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European Edition
31st October 2024
 
THE HOT STORY
Bosch cannot rule out further job cuts in Germany
Stefan Hartung, the chairman of German auto parts supplier Robert Bosch, has told Der Tagesspiegel newspaper that he cannot rule out further job cuts in Germany in addition to the 7,000 it has already announced. He warned of declining revenue in the coming year, saying turnover would come in slightly below last year's €92bn, while return on sales, which Bosch had wanted to grow by two percentage points more than last year's 5%, would come in at 4% at most. "I cannot rule out that we will have to further adjust personnel capacities," he said.
WORKFORCE
Dutch construction sector faces worker crisis
The Dutch construction sector is projected to require 60,000 new workers over the next three years, according to the Economic Institute for Construction (EIB). Of these, 50,000 can be sourced from education, while the remaining 10,000 will need to come from migrant workers or those transitioning from other professions. EIB researcher Jeffrey Kok highlighted the urgent demand for workers to construct homes, schools, and industrial complexes, “But also, for example, for making homes gas-free.” The sector has faced significant staff shortages since 2020, exacerbated by an aging workforce and early retirements. Currently, there are 70 to 80 vacancies per 1,000 people, a record high since before 2019. The EIB anticipates an increase in migrant workers, particularly from Central and Eastern Europe, to meet the demand.
LEGAL
Female leaders in UK finance earn 30% less than their male counterparts
Women in senior finance roles in the UK earn nearly 30% less than their male counterparts, according to the Office for National Statistics (ONS). The average hourly wage for female financial managers is £11.71 (€14) lower than that of males, with the gender pay gap in finance at 28%, significantly higher than the overall average across professions. Jemima Olchawski, chief executive of the Fawcett Society, highlighted that the finance sector has "long had a very big problem" with gender inequality, exacerbated by a lack of transparency in pay and progression. The ONS noted that while the gender pay gap has decreased overall, it remains most pronounced in sectors dominated by men. The Financial Conduct Authority has proposed new rules for financial companies to set diversity targets to address under-representation.
STRATEGY
Visa to lay off around 1,400 employees and contractors
Visa plans to lay off about 1,400 employees and contractors by the end of the year, as the card giant seeks to streamline its international business. About 1,000 of the cuts are expected to eliminate technology positions, according to people familiar with the matter. Most of the other layoffs will focus on Visa's merchant sales and global digital partnership roles. A Visa spokesman said the company continuously evolves to better serve clients and support growth, “which can lead to the elimination of some roles.” He said the company expects to employ more people each year for the foreseeable future.
HIRING
Sector-specific job fair holds promise of better matchmaking
Moovijob.com is hosting its inaugural week-long job fair from 25-29 November at the European Convention Centre Luxembourg, featuring 40 companies daily across various sectors, including banking, IT, and health. Inga Moning, account manager at Moovijob, said: “It's the first time we are hosting five different days in one week.” The event aims to provide tailored recruitment opportunities, allowing companies to showcase their work and training prospects. With 17,700 jobseekers registered with ADEM in September, the fair is expected to attract around 3,000 candidates for health and 4,000 for financial services.
CORPORATE
Volkswagen profits plunge 60% amid China sales slump
Volkswagen has reported a 60% drop in profits, with earnings before tax falling to €2.4bn in the third quarter, down from €5.8bn a year earlier. The decline is attributed to a 12% decrease in sales in China and a 1% drop in Western Europe. Arno Antlitz, VW's chief financial officer, said that the results “reflect a challenging market environment” and stressed the need for “significant cost reductions and efficiency gains.” The company is also facing potential factory closures in Germany, which could lead to conflicts with unions representing 120,000 employees. The situation is exacerbated by a broader industry trend of declining demand for new vehicles, particularly in China, where subsidies for electric vehicles have been cut.
INTERNATIONAL
Argentina hit by massive transport strike
Argentina on Wednesday experienced a one-day strike against President Javier Milei's austerity measures, notably his plans to privatise Aerolineas Argentinas. The protest, called by unions, aimed to highlight rising poverty levels since Milei's administration began. Over 1,800 trains were cancelled, affecting more than a million passengers, while Aerolineas Argentinas reported 263 disrupted flights impacting around 27,700 travellers. Pablo Moyano, a leader of the CGT union, observed: "A significant section of the population is having a hard time," as he emphasised the need to protect Argentina's transport sector from foreign ownership. Despite achieving Argentina's first budget surplus in 15 years, Milei's policies have led to a deep recession, with poverty levels rising to 52.9%. Inflation remains high, at 209% as of September.
Starbucks tells workers to return to the office
Starbucks will begin an "accountability process" in January, requiring corporate employees to comply with its three-day-a-week office mandate or face possible termination, according to an internal message obtained by The Wall Street Journal. Starbucks’ new chief executive, Brian Niccol, has a hybrid work arrangement himself. The company has said Niccol would meet or exceed its in-office mandates. Some workers have expressed skepticism of Niccol’s arrangement, The Wall Street Journal notes. The move aligns Starbucks with other major companies like Amazon and JPMorgan Chase, revisiting remote work policies from the pandemic. Starbucks's decision comes amid a strategy overhaul, as recent earnings reports show a 6% drop in U.S. same-store sales and a 10% decline in transactions, prompting the brand to refocus on growth and customer experience.  
Second high court rules that Japan's ban on same-sex marriage is unconstitutional
The Tokyo High Court has declared Japan's ban on same-sex marriage unconstitutional, marking the seventh such decision against the policy. The court described the ban as “a groundless legal discrimination based on sexual orientation,” emphasizing that it violates the constitutional guarantee of equality and individual dignity. The ruling follows a series of legal victories for plaintiffs advocating for marriage equality, and raising hopes within the LGBTQ community. Their main obstacle, Japan's conservative Liberal Democratic Party's ruling coalition, lost a parliamentary majority in Sunday's election and will likely have to compromise on more liberal policies supported by the opposition parties. Japan is the only member of the Group of Seven industrialised countries that does not recognise same-sex marriage or provide any other form of legally binding protection for LGBTQ couples. Marriage equality is largely supported by the general public in Japan.
Aviva CEO summoned over discrimination claims
Indian police have summoned Asit Rath, the chief executive of Aviva in India, amid allegations of religious discrimination made by former employee Gurbir Singh. Singh, a Sikh, claims he faced "persistent and deliberate humiliation" and derogatory comments due to his religion. Aviva has dismissed the allegations as "factually incorrect," asserting that the company has robust policies to ensure fair treatment for all employees. This inquiry comes as Aviva also faces scrutiny from tax authorities over alleged illegal payments to insurance brokers, which the firm denies.
OTHER
Spain seeks ground-breaking law for great apes
Spain is set to enhance the legal status of great apes through a pioneering bill aimed at improving their welfare. The legislation, which follows a previous law increasing penalties for animal mistreatment, seeks to protect the life, dignity, and survival of nearly 150 primates, including gorillas and chimpanzees. Olga Bellon, a primate expert, emphasized that "apes are like us, they are sociable animals," underscoring the need for their humane treatment. The initiative has garnered over 300 contributions from experts and organizations, suggesting a shift in societal attitudes towards animal rights. While the ultimate goal is to remove great apes from captivity, the bill represents a significant first step in raising awareness and improving conditions for these animals.
 


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