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APAC Edition
4th September 2024
 
THE HOT STORY
India's archaic labour laws allow firms to exploit workers
Major international companies, particularly in the tech sector, are reportedly exploiting India's outdated labour laws, leading to widespread unpaid overtime among employees. Deutsche Welle reports on how Rohan and Aditi, who work for British and US multinationals respectively, endure gruelling 14-hour workdays without extra compensation. The Factories Act of 1948, which mandates overtime pay, does not apply to white-collar workers like them, creating a legal loophole. Mahesh Godbole, who started out as a human resources professional almost 40 years ago, explains: "In office environments, companies circumvent overtime laws by designating employees as 'officers' or 'executives,' categories to which overtime laws for 'workers' do not apply, creating a legal grey area." Experts suggest that recent court rulings may pave the way for better recognition of workers' rights, but the lack of strong regulations continues to leave many, including Rohan and Aditi, struggling for a work-life balance.
HEALTH & SAFETY
Hong Kong urged to better protect outdoor cleaners from heatstroke
Oxfam Hong Kong has revealed findings from a recent poll which indicates that more than 86% of local outdoor workers have experienced heat exhaustion due to a lack of familiarity with the city's heat warning system. The Labour Department's three-tier warning system, introduced in May 2023, aims to alert workers when temperatures exceed 30 degrees Celsius (86 Fahrenheit). However, many cleaners remain unaware of these warnings, as they seldom check their phones while working. Wong Shek-hung, Oxfam's director for the Hong Kong, Macau and Taiwan programme, said: “We hope to expand the project and have been in discussion with other charities and organisations.” The NGO has also distributed smartwatches to workers, which have reportedly increased awareness of rest periods and hydration needs. Despite these efforts, many workers still feel that the current heat stress warnings are inadequate, with over 60% calling for a review of safety guidelines.
HIRING
Infosys issues offer letters to 1,000 freshers of 2022 batch after delay of more than two years
Infosys CEO Salil Parekh has confirmed that the company will honour job offers made to freshers, with onboarding set for October 7, 2024. The announcement follows a delay of more than two years, during which more than 1,000 offer letters were issued to campus hires from 2022. Harpreet Singh Saluja, President of the Nascent Information Technology Employees Senate (NITES), said: "These young engineers, who have been waiting for nearly two years, now have a confirmed joining date." NITES has previously raised concerns with the Ministry of Labour and Employment regarding the treatment of 2,000 engineering graduates selected during the 2022-23 recruitment drive. The roles offered include System Engineers and Digital Specialist Engineers, with salaries set at ₹ 3.6 lakh and ₹ 6.5 lakh per annum, respectively.
TECHNOLOGY
Cathay leverages Copilot for Microsoft 365
Cathay Pacific  is integrating AI applications, particularly Copilot for Microsoft 365, to improve efficiency and customer experiences. Lawrence Fong, Director of Digital and IT at Cathay, said: “We wanted an AI-powered solution to help our people work smarter, giving them the power, time, and space to focus on value-added tasks.” The AI tool automates routine tasks, summarises meetings, and condenses reports, allowing employees to concentrate on strategic planning and creative thinking. While AI enhances productivity, Fong emphasised the importance of human oversight, saying, “We're still the ones in charge.” Cathay says it aims to cultivate a workplace where technology amplifies human potential, fostering a culture of innovation in the aviation industry.
LEADERSHIP
HSBC’s new CEO to build on the bank's current strategy
Georges Elhedery has officially taken over as the new chief executive of HSBC, succeeding Noel Quinn. In an internal memo, Elhedery expressed his commitment to the bank's existing strategy, stating: "Our strategy is working, and I'm committed to continuing to build on it." He aims to shift HSBC from restructuring to growth amidst challenges such as potential interest rate cuts and geopolitical tensions. Elhedery, who joined HSBC in 2005, began his tenure with a visit to Hong Kong, the bank's largest market, to engage with leadership teams, clients, and staff.
Swiggy appoints Jha as Instamart CEO
Swiggy has appointed former Flipkart senior vice president and head of grocery Amitesh Jha as the chief executive of Instamart. Swiggy cofounder Phani Kishan Addepalli, who was previously heading Instamart, will now lead the firm's central growth team that looks after initiatives like the subscription service Swiggy One. Phani will also take on the role of chief of staff to Majety.
