The latest business Intelligence for HR professionals and people managers everywhere
Sign UpOnline Version
APAC Edition
2nd August 2024
 
THE HOT STORY
Indian Congress candidate's staffing company faces allegations of US H-1B visa rigging
New federal data obtained by Bloomberg reveals how companies that farm out IT workers exploit flaws in the lottery for a limited number of skilled-worker visas known as H-1Bs while other U.S. businesses and talented immigrants lose out. Tech giants, banks and drugmakers all vie for slots in the hope of securing international graduates of top U.S. universities who must otherwise leave the country. Most don’t get picked, and the lottery, it turns out, is rigged. The data reveals how thousands of outsourcing and staffing companies get an unfair advantage by helping themselves to extra lottery tickets. Outsourcers can submit excessive lottery entries because “it doesn’t matter who gets selected as long as somebody gets selected,” observes Emily Neumann, managing partner at immigration law firm Reddy Neumann Brown PC. “The system is set up better for them.” The Times of India, referencing the Bloomberg report, notes that Kandi Srinivasa Reddy, a Congress candidate in the 2023 Telangana assembly elections, is under scrutiny for allegedly rigging the H-1B system. The Bloomberg report claims that Reddy's staffing company used multiple names to submit numerous applications for the same individuals, increasing their chances of selection. Reddy defended his actions, stating that filing multiple entries is legal and that many other companies use the same strategy.
LEGAL
Seymour to face inquiry into PwC Australia tax scandal
Tom Seymour, PwC's former chief executive in Australia, will appear at a Senate inquiry into ethics and professional accountability over a scandal that saw PwC partners leak confidential Australian Treasury information to boost private sector business. Seymour, who headed PwC Australia from 2020 to 2023, confirmed that he had received emails relating to the information and subsequently stepped down. He will be joined by his predecessor, Luke Sayers, and current PwC CEO Kevin Burrowes, as they face the Senate. The Big Four firm has already faced fines and job cuts in the aftermath of the scandal.
WORKFORCE
Over 100,000 Myanmar workers arrested in Thailand's crackdown on illegal workers
According to a press release from Thailand's Ministry of Labor, more than 100,000 Myanmar workers have been arrested as part of a 120-day initiative targeting illegal workers in Thailand. The operation, which began on June 5 and concluded on July 25, has seen extensive checks at factories and industries across the country. A total of 147,726 undocumented migrant workers were apprehended during this period. The crackdown involved inspections by the Thai Employment Department, the Department of Immigration, and the police, focusing on restaurants and industries in Bangkok. Legal actions have been taken against 658 Myanmar workers, 147 Lao workers, 141 Cambodian workers, 21 Vietnamese workers, and 70 workers from other nations. Undocumented workers found in violation of work permit regulations face fines ranging from 5,000 to 50,000 baht, deportation, and a two-year suspension of their work permit. Employers hiring workers without proper permits are subject to fines of 10,000 to 100,000 baht per worker. Repeat offenders risk imprisonment for up to one year, additional fines of 50,000 to 200,000 baht, and a three-year ban on hiring migrant workers.
Gujarat sees surge in applications for women to work night shift
The Indian state of Gujarat has seen a surge in applications from top corporates, including MNCs, to allow women to work night shifts. The state's labour, skill development, and employment department has received 79 applications, with 27 companies already approved. The department aims to promote greater participation of women in the workforce. The increase in applications comes after the Gujarat government modified rules of the factories act, allowing women to work night shifts under certain conditions. Transport arrangements and other facilities are considered while granting permission. Major companies such as Reliance Industries, Nivea India, and Nestle India have been approved for women to work night shifts. The Labour Force Participation survey shows an increase in female participation in the workforce in Gujarat.
TRAINING & DEVELOPMENT
Workers urged to upgrade skills to cope with rising cost of living
NTUC Secretary-General Ng Chee Meng has emphasized the importance of workers in Singapore upgrading their skills to cope with the rising cost of living. He stated that with relevant skill sets, workers can remain competitive, agile, and adaptive to the changing needs of the workplace. The National Trades Union Congress (NTUC) has formed over 2,300 company training committees in the past five years to support training and productivity initiatives. Mr. Ng also highlighted upcoming legislation on workplace fairness and representation for platform workers, as well as the Tripartite Guidelines on Flexible Work Arrangement Requests. The NTUC says it is committed to ensuring young workers have a voice in the workforce and access to opportunities. Mr. Ng urged workers to look forward with optimism and determination, working together to build a more inclusive, resilient, and prosperous Singapore.
STRATEGY
Intel to cut 15,000 jobs to ‘resize and refocus’ business
Intel plans to cut more than 15,000 jobs as the chipmaker tries to cut billions of dollars in costs and turn its business around to compete with more successful rivals. The company, which reported worse-than-expected quarterly results, said it would cut 15% of its workforce in an attempt to “resize and refocus.” The bulk of the layoffs will take place this year. It’s the largest single job cut listed on Layoffs.fyi, an industry tracker that has been operating since March 2020. At the end of last year, Intel had 124,800 employees, according to a regulatory filing.
