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APAC Edition
21st August 2024
 
THE HOT STORY
Korean firms face youth exodus
Recent analysis by Leaders Index reveals a significant decline in the proportion of employees in their 20s at major Korean conglomerates, dropping from 23.4% in 2021 to 21.6% in 2023. In contrast, the share of workers aged 50 and above increased from 20.8% to 22%. Notably, Samsung Electronics saw its under-30 workforce decrease from 89,897 to 72,525. The report, which examined the sustainable management reports of 123 companies, indicates a trend where firms are prioritising skilled older workers over younger talent. A Leaders Index official observed: “These results can be attributed to the tendency of Korean firms looking for skilled workers instead of new employees.” The shift reflects broader demographic changes in South Korea, including a low birthrate and an aging population.
HIRING
Up to $6,000 offered for Singapore job seekers
The proposed SkillsFuture Jobseeker Support scheme aims to provide interim financial assistance to workers in Singapore who have lost their jobs, and will offer up to $6,000 over six months. However, experts, including Associate Professor Terence Ho from the Lee Kuan Yew School of Public Policy, have expressed concerns about the adequacy of such a payout for middle-income workers, stating, “For middle-income households, it will help alleviate financial stress but they will likely also need to rely on their savings.” The scheme's design and implementation details are still pending, with Prime Minister Lawrence Wong and Manpower Minister Tan See Leng expected to provide further specifics. The support is intended to encourage job seekers to pursue training and career coaching, although it remains unclear if these will be mandatory. Comparatively, the scheme appears less generous than similar international support systems, which often provide a higher percentage of qualifying income.
Health officials in Henan province sacked following recruitment scandal
Health officials in Ruzhou, Henan province, have been sacked for their involvement in a recruitment scandal at a publicly funded disease control and prevention centre. The centre had initiated a recruitment drive in 2022 and hired 41 people after a lengthy process. However, the health workers were dismissed due to regulatory breaches in the recruitment process. An investigation revealed that the recruitment plan had not been approved by higher authorities and the advertisements included unlawful thresholds. The incident has raised concerns about transparency in hiring practices for public posts.
LEGAL
Sacked worker wins case against auto giant
The Times of India reports on how B Pazhani, a dismissed welder, successfully challenged Unipres India, leading to his reinstatement after the Industrial Tribunal found significant flaws in the company's case. The tribunal highlighted that Unipres failed to provide solid evidence for the claims against the worker, including the alleged damage to a brass connector that supposedly caused a seven-minute production halt in November 2016. Furthermore, the tribunal noted procedural lapses in the company's internal inquiry, stating that the inquiry officer ignored key evidence and showed bias. Ultimately, the tribunal concluded that the dismissal was unjustified and ordered his reinstatement.
WORKFORCE
China's graduates face bleak job market
China is grappling with rising unemployment, particularly among its youth, as millions of college graduates struggle to find suitable jobs. The term "rotten-tail kids" has emerged on social media, reflecting the plight of graduates forced to accept low-paying jobs or rely on their parents' pensions. The youth unemployment rate surpassed 20% for the first time in April 2022, peaking at 21.3% in June 2023 before officials suspended the data series. As of July 2024, the reconfigured rate stands at 17.1%, with 11.79m graduates entering a challenging job market. Yun Zhou, an assistant professor at the University of Michigan, observed: "For many Chinese college graduates, better job prospects . . . have increasingly become elusive."
CORPORATE
Big three consulting firms are 'no help at all'
A survey of 702 executive staff and project managers commissioned by digital consultancy Emergn found that 84% of senior executives who worked with the big three consulting firms - McKinsey, Boston Consulting Group and Bain - thought they were no help at all. Only 13% reported they were of some help while 3% said they had made things worse. Alex Adamopoulos, founder and chief executive of Emergn, said: “What you have is big consultancy armies with briefcases. They walk into organisations and confidently try to get them to fit into a predesigned transformation strategy mould. But what organisations need is a solution that works in their context.” The survey polled chief executives, chief technical and chief operating officers, as well as project managers or departmental managers, in the UK and US. All were involved in operational change in companies with at least 1,000 employees and a minimum of $500m global average annual turnover.
