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28th March 2025
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THE HOT STORY
Rayner asked to delay workers’ rights laws
UKHospitality and the Federation of Small Businesses have called on deputy prime minister Angela Rayner to delay her employment rights reforms after the government’s fiscal watchdog warned they risked job losses and price rises. The Office for Budget Responsibility (OBR) cautioned that the policies would "likely have material, and probably net negative, economic impacts on employment, prices, and productivity." Kate Nicholls, the chief executive of UKHospitality, said: "We would like the government to take some time to get this right, give businesses plenty of notice to implement the changes, and give the economy some time to grow." Separately, the boss of retailer Next, Lord Simon Wolfson, has also warned that the Labour government's flagship employment rights bill risks imposing "a huge burden on employers." He said that the bill could "cause havoc" for UK businesses if key details were not set correctly. The proposed bill introduces the concept of a "guaranteed hours offer" for zero-hours and low-hours workers. However, the threshold for what counts as "low-hours" remains undecided, an omission that Lord Wolfson suggested could have significant consequences. 
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WORKFORCE
Thousands of jobs at risk as British Steel threatens closure
British Steel is launching a consultation that could see the closure of its two blast furnaces at Scunthorpe, putting up to 2,700 jobs at risk out of a workforce of 3,500. The company said the blast furnaces were "no longer financially sustainable" due to tough market conditions, the imposition of tariffs and higher environmental costs. The BBC understands British Steel was expecting a £1bn injection of government money to keep the business going, but was offered £500m. The Prime Minister's official spokesperson said the government had made a "generous offer" to British Steel and it would continue to work with the company and its Chinese owner Jingye to secure its future. British Steel chief executive Zengwei An said the consultations on the closure were "a necessary decision given the hugely challenging circumstances the business faces." British Steel has been owned by Jingye since 2020. 
Scottish Water faces strike chaos
Scottish Water is facing a 24-hour strike today, as Unite, Unison, and GMB Scotland members protest against what they describe as "arrogance" from executives during pay negotiations. Unite general secretary Sharon Graham said: "The arrogance shown by Scottish Water executives to the workforce and the wider Scottish public who rely on this essential service is astonishing." The union claims the latest pay offer of 3.4%, or £1,050 for lower-grade workers, is inadequate compared to the "eye-watering" salaries of executives.
Asda announces wage increases for workers
Asda is set to implement three wage increases for its 115,000 hourly paid store staff, at a cost of £80m. The national rate will rise from £12.04 to £12.21 next month, aligning with the National Living Wage for workers aged 21 and over. Subsequent increases will see the rate rise to £12.45 in July and £12.60 in October. The uplifts come as Asda bosses try to turn the retailer's fortunes around, with staff morale taking a hit from previous in-store changes.
ECONOMY
Living standards set to plummet
Living standards for the poorest half of households in the UK are projected to decline significantly over the next five years, with a potential loss of £500 per household due to benefit cuts and a weak economic outlook, according to the Resolution Foundation. The decline is comparable only to the early 1990s recession and the 2008 financial crisis. Ruth Curtice, chief executive of the Resolution Foundation, said: "The outlook for living standards remains bleak," as she highlighted that 10m working-age households are expected to become poorer during this Parliament. The overall impact of tax and benefit changes will reduce incomes for the second poorest fifth of households by 1.5%, the foundation said, while the richest fifth will see a smaller decline of 0.6%. The report calls for transitional protections to mitigate the effects of the cuts.
LEGAL
Former Citibank employee in UK settles sex discrimination case
Maeve Bradley, a former assistant vice president at Citibank UK, has settled her sex discrimination case for £215,000 after alleging she was denied a promotion while on maternity leave. Supported by the Equality Commission for Northern Ireland, Bradley claimed that the individual covering her role was promoted during her absence, which she deemed unlawful. Despite raising a grievance, it was not upheld, leading her to pursue legal action. She said: “I felt compelled to challenge this decision, not just for myself, but to ensure that no other woman is penalised for taking time off to have a child.” Citibank has committed to reviewing its equal opportunities policies to prevent similar issues in the future. Geraldine McGahey, chief commissioner at the Equality Commission, emphasised that “issues around pregnancy and maternity in the workplace continue to be the most common complaints of sex discrimination.”
