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APAC Edition
19th September 2024
 
THE HOT STORY
Australia's hiring boom continues
Australia's employment landscape remained robust in August, with a notable increase of 47,500 jobs, surpassing the expected 26,000. The unemployment rate held steady at 4.2%, reflecting a resilient labour market despite high interest rates. Kate Lamb, head of labour statistics at the Australian Bureau of Statistics, stated: “The high employment-to-population ratio and participation rate shows that there are still large numbers of people entering the labour force and finding work.” The report indicates a shift towards part-time roles, with a surge of 50,600 part-time jobs, while full-time positions decreased by 3,100. The Reserve Bank of Australia is anticipated to maintain its key rate at 4.35%, with differing opinions on potential rate cuts in the future.
WORKFORCE
India's gig workers demand social security now
The Gig Workers Association (GigWA) is advocating for the extension of social security benefits, including employees' state insurance (ESI) and provident fund (PF), to gig workers. Following a government initiative to register aggregators and their workers on the e-Shram portal, GigWA proposed a shared cost model for these benefits among gig workers, aggregators, and the government. Nitesh Das, organising secretary of GigWA, emphasised the necessity for social security, stating: "We need the same protections afforded to formal workers." The association commended the Ministry of Labour and Employment for its efforts, including a toll-free helpline and a standard operating procedure for worker registration. A meeting on September 18 between Union minister Mansukh Mandaviya and aggregators is anticipated to address compliance and enhance the integration of gig workers into the social security framework.
Samsung workers strike for better rights
Samsung workers at the electronics giant's facility in Tamil Nadu have been on an indefinite strike since September 9, demanding improved wages, union recognition, and better working conditions. This unprecedented action marks the first strike in the factory's 16-year history, according to A Soundararajan, chief of the Confederation of Indian Trade Unions (CITU) Tamil Nadu unit. CITU has called for government intervention, citing delays in union recognition, stating: “It has been 90 days since we have given our application but so far there has been no response.” Tensions escalated when police detained around 120 employees during protests. Samsung India has stated that the welfare of its employees is a top priority and that it engages with workers to address grievances. CITU is urging the Tamil Nadu government to facilitate union registration and mediate a resolution.
Migrant workers in Singapore to benefit from NTUC's S$2.5m fund
The National Trades Union Congress (NTUC) has launched a S$2.5m fund aimed at supporting approximately 6,600 migrant workers in enhancing their skills for better job opportunities and increased wages. The initiative allows workers to enrol in various courses, including forklift operation and workplace safety, through partnerships with training providers like NTUC LearningHub. To qualify, workers must be ambassadors with the Migrant Workers' Centre (MWC), which is affiliated with NTUC. The fund will also subsidise recreational activities and provide essential gift bags to help alleviate living costs. NTUC secretary-general Ng Chee Meng stated, “The S$2.5m commitment underscores our dedication to enhancing the welfare and skills of our migrant workers.” This initiative aims to invest in the future of migrant workers while fostering an inclusive workforce.
Cisco cuts 5,600 jobs again
Cisco has announced another round of job cuts, letting go of approximately 5,600 employees, around 7% of its workforce. This follows an earlier layoff of about 4,000 employees earlier this year. The company had indicated its intention to reduce headcount in August 2024 but delayed informing staff about the specifics, leading to frustration and uncertainty among employees. Reports suggest a deteriorating work environment, with one worker describing it as "the most negative work environment" they had experienced at Cisco. Despite reporting nearly $54bn in annual revenue, Cisco justifies the layoffs as a means to invest in growth opportunities and streamline operations. The cuts also significantly impact the Talos Security division, which is crucial for cybersecurity amidst rising threats. The trend reflects a broader movement in the tech industry, where over 137,000 employees have lost their jobs in 2024 due to economic pressures and restructuring needs.
Childcare reforms set to benefit millions of families
Australia's Productivity Commission has recommended significant reforms to childcare subsidies, stating that "four in five families would benefit" from increased support. The inquiry suggests that families earning less than A$80,000 should receive free childcare, while those with multiple children earning under A$140,000 should also see substantial subsidies. The commission aims to abolish the childcare subsidy "activity test," allowing non-working parents to access support. These changes could lead to a 10% increase in early childhood attendance, particularly benefiting low- and middle-income families. However, the commission rejected a universal 90% subsidy model, arguing it would primarily benefit higher-income families. The proposed reforms are estimated to cost $17.4bn annually, marking a cost-effective step towards universal childcare.