PwC loses Bank of China to EY
PwC has lost its largest client in mainland China, the Bank of China, to rival EY, amid ongoing regulatory scrutiny related to its audits of China Evergrande Group. The Bank of China, which had previously intended to reappoint PwC for 2024, announced its decision to switch auditors in a recent filing, pending shareholder approval. PwC received 193m yuan (£22.5m) in auditing fees from the Bank last year, which surpasses the combined fees from its next three largest clients. Over 50 Chinese firms have severed ties with PwC recently, as regulators have advised state-owned enterprises to be cautious about hiring auditors with recent penalties. PwC had been the auditor for Bank of China since 2021, following an eight-year tenure by EY.
INTERNATIONAL
The ‘right to switch off’ will boost economic growth, UK government says
UK government ministers say the ‘right to switch off’ when outside work is key to productivity and could boost the UK's economic growth. They are exploring models in other countries, particularly the Republic of Ireland and Belgium, where workers already have the 'right to disconnect' and not routinely be contacted by their employer or required to work outside of their normal hours. In Ireland, a Code of Practice was introduced requiring employers to engage with employees and unions on a 'right to disconnect' company policy, and setting out the circumstances when employees can be contacted out of normal working hours. In Belgium, companies with at least 20 employees must have agreements in place on the right to disconnect. "This is about ensuring people have some time to rest," the prime minister’s deputy spokesperson said, adding "Good employers understand that for workers to stay motivated and productive they do need to be able to switch off, and a culture presenteeism can be damaging to productivity." Employees could be able to take their employers to a tribunal if conditions of employment are breached. Such a situation could involve different aggravating factors – including consistently contacting an employee after agreed working hours. But government sources have pointed out that different sectors have different requirements and this is likely to be reflected in contracts.
Authors take on Anthropic in US court
A group of authors, including Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, has filed a lawsuit in the US against the AI startup Anthropic, claiming it engaged in “large-scale theft” by using pirated copies of copyrighted books to train its chatbot, Claude. The lawsuit, filed in a federal court in San Francisco, marks the first legal action from writers targeting Anthropic, which has positioned itself as a responsible AI developer. The authors argue that Anthropic's practices undermine its stated goals, saying: “It is no exaggeration to say that Anthropic's model seeks to profit from strip-mining the human expression and ingenuity behind each one of those works.” The case adds to a growing list of legal challenges against AI developers over copyright issues, as many creators assert that their works have been misappropriated without consent or compensation.
UAE court orders company to pay former employee in cryptocurrency
A Dubai court has ruled in favour of a former employee who was wrongfully terminated after complaining about unpaid wages in EcoWatt Tokens. The employee's contract required payment in both UAE dirhams and EcoWatt Tokens, but the employer failed to pay 5,250 EcoWatts over six months. Following the court's decision, the employer is now obligated to compensate the employee in EcoWatts. The ruling marks a significant advancement in recognising cryptocurrency as a legitimate form of remuneration in the UAE, highlighting the importance of employee rights in the evolving local financial landscape.
Nestlé to open new factory in Ukraine
Nestlé plans to bring a new factory in Smolyhiv, in the Ukraine region of Volyn, into operation in the fourth quarter of 2024. The company has invested $45m in its construction. The factory will be part of a hub for the production of culinary products and will manufacture products for export to EU countries. The opening of the factory is scheduled for the fourth quarter of this year, coinciding with the 30th anniversary of Nestlé's operations in Ukraine.
OTHER
Apple ad pulled after Thai backlash
Apple has faced significant criticism in Thailand over an advertisement from its "Underdogs" series, which many Thais found offensive due to perceived cultural insensitivity and translation errors. The tourism committee of Thailand's House of Representatives summoned Apple for clarification, prompting the company to swiftly remove the ad, which had garnered 5m views, and issue an apology. The incident highlights the risks brands face when navigating cultural sensitivities, as seen in past controversies involving Dolce & Gabbana and Christian Dior in China. Apple's quick response may help maintain its market position in Thailand, especially with the anticipated launch of the iPhone 16.
 


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