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UK Edition
31st March 2025
 
THE HOT STORY
US orders European companies to comply with Trump's diversity ban
Large companies in the EU which supply the American government have been told to comply with an executive order from President Donald Trump banning diversity, equity and inclusion programmes. Companies with US government contracts have been told to confirm their compliance in a questionnaire entitled "Certification Regarding Compliance With Applicable Federal Anti-Discrimination Law." The demand was sent out to firms by the US embassy in Paris. The document said: “Department of State contractors must certify that they do not operate any programs promoting DEI that violate any applicable anti-discrimination laws and agree that such certification is material for purposes of the government’s payment decision and therefore subject to the False Claims Act.” The French foreign trade ministry said in a statement:  “American interference in the inclusion policies of French companies — such as threats of unjustified tariffs — is unacceptable . . . France and Europe will defend their companies, their consumers, and also their values.” The letter was first reported by Les Échos newspaper.
WORKFORCE
Retail giants face pay transparency push
Shareholder activists are urging retail giants Next, M&S, and JD Sports to enhance transparency regarding employee pay amid ongoing cost of living challenges. Investor groups, led by ShareAction, have proposed resolutions for the firms' upcoming annual general meetings, seeking clarity on how many employees earn below the "real living wage," which is set at £12.60 per hour nationally and £13.85 in London for those aged 21 and over. Catherine Howarth, chief executive at ShareAction, said: "The UK's biggest retailers are failing to support their workers with a real living wage, leaving hundreds of thousands of people in the sector struggling to make ends meet." The campaign comes as the Living Wage Foundation estimated almost a quarter of UK retail workers – 818,000 people – are not being paid a real living wage.
STRATEGY
Sky faces 2,000 job cuts
Sky, the owner of Sky News, has announced that 2,000 jobs at its customer service centres are at risk due to declining call volumes as customers increasingly turn to digital technology. The proposed changes, which include the closure of three UK sites, would impact 7% of its workforce and are currently under consultation. Sky plans to invest millions in its Livingston site to create a "centre of excellence" aimed at enhancing customer service through advanced digital technology. The company currently receives 25m calls annually, a figure expected to decrease by a third in the coming years.
HIRING
Job vacancies surge in February
UK job vacancies experienced a 3.7% month-on-month increase in February, marking the fastest growth in three years, according to data from Adzuna. The rise was primarily driven by the graduate and healthcare sectors and followed months of slow or no growth in postings. Although vacancies were down 0.8% compared to February 2024, this annual decline was the smallest since July 2022. It is also noted that advertised salaries have consistently outpaced inflation for the past ten months, with a 7% annual increase in February.
TRAINING & DEVELOPMENT
Gen Z struggles with phone calls
International audit, accounting and consulting partnership Forvis Mazars is launching a training programme aimed at improving the telephone communication skills of its Gen Z employees, who are reportedly anxious about phone conversations. UK chief executive James Gilbey said: "We've committed to a major firm-wide investment to put relationship skills front and centre." The initiative responds to concerns that remote work and digital communication have left many young hires unprepared for essential workplace interactions.
Lloyds sends staff for AI training
Lloyds Banking Group is sending 200 senior staff on an 80-hour AI bootcamp in collaboration with Cambridge Spark. The six-month programme aims to bolster AI capabilities within the organisation. Ron van Kemenade, group COO of Lloyds, said: "AI is a game-changer for financial services, and we're investing to enhance our services with cutting-edge technology."
LEGAL
Rayner’s workers' rights bill faces revisions
Deputy prime minister Angela Rayner's workers' rights package is facing significant revisions due to concerns about its impact on economic growth. Business Secretary Jonathan Reynolds indicated in a leaked letter to the Confederation of British Industry that the government is contemplating exemptions for seasonal workers from the proposed ban on exploitative zero-hours contracts. He said: "We have already discussed the idea of a possible alternative form of contract which might mean many seasonal workers fall outside the scope of the right to guaranteed hours." The Office for Budget Responsibility has warned that the reforms could lead to increased unemployment and inflation, while the government's own assessment suggests a potential £5bn annual cost to businesses. The proposed changes have sparked tensions between the government and trade unions, with unions urging against any dilution of the zero-hours contract rules.
