The latest business Intelligence for HR professionals and people managers everywhere
Sign UpOnline Version
UK Edition
27th March 2024
 
THE HOT STORY
CBI uses gagging clauses to prevent discussion of sexual misconduct claims
The Confederation of British Industry (CBI) has admitted to using non-disclosure agreements (NDAs) to prevent staff from speaking publicly about their workplace experiences. Up to 10 NDAs have been signed in the past year after the lobbying group's sexual misconduct scandal. The agreements have been accompanied by substantial financial settlements from the CBI. CBI chief executive Rain Newton-Smith has defended the use of NDAs, saying: "To the best of my knowledge anything we have signed in the past 11 months allows individuals to raise issues with the police.” MPs on a Treasury committee investigating sexism in the City recently called for the use of NDAs to be banned in such cases, saying they had the effect of "silencing the victim of harassment and forcing them out of an organisation, while protecting perpetrators."
LEGAL
Uber Eats courier wins payout over ‘racist' facial recognition app
Uber Eats has settled a legal claim with a courier who alleged that the company's facial recognition app is racist. Pa Manjang, who is black, was dismissed by Uber Eats when his security selfie check repeatedly failed to match the photo held by administrators. All Uber Eats couriers are required to go through this process, but Manjang argued that the algorithm discriminates against people from ethnic minorities. The equalities watchdog in England supported Manjang's claim, and Uber Eats has agreed to settle for an undisclosed amount. The settlement does not imply any liability on the part of Uber Eats. The case highlighted concerns about the use of artificial intelligence and automated processes in employment decisions. Baroness Falkner, chairwoman of the Equalities and Human Rights Commission, stated that AI can lead to discrimination and human rights abuses. The settlement is seen as serving a warning to employers to guard against unlawful discrimination when relying on automation. Manjang's lawyer emphasized the importance of the case in considering AI and automated decision-making in the context of work and potential unfairness and discrimination.
MPs to quiz P&O boss on working conditions
Peter Hebblethwaite, the boss of P&O Ferries, has been called to give evidence to MPs who are examining working conditions. The Business and Trade Committee will quiz a panel of bosses of companies that have been “named and shamed” for paying less than the UK minimum wage. P&O, which controversially replaced 786 employees with low-paid agency workers in 2022, has agreed to sign a voluntary government charter which commits it to paying maritime workers at least the UK minimum wage. Minimum wage rates currently do not apply to maritime workers employed by an overseas agency who work on foreign-registered ships in international waters. The government, which has promised to close the loophole allowing ferry companies to legally pay less than the minimum wage, expects legislation to become active this summer.
Red Bull employee will go to tribunal should her appeal over Horner case fail
The Guardian reports that the female employee at Red Bull who made a complaint against team principal Christian Horner is prepared to take her case to an employment tribunal if her appeal is unsuccessful. Red Bull Racing's parent company recently announced that Horner had been cleared of the allegations after an independent investigation, but the employee launched an appeal. No details of the investigation have been released due to confidentiality. Legal experts say that going to an employment tribunal is a normal process if an employee is not satisfied with the outcome of an internal appeal. If the case goes to a tribunal, the details of the complaint will become public. The employee has been suspended from her job at Red Bull Racing since her grievance was dismissed.
STRATEGY
Co-operative bank to cut 400 jobs in cost-cutting move
Britain's Co-operative Bank has announced plans to cut around 400 jobs, equivalent to 12% of its workforce, as part of its efforts to simplify operations and reduce costs. The bank recently underwent a multi-year overhaul, including a £100m IT investment program. Co-op Bank is currently in discussions with Coventry Building Society regarding a possible merger. The banking sector in the UK is experiencing a wave of consolidation, with smaller lenders seeking to merge to better compete against larger banks. Last week, Nationwide and Virgin Money UK agreed to a £2.9bn deal to create the country's second-largest provider of mortgage and savings products.
WORKFORCE
Government announces one-off payments for health workers
The UK government has announced one-off payments of up to £3,000 for tens of thousands of health workers, including community nurses, sexual health workers, and physiotherapists. The payments are being made to recognize the vital role of healthcare workers at social enterprises, charities, private providers, and local authorities. The Royal College of Nursing (RCN) welcomed the move but wants assurance that the payments are of the same value as those given to NHS workers last year. The Department for Health and Social Care (DHSC) said one of the payments is specifically to recognize efforts in reducing waiting lists. Health and Social Care Secretary Victoria Atkins emphasized the importance of supporting healthcare staff and non-NHS organisations. RCN director for England Patricia Marquis called for equal treatment and fair financial amounts for all nursing staff providing publicly funded care.
Disposable income up for the lowest earners
Disposable income in the lowest-earning households in Britain has increased for the first time in more than two years. Asda’s Income Tracker compiled by the Centre for Economics and Business Research shows that disposable income for such households grew by 4.9% in February, driven by an increase in gross income and a slowdown in core inflation. However, these households’ discretionary income remained negative, with take-home pay £68 less than the amount needed to cover bills and other essentials. The tracker also found that discretionary income for the average UK household was £18.56 a week higher in February than a year before, at £231. This marked the 11th consecutive month of growth.
TAX
Concerns grow over Scotland's tax gap with rest of UK
Business owners in Scotland are increasingly concerned about the widening income tax gap with the rest of the UK, fearing it will hinder investment and make it difficult to attract skilled staff. According to the Institute of Directors (IoD) Scotland's annual State of the Nation survey, 82% of respondents are worried about income tax policy, with 74% believing personal taxation is too high and 76% feeling the Scottish government has not focused enough on long-term economic growth. The introduction of a sixth income tax band for Scottish workers, along with the increase in the top rate, has further exacerbated the tax gap. Concerns have been raised about the impact on recruitment, staff retention, and inward investment. The Scottish Fiscal Commission estimates that the new tax band and rate increase will generate approximately £82m in additional revenue. The Scottish government defends its tax policies, stating that net migration from the rest of the UK to Scotland has remained positive since the introduction of Scottish Income Tax in 2017-18.
Tax code warning for workers
A survey by financial services company Canada Life has found that 31% of adults in the UK have been on the wrong tax code at some point, resulting in an average overpayment of £689. The survey also said that over two-thirds of respondents did not know how to claim back overpaid tax. John Chew, a tax and estate planning specialist at Canada Life, warned: "Those who are not on the right code may find themselves out of pocket. If it's wrong, you may end up contributing more or less than you're supposed to." HMRC has questioned the findings, with a spokesperson saying: "We don't recognise these figures. Tax codes are based on information provided by employers or pension providers. People can check their code quickly and easily online and update any details that may be affecting it."

