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APAC Edition
24th September 2024
 
THE HOT STORY
Japan PM hopefuls want to overhaul dismissal rules
Two candidates who are vying to become Japan's next prime minister - Shinjiro Koizumi, the 43-year-old son of former premier Junichiro Koizumi, and digital minister Taro Kono - have both called for a relaxation of Japan's rigid labour rules, which have been blamed for blocking the movement of workers from mature sectors into growing ones where employees are needed in a tight labour market. "The ongoing labour market reform is missing the crux of the issue, and that's the revision to dismissal rules," Koizumi said earlier this month. "An ultimate growth strategy is to create a system that fosters a labour shift to startups and small firms in growth sectors," he said as he pledged to submit a labour reform bill next year if elected party leader. Meanwhile, Kono has proposed the establishment of a monetary compensation framework for dismissed workers as a way to settle disputes, a step he said would allow more flexibility in the labour market.
REMOTE & HYBRID WORKING
Aussie workers demand salary boost
Research from Robert Half reveals that 44% of Australian workers want a salary increase before considering a return to the office. Nicole Gorton, director at Robert Half, observed: “Many workers believe they deserve a premium for giving up the flexibility and autonomy of remote work.” The study also found that 15% of employees would not return to the office even with a salary premium. Gorton emphasised the need for employers to provide realistic solutions, suggesting that enhancing the office environment and offering career development opportunities could make in-person work more appealing. Flexibility remains crucial, with 39% of workers indicating they would reject job offers lacking flexible arrangements.
LEGAL
Thousands protest across India seeking repeal of labour codes
Earlier this month, thousands of Indian workers protested in cities including New Delhi and Kolkata to demand the repeal of four labour codes perceived to favour multinational corporations. Vidya Sagar Giri, national vice president of the All India Trade Union Congress (AITUC), explained: “The labour laws were introduced by the ruling Bharatiya Janata Party in 2019, despite union and opposition objections.” The protests coincided with a strike at a Samsung plant in South India over low wages, highlighting rising labour discontent that challenges Prime Minister Narendra Modi's efforts to attract foreign investment. Amarjeet Kaur, general secretary of AITUC, condemned the government's actions as “a violation of human rights and global practices.” Farmers’ unions have also shown support for the workers, who threaten further strikes if the laws are implemented without consultation.
Thailand cracks down on illegal workers
Thailand's Ministry of Labour has reported the arrest of 256,213 illegal migrant workers from June 5 to September 19 - the 106th day of a 120-day crackdown. Among those apprehended, 193,430 were from Myanmar, alongside 39,736 Cambodians, 15,281 Laotians, 162 Vietnamese, and 7,604 from other nations. The crackdown is targeting workers without valid permits or those in unauthorised job categories. Fines range from 5,000 to 50,000 baht for individuals and 10,000 to 100,000 baht for employers per worker. Repeat offenders face harsher penalties, including imprisonment and bans on hiring migrant workers.
Journalist sues over 'hostile work environment' at Channel Seven programme
Amelia Saw, a former journalist at Channel Seven's Spotlight programme, has filed a lawsuit against the Australian network, alleging a "hostile working environment" for women. A statement of claim, submitted to the Federal Court of Australia, names several high-profile employees and seeks compensation under the Fair Work Act for "general breach of protections." In a case management hearing, Justice Nye Perram encouraged the parties to undertake mediation.
STRATEGY
U.S. law firms shrink China footprint
At least four U.S.-based civil law firms, including Morrison Foerster, Perkins Coie, Sidley Austin, and Weil, Gotshal & Manges, have closed their offices in China this year due to declining investments and increased local competition. “The U.S. techno-trade wars launched by [Donald] Trump and continued by [Joe] Biden have disrupted U.S. business flows and the tariffs and barriers have directly hurt U.S. supply chains and consumers,” said Nicholas Chen, managing partner with the Pamir Law Group, which has offices in Shanghai and Taipei, adding “This hurts U.S. service providers like law firms in China.” The closures follow a report from the China Business Law Journal, which noted that the number of U.S. law firms in China has decreased significantly, from over 100 in the 2000s to just 64 now. Factors such as data privacy issues, geopolitical tensions, and a shift in focus to other international markets have contributed to the trend. As U.S. firms withdraw, Chinese law firms are becoming more competitive, with Chen predicting they will “dominate” the market.
RISK
UN nations endorse a 'Pact of the Future'
The U.N. General Assembly has approved the "Pact of the Future," a 42-page document aimed at uniting nations to address pressing global issues such as climate change, artificial intelligence, and rising inequality. The pact includes 56 actions focused on eradicating poverty, promoting peace, and reforming the U.N. Security Council to better reflect today's world. It also highlights the importance of including young people in decision-making and commits to nuclear disarmament and AI governance. The pact also includes proposed measures regarding human rights. U.N. Secretary-General Antonio Guterres said: "In the face of a surge in misogyny and a rollback of women's reproductive rights, governments have explicitly committed to removing the legal, social and economic barriers that prevent women and girls from fulfilling their potential in every sphere."
INTERNATIONAL
Elon Musk loses layoff pay fight with former Twitter employee, memo says
Elon Musk lost a legal fight over unpaid severance to a former Twitter employee who was laid off when he took over the social media company in 2022, according to a memo seen by Bloomberg. The resolution of the dispute, which was handled through arbitration, comes almost two years after Musk acquired the platform for $44bn and promptly dismissed over half of its workforce in a move that precipitated more than 2,000 complaints from former staff who said they were shortchanged on pay. “The arbitrator awarded the full severance package to our client,” lawyer Shannon Liss-Riordan said in the memo. “It is our hope that if more rulings come down our way, Twitter/X will be willing to come to the table and negotiate a settlement for everyone.” 
LinkedIn pauses training of AI models using UK user data
The UK's Information Commissioner's Office (ICO) has raised concerns regarding LinkedIn's use of UK user data for training generative AI models. LinkedIn has since confirmed it has "suspended" such training. Stephen Almond, executive director for regulatory risk at the ICO, said: "We are pleased that LinkedIn has reflected on the concerns we raised about its approach to training generative AI models with information relating to its UK users." LinkedIn has also introduced an "opt out" setting for users in other regions who wish to prevent their data from being used in AI training. Meanwhile, Meta has begun training its AI models using UK user data after a positive consultation with the ICO.
Swedish battery maker Northvolt to cut 1,600 jobs
Northvolt, the Swedish electric car battery manufacturer, has announced a significant reduction in its workforce, cutting 1,600 jobs, or 25% of its staff in Sweden. The decision comes as the company grapples with financial difficulties and a decline in electric vehicle sales across Europe. CEO Peter Carlsson said: "While overall momentum for electrification remains strong, we need to make sure that we take the right actions at the right time." The cuts will affect various locations, including the Skelleftea plant, where an expansion project will be halted. Northvolt aims to streamline operations to ensure sustainability and has previously secured $15bn in funding. The company is pivotal in Europe's ambition to increase its share of global battery production from 3% to 25% by the end of the decade.
Greece's train workers to strike
Greece's train workers are preparing for a work stoppage and a 24-hour strike on September 26, 2024, amid ongoing safety concerns. Unions representing Proastiakos and Hellenic Train employees are demanding the hiring of more staff, modernisation of rolling stock, and completion of vital infrastructure projects. They highlighted the tragic February 2023 accident in Tempi, which claimed 57 lives, as a stark reminder of the issues plaguing the country's railway system. Despite submitting safety proposals to Hellenic Train management four months ago, the unions claim that significant problems remain unresolved, jeopardising safe operations. The Metro and ISAP services will continue to operate normally during the strike.
 


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