EPFO withdrawal limit raised to ₹1 lakh
In India, Union Labour Minister Mansukh Mandaviya has announced that subscribers of the Employees' Provident Fund Organisation (EPFO) can now withdraw up to ₹1 lakh at once for personal financial needs, doubling the previous limit of ₹50,000. This change aims to enhance flexibility and responsiveness for subscribers, with Mandaviya stating: “People often turn to their EPFO savings to meet expenses such as weddings and medical treatment.” Additionally, new employees can now withdraw funds before completing six months in their job. The government is also considering raising the income threshold for mandatory provident fund contributions from ₹15,000 and for Employees' State Insurance from ₹21,000. This move is expected to benefit over 10m employees in the organised sector, providing them with better retirement savings options.
LEGAL
Australia: No new employment laws before election
Australian Workplace Minister Murray Watt has confirmed that no further changes to employment laws will occur before the upcoming federal election, scheduled for May. In a speech at the National Press Club, he defended the government's reforms, stating, "Workers are thousands of dollars better off due to government policy." While he did not outline plans for a second term, he emphasised the importance of implementing existing legislation effectively. Opposition spokeswoman Michaelia Cash called for greater transparency regarding future changes, warning that voters should expect surprises from the Labor government. The government plans to review its workplace changes by January, with new superannuation payment rules for employers set to take effect in July 2026.
WORKPLACE
Social media blunder costs job
A recent incident involving an employee at a mental health start-up has sparked discussions about the impact of social media on employment. The employee was dismissed for liking a LinkedIn post that critiqued toxic workplaces, which the CEO deemed harmful to the company's reputation. The case highlights the growing scrutiny employers place on employees' online activities. Various international laws, including the First Amendment in the US and the General Data Protection Regulation in the EU, outline the rights of both employers and employees regarding social media use. Employees must be cautious, as inappropriate content, negative comments, and breaches of confidentiality can lead to termination. Understanding company policies and local laws is crucial for maintaining job security in the digital age.
SUSTAINABILITY
Bridging the sustainability skills gap
According to the Sustainability for Business Resilience Report 2024 by NTUC LearningHub, over 80% of Singapore's business leaders acknowledge a significant gap in sustainability-related skills within their organisations. Despite nearly 80% of leaders believing they have communicated sustainability goals effectively, one-third of employees lack confidence in their organisations' ability to implement these initiatives. Key barriers include unclear sustainability goals (41%), insufficient budgets (34%), and a lack of relevant training (32%). Tay Ee Learn, NTUC LearningHub's chief sector skills officer, stated: “The findings suggest a possible disconnect between business leaders and employees.” Both groups identified time constraints as a major challenge for training, with 43% citing it as the top obstacle. The report highlights the urgent need for organisations to develop clear sustainability road maps and invest in employee training to align goals and enhance competitiveness.
TECHNOLOGY
OCBC Bank unveils new innovation hub
OCBC Bank is developing a new innovation hub, OCBC Punggol, in the Punggol Digital District, with a significant investment of $500m. Scheduled for completion in the first quarter of 2027, the hub will accommodate around 4,000 employees, primarily from technology teams. It will feature eight floors within a 12-storey complex that includes a hotel and retail spaces, directly linked to the Singapore Institute of Technology (SIT). The partnership with SIT will establish an Analytics and Innovation Lab, fostering fintech innovation and talent development. OCBC group chief executive Helen Wong stated: “JTC's vision for PDD – to nurture an ecosystem that fosters collaborative partnerships and innovation – resonates with us most.” The hub will also focus on emerging technologies like quantum computing and will be energy-efficient, utilising renewable energy sources.
CORPORATE
Amazon veteran Samir Kumar to replace Manish Tiwary as India head
Amazon veteran Samir Kumar, who joined the company in 1999, will take over as the country manager for India, replacing Manish Tiwary who stepped down from his role in August. He will add the role to his current duties leading Amazon’s consumer businesses in the Middle East, South Africa and Turkey. The change in top leadership at Amazon India is happening just ahead of the start of the e-commerce festive season on September 27th.
 


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