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European Edition
22nd November 2023
 
THE HOT STORY
UK's highest court rules Deliveroo riders are not employees
The UK's Supreme Court has ruled that people working for Deliveroo cannot be considered employees because they don't have specified hours, can work for rival companies, and can appoint someone to work in their place. A case brought by the Independent Workers Union of Great Britain (IWUGB) argued that Deliveroo riders should have collective bargaining rights but the Supreme Court ultimately ruled they cannot benefit from union membership as they do not meet the definition of a worker or employee. A Deliveroo spokesperson said: "UK courts repeatedly and at every level have confirmed that Deliveroo riders are self-employed, and this now includes the highest court in the country. This is a positive judgment for Deliveroo riders, who value the flexibility that self-employed work offers." The IWUGB, which represents thousands of gig economy workers, said it was disappointed by the decision and was considering its options under international law.
REGULATION
EU regulators raid online food delivery companies over cartel concerns
EU regulators have conducted dawn raids on several online food delivery companies in two EU countries over concerns of cartel violations and no-poach agreements. The European Commission, which did not disclose the names of the companies or countries involved, stated that the investigation has been extended to cover alleged no-poach agreements and exchanges of commercially sensitive information. Delivery Hero and Glovo, both online takeaway food companies, confirmed that they were raided last year. The companies could face fines of up to 10% of their global turnover for breaching EU antitrust rules.
LEGAL
Nvidia is sued after engineer accidentally shared data from old job on video call
An engineer at Santa Clara, Calif. headquartered software company Nvidia shared his screen during a video conference call with his former employer Valeo, leaving a file up that contained data about robocar technology that he had stolen from the French global automotive supplier. Valeo is now suing Nvidia in California after the engineer was convicted of infringing business secrets in Germany. Nvidia has sought to defuse the situation by stating that it had no interest in Valeo's code or alleged trade secrets and had taken steps to protect Valeo's rights. However, Valeo still filed a complaint against Nvidia. The engineer, Mohammad Moniruzzaman, had stolen files and source code from Valeo before leaving the company. During the conference call, he accidentally displayed Valeo's source code on his computer screen. Moniruzzaman was convicted in a Stuttgart court and ordered to pay a fine. Intellectual property theft is a recurring theme in the race to dominate the autonomous-driving market. Nvidia, a relative newcomer in the self-driving space, is accused of leveraging Valeo's stolen software for an illegitimate advantage. Valeo has spent billions developing advanced driving-assistance systems and aims to protect its investments. The case is ongoing in federal court in San Jose, California.
TECHNOLOGY
AI executive quits over copyright row
A senior executive at London-based artificial intelligence start-up Stability AI has resigned in protest because the company uses copyrighted work to train its models without paying for it or getting permission from the holder. Stability previously responded to the US copyright office with the argument that “AI development is an acceptable, transformative and socially beneficial use of existing content that is protected by fair use.” But Ed Newton-Rex, the company’s head of audio, said: “Companies worth billions of dollars are, without permission, training generative AI models on creators’ works, which are then being used to create new content that in many cases can compete with the original works. I don’t see how this can be acceptable in a society that has set up the economics of the creative arts such that creators rely on copyright.”
STRATEGY
AI ‘hit squad’ to be set up to cut size of UK civil service and boost productivity
Deputy Prime Minister Oliver Dowden plans to establish an artificial intelligence “hit squad” unit with a remit to shrink the size of the UK civil service and bolster public sector productivity, including the speeding up of government processing of asylum, immigration and welfare claims. The Cabinet Office, which coordinates government departments, proposes to employ between 20 and 30 experts in a so-called “incubator for AI,” at an initial cost of about £5m. “Welfare and tackling welfare fraud, looking at what we can do around the interface with the health service, and looking at what we could do around asylum and immigration processing are three obvious areas where we’ve tasked them initially,” Dowden said.  “What I see with this is a transformative tool to be able to enhance the pace of technology in a way that can help us deliver better outcomes with fewer inputs, and ultimately, that should be able to save taxpayers money,” he said.
HIRING
Germany aims to attract skilled workers from Africa
Germany aims to attract skilled workers from Africa while emphasizing the importance of smooth deportations for those who do not meet the criteria. Chancellor Olaf Scholz expressed Germany's interest in fostering economic cooperation with African nations and highlighted the country's recent adoption of an immigration law designed to draw in skilled individuals. Scholz also emphasized Germany's commitment to the overall economic development of the African continent and the potential for mutual benefits for Africans and German businesses. He underscored the need for collaboration between Europe and Africa, particularly in sectors such as climate and energy, and recognized Africa's capacity for clean energy and hydrogen production as an opportunity for joint development.
Demand for foreign employees is growing in Latvia
Demand for foreign employees in Latvia is on the rise, with a 35% increase in Latvian companies using the international HR platform Deel this year. The number of employees working remotely for Latvian companies has also doubled. Latvian companies are hiring foreign employees mainly from Egypt, Macedonia, Georgia, Estonia, Lithuania, Germany, Spain, Italy, Azerbaijan, and the Philippines, with software development, IT services, marketing, advertising, and finance being the most sought-after sectors.
