The latest business Intelligence for HR professionals and people managers everywhere
Sign UpOnline Version
UK Edition
16th September 2024
 
THE HOT STORY
Labour struggles to agree on detail of rights reforms
The Business Secretary and the Deputy Prime Minister are reportedly at odds over plans to hand workers full employment rights from day one in a job. The Telegraph has been told that Jonathan Reynolds and Angela Rayner were in disagreement over how far reforms should go. Ms Rayner is understood to be pushing to hand staff full-employment rights from day one following a short probation period but Reynolds is said to prefer the idea of shortening the qualification period for full employment rights but still requiring a probation period of almost a year. “Day one rights is proving very difficult,” a Whitehall source said. “Angela is less keen on a longer probation period, Reynolds thinks nine months is reasonable. It’s unclear if an agreement will be reached.” Meanwhile, the FT reports on how experts are warning that if loopholes in worker status rules aren’t closed, Labour’s new protections will only incentivise businesses to take people on as self-employed contractors, temps or agency workers rather than as employees. Finally, lawyers have warned that Labour’s plans risk overwhelming employment tribunals. Ben Smith, of the employment law firm GQ Littler, said this would "potentially open up a lot of claims" when the system is already backlogged.
WORKFORCE
CBI: Rights reforms will make UK less attractive
According to the CBI/Pertemps Employment Trends Survey, the UK may become less appealing for business due to Labour's proposed workers' rights reforms. The survey revealed that 62% of respondents believe Britain will be a less attractive destination for investment over the next five years, with 36% indicating it will be "much less" appealing. Matthew Percival, the CBI's skills director, expressed concerns about the lack of detail in the reforms, stating: “Businesses are concerned that achieving these goals in the wrong way risks significant unintended consequences for growth and for workers.” While nearly half of the firms surveyed expect growth in the next year, there is a pressing need for the Government to collaborate with businesses to ensure the reforms do not hinder investment and job creation, he added.
Two-thirds of employees are stressed by work
According to new research by Ciphr, work is the third largest source of stress for UK employees, following lack of sleep and financial worries. The survey of 1,238 employed adults revealed that more than two-thirds (70%) identified work-related stress factors, with 37% citing work in general as a major contributor. Other significant stressors include workload pressures (35%), long or inflexible hours (23%), and concerns about job security (17%). Two in five (42%) of all employees below senior management level find work in general stressful, while just one in four (25%) senior managers and leaders say the same. The findings indicate that stress levels vary across industries, with hospitality and events workers experiencing the highest stress, averaging 15.6 days a month where they experience stress. Claire Williams, chief people and operations officer at Ciphr, said: “Employers need to be mindful of the role they can play in helping to relieve an individual's stress and anxiety,” adding: "Unrealistic workloads and time pressures, overbearing bosses, unsupportive colleagues, and toxic workplace cultures, can all trigger stress."
Asda staff revolt over new music in stores
Staff at Asda have voiced their frustration over the a decision by the supermarket's management to play unlicensed music in its stores. Employees have taken to a Reddit forum to express their discontent, with one stating that the repetitive tracks are "a form of torture". The change is speculated to be a cost-cutting measure amid Asda's multibillion-pound debt. A petition launched in July has garnered over 600 signatures, urging the supermarket to revert to its previous in-store radio, which had been in operation since 1991. An Asda spokesman acknowledged the feedback, explaining: "We appreciate that colleagues have different tastes in music."
Addison Lee drivers to strike over pay and conditions
Addison Lee drivers plan a strike over pay and conditions, demanding higher fares and better rights, as legal battles over their employment status continue.
HIRING
Job vacancies drop as economy slows
Job vacancies in the UK decreased by 3.2% in August, totalling nearly 720,000, as reported by the Recruitment and Employment Confederation (REC). This decline coincides with a contraction in factory output, marking the first decrease in four years. Make UK indicated that the balance of output fell from 9% to -2%, suggesting manufacturers are hesitant to hire. These trends may influence the Bank of England's Monetary Policy Committee, which recently cut the base rate from 5.25% to 5%. Governor Andrew Bailey cautioned against rapid rate cuts, stating the need to ensure inflation continues to decline. Investors anticipate that rates will remain unchanged in the upcoming meeting.
REMOTE WORKING
Development hindered by generational divide on WFH
The Sunday Times looks at a generational divide in office attendance, saying that it raises questions about the future of remote work and its impact on professional development. While the number of workers returning to the office is increasing, middle-aged employees have been the most reluctant to return. Figures from the Centre for Cities think-tank show that 18 to 24-year-olds in London spend an average of 3.1 days a week in the office, compared with 2.5 days for 35 to 44-year-olds and 2.7 days for those over 55. Meanwhile, a survey of 10,658 workers by recruitment agency Hays has found that 45% of 20 to 29-year-olds are fully in the office, compared with 38% of those in their forties. It is noted that several large firms are pulling remote workers back into the office, with PwC requesting that its 26,000 UK staff return to the office at least three days a week. Laura Hinton, the UK managing partner of PwC, said: “So much of what we do depends on learning and development, not just professional qualifications but on-the-job learning from others,” adding: “This is almost always best done face-to-face and requires people at all levels of seniority spending time together.” Justine Campbell, EY’s managing partner for talent in the UK and Ireland, agrees that excessive home working could affect training, saying: “We aim to strike a balance between the needs of our clients, the benefits of in-person collaboration and the personal flexibility our people need."