REMUNERATION
Microsoft is giving a special one-time cash award to some employees
Microsoft is giving a special one-time cash award to some of the company's employees, amounting to an additional 10% to 25% of their annual bonus value for the recently concluded fiscal year. Kathleen Hogan, Microsoft's chief people officer, announced the decision in a company-wide memo, recognizing the hard work and impact of the employees. The special award will be distributed to employees at levels 67 and below, including hourly workers. Executives are excluded from this bonus. Microsoft reported strong fourth-quarter earnings, surpassing expectations. However, disappointing growth in its Azure cloud business led to a drop in Microsoft shares. The cash awards are expected to amount to thousands of dollars per employee and will be paid out in September. The move follows mixed compensation decisions at Microsoft, including increased budget for merit-based salary increases in 2022 but job cuts and no pay raises for full-time salaried employees in 2023. 
HIRING
Tezi is building an AI bot for hiring managers
AI startup Tezi has raised $9m in seed funding to develop an AI bot that seeks to revolutionise the HR recruiting process. The bot will sift through resumes, schedule interviews, and send out emails to candidates that match hiring criteria. Tezi's founders believe that existing tools fall short and that an end-to-end workflow is needed. While the process still requires human engagement, the hope is that it will become fully automated as models improve. The founders are also working on minimising bias in the hiring process. Tezi has trained its models on 250 million profiles and is currently working with design customers. Tezi CEO and co-founder Raghavendra Prabhu acknowledged that HR has been using automated resume screening for some time, but the company saw an opportunity with the new generation of large language models (LLMs ) to build a more sophisticated recruiting tool for HR. “I think it's the combination of reasoning and natural language that we felt gave us an option to build something very, very different from what's historically been done by software in this space,” he explained.
CORPORATE
New U.S. rule on foreign chip equipment exports to China will exempt some allies
Exports of semiconductor manufacturing equipment from U.S. allies including Japan, the Netherlands and South Korea will be excluded from planned Biden administration rules that will expand U.S. powers to stop shipments to Chinese chipmakers, limiting the impact of the rule, say sources. As such, major chip equipment manufacturers such as ASML will not be affected. The rule is an expansion of what is known as the Foreign Direct Product rule. It would bar about half a dozen key Chinese semiconductor fabrication plants from receiving exports from many countries, said one of the sources.
INTERNATIONAL
Bungie employees say they were caught off-guard by layoffs
Bungie, the gaming company behind popular titles like Halo and Destiny, has announced a workforce reduction of 17%, resulting in the layoff of 220 employees. This is the second round of layoffs since Bungie was acquired by Sony in 2022. Former employees affected by the layoffs expressed surprise and disappointment, as the company had recently released a successful project and management had indicated positive performance. The layoffs were announced on Bungie's corporate Twitter account. "It kind of feels like [upper management] is being very two-faced about it," said Guilhem Lagarde, a product support technician at Bungie affected by Wednesday's layoffs, in an interview with TechCrunch. "Like they're telling us one thing, but behind the scenes, something else is happening." Sony's purchase of Bungie in 2022 precipitated a culture shift within the game studio, according to former employees. This spring, however, Sony and Bungie pushed for a more active integration of the two companies, Lagarde said. Bungie CEO Pete Parsons said the layoffs were necessary to refocus the studio and mentioned ongoing integration efforts with Sony. Despite the layoffs, Bungie announced the development of a new game and the formation of a new studio within Playstation Studios. "There already weren't enough people to cover the work we were doing and now there's even less," said Tzivi Sherman, a sound designer at Bungie for more than two years. "I think everything that was a part of Bungie's identity: culture, values, camaraderie – is all gone."
EU's artificial intelligence law takes effect
The European Union's world-first artificial intelligence law has officially come into effect, marking a significant step in the bloc's efforts to regulate AI technology. The Artificial Intelligence Act aims to safeguard the fundamental rights of EU citizens while promoting investment and innovation in the AI industry. The law covers all AI products and services offered in the EU, categorizing them based on risk levels. AI systems posing unacceptable risks, such as social scoring systems and certain predictive policing and emotion recognition systems, will be banned by February. General-purpose AI models will be regulated by August 2025. The EU is establishing an AI Office to enforce the rules. Non-compliant companies may face fines up to 7% of their annual global revenue. The complete set of regulations will be in force by mid-2026. "With the AI Act, the EU has taken an important step to ensure that AI technology uptake respects EU rules in Europe," said Margrethe Vestager, European Commission Executive Vice President.
OTHER
Lego Group launches Build and Talk initiative to address online safety concerns
Lego Group has launched its Build and Talk initiative in China to address online safety concerns. The scheme aims to help parents and children understand potential risks and equip them with the necessary skills to navigate these hazards. The company conducted research on digital networks, which revealed that online safety is a major concern for parents globally. Chinese parents, in particular, are worried about excessive screen time, harmful content, and poor information. Build and Talk, which has been conducted online for several years, has now been extended to offline practice. It includes resource packs covering various themes such as cyberbullying, screen time, online safety, digital footprints, false information, and privacy safety. It debuted at a summer camp for children of Lego employees in Jiaxing, Zhejiang province. Lego will also host Build and Talk activities in several cities nationwide to encourage more families and children to participate in the online safety campaign.
 


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