Yvette Cooper cracks down on illegal gig workers
The Home Secretary has committed to ending "jobs on tap" for illegal immigrants by closing loopholes in the UK’s border laws. Yvette Cooper aims to "restore order to the asylum system" by targeting businesses like takeaway services and beauty salons that hire undocumented workers. Cooper said: "We are introducing tough laws and stopping rogue employers in their tracks." Potential penalties include unlimited fines and prison sentences for non-compliant employers. The new regulations will amend the Border Security, Asylum and Immigration Bill, ensuring that gig economy firms conduct right-to-work checks similar to traditional employers. The initiative follows a report estimating the illegal immigrant population in the UK to be between 800,000 and 1.2m.
Harrods boosts payouts for abuse victims
Harrods has announced an increase in maximum compensation payments for survivors of sexual abuse by former owner Mohamed al Fayed, raising the potential payout from approximately £330,000 to nearly £400,000. The revised compensation scheme, coordinated by MPL Legal, will be formally launched today, with general damages ranging from £110,000 to £200,000 depending on whether claimants undergo psychiatric assessments. The compensation scheme aims to provide an alternative to court processes and ensure a survivor-first approach, a Harrods spokesman said. Meanwhile, the Telegraph reports that Leigh Day has sent pre-action letters to Mohamed al-Fayad's estate on behalf of former personal staff who allegedly suffered sexual abuse while working for the billionaire.
Waitrose worker takes legal action
A 41-year-old wine specialist at Waitrose is taking legal action after being dismissed following an investigation into his personal social media posts, which included his own political opinions. Ben Woods, who worked at Waitrose for 25 years, claims his dismissal has left him feeling suicidal. “Some people agree with my opinions, some people don't. That always makes a great debate,” he said, adding: “I've had my life destroyed because of what Waitrose deems doesn't fit their ideology.” His profile was heightened when Elon Musk reposted a post of his about the grooming scandal which received 63m views. Woods' identity was then exposed and he received death threats at work. He is now seeking support for his legal battle from employment lawyer Elliot Hammer of Branch Austin McCormick, who points out that employees have rights under the Equality Act to express lawful beliefs.
PRODUCTIVITY
Former Tesla CFO leads funding round in employee rewards startup
Zach Kirkhorn, Tesla's former chief financial officer, has led a $16.5m funding round in Jolly, a startup that aims to help companies improve employee productivity through rewards. On the platform, employees can earn points by, for example, picking up extra shifts, upselling a high-margin product, adhering to safety protocols or completing a certain task on time, and then exchange them for gift cards or their employer’s apparel. All of its corporate customers are currently healthcare services providers, but Jolly is in the process of adding clients in other industries, including manufacturing, logistics, construction, and fast-food.
INTERNATIONAL
Chinese firms target laid-off US workers
Investigations indicate that a network of companies linked to a secretive Chinese tech firm is attempting to recruit recently laid-off US government workers. Max Lesser, a senior analyst at the Foundation for Defense of Democracies, said that such firms are "part of a broader network of fake consulting and headhunting firms targeting former government employees and AI researchers." The companies involved share digital links and have been difficult to trace, with many contact details leading to dead ends. Lesser said that the campaign exploits the financial vulnerabilities of former federal workers affected by mass layoffs. A White House spokesperson warned that China is continuously trying to exploit the US system through espionage. The FBI has also cautioned that Chinese intelligence may pose as consulting firms to target current and former US government employees.
Trump cuts programmes that fight child labour abroad
President Donald Trump's administration is ending US-backed programmes that combat child labour, forced labour and other abuses in dozens of countries around the world. The cuts are expected to end 69 programmes that have allocated more than $500m to fight child labour, forced labour and human trafficking, and to enforce labour standards in more than 40 countries. John Clark, a Trump-appointed official, justified the cuts by citing a “lack of alignment with agency priorities and national interest.” Courtney Parella, a spokesperson for the US Department of Labor’s bureau of international labour affairs (ILAB), said that the administration wants to prioritise “investments in the American workforce.”
 


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