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24th April 2024
 
THE HOT STORY
Air traffic boss defends engineers who work from home
Martin Rolfe, the CEO of the UK's air traffic services provider, has defended engineers who work from home, telling MPs the ability to problem solve remotely when called upon was "a bonus." NATS - formerly National Air Traffic Services – came under fire last year when an IT systems failure led to air traffic chaos and grounded flights, with Ryanair boss Michael O'Leary accusing engineers of "sitting at home in their pyjamas." Mr Rolfe has defended NATS’ staffing arrangements, telling the Transport Committee his organisation operated a "very similar model to almost all of the rest of critical national infrastructure." He insisted that there were always engineers on site to solve problems but noted that expert "design engineers" were needed for particularly complex issues. Remote working technology, he argued, enables these engineers to look into issues immediately.
HIRING
Businesses increase recruitment efforts in Q1
Businesses stepped up recruitment efforts in the first quarter, but many are still struggling to match roles to workers, according to a survey by the British Chambers of Commerce (BCC). The survey of 4,600 businesses showed that 62% tried to hire staff, up from 59% in the previous quarter. However, 66% of those surveyed said they faced hiring difficulties, although this was a decrease from 76% in the previous quarter. Jane Gratton, deputy director public policy at the BCC, said: "The growing number of people not looking for work, or out of action because of long-term health issues, is exacerbating the skills problem. More needs to be done to tackle the issues behind this worrying trend."
KPMG to hire more ex-offenders after successful trial
KPMG plans to hire more ex-offenders after a successful two-year trial. The move is a boost for the government's efforts to reduce reoffending rates and encourage big businesses to recruit prison leavers. Data shows that stable employment reduces the reoffending rate by up to 9 percentage points. Ex-offenders hired by KPMG work across all areas of the business, including senior roles. Jon Holt, KPMG UK's chief executive, has urged other white-collar employers to follow the firm's lead, saying: "There's a very strong business case because these people are extremely hard working and successful." 
WORKPLACE
Industry fears auto-enrolment reforms delayed until mid-2020s
The Department for Work and Pensions (DWP) has confirmed its commitment to expanding auto-enrolment (AE) but does not plan on consulting on the reforms until at least the mid-2020s. The AE extension bill, which aims to reduce the age for automatic enrolment to 18 and abolish the lower earnings limit for contributions, received Royal Assent in September 2023. The delay in consultation has been met with deep disappointment from industry experts, who argue that the reforms are crucial for improving pension outcomes, particularly for low earners and women. Aegon's Head of Pensions, Kate Smith, expressed concern that the delay could result in over ten years passing before the changes are implemented, potentially leaving millions of employees with lower pension contributions and poorer retirement income outcomes.
CORPORATE
Rise in company failures as borrowing costs increase
Company failures have increased by 17% in the first quarter of 2024, according to data from restructuring firm Kroll, with 338 companies falling into administration. Manufacturing and construction sectors were hit the hardest, followed by the retail sector. The rise in interest rates has affected corporate balance sheets, leading to financial difficulties for a number of firms. Smaller businesses accounted for most of the increase in insolvencies, but larger companies are also showing signs of distress. Sarah Rayment, global head of restructuring at Kroll, said: "Insolvencies have been steadily increasing due to the ongoing economic headwinds together with an increased cost of financing. Put simply, some companies are running out of steam and directors are unable to avoid insolvency." She added: "While there may be green shoots in the economy reported, borrowing costs are still significantly higher to when businesses initially took on finance. At some point, even if equity holders can inject cash into the business, if there is no turnaround, cash reserves will dwindle."
STRATEGY
Goldman Sachs shifts top London banker to Paris
Goldman Sachs has relocated Dirk Lievens, one of its leading European investment bankers, from London to Paris. Mr Lievens, who leads the bank’s financial institutions group for Europe, the Middle East and Africa, has been relocated to be closer to Goldman’s continental European clients, which include banks and insurers. The move comes as part of a shake-up in the group’s regional structure following Brexit.
MANAGEMENT
Welsh government to insist on female manager at troubled fire service
The Welsh government will “insist” that a woman becomes part of the management team at the troubled South Wales Fire and Rescue Service (SWFRS), a minister has said. Four government-appointed commissioners are currently over-seeing the service which was found to have a culture of sexual harassment and misogyny. Social Justice Secretary Julie James said “single-sex” management teams “end up in places where we don't want them to be.” She also defended the appointment of the interim chief fire officer, Stuart Millington, who is facing an employment tribunal. The government minister has been giving evidence to the Senedd's social justice committee which is holding an inquiry into fire and rescue service governance. Stuart Millington was appointed interim boss of the South Wales Fire earlier this year following a damning report which said the SWFRS had a culture of sexism and misogyny. After the commissioners appointed Mr Millington, the Fire Brigades Union (FBU) passed a vote of no confidence in the interim chief after it emerged he was the subject of a complaint regarding harassment and discrimination from a North Wales Fire and Rescue Service employee.