CORPORATE
Harris opposes U.S. Steel's sale to Japanese firm
During a campaign rally in Pittsburgh, Vice President Kamala Harris emphasized the importance of U.S. Steel remaining domestically owned, aligning with President Biden's opposition to the company's proposed sale to Japan's Nippon Steel. Harris said: “U.S. Steel should remain American-owned and American-operated,” as she highlighted the company's significance for American workers. Biden praised Harris as the “rational” choice for president, highlighting their shared commitment to supporting American labor. Despite U.S. Steel's insistence that the sale would benefit American jobs and communities, Harris's stance reflects her stated dedication to steelworkers and the broader U.S. labor movement. “When unions are strong, America is strong,” Harris said.
INTERNATIONAL
Wells Fargo employee found dead at office desk four days after clocking in
Denise Prudhomme, a 60-year-old employee at Wells Fargo in Tempe, Arizona, was discovered dead at her desk four days after last clocking in on August 16. The Tempe Police Department confirmed her body was found on August 20, with firefighters pronouncing her dead shortly after. While the cause of death remains under investigation, police reported no immediate signs of foul play. Some workers expressed concern over the lack of communication from Wells Fargo regarding Prudhomme's death. The company said it needed to inform Prudhomme's family before addressing employees and emphasized its commitment to workforce safety, saying that it is offering counseling for those affected. "Our thoughts are with her family and loved ones," Wells Fargo said in a statement.
The rise of the corporate influencer
The rise of LinkedIn influencers is transforming corporate marketing strategies, as seen with Deloitte's appointment of Lara Sophie Bothur as the firm's first full-time corporate influencer for operations in Germany, Australia and Switzerland. Her posts on "tech for good" have garnered 400m impressions, significantly outperforming Deloitte's own posts. A study by Refine Labs revealed that personal LinkedIn profiles generate nearly three times the impressions and five times the engagement compared to corporate profiles. The trend is not limited to established firms. Start-ups like Waterboy and SET Active are also leveraging influencers to enhance brand visibility. Meagan Loyst, founder of Gen Z VCs, says companies will need to fight hard to retain influencers who can make a yearly corporate income in just a few partnerships on their own.
BCG pays $14.4m over bribes
London's City AM reports that Boston Consulting Group (BCG) has been found to have paid bribes in exchange for business in Angola but will not face prosecution after agreeing a deal with the U.S. Department of Justice (DoJ). The firm was found to have paid its agent in Angola around $4.3m in commissions to help it obtain business with the Angolan government. Some BCG employees in Portugal were found to have taken “steps to conceal the nature of the agent’s work for BCG when internal questions arose, including by backdating contracts and falsifying the agent’s purported work product.” A spokesperson for the firm said it will “disgorge $14.4m, which the DOJ calculated to reflect BCG’s profits from the impacted work.”
General Motors factory in Ecuador closes for good
General Motors' plant in Ecuador is to close its doors permanently at the end of this week amid pressure from local competitors, leaving 320 workers fearing for their livelihoods. The factory will however still sell vehicles in the Andean country. The Cadillac and Chevrolet maker said earlier this year that it would close its production operations in Ecuador and neighboring Colombia. General Motors' OBB plant in Quito accounts for more than half (51%) of car production in Ecuador.
OTHER
Hong Kong's retailers call for 30% rent reduction
Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, has called for a 30% reduction in rents as the retail sector faces a bleak outlook. The city's retail sales volume fell to HK$29.1bn ($3.7bn) in July, marking an 11.8% year-on-year decline for the fifth consecutive month. Tse stated: “The trend will continue to the end of the year or even early next year", attributing the downturn to changing consumption patterns and a strong Hong Kong dollar. Despite an increase in inbound travellers, the anticipated boost in retail spending has been minimal. Tse emphasised that a significant rent reduction is essential, as current cuts of 5-10% do not reflect market realities. Meanwhile, Lau Chun-kong from Colliers Hong Kong noted that rent is just one factor affecting sales, suggesting a broader examination of business models and cost structures is necessary.
 


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