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APAC Edition
30th September 2024
 
THE HOT STORY
Former Malaysian gloves plant workers sue Kimberly-Clark
Former employees of a Malaysian latex gloves supplier for Kimberly-Clark claim they were trafficked, abused, and given unsanitary company housing and barely edible food. The former employees who spoke with the Milwaukee Journal Sentinel are now among 13 plaintiffs in a lawsuit against the company. A Malaysian government official said that at one location, hundreds of workers were housed in what appeared to be shipping containers, describing the conditions as a form of modern slavery. The lawsuit filed in August 2022 in federal court in Washington, D.C., and amended earlier this year, alleges that Kimberly-Clark and Ansell Ltd., an Australian firm with a U.S. presence, profited from human trafficking and forced labour at their Malaysian gloves supplier, Brightway Group. Kimberly-Clark said it believes the lawsuit to be "entirely unfounded" and has asked that it be dismissed by the court. “Kimberly-Clark believes that all workers should be treated with respect and in accordance with our workplace and human rights standards," a statement from the company said. "We strive to foster a culture of integrity that supports our employees and those of our suppliers in living out these values."
HEALTH & WELLBEING
Hong Kong employers urged to tailor workplace to staff with dementia
Hong Kong's Equal Opportunities Commission has released a guide titled “How to Support Employees with Dementia at Work – A Practical Guide for Employers”, to assist local employers in accommodating staff with dementia. The guide recommends measures such as minimising noise distractions, providing clear signage, and breaking down tasks into smaller steps. Henry Shie Wai-hung, a commission member, explained: “The purpose of this guide is to promote a better understanding of dementia and the working population with the condition.” With projections indicating that over 330,000 individuals in Hong Kong may suffer from dementia by 2039, the guide also emphasises the need for support for carers, including flexible working arrangements and educational training to reduce stigma.
WORKFORCE
Korea's foreign agriculture workers face wage delays
According to a report submitted to Rep. Jeong Hee-yong of the ruling People Power Party, 40% of farm and fishery workers in Korea who experienced frequent pay delays between 2020 and July 2024 were foreign nationals. Of 8,062 workers reporting delays, 3,031 were non-Korean nationals, collectively owed 13.36bn won ($10.06bn), which is 32.4% of the total unpaid wages of 41.18bn won. Critics warn that ongoing wage theft issues could deter future foreign employees, particularly in rural areas facing labour shortages. “It is such a shame that foreign workers... continue to face unfair treatment such as wage theft,” said Rep. Jeong, urging the government to enhance oversight to protect these workers.
ECONOMY
Thai consumers seek extra income
A survey has found that 84% of Thai consumers are seeking additional income to cope with rising living costs. The report highlights a significant shift in consumer behaviour as households face economic uncertainty. While 29% of respondents report improved financial positions, 35% feel worse off. Concerns over utility bills have risen to 36%, prompting 45% of consumers to turn to online shopping for better deals. Notably, 80% prefer affordable products, and 76% are willing to pay more for durable items. The influence of social media is also growing, with 76% using it to discover new products, indicating a shift towards social commerce and innovative retail trends.
SUSTAINABILITY
Italy opens environmental probe into Shein
Italian antitrust officials have opened an investigation into Singapore-based Shein, over possibly misleading environmental claims made on its website. The Italian Competition Authority said it launched a probe into Infinite Styles Services Co., Shein’s Italian website operator, and its portrayal of the retailer as a sustainable maker and seller of garments through generic, vague and even misleading claims about product quality and responsible consumption. Officials also said the company’s website included what it called contradictory decarbonisation goals in the face of higher greenhouse-gas emissions in Shein’s latest sustainability report. In a statement, Shein said it is prepared "to cooperate openly with relevant Italian authorities, providing the necessary support and information to address any inquiries". In other Shein news, the company has announced that it is cutting around 24 jobs at its Singapore headquarters, as it restructures part of its business amid doubts regarding its IPO plan in London.
CORPORATE
OpenAI to become a for-profit company
OpenAI is planning to convert from a non-profit organisation to a for-profit company, a significant shift from its 2015 founding statement to develop artificial intelligence (AI) technology “to benefit humanity as a whole, unconstrained by a need to generate financial return." The proposed changes would see OpenAI become a public-benefit corporation, meaning its mission is to create social good and operate in a sustainable manner. There would continue to be a non-profit arm of OpenAI that would pursue charitable goals and own a stake in the for-profit company. The restructuring is designed in part to make OpenAI more attractive to investors, as the company is currently attempting to close a funding round of up to $6.5bn. The plan is still being hashed out with lawyers and shareholders and the timeline for completing the restructuring remains uncertain. Report of the shift in strategy came on the same day that Mira Murati resigned as chief technology officer, the latest in a number of senior departures.
