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11th November 2024
 
THE HOT STORY
Hinkley Point C is ‘using cheap foreign labour’, striking workers say
EDF Energy is investigating allegations that a supplier, Alten, is employing foreign workers at significantly lower wages than British engineers on the Hinkley Point C and Sizewell C nuclear power projects. Engineers have started industrial action after claiming they are being paid unfairly. They say they have not received a pay rise in four years and have discovered that foreign colleagues from countries like India and Nigeria are earning less than £30,000, while British workers earn between £50,000 and £75,000. A source said: "It is being done to drive down costs and the internal market rate for these roles." EDF emphasised its commitment to fair treatment, saying: "We expect all workers to be treated fairly and consistently." Alten has denied the allegations, asserting that it maintains high standards in its HR policies.
WORKFORCE
Over 200 hospitality bosses issue tax hike warning
More than 200 hospitality bosses have written to the Chancellor warning of drastic job cuts and closures in the wake of her increase in National Insurance contributions. Rachel Reeves last month announced an increase in NICs paid by employers from 13.8% to 15%. The threshold at which employers become liable to pay the tax also dropped from £9,100 to £5,000 per year. Among the signatories to the letter, organised by trade body UKHospitality, are JD Wetherspoon, Wagamama owner The Restaurant Group, Young’s, and Whitbread, which owns Premier Inn, the UK’s largest hotel chain. They said the changes would cost the sector an estimated £3.4bn annually and would prove regressive in their impact on lower earners and flexible working practices. Meanwhile, the Chief Secretary to the Treasury, Darren Jones, has suggested big businesses hit by the tax raid should “suck it up” for the sake of the NHS. He explained: “I think the public would recognise that bigger businesses are more able to burden some of the contributions that we need to make to the state.”
Salary sacrifice schemes to the rescue
With the National Insurance rate set to rise from 13.8% to 15% starting April 6, employers are expected to explore salary sacrifice schemes to mitigate increased costs. Rachel Reeves's budget changes will also lower the threshold for national insurance contributions from £9,100 to £5,000, potentially raising an additional £122.3bn in tax over five years. Gary Smith from Evelyn Partners noted: "Quite surprisingly, the Chancellor did not announce any changes to salary sacrifice arrangements," suggesting that many employers may adjust their pension schemes to lessen the financial impact. Salary sacrifice allows employees to make contributions from their gross salary, reducing their taxable income and national insurance contributions. However, it may affect borrowing capacity for mortgages and other loans, as well as statutory maternity or paternity pay.
Labour clears path for four-day week
Labour has taken significant steps towards implementing a four-day work week, following the Conservative Party's previous opposition. Deputy Prime Minister Angela Rayner said that a four-day week would be "no threat to the economy" and that she would not dictate to councils how they run their services. Meanwhile, Transport for London (TFL) has said it would work towards union proposals for a reduced work week for tube drivers in order to avoid strike action. Elsewhere, the Observer’s Joanna Partridge reports on a tightening of flexible working arrangements by private sector employers. But some experts warn that back-to-office mandates could leave companies with less diverse workforces.
MANAGEMENT
Surviving a shake-up: is restructuring ever good for staff?
Repeat restructurings can sow uncertainty across organisations and distract and demotivate workers, and a lack of proper planning can undermine any benefits, say executives who have overseen such plans.
LEGAL
Bolt faces £200m bill after ruling
Bolt has lost a legal challenge regarding the classification of its drivers as ‘workers’, potentially costing the company £200m. Approximately 10,000 drivers sought to be recognised as workers to receive minimum wage and employment benefits. The Employment Tribunal ruled that the drivers are not self-employed contractors, as Bolt claimed, but rather workers entitled to rights and protections under employment law. Leigh Day, the law firm representing the drivers, said that the judgment confirms that "gig economy operators cannot continue to falsely classify their workers as independent contractors." A further hearing is anticipated next year to determine the compensation for unpaid holiday pay and lost income.
Foodless flights loom for travellers
Passengers flying from UK airports may face “foodless flights” this December as over 700 dnata workers, represented by the Unite union, vote on potential strikes. The union claims that dnata has attempted to change employment terms without proper consultation. The dispute could disrupt in-flight meal services for major airlines like easyJet and Emirates.