REMUNERATION
Foxtons boss pockets £55k bonus
Guy Gittins, CEO of Foxtons, received a £55,000 bonus for overseeing the company's "employee experience" in 2024, despite serious allegations of a toxic workplace culture involving "sexual harassment, antisemitism, racism and bullying." His total remuneration for the year was £1.48m, including a base salary of £509,000 and share options worth £468,000. The bonus was primarily linked to Foxtons' adjusted operating profit of £21.6m, which exceeded the target of £20.6m. Gittins expressed his sadness over the reported experiences, saying: "We don't tolerate that sort of behaviour." The remuneration committee acknowledged progress in employee engagement and diversity but faced criticism for the bonus amid ongoing allegations.
TRAINING & DEVELOPMENT
DfE slashes T-level budget by £500m
The Department for Education is set to reduce its spending on T-levels by £500m due to lower-than-expected student enrolments. Minister Janet Daby revealed that the DfE anticipates spending £1.247bn on T-levels by the end of the 2024-25 financial year, down from an earlier estimate of £1.754bn. The DfE said: “Costs have been adjusted to reflect the most up to date data on T-level student numbers.” Despite a 59% increase in T-level starts in 2024-25, the overall enrolment remains below expectations, with only 2% of 16- and 17-year-olds participating, according to the independent curriculum and assessment review led by Becky Francis. Concerns have been raised about the potential impact of removing funding from alternative qualifications like BTECs, particularly for students with special educational needs and those from disadvantaged backgrounds.
RISK
EU calls for households to stockpile 72 hours of food amid war risks
The European Commission is advising people in the European Union to stockpile enough food, water and essentials for 72 hours, as part of a strategy that aims to increase readiness for catastrophic floods and fires, pandemics and military attacks. Hadja Lahbib, the European commissioner in charge of preparedness and crisis management, said that concerns differed across the bloc but that all citizens should make an effort to be prepared for emergencies. In a video posted on social media, Lahbib listed items important to have to survive 72 hours in a crisis, from food and water to a flashlight, power bank, radio, cash and medication. "Ready for anything - this must be our new European way of life," she said in a post on X.
INTERNATIONAL
KPN lets staff decide themselves how much holiday to take
KPN has become the first major Dutch company to allow its nearly 10,000 employees to choose their own holiday days, reports Financieele Dagblad. The telecommunications company's new pay and conditions agreement states that from January, the number of days staff take off will no longer be registered. “Our workers can decide for themselves how to deal with holiday days,” Bart Webers, the “director of rewards” at the company, told the newspaper. The company wants to give employees more room to figure out their work-life balance, he said. “Keeping track of whether you still have enough vacation days on your counter does not fit with that.” Any leave still has to be approved, however. “Of course, you always take time off in consultation with your manager,” Webers said.
Bill passes parliament to improve gender equality in Australia
Large businesses in Australia are set to implement significant changes to enhance workplace gender equality following the passage of a new bill. The revised Workplace Gender Equality Act mandates that organisations with over 500 employees establish three gender equality targets within three years. Employers can select from various priority areas, including addressing the gender pay gap and improving workforce composition. Approximately 2,000 employers will be affected, benefiting around 3.9m employees. Workplace Gender Equality Agency (WGEA) CEO Mary Wooldridge emphasised the importance of these targets, saying: “Targets are specific, time-bound and measurable objectives that set a benchmark for employers to work towards.” Failure to comply may result in losing Commonwealth contracts and public naming by the agency. The WGEA has reported a gender pay gap of $28,425 annually. 
Trump's firings of federal workers with DEI jobs were illegal, complaint claims
A group of federal employees in the US has filed a class action complaint against the Trump administration, alleging unlawful targeting for dismissal due to their involvement in diversity, equity, and inclusion (DEI) activities. The complaint, submitted to the Merit Systems Protection Board by the American Civil Liberties Union and other legal representatives, claims that the mass firings violate First Amendment rights and disproportionately affect non-white male workers. The complaint argues that the firings are politically motivated, saying: “the Trump administration's orders betray their partisan political goals by targeting employees, not positions.” The legal team plans to amend the complaint to include additional employees as their dismissals take effect.
General strike looms in Israel as tensions rise
Arnon Bar-David, chief of Israel's Histadrut Labor Federation, has convened a meeting with industry leaders to discuss the potential for a general strike in response to recent government actions. The meeting aimed to establish the "red line" that would trigger such a strike. Earlier, Histadrut warned the government to respect the High Court of Justice's ruling regarding the dismissal of Shin Bet chief Ronen Bar. Bar-David said that ignoring the court's decision would be a “final red line that cannot be crossed,” and he said the union “will not sit quietly and watch [the government] take apart the State of Israel.”
 


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