs and return £10bn to shareholders by 2026.
CORPORATE
Labour strikes deepen Finnish Nokian Tyres' losses
Finland's Nokian Tyres has reported a larger operating loss than expected for Q1, citing negative impact from the Red Sea and labour strikes in Finland. The company's operating loss increased to €26.2m from a loss of €18.8m in the previous year's quarter, missing the average forecast of a €9.1m loss. Chief Executive Jukka Moisio stated that the negative financial impact of the strikes and the Red Sea crisis was approximately €20m in EBITDA, with more than half occurring in Q1. Nokian Tyres is still dealing with the consequences of its exit from Russia last year, which led to the sale of its Russian plant. To mitigate the impact, the company has increased production at its Finnish and US sites, as well as a new factory in Romania, and is sourcing production from China. The strikes in Finland resulted in temporary layoffs of 350 employees in March.
ECONOMY
Eurozone bounces back from recession
The eurozone's "big four" economies - France, Spain, Germany, and Italy - have shown signs of recovery with a stronger than expected growth of 0.3% in the first quarter of 2024. This marks the best growth performance for the eurozone since Q3 2022. Lower energy prices, falling inflation, rising real wages, and the prospect of interest rate cuts have contributed to the boost in activity. While Germany and France grew by 0.2%, Italy and Spain posted growth of 0.3% and 0.7%, respectively. Analysts believe that the lower inflation rate opens the door for interest rate cuts in the coming months.
INTERNATIONAL
Google workers file complaint over firing for protesting Israeli government contract
A group of workers at Google has filed a complaint with the US National Labor Relations Board, claiming that the company unlawfully fired them for protesting its cloud contract with the Israeli government. The workers allege that Google interfered with their rights under US labour law to advocate for better working conditions. The complaint seeks reinstatement to their jobs with back pay and a statement from Google that it will not violate workers' rights to organise. Google has not yet responded to the complaint. The workers claim that the project supports Israel's development of military tools, but Google has stated that the contract is not related to sensitive or military workloads. One of the workers, Zelda Montes, who was arrested during a protest, said that Google fired employees to suppress organising and send a message to its workforce. The NLRB general counsel will review the complaint and attempt to settle the claim. If that fails, the general counsel can pursue the case before administrative judges and a five-member board appointed by the US president.
International companies urged to leave Xinjiang over forced labour concerns
International companies are being urged to leave Xinjiang amid concerns over forced labour. The US government accuses Chinese officials of committing crimes against humanity against Uyghurs and other Muslim minorities in the region. Thea Lee, deputy undersecretary for International Affairs at the US Labor Department, stated that Beijing has made it "essentially illegal" to conduct independent human rights audits in Xinjiang. Lee emphasized that if it is impossible to conduct audits, companies should not operate in such an atmosphere. China's government denies allegations of abuses. German chemicals giant BASF and Volkswagen have already taken steps to address forced labour concerns in Xinjiang. Lee highlighted the challenges of monitoring the labour transfer program and the lack of access to workplaces to assess workers' origins.
 


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