Nomura to expand markets business in Europe with new hires in Paris
Nomura Holdings plans to hire about 10 staff in sales and structuring in Paris as part of its strategy to expand the markets business in Europe. The lender's trading unit, which currently employs about 25 people in the French capital, could add about 10 more across local sales and structuring teams next year. The growth push will focus on fixed-income, though Nomura may also look to increase headcount in equities. Nomura Chief Executive Officer Kentaro Okuda has been looking to expand some businesses in Europe as part of an effort to revive profitability. "Paris, for Nomura, has become a pillar for European growth," observed Jean-Marc Alexis, regional head of sales at Nomura.
CYBERSECURITY
Ukrainian cybersecurity officials fired over corruption allegations
Ukraine has fired its top two civilian cybersecurity officials on corruption allegations involving software purchases from 2020-2022. The head of the state intelligence service is allegedly involved in the embezzlement investigation. The fired officials include Viktor Zhora, who is internationally known for Ukraine's efforts against Russian hacking campaigns. The anti-corruption bureau revealed that the alleged conspirators inflated the price of software and services purchased from abroad, resulting in the embezzlement of 62 million Ukrainian hryvni. Ukraine's President Volodymyr Zelenskyy and his aides view these firings as proof of their anti-corruption efforts. The State Service of Special Communications and Information Protection has urged authorities to wait for the investigation to be completed before making accusations against individuals. Ukraine's fight against corruption is seen as crucial for its membership in the European Union and NATO.
HEALTH & WELLBEING
Nearly 500,000 in UK are out of work due to an unhealthy lifestyle
A new report reveals that nearly 460,000 people in the UK are unemployed due to the consequences of health-harming products, resulting in a loss of £31.1bn from the economy. The report, commissioned by Action on Smoking and Health (Ash), the Obesity Health Alliance, and the Health Alliance (AHA), highlights the impact of smoking, alcohol, and obesity on employment and the economy. The analysis shows that 289,000 people are not working due to poor health caused by smoking, while 99,000 are unemployed as a result of illness caused by alcohol, and 70,000 are unemployed because of weight-related health conditions. The report calls for regulation to protect public health and reduce the consumption of harmful products.
INTERNATIONAL
Brick factories in Cambodia using waste from international brands see workers fall ill, report says
Waste from at least 19 international brands, including Adidas and Walmart, is being burned in brick factories in Cambodia, causing workers to fall ill, according to a report by the Cambodian League for the Promotion and Defense of Human Rights (LICADHO). The report found that garment waste from these brands was being burned at seven factories to save on fuel costs. Workers reported experiencing headaches and respiratory problems as a result. The report also highlighted the release of toxic substances, including dioxins, which can cause cancer. Brands such as Primark and Lidl have stated that they are investigating the matter. Burning garment waste can release toxic substances and pollutants, according to a study by the UN Development Programme. The LICADHO report named several brands, including Adidas, Walmart, and Primark. Adidas has initiated an investigation, while Lidl has started its own investigations. Primark is also looking into the issue. Tilley Endurables expressed concern and stated that it only works with audited factories. Other brands named in the report did not respond to requests for comment.
Israel's jobless rate soars to 10% amidst Gaza conflict
Israel's jobless rate surged to near 10% in October due to the outbreak of war with Palestinian Hamas militants. The rate reached 9.6% as 428,400 people were jobless, compared to 163,600 in September. Nearly 400,000 Israelis were called up to reserve duty, and about 80,000 Israelis were placed on unpaid leave. The employment rate in October dipped to 56.5% from 61.1%. Israel's low jobless rate had supported economic growth, but with many people furloughed or out of a job, the economy is expected to contract in Q4 and grow less than expected in 2023.
Iranian lawmakers approve retirement age increase and pension reforms
Iranian lawmakers have approved legislation raising the retirement age for men to 62 and increasing the years of employment required to qualify for a full pension. The bill aims to reduce pension fund shortfalls and still requires approval by the Guardian Council. Male employees will now have to work 35 years before retiring with a full pension, while the retirement age for men will be raised from 60 to 62. Women's retirement age will remain at 55. Labour Minister Solat Mortazavi stated that the move is necessary to ensure pension funds can meet their obligations. The approval comes amid severe shortfalls in pension funds, with concerns that Iran may need to sell territory to pay pensioners. The country is facing a crippling economic crisis, worsened by U.S. sanctions and inflation of around 50%.
OTHER
Transgender women have lunch with Pope Francis in historic meeting
The run-down beach town of Torvaianica, Italy, witnessed a historic moment as transgender women Claudia Victoria Salas and Carla Segovia, along with other transgender individuals, had lunch with Pope Francis on the Church's World Day of the Poor. The invitation came after a rapprochement between the transgender community and the Catholic Church during the COVID-19 lockdown. The Vatican's doctrinal office recently issued a statement allowing transgender people to be godparents, witnesses at religious weddings, and receive baptism. While LGBT rights advocates welcomed the move, conservatives criticized it for sending what they said were confusing signals about sexual morality.
 


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