LEADERSHIP
HSBC could appoint first female CFO
HSBC is reportedly considering naming its first female chief financial officer in its 159-year history. Pam Kaur, the lender's chief risk and compliance officer, is said to be a favourite for the role. Other potential candidates include head of global banking and markets Greg Guyett, group head of strategy and corporate development Willard McLane and Kavita Mahtani, CFO of HSBC’s Europe and Western Markets unit.
INTERNATIONAL
Volkswagen warned against 'historic mistake' of plant closures
Volkswagen has been warned by union leaders about making an "historic mistake" at the commencement of pay talks that are likely to determine how aggressively the automaker handles redundancies and possible plant closures in Germany. As well as fighting any such moves, the IG Metall union must also negotiate new labour deals for the core VW brand's 130,000 workers in Germany, after VW ended agreements that had safeguarded employment at six of its facilities in western Germany since the mid-1990s. "A good shepherd looks after his sheep and keeps them together. Volkswagen's shepherd is threatening to rip the skin off their bodies and then throw them out in a hurricane," Thorsten Groeger, IG Metall's chief negotiator with Volkswagen, told workers in Hanover. Meanwhile, works council boss Daniela Cavallo made reference to the expropriation of trade union funds during the Third Reich era. "With an average interest rate, this capital, which the Nazis had robbed from the labour movement at the time, would have generated billions of euros over the decades. This money, our money, is in the Volkswagen Group today," she said.
Unions accuse Israel of wage theft
Ten trade unions have accused Israel of violating international labour law by withholding wages and benefits from over 200,000 Palestinian workers since October 7. The unions claim these actions have plunged many into extreme poverty. Assaf Adiv, executive director of Maan Workers Association, said: “Two hundred thousand workers in the West Bank lost their jobs . . . and have been suffering ever since from extreme poverty.” The complaint seeks to recover unpaid wages for workers who have not received compensation since the onset of conflict with Hamas. The International Labour Organization (ILO) estimates that economic production losses in the Occupied Palestinian Territory are nearly $19m daily. Luc Triangle, general secretary of the International Trade Union Confederation, emphasised the dire situation, noting that “working people are enduring the worst of the continuing conflict.” More than 500,000 jobs have been lost, exacerbating the economic crisis for Palestinians.
Russia weighs law to ban the defence of a child-free lifestyle
The Russian State Duma is considering legislation that could impose fines of up to $55,580 for individuals and organisations supporting the decision not to have children. The proposed crackdown on the so-called "child-free" movement is part of a broader effort to promote so-called traditional family values. “We have started considering a bill banning propaganda of a conscious refusal to have children,” parliament speaker Vyacheslav Volodin wrote on his Telegram channel. “Groups and communities on social networks often show disrespect for motherhood and fatherhood and aggression towards pregnant women and children and members of large families,” added the politician. The proposed law allows only limited exceptions for religious, medical, or sexual assault-related reasons. The Kremlin's push to increase birth rates comes amid a demographic crisis: 1.26m births were recorded last year, the lowest since the USSR's fall. The government is also considering further restrictions on abortion, in an indication of a tightening grip on personal freedoms in Russia.
RBC bankers fear layoffs as pledge to keep HSBC staff nears end, sources say
Employees of the Royal Bank of Canada (RBC) who transitioned from HSBC Canada are increasingly anxious as the six-month job guarantee linked to their acquisition nears its end. According to sources, while RBC has successfully placed nearly 80% of the 4,500 former HSBC staff, many remain uncertain about their roles and responsibilities. Toronto-based employment lawyer Lior Samfiru said his team had been contacted by former HSBC employees who were worried about losing their jobs, and others who had not yet received voluntary packages. “It would have been very naive for anyone to think that there's not going to be significant duplication and a significant loss of jobs over time because of this merger,” Samfiru said, adding: “There's a real concern here about future employment.” RBC has assured employees that those without roles post-guarantee will receive severance packages exceeding legal requirements.
OTHER
Hong Kong set to cut liquor duties
Hong Kong is planning to lower the amount of tax it levies on spirits, according to people familiar with the matter. Liquor that has an alcohol content of more than 30% currently attracts a duty equivalent to 100% of its value in Hong Kong, among the highest anywhere in the world. The reduction is expected to be one highlight of Hong Kong Chief Executive John Lee’s policy address in mid-October. Such a move would mark Hong Kong’s latest effort to rekindle sales for restaurants, bars and retailers, all of which have been struggling with fewer tourists post COVID.
 


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