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APAC Edition
14th June 2024
 
THE HOT STORY
Paytm employees allege forced resignations, no severance pay, and informal processes
Several former and current employees of Indian multinational financial technology company Paytm have raised concerns about forced voluntary resignations, no severance pay, and demands for the return of retention and joining bonuses. Some of the employees are facing imminent job cuts and have unsuccessfully bargained for pay cuts instead, and Paytm is allegedly asking employees to "voluntarily resign." Paytm is also demanding the return of joining and retention bonuses, which were not mentioned in offer letters. One employee alleged that Paytm did not formally communicate the restructuring or job losses and warned staff against recording HR meetings. "The calls with HR are labelled as 'connect' or 'discussion'. There is no formal documentation of any kind," the employee alleged. One Paytm employee has already filed a complaint with the labour ministry, while others are seeking a fair exit process and are consulting lawyers. Paytm denies the allegations and claims to support employees during the transition and is honouring full notice periods and processing due bonuses. The job cuts are reportedly a result of the Indian central bank's decision to shutter Paytm's financial arm and wallets business.
WORKPLACE
US bank fires workers for ‘simulating’ being at their keyboards
US bank Wells Fargo has sacked a number of staff following claims that some employees were faking keyboard activity to make it appear that they were working. The bank disclosed the dismissals in broker filings with the US Financial Industry Regulatory Authority, saying staff had resigned or been fired "after review of allegations involving simulation of keyboard activity creating impression of active work." Wells Fargo spokeswoman Laurie Kight said: “Wells Fargo holds employees to the highest standards and does not tolerate unethical behaviour.” The regulatory filings did not say what techniques the employees had used, or whether they involved office or home computers.
WORKFORCE
Dhaka's most expensive building highlights economic disparity in Bangladesh
A newly built residential complex in Dhaka, Bangladesh, known as Three, is set to become the most expensive building in the city. The 14-storey building, constructed by real estate developer BTI, features 12 apartments with modern amenities and gadgets. Despite its high price tag, all the apartments were sold before construction began. This luxury building highlights the growing wealth disparity in Bangladesh, where the wealthiest 10% of the population controls 41% of the nation's total income. The country's economic transition has led to a deepening divide between the rich and poor. Bangladesh has seen a significant increase in the number of individuals with a net worth exceeding $5m, making it the global leader in wealth growth. However, this concentration of wealth has also led to a rise in poverty, exacerbated by the COVID-19 pandemic. The government's tax policies and unequal distribution of economic gains have contributed to this inequality. While Bangladesh's economy is growing, the wealthy often evade taxes and keep their wealth offshore.
China's high-pressure work culture is driving young people out of megacities
China's new generation of professionals is leaving big cities for smaller towns in search of a slower, more relaxed lifestyle. The trend is driven by a desire to escape the high-pressure, long working hours culture prevalent in major cities like Beijing, Shanghai, and Shenzhen. Young workers are also motivated by the lower cost of living and improved work-life balance in smaller towns. However, analysts warn that the trend may be temporary and could reverse when the economy improves. Despite the risks, the urban-rural gap in infrastructure and services has narrowed, making smaller towns more appealing.
LEGAL
Australian union files equal pay applications for BHP coal mine workers in Queensland
Australia's Mining and Energy Union (MEU) has filed for same job same pay orders for 1,700 labour-hire workers at three large BHP coal mines in Queensland. If successful, the applications to the Fair Work Commission would increase the pay of affected workers by A$10,000 to A$40,000 per year. MEU Queensland President Mitch Hughes stated that the applications are a major step towards closing the loopholes that have allowed BHP to avoid paying fair rates. BHP had previously opposed the same pay same job legislation, arguing that it leads to inflationary wage pressures and puts Australian jobs at risk. The applications cover workers employed by WorkPac, Chandler Macleod, and BHP subsidiary Operations Services at Peak Downs, Saraji, and Goonyella Riverside mines. Peak Downs, Saraji, and Goonyella Riverside are owned by the BHP Mitsubishi Alliance (BMA) and operated by BHP.
