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UK Edition
29th November 2024
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THE HOT STORY
Foreign labour is needed, employers tell PM
Net migration to the UK reached a record high of 906,000 in the year to June 2023, significantly exceeding earlier estimates of 740,000, according to the Office for National Statistics (ONS). The revised figure represents an upward adjustment of 166,000. However, the ONS noted a subsequent decline, with net migration falling to 728,000 by June 2024. Prime minister Sir Keir Starmer seized on the figures - which cover a period before Labour took office - to accuse the Conservatives of “running an open borders experiment.” Meanwhile, business leaders have responded angrily to Starmer's proposal to limit the hiring of foreign workers, arguing that immigration is essential to fill job vacancies. Starmer said companies have had an "overreliance on the easy answer of recruiting from abroad" but the prime minister's commitment to reducing net migration has raised concerns among businesses already facing increased hiring costs. Jane Gratton, deputy director of public policy at the British Chambers of Commerce, noted that "three-quarters of firms say they can't find staff they need." She emphasised the need for a more efficient skills system and said that "access to global talent is often the only option" when local recruitment fails. The government is expected to implement a mixed approach, requiring companies to train British people if they are employing foreign workers while also cracking down on abuses of the visa system.
EMPLOYEE RETENTION
State of employee retention report

Brightmine has proudly sponsored HR.com's latest retention report which offers practical insights to help you prioritise growth and development within your team! This study reveals that retention is perceived to be viewed as a top-three organisational priority by line managers, top leaders, and HR professionals alike. Despite that, just a quarter describe their organisation’s retention approach as top-notch or advanced. This clear mismatch is turning out to be a serious issue throughout the country. Why has retention become such a high priority? One reason is a continuing labour shortage

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TECHNOLOGY
Government departments are failing to detail AI use
Government departments have failed to register the use of AI systems since officials said it would become mandatory. Details of just nine algorithmic systems have been submitted to a public register, despite the government announcing in February that the use of the AI register would now be “a requirement for all government departments.” Madeleine Stone, chief advocacy officer at Big Brother Watch, a privacy rights campaign group, said “secretive” use of AI and algorithms puts people’s “data rights at risk.” Imogen Parker, an associate director at the Ada Lovelace Institute, a data and AI research body, said: “Lack of transparency isn’t just keeping the public in the dark, it also means the public sector is flying blind in its adoption of AI.” Peter Kyle, the Secretary of State for Science and Technology, admitted the public sector “hasn’t taken seriously enough the need to be transparent in the way that the government uses algorithms.”
DIVERSITY, EQUITY & INCLUSION
Deloitte appoints its first female head of UK audits
Deloitte has appointed Allee Bonnard as the first woman to lead its audit and assurance business in the UK. As of January 1, Bonnard, who currently leads Deloitte's financial services audit practice in the UK, will take over from Paul Stephenson, who has been managing partner for audit and assurance for the past four years. Bonnard says she is "hugely proud" to be the first woman to be made the Big Four firm's top auditor in the UK, adding: "While we have made significant strides on gender equality, we know there's still more to do to ensure all of our diverse talent are given the opportunity to thrive." While women make up about half of the Big Four's overall workforce, they account for less than a third of partners. 
LEGAL
Highland Council tackles payroll overpayments
Highland Council is working to recover over £614,092 in payroll overpayments. A report presented at an audit committee highlighted "late notification" of changes as a key issue. Councillor Jan McEwan said: “At the end of the day . . . it is fraud and it should be recovered.” Concerns have been raised about the collection process, with Councillor Ruraidh Stewart noting that some staff had felt intimidated. Chief Executive Officer for Communities and Place, Allan Gunn, assured that 99.89% of payments are accurate and that the recovery process does not involve intimidation. An additional report is expected in June next year to update on the situation.