 
MSN
REMUNERATION
Public sector pay needs to increase to retain top talent, study suggests
Higher earners in the public sector have seen real pay fall since the financial crisis, making it more difficult than ever for public services to hold on to their top staff, new data suggests. Research from the Institute for Fiscal Studies (IFS) shows that public sector pay at the 75th percentile is now 8% lower in real terms than in 2007. Stagnation in pay growth among higher earners in the public sector has meant that average public sector pay has fallen further behind the private sector. Jonathan Cribb, an associate director at the IFS, said poor pay growth had contributed to “problems of recruitment and retention, as well as industrial strife” in public services. It is noted that in the business world, there are concerns that the larger pay packages on offer in the US are luring talent away from the UK. A 2023 report from Equilar and Deloitte found that the median pay package for S&P 500 CEOs has surged 34% since 2015 to the end of 2021, while London's FTSE 100 CEOs have taken a pay cut of 13%.
INTERNATIONAL
Telecoms giant Bell lays off over 400 workers in 10-minute video call meetings
Canadian telecommunications giant Bell has laid off over 400 workers in virtual group meetings, according to Unifor, the union representing the employees. Unifor condemned the impersonal manner of the terminations, describing it as "beyond shameful." The fired workers, many with years of service, were informed they were being declared "surplus" in 10-minute video calls. Bell's communications director disputed some of Unifor's claims, stating that the company has been transparent with union leadership and met its obligations under collective bargaining agreements. The layoffs came after Bell announced plans to eliminate 4,800 positions, or about 9% of its workforce. Bell maintains that the layoffs are part of a necessary restructuring. Unifor vows to continue its campaign against the company's handling of the layoffs. "Our dedicated, loyal workers, who are predominately women, will have to explain to their families tonight that they are being let go from Bell for no good reason other than making sure that their shareholders and Board of Directors come first when getting paid. It's absolutely disgusting," said Len Poirier, Unifor National Secretary-Treasurer.
Citigroup division plagued by harassment and drug use, employees claim
Citigroup's equities division has been plagued by a pattern of harassment, discrimination, and drug use, according to interviews with 22 individuals who worked in or closely with the division. The division's toxic culture, which persisted for years, was revealed through a lawsuit filed by a managing director at the bank. The lawsuit exposed instances of sexual harassment, discrimination, and drug use, including a disturbing incident at a client party. Citigroup has responded to the allegations, stating that it values inclusivity and respectful treatment in the workplace. Bloomberg says the revelations highlight the challenges that Wall Street still faces in addressing gender and behaviour issues.
More than half of South Korean workers are quietly quitting their jobs, survey says
More than half of South Korea's workers are choosing to do minimal work at their jobs without actually resigning, according to a recent survey. The trend, known as "quiet quitting," involves employees doing the bare minimum requirements of their job and not putting in any extra time or effort. The survey revealed that 57.4% of workers between their eighth and 10th years of work have quietly quit, while 56% of those between their fifth and seventh years have also stopped going above and beyond at work. The leading cause behind quiet quitting is dissatisfaction with salary and benefits, followed by a lack of enthusiasm about working at a company. South Korea's workers have a relatively low level of job and life satisfaction, which may explain why many are choosing to prioritize work-life balance over their jobs.
Fink warns of looming ‘retirement crisis’ for global pension savers
Larry Fink, CEO of asset manager BlackRock, has warned of a looming “crisis” for global pension savers, saying retirees across the world are threatened by a lack of money to support them. He also suggested that policymakers have neglected the importance of pension savings, saying: “As a society, we focus a tremendous amount of energy on helping people live longer lives. But not even a fraction of that effort is spent helping people afford those extra years.” In a letter to BlackRock investors, Mr Fink said that “maybe once a decade, the US faces a problem so big and urgent that government and corporate leaders stop business as usual. They step out of their silos and sit around the same table to find a solution,” adding that business leaders “need to do something similar for the retirement crisis.”
 


The Human Times is designed to help you stay ahead, spark ideas and support innovation, learning and development in your organisation.

The links under articles indicate original news sources. Some links lead directly to the source material. Others lead to paywalls where you may need a subscription. A third category are restricted by copyright rules.

For reaction and insights on any stories covered in the Human Times, join the discussion by becoming a member of our LinkedIn Group or Business Page, or follow us on Twitter.
Follow us on FacebookFollow us on TwitterFollow us on Linkedin

This e-mail has been sent to [[EMAIL_TO]]

Click here to unsubscribe