HEALTH & SAFETY
India brings home bodies of 45 workers killed in Kuwait fire
The bodies of 45 Indian workers who died in a fire in a labour housing facility in Kuwait have been flown back to their home country. The fire, likely caused by an electrical short circuit, claimed the lives of 49 people. Thirty-three others are being treated in hospital. The chief minister of the southern Indian state of Kerala called the accident "a national tragedy." Kuwait relies heavily on foreign labour, with millions of foreign workers making up the majority of its labour force. The Indian foreign ministry said 176 workers lived in the facility. Kuwaiti prosecutors have ordered the remand of one citizen and several residents amid accusations of manslaughter due to safety negligence. The fire has underscored the poor working conditions faced by a large section of the Indian diaspora working overseas.
Japan Airlines vows to improve safety awareness
Japan Airlines has pledged to improve safety awareness among its crew and revise its safety management system following a series of aircraft mishaps. The airline submitted a report to the transport ministry, stating that crew members' inability to assess danger levels and the pressure on pilots due to time constraints were contributing factors to the incidents. Japan Airlines plans to conduct intensive safety training and reestablish employee awareness. The airline will also consider reprimanding employees for oversights resulting in mishaps. Between November and May, five major incidents involving Japan Airlines aircraft were reported, prompting a stern warning from the transport ministry. The most recent incident involved two planes colliding on the airport's parking apron. The airline has implemented a new rule banning flight crews from consuming alcohol during layovers in response to a canceled flight caused by a pilot drinking excessively.
Innovative insurance program helps Indian labourers beat the heat
An innovative insurance program in India is providing relief to daily wage labourers during extreme heatwaves. The program, run by the Self-Employed Women's Association (SEWA) labour union, pays a portion of the labourers' income on days when the temperature exceeds a certain threshold. Over 46,000 women across 22 districts in India were paid a total of $340,000 during last month's heatwaves. The program uses parametric insurance, which pays out based on specific metrics such as daily high temperatures. The eventual goal is to enroll SEWA's 2.9 million members and have the program funded entirely by women paying premiums. While the insurance program is helping address immediate needs, SEWA is also implementing other interventions to educate women about the health impacts of extreme heat and provide additional support.
REMUNERATION
Australian CEO salaries rise by 14%
Chief executive salaries in Australia rose by an average of 14% in the past financial year, far outpacing pay rises awarded to the rest of the workforce. The average fixed remuneration of a CEO at an ASX200 listed company was $1.37m, up from $1.14m in 2022/23. “Executives are clearly being compensated for delivering profits and returns for shareholders and are making the most of a competitive market for top talent,” said Megan Motto, CEO of the Governance Institute.
INTERNATIONAL
Younger employees in US are reporting more struggles at work
A Gallup study reveals that younger employees in the US are reporting more struggles at work compared to their older colleagues. Only 31% of workers under 35 said they were thriving at work last year, while 36% of workers aged 35 and older reported thriving. The age gap in workplace thriving is the largest since 2009. The study also highlights an increase in negative emotions and loneliness among younger workers. “We've seen increases in negative emotions globally for young people, including loneliness,” said Jim Harter, chief scientist of workplace management and wellbeing at Gallup. The report noted that older leaders “may not see the present and the future in the same way as their youngest employees.” Workplace unhappiness has been previously estimated by Gallup to have cost US companies $1.9 trillion in lost productivity in 2023.
Dutch software firm implements four-day work week for employees
Dutch software firm AFAS has announced plans to transition all of its employees to a four-day work week starting next year. The move, which makes AFAS the first large employer in the Netherlands to implement a four-day work week, aims to promote work-life balance and inspire other businesses to follow suit. The company's approximately 700 employees will continue to receive the same wages, bonuses, benefits, and vacation time, while their workday will remain at eight hours. AFAS CEO Bas van der Veldt said: "This is about a great work-life balance, about being an attractive employer and about a new vision on work." Sick leave levels at AFAS were below 2.5% last year, and the company says it is working towards achieving gender representation in its workforce.
UK law firms advised to stop hosting work socials at pubs
UK law firms have been advised to reconsider hosting work socials at pubs due to concerns of excluding Muslim staff, according to a report by Rare, a UK graduate recruitment company. The report highlights the unfairness of the legal profession's heavy drinking culture to those who do not consume alcohol. The report includes interviews with aspiring lawyers of Pakistani and Bangladeshi origin, who express feeling pressured to drink alcohol at networking events. Muslim women wearing hijabs were found to be at greater risk of disapproval from their families and communities if seen at bars or pubs. The report calls on law firms to review their approach to work socials and encourages open conversations about religious practices at work.
 


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