 
STV
BBC pay battle continues
Four news presenters, Martine Croxall, Kasia Madera, Annita McVeigh, and Karin Giannone, are appealing a tribunal ruling that dismissed their claims of pay inequality against the BBC. The presenters argue they have been paid significantly less than male colleagues in equivalent roles. Despite settling an equal pay claim in 2014, Croxall and McVeigh contend that the BBC's pay practices remain discriminatory. Madera and Giannone joined the claims, and all four reached settlement agreements in 2020, which they believe only addressed historical disparities. They assert that ongoing inequality persists, prompting their latest tribunal claim.
Sixth form teachers strike for fair pay
Hundreds of National Education Union (NEU) members have participated in walkouts across England. The strikes, driven by a demand for an above-inflation pay increase, involved NEU members from 32 non-academised sixth-form colleges. Daniel Kebede, general secretary of the NEU, said: “Today's strong turnout shows the strength of feeling amongst our members in this clearly farcical situation.” The union warns of further action if the government does not address the pay dispute. While the government announced a 5.5% pay rise for teachers, non-academised colleges have not received the same funding. The Sixth Form Colleges Association is pursuing a judicial review regarding this funding disparity. Kebede emphasised the need for equal pay, saying: “There is no pay justice without the same pay deal applying to all.”
WORKFORCE
NI increase could cost 130,000 jobs
Analysis from Bloomberg Economics suggests that up to 130,000 jobs could be lost if firms reduce employment in the wake of the increase in employers’ National Insurance contributions. This, the analysis notes, would amount to a 0.4 percentage point increase in unemployment. The analysts said that reduced employment is not the most likely outcome, noting the cost of higher taxes is likely to be distributed more evenly across wages, margins and prices. Recent research from Deutsche Bank suggested that around 100,000 jobs could be lost due to the tax changes.
HIRING
Employer confidence climbs
Analysis by the Recruitment and Employment Confederation (REC) shows that employers' confidence in the economy rebounded in 2024. While a poll of more than 500 employers shows that optimism over investment and hiring decisions has increased, the REC is concerned that this may be dampened by tax changes announced in the Budget. REC chief executive Neil Carberry said the “scale of the changes to employers National Insurance – in particular, the decision to increase the tax far more for lower earners – will be a headwind for hiring confidence from here on in."
HEALTH & WELLBEING
Support staff face daily abuse
Teaching assistants, librarians, and catering workers in England are facing a severe behaviour crisis in schools. A survey by Unison revealed that one in three support staff reported verbal abuse, while incidents of physical violence were also noted. Mike Short, Unison's head of education, said: "No one should go to work to face abuse or violence."
RETENTION
Retention bonuses awarded to prevent more Citi bankers from leaving
Citigroup's wealth unit has this year approved special retention bonuses for numerous employees to curb staff departures. The wealth unit achieved a revenue of $2.0bn for the third quarter ending September 30, marking a 9% increase from the previous year and showing that the attempt to staunch departures during a turnaround is starting to take hold, according to Andy Sieg, who has been assigned to lead a newly independent wealth division. “This is a growth strategy — make no mistake . . . there wasn’t a unified wealth strategy, there wasn’t necessarily an operating philosophy about what we were trying to get done,” Sieg said.
INTERNATIONAL
Is Germany's supply chain law failing Serbian workers?
Serbian workers have reported inhuman treatment and hazardous working conditions at local suppliers with ties to German automakers including Mercedes, Audi, Volkswagen and BMW. Media reports and trade unions have uncovered violations of human rights and labour laws, with Chinese company Linglong and the German supplier Leoni among those said to be "exploiting" their workforces in the southeast European country. The German Supply Chain Act, which came into force last year, holds companies responsible for ensuring compliance with human rights and environmental standards throughout their entire supply chains, including the right to workplace health and safety, fair wages, and the right to form unions. But some say the problem with the legislation is that workers often do not know about it or even that their company is part of a supply chain to Germany.
Labour shortages increase across Russia's economy
Russia's economy is struggling to find workers as the country's defence sector poaches staff, Reuters reports. Heavy recruitment by the armed forces and defence industries has taken workers away from civilian businesses, as has emigration. Data from the Rosstat statistics service this week showed unemployment at a record low of 2.3%. "The 'personnel famine' has turned into a universal phenomenon, capturing practically all parts of the economic system," Rostislav Kapelyushnikov, deputy director of the labour research centre at Moscow's Higher School of Economics (HSE), wrote in a report.
Uber Eats to no longer use freelancers as deliverers in the Netherlands
Uber Eats has said it will no longer use freelancers as meal deliverers in the Netherlands. From spring next year, the platform will only work with temporary workers locally. Uber Eats interim director Nick Hilhorst told the Telegraaf: “We have had discussions with the unions and with experts in the field of social security . . . We have negotiated, that is new to us.” The main reason for the switch to temporary workers is the changing laws and regulations, he said. “The court rulings in several cases about hiring freelancers also play a role . . . If you had asked me personally, I would have liked to continue working with self-employed workers. But if the rules change, we at Uber will adapt to that.” The decision does not apply to Uber taxi drivers, Hilhorst added.
Heineken plan large-scale brewery in Dubai
Sirocco, a joint venture of Heineken and Dubai-based Maritime and Mercantile International, plans the Gulf’s first large-scale brewery in Dubai, in a move that is indicative of a loosening of conservative rules locally. The joint venture has secured all necessary permits and will start building the brewery late next year, with construction set for completion in 2027. The brewery will produce brands including Heineken, Kingfisher, Amstel and Birra Moretti. Heineken plans to expand its workforce to 190 full time employees from 60 currently. Dubai first allowed alcohol consumption and sale over two decades ago.
 


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