TECHNOLOGY
AI to have relatively modest long-term impact on jobs
The Tony Blair Institute (TBI) has predicted that artificial intelligence (AI) could displace between 1m and 3m private sector jobs in the UK, but the overall rise in unemployment is expected to be in the low hundreds of thousands. The report, titled the Impact of AI on the Labour Market, suggests that while between 60,000 and 275,000 jobs may be lost annually at the peak of disruption, this figure is “relatively modest” compared to the average annual job losses of 450,000 over the past decade. TBI predicts that AI will create new roles, leading to a dynamic labour market. The deployment of AI could also boost GDP by up to 1% in the next five years, potentially rising to 6% by 2035. However, the report warns that the extent of job displacement will depend on future technological developments and government policies.
TAX
HMRC investigations into serious tax fraud and avoidance hit six-year low
A lack of experienced staff and poor training has been blamed for a sharp decline in HMRC investigations into serious tax fraud and avoidance, which have fallen to a six-year low. The number of investigations fell from 1,091 in 2022-23 to 480 in 2023-24, but HMRC said it had “deliberately focused” its investigations in recent years towards the “highest-harm and highest-value fraud, which means the number of these enquiries will change from year-to-year based on changing risks.”
HEALTH & WELLBEING
Judges unite for global support network
Judges worldwide are forming a "global judicial support network" to address wellbeing concerns - an issue highlighted by Her Honour Judge Kalyani Kaul KC during a recent speech. The initiative follows a report revealing issues of bullying and harassment within the judiciary, not limited to the UK. Kaul, who founded the Judicial Support Network, stressed the need for a "safe space" for judges to voice concerns, saying: "We must help each other." The steering committee includes judges from various countries, aiming to support the Nauru Declaration on Judicial Wellbeing. The network will provide confidential access to mental health professionals and publish annual reports to promote positive changes in judicial environments globally.
REGULATION
MPs demand regulation for therapists
MPs with mental health expertise are urging the government to implement statutory regulation for psychotherapists and counsellors, as they highlight the risks posed by the current unregulated system. While some professional bodies maintain voluntary registers, they do not prevent unqualified individuals from practising. Experts like Meg Moss and Prof John Crichton support the call for regulation akin to that of other healthcare professions. A government spokesperson acknowledged the importance of trust in healthcare professionals, urging the use of qualified practitioners accredited by the Professional Standards Authority for Health and Social Care.
STRATEGY
KPMG promotes 42 new equity partners
KPMG has made a significant move by promoting 42 new equity partners, marking its first internal promotions in four years. The decision comes as the firm anticipates a recovery in demand for its professional services following a sector-wide slowdown. The partnership now exceeds 500 members, a rebound from a low of 467 earlier this year, which was the lowest since 2002. KPMG, which employs around 18,000 people in the UK, provides auditing, consulting, and tax advice to major companies.
INTERNATIONAL
Fine Gael pledges new laws to protect retail workers
Fine Gael has said it will make attacks on retail workers a "stand alone" criminal offence if the party is returned to office. “A key issue raised by retailers is the sharp rise in in-store theft and anti-social behaviour,” Enterprise Minister Peter Burke said. “We have listened and are prioritising their concerns. If re-elected, Fine Gael will introduce a stand-alone criminal offence specifically for attacks on retail workers. We also plan to support retailers by providing resources to enhance security, whether through hiring security personnel or installing CCTV. These practical steps will help shops nationwide combat anti-social behaviour.”
The VW labour boss at war with management over plant closures
The FT profiles Daniela Cavallo, chair of VW’s powerful works council. She has fiercely resisted executives’ plans to close factories and lay off tens of thousands of workers in Germany.
OTHER
Food companies 'sell products that are less healthy in poorer countries'
Food and beverage giants including Nestlé, Pepsico and Unilever on average sell products in low-income countries that are less healthy than what they sell in high-income countries, according to an index from the Access to Nutrition Initiative (ATNI), which for the first time split the assessment into low and high-income countries. “It’s a very clear picture that what these companies are selling in the poorest countries in the world, where they are more and more active, are not their healthier products,” said Mark Wijne, research director at ATNI, adding “It’s a wake-up call for governments in these countries to be vigilant.”  Isabelle Esser, chief research, quality and food safety officer at Danone, which was the best performer in the index, observed: "We acknowledge that there is always more to do, both at a business and industry level."
 


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