DIVERSITY, EQUITY & INCLUSION
Female barristers plan to rebel against inclusion drive
Female barristers are opposing new proposals from the Bar Standards Board (BSB) that could penalise those with "unfashionable views" regarding transgender issues. Naomi Cunningham, a barrister specialising in discrimination, expressed concerns about the vagueness of the proposals, warning they could lead to "arbitrary enforcement" and exclude those with differing opinions. She said: "This looks like an extraordinary land-grab by our regulator, and an assault both on the rule of law and, ironically, on diversity." The BSB's plans, which are still under consultation, could impose penalties on barristers who fail to manage their practices in a way that advances equality, diversity, and inclusion. Samuel Townend, chair of the Bar Council, cautioned that changes to the BSB's rules could have "unintended detrimental consequences" for the profession.
LEGAL
Dairy workers caught on camera abusing cows
Undercover footage has exposed shocking animal abuse at dairy farms supplying Müller and Marks & Spencer. The video shows workers hitting cows with poles, kicking them, and shouting expletives. Activist Joey Carbstrong, who filmed the incidents, claimed: “The dairy industry views sentient animals as machines to be exploited until exhaustion for profit.” In response, M&S suspended the farm involved and launched an investigation, while Müller condemned the behaviour as unacceptable. The RSPCA also took action, suspending the farm from its Assured scheme. Both companies emphasised their commitment to high animal welfare standards, but the footage raises serious concerns about practices in the dairy industry.
REMUNERATION
Workers see dramatic fall in share of global income
The International Labour Organisation (ILO) has reported a significant decline in the global labour income share, which has fallen by 1.6% since 2004. This decrease translates to an annual shortfall of $2.4 trn in 2024 compared to what workers would have earned if the share had remained stable. Celeste Drake, the ILO's deputy director-general, said: "Countries must take action to counter the risk of declining labour income share," and emphasised the need for equitable economic policies. The ILO's report highlights that technological advances, particularly automation and the rise of artificial intelligence, are key factors contributing to the decline. Currently, workers earn only 52.3% of global income, while capital income continues to concentrate among the wealthiest. The ILO also noted the persistent issue of youth unemployment, with a NEET (not in employment, education, or training) rate of 20.4%, and a significant gender gap in this statistic.
Royal Mail pay plan a 'reward for failure'
Royal Mail's owner has been accused of “rewarding failure” as it plans to increase the bonus handed to chief executive Martin Seidenberg. International Distribution Services (IDS) will ask shareholders to approve a hike that will see the CEO’s maximum award rise by £300,000, a move which could see him take home £3m. This comes as he oversees the sale of Royal Mail to Czech tycoon Daniel Kretinsky in a £3.6bn deal. IDS’ board has faced criticism for accepting Mr Kretinsky's offer despite being close to winning key regulatory reforms it had sought. Royal Mail has also been criticised for poor customer service, with Ofcom last year hitting the postal service with a £5.6m fine for failing to meet its delivery targets. Andrew Speke at the High Pay Centre think-tank said Mr Seidenberg's “significant” pay rise after the company's “much publicised failings with Royal Mail” was “an indictment of the failed model for rewarding executives that currently exists in the UK.” He added: “It can sometimes feel that top executives are being rewarded for failure.”
Mishcon de Reya boosts NQ salaries
Mishcon de Reya has increased the salaries of its newly qualified (NQ) associates by over 5%, raising their pay to £95,000 from £90,000. This adjustment follows the last pay rise in spring 2022, which saw salaries increase from £80,000 to £90,000. Trainee salaries have also risen, with first-year trainees now earning £47,500 and second-year trainees £52,500. The firm offers around 30 training contracts annually and provides a £10,000 maintenance grant for those pursuing the Solicitors Qualifying Examination. Vanessa Dewhurst, partner and chief people officer, said: “We have undertaken a thorough review of the salary level offered to our newly qualified lawyers” to ensure competitiveness and sustainability in attracting top talent.
CORPORATE GOVERNANCE
Trian Partners pushes for Rentokil overhaul
Activist hedge fund Trian Partners is urging a leadership change at Rentokil following a significant decline in its share price, which fell by 19% last week and 37% this year. Trian has held urgent discussions with Rentokil's chief executive and chairman amid concerns over the integration of its US acquisition, Terminix, purchased for $6.7bn in 2022. Shareholders are calling for the removal of chief financial officer Stuart Ingall-Tombs and US head Brad Paulsen due to unmet targets. Despite recent struggles, Rentokil stated: “We continue to believe in the fundamental strength of the North American business,” as it focuses on its Right Way 2 plan to enhance revenue growth.
CORPORATE
Lloyds to shutter 55 more branches
Lloyds Banking Group has announced plans to close an additional 55 bank branches, bringing the total closures to 292 by 2026. The closures, which will affect Halifax, Bank of Scotland, and Lloyds-branded branches, are part of a strategy to reduce costs and shift customers towards digital banking. Transactions at the affected branches have decreased by 55% over the past five years, while mobile banking usage has surged. Despite the closures, Lloyds assures that there will be no job losses, as staff will be offered alternative roles.
 


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 XFollow us on Linkedin

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

Click here to unsubscribe