THE HOT STORY

Workers' rights reforms threaten UK jobs market, think-tank warns

The Resolution Foundation has warned that Labour's proposed Employment Rights Bill could harm the UK's jobs market, suggesting that the legislation, which includes a day-one right against unfair dismissal, may inhibit hiring and lead to a crisis in tribunal courts. Ruth Curtice, chief executive of the foundation, said: "Moving to day one rights for unfair dismissal is high risk and should be amended in the Bill before it's too late." While the foundation backs much of the legislation, including proposals to enhance sick pay and eliminate most zero-hours contracts, it warned that changes to unfair dismissal rules risked damaging the economy. The Office for Budget Responsibility has already warned that the Bill could have a negative impact on jobs, prices, and productivity.

The Sunday Telegraph

WORKFORCE

Bosch prepares furlough option as chip dispute hits auto suppliers

Auto parts supplier Bosch is preparing to furlough workers at its Salzgitter plant in Germany if a trade dispute between China and the Netherlands over Dutch semiconductor manufacturer Nexperia is not resolved soon. Beijing has banned exports of Nexperia's finished products after the Netherlands took control of the company amid US concerns about risks to national security. "We are currently doing everything we can to serve our customers and avoid or minimise production restrictions," a Bosch spokesperson said, adding "We have not yet made any adjustments to working hours at our German locations, but are preparing to do so, particularly in Salzgitter."

Reuters

Lufthansa strike threat grows

Negotiations between Lufthansa and its pilots’ union collapsed on Friday without agreement. Vereinigung Cockpit (VC) said it was ending discussions on a comprehensive solution on company pensions for approximately 4,800 pilots, increasing the likelihood of strikes at both the carrier’s mainline operations and its cargo subsidiary, Lufthansa Cargo.

The Local Germany

STRATEGY

Pirelli factories to temporarily halt production

Tyre manufacturer Pirelli has temporarily halted production at its two UK factories. Pirelli confirmed it was pausing activity at its plant in Burton-on-Trent, Staffordshire, from Friday and its Carlisle site, in Cumbria, from Sunday. Each plant will be closed for six days. The BBC understands the stoppage is linked to a cyber attack at Jaguar Land Rover (JLR), which affected the firm's vehicle production. A Pirelli spokesman said: "This pause in activity is to align output with prevailing market conditions."

BBC News

ENGAGEMENT

A majority of UK workers feel undervalued

A poll by greeting card company Moonpig suggests that more than half of British employees do not feel valued in the workplace. The study of 2,000 working adults also saw 53% of staff say that a lack of recognition at work has affected their motivation. Moonpig is launching a new platform aimed at enhancing employee engagement through personalised corporate gift cards. The firm says this could help employers improve employee engagement, retention and productivity.

The Times

TAX

Estonia has the most competitive tax code in the OECD

Estonia has been named the top country in the OECD for tax competitiveness for the 12th consecutive year. The country’s simple tax system, which features a flat 22% income tax rate, has contributed to its success. Chris Etherington from RSM UK says a flat rate of tax would "obviously" be advantageous to higher earners, "but lower earners might feel hard done by because they're paying proportionately the same amount of tax as somebody who's earning millions."

Sunday Times

LEGAL

Bill passed to promote employee ownership in Slovenia

Slovenia's parliament has approved a bill to establish worker cooperatives in a bid to involve more employees in company ownership, especially in SMEs facing succession issues. The legislation, which is inspired by models from the UK, US, and Canada, is based on voluntary participation, a 75% inclusion threshold, and limited indirect ownership. Darko Kranjc, an MP for the ruling Freedom Movement, noted the bill addresses ownership succession and employee motivation. However, opposition parties expressed their scepticism, with the Democratic Party labelling it a "laboratory experiment." Labour Minister Luka Mesec underscored the urgency of the situation, observing that more than half of SME owners in Slovenia are over 55 and many are seeking to sell to employees.

The Slovenia Times

Meta and TikTok 'in breach of EU law'

The European Union has found that Meta and TikTok breached transparency obligations under the Digital Services Act (DSA). An investigation revealed both companies failed to provide easy access to data for researchers and made it difficult for users to report illegal content. Henna Virkunnen, the EU's executive vice president, said: "Our democracies depend on trust." Meta disagrees with the findings but is negotiating compliance, while TikTok has expressed concerns about conflicts with privacy regulations. The EU could impose fines of up to 6% of the companies' annual profits, potentially amounting to billions.

Techcrunch

Computing.co.uk

Daily Mail

ECONOMY

ECB expected to hold interest rates steady

The European Central Bank (ECB) is this week set to maintain its key deposit rate at 2% for the third consecutive meeting, as inflation remains stable and the eurozone economy shows improvement. ECB President Christine Lagarde said: "With policy rates now at two percent, we are well placed to respond if the risks to inflation shift." Despite challenges, including France's political crisis and potential trade tensions, the outlook for the eurozone appears brighter. Economists suggest future rate cuts may be necessary if risks materialise, particularly concerning inflation and wage growth.

France 24

INTERNATIONAL

JPMorgan offers staff AI chatbot to help write performance reviews

JPMorgan Chase has given employees the option to use its in-house AI system to help shortcut the often painstaking process of writing the multiple performance reviews typically required by large companies.

Financial Times

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