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APAC Edition
6th August 2024
 
THE HOT STORY
Robot-tended Chinese convenience chain encounters limitations of automation
The Bianlifeng convenience store chain in China was founded on the idea that humans are inefficient, and it sought to eradicate human decision-making from the operation of its outlets. “Our unstaffed shop means that there are no people in the entire business decision-making process,” co-founder Zhuang Chenchao proclaimed in 2019. “We believe that every node that is manned leads to a decrease in overall efficiency.” Bianlifeng applies a rating system to employee performance, and cuts pay if scores are too low. As well as monitoring the consumption patterns of customers, an in-store robot and cameras surveils employees. But the chain has had to close 1,300 stores in three years and needs to adjust its model, experts say. Disputes have arisen as employees say they are “trapped” in the rigid management system and suffer from high pressure and what they say are unreasonable assignments. “Algorithms cannot completely replace human agency,” said Jason Yu, general manager of market-research firm Kantar Worldpanel Greater China and vice executive president of CTR Media Convergence Institute. “How to combine human touch with its management will be a challenge for Bianlifeng.”
HIRING
Recruitment platform operators in Korea develop services for foreign jobseekers
Recruitment platform operators in Korea have developed various services specifically designed for the increasing number of foreign jobseekers. JobKorea has partnered with HireDiversity to boost the hiring of foreign nationals by local firms. JobKorea has also launched KLiK, which displays job postings in Korea in 28 different languages. Wanted Lab has opened Wanted Global, a platform for foreign jobseekers who want white-collar jobs in Korea. Saramin is targeting corporate customers who have faced difficulties in hiring foreign nationals and has partnered with K-Visa to help its corporate clients with visa issues. The market for hiring foreigners in Korea is growing rapidly, with the number of foreign nationals hired by Korean companies reaching a record high of 923,000 in 2023.
Politicians in Japan are reluctant to create pathways for foreign workers
Politicians in Japan are hesitant to create pathways for foreign workers, particularly those in low-skill jobs, to stay indefinitely. This reluctance may put Japan at a disadvantage compared to neighbouring countries like South Korea and Taiwan, as well as countries farther away such as Australia and Europe. Japan's resistance to immigration and public wariness of integrating newcomers have resulted in a complex legal support system that makes it challenging for foreigners to establish roots in the country. Foreign-born workers in Japan earn about 30% less than their Japanese counterparts on average. The government has passed laws to increase the number of low-skilled laborers allowed into the country, but Japan still falls behind other countries in terms of significant migration. The country has tightened some rules while loosening others, making it difficult for foreigners to obtain permanent residency. Language training for foreign workers is also lacking compared to countries like Germany. Despite these challenges, some companies in Japan are taking measures to support their foreign staff, including offering language lessons and skills training.
LEGAL
Sushi Bay restaurants penalised A$15.3m for exploiting workers
The owner and companies behind Sushi Bay restaurants in Canberra, Darwin, and New South Wales have been penalised A$15.3m by the Federal Court for exploiting workers, including underpaying staff more than A$650,000. The Fair Work Ombudsman says it will use all its powers to pursue individuals and companies that exploit workers. The Federal Court found Sushi Bay outlets in New South Wales, Darwin, and Canberra underpaid 163 workers more than A$650,000 between February 2016 and January 2020. Most of the staff were Korean nationals. The fines included a A$3.2m penalty against Sushi Bay Pty Ltd, a A$5.8m penalty against Sushi Bay ACT Pty Ltd, A$2.4m against Auskobay Pty Ltd, and A$2.3m against Auskoja Pty Ltd. All of the companies are now in liquidation, and all 16 outlets — apart from one in Campbelltown in Sydney which is under the control of liquidators — have closed.
STRATEGY
Chinese businesses hoping to expand in the U.S. face suspicion
In 2022, Michigan Governor Gretchen Whitmer welcomed a Chinese battery company's plan to build a $2.36bn factory and bring thousands of jobs to Big Rapids. However, the project now faces opposition from some U.S. lawmakers and local residents. Republican Rep. John Moolenaar accuses the Chinese company of having ties to forced labor and fears it could spy for Beijing. U.S.-China rivalry threatens to rupture ties between the world's two largest economies, which could harm businesses, workers, and consumers. The future of the Chinese battery factory in Michigan remains uncertain as Moolenaar rallies support for a bill that would prevent the company from receiving federal subsidies. The company denies the forced labor accusations and emphasizes the importance of onshoring technology.
Infineon to cut 1,400 jobs worldwide
Infineon, the German chipmaker, is set to cut 1,400 jobs worldwide and relocate a further 1,400 positions to countries with lower labour costs as part of its cost savings programme. The company's CEO, Jochen Hanebeck, confirmed that the cuts include the cancellation of several hundred positions at the company's plant in Regensburg, Germany. Hanebeck emphasized that there will be no forced redundancies in Germany. The move is aimed at improving cost efficiency and ensuring the company's long-term sustainability.
Global brands set to boost India sourcing
Global brands like Marks & Spencer, Next, Decathlon, Primark, Gap, Walmart, Pepco, and Tesco are planning to ramp up sourcing from India. KM Subramanian, president of Tiruppur Exporters Association, said global buyers are finding India a more stable sourcing country compared to others like Bangladesh. "So, more orders have started to pour into Tiruppur. We expect more orders to get diverted from the neighbouring nation", he said, in a reference to Bangladesh. The recent budget scrapped or lowered import duties on certain raw materials used in the fashion industry but only when they are exported as finished products from India.
CORPORATE
China asks large state financial institutions to drop auditor PwC
China's Ministry of Finance has been instructing major state-owned businesses to cut ties with PwC over its work with property developer Evergrande in recent months. PwC has been ditched by more than 30 listed Chinese companies, including Bank of China, China Life Insurance, PICC, China Taiping Insurance, and China Cinda Asset Management. Dropping the auditor is seen as a step towards avoiding potential penalties. "The Chinese government is taking a tough stance on financial regulation, and PwC's association with Evergrande has put them in a difficult position," said an industry expert.
INTERNATIONAL
Dutch judge under fire for using ChatGPT in verdict
A Dutch judge, Mr. RJJ van Acht, has faced criticism for using ChatGPT to reach a verdict in a dispute between homeowners. Despite concerns about the reliability of artificial intelligence, the judge twice asked ChatGPT for information on solar panels, which ultimately influenced the damages paid to the defendant. Tech expert Henk van Ess said: "This is really unacceptable. This is ridiculous. You have to take every statement from ChatGPT with a grain of salt . . . I was shocked by so much ignorance and hope that other judges do not secretly use the same methodology." AI expert Jarno Duursma added that using ChatGPT, and other large language models (LLMs), was risky because they do "not possess any real knowledge." However, the Daily Mail notes that the UK's Judicial Office has given judges permission to use large language models (LLMs) to assist in legal rulings. In a recent UK Court of Appeal ruling, Lord Justice Birss described ChatGPT as "jolly useful" for summarising information.
OTHER
Japanese retailer Birthday pulls 'lazy dad' kid clothes after backlash
Japanese retailer Birthday has withdrawn a line of kids' clothes featuring slogans about lazy, uninvolved fathers, after the designs sparked an online backlash. The products included a T-shirt stating "Daddy's always sleeping", and baby socks declaring "Daddy doesn't take care of me at all". "We want to deeply apologise for the offensive phrases," the brand said on social media platform X, adding that the products would no longer be available to purchase.
 


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