HEALTH & WELLBEING
Teachers at reduced risk of cognitive decline
People with mentally stimulating jobs, such as teachers, are less likely to experience cognitive decline in later life, according to a study from Norway. The research found that jobs involving creative thinking were better at preventing cognitive decline than those involving repetitive tasks. The study examined 7,000 people and 305 occupations, measuring the level of cognitive stimulation in each job. After adjusting for other factors, the study found that those in the lowest group of mentally stimulating jobs had a 66% higher chance of mild cognitive impairment. The researchers suggest that education and challenging work throughout one's career play a crucial role in lowering the risk of cognitive decline.
INTERNATIONAL
Dutch cities divided over WFH plan for sex workers
Cities in the Netherlands are divided on whether sex workers should be allowed to work from home. Sex work has been legal in the Netherlands since 2000, and a few regions have allowed sex workers to operate independently from home. The government is now seeking to regulate the sector to reflect the increase in home-based and online work. Sex workers would be required to meet strict conditions to receive a permit from their local authority. But many Dutch regions are not happy with the prospect of working from home in the industry. A poll of 150 municipalities by Nos, the Netherlands' largest news organisation, found many thought it would be a "nuisance" for local residents. "If sex work takes place in the private sphere, it is difficult to gain insight into possible abuses," a representative for the municipality of Kaag en Braassem in South Holland told Nos. The city of Tilburg told Nos: "Unlicensed sex workers actually become more vulnerable to coercion, violence and blackmail."
Spanish cava producer Freixenet plans temporary layoffs due to drought
Spanish cava producer Freixenet has presented a plan to temporarily lay off 615 workers, close to 80% of the company's workforce, due to the drought affecting the Penedes area in Catalonia. The layoff plan is an exceptional measure caused by the lack of grapes resulting from the severe drought that has been affecting the sector since 2021. Vineyards in Catalonia's Penedes region are suffering from the driest period in 1,200 years. Freixenet becomes one of the first companies in Catalonia to present a temporary layoff plan. The plan is expected to come into force in May. "The measure, implemented as an exercise of responsibility, is aimed at guaranteeing the viability of the business and preserving employability in order to face external causes and force majeure caused by the severe drought," said Freixenet. Spain's ERTE law allows companies facing exceptional circumstances to temporarily lay off employees. The company did not specify when workers would be allowed to return to work. Spain has experienced its warmest January since records began in 1961 and last year was the country's second warmest.
Korean company abandons English names for employees
Kakao Games, the gaming subsidiary of Korean tech giant Kakao, is abandoning its tradition of using English names for employees. CEO Han Sang-woo announced the change, stating that employees will now be addressed by their Korean names. The company said it aims to create a more unified and respectful corporate culture by using job titles and the honorific "nim" to address employees. The decision comes after complaints from workers about the confusion caused by using both English and Korean names. The change in naming system is part of Kakao's efforts to undergo a corporate makeover following scandals and internal friction. Kakao Games will also introduce a new compensation system based on performance, and the company is also planning to eliminate managing director positions to foster better internal communication.
Sweden passes law allowing easier gender change
Sweden's parliament has passed a law that will make it easier for people to change their legal gender, lowering the age requirement from 18 to 16. The new law, which will come into force next year, will require a shorter consultation with a doctor or psychologist, along with approval from The National Board of Health and Welfare. The process of legal gender change will also be decoupled from medical procedures like sex reassignment surgery. Supporters argue that this is a modernisation of the existing law and brings Sweden closer to its Nordic neighbours and other European countries. However, the bill has faced criticism, with 59% of Swedes considering it a bad proposal. The law has also divided the government, with the centre-right Moderates and the Liberals working with the centre-left opposition to pass the bill. Critics argue that more evaluation is needed and express concerns about potential consequences for women sharing changing rooms with those who have transitioned.
OTHER
Research finds link between surname order and grading quality
A new study has found that students who had surnames that came later in the alphabet received lower grades than those at the top of roll call. The research from the University of Michigan found also found that these students tend to receive ruder comments on their work and have lower grading quality, measured by post-grade complaints from students. Associate professor and first author Dr Jun Li said: “We spend a lot of time thinking about how to make the grading fair and accurate. But even for me it was really surprising. It didn't occur to us until we looked at the data and realised that sequence makes a difference.” Study co-author Helen Wang said: “Our conclusion is this may be something that happened unconsciously by the graders that's actually creating a real social impact.” The reason for the findings is unclear, but researchers suggest that teachers might get tired and irritable as they pass through the alphabet.
 


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