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APAC Edition
1st November 2024
 
THE HOT STORY
Indonesian labour unions expect higher wages after court ruling
Labour unions in Indonesia say a court ruling on labour laws should lead to higher minimum wages next year. The petition by Indonesian worker groups to the Constitutional Court was filed against the Job Creation law, which was introduced by former president Joko Widodo with the aim of improving the local investment climate. The law precipitated protests by labour and green groups, who saw it as too pro-business. "This is a victory for the people. The ruling is a proof that the state does protect the people," Said Iqbal, chairman of the Labour Party, a major union and political party that was among the petitioners, said.  The court ordered changes to some labour regulations, including the establishment of sectoral minimum wages and clearer rules on outsourcing. 
HEALTH & WELLBEING
Most Singapore employers will not implement four-day work week, poll suggests
According to a recent poll by the Singapore National Employers Federation (SNEF), almost all (95%) of employers in Singapore will not implement a four-day work week. The survey, conducted from September 30 to October 7, involved 330 employers, revealing that 79% outright oppose the idea, while 16% say they are open to considering it. Sim Guan Guan, executive director at SNEF, observed: “These results reflect the realities many employers face in today's tight labour market and competitive business environment.” The primary concerns include the need for continuous business operations, potential productivity losses, and increased costs.
WORKFORCE
Chinese workers turn to side hustles amid economic slump
In response to economic challenges, many workers in China are increasingly taking on side jobs to supplement their income. A recent survey revealed that about half of Chinese youth are engaged in casual work. Duan Ning, a human resources executive, shared her experience, saying: “I was initially feeling very helpless about my pay cuts, but I decided to start on my side hustle as a writer.” She added: “Honestly, it is very depressing to be working in this economy, given that nothing much is going on.” Dr Alicia Garcia-Herrero, chief Asia-Pacific economist at Natixis, a French investment banking firm in Hong Kong, said the trend comes as workers in China become increasingly underemployed amid the economic slowdown. She said that more are having their hours cut or being put on unpaid leave, which has resulted in them looking for casual work, adding “This trend is massive.”
Western brands are paying less for clothes manufactured in Bangladesh
NPR reports on how garment workers in Bangladesh are being affected by Western buyers paying less for clothes. The report profiles Ayesha Begum, who is one of four million garment workers making clothes for American and European markets - brands including Michael Kors, Calvin Klein, Zara and others. She works at Beximco, one of the largest garment factories in Bangladesh, employing 23,000 workers. It's noted that Western buyers are paying less for the clothes, and food prices are up by around 10% since last year, making it hard for Ayesha and others to make ends meet.
LEGAL
Australian senator told she broke race law in Twitter comment
An Australian judge has ruled that Senator Pauline Hanson breached racial discrimination laws by telling Pakistan-born Senator Mehreen Faruqi to return to her homeland. The ruling followed a 2022 exchange on social media, where Faruqi, deputy leader of the Australian Greens, expressed her views on the death of Queen Elizabeth II. Justice Angus Stewart described Hanson’s behaviour as “seriously offensive” and “a strong form of racism.” He ordered Hanson to delete the post and cover Faruqi's legal costs, which are expected to be substantial. Faruqi welcomed the decision, stating it vindicated those subjected to similar racist slurs, saying, “Today is a good day for people of colour, for Muslims and all of us who have been working so hard to build an anti-racist society.” Hanson plans to appeal, arguing the ruling impinged on her freedom of political expression.
STRATEGY
Dropbox to layoff 20% employees globally
Dropbox CEO Drew Houston has announced the layoff of 528 employees, equating to 20% of the company's global workforce. In an email to staff, Houston cited the need for greater efficiency and a "flatter" organisational structure as reasons for the cuts, which target areas considered "over-invested or underperforming." The move follows a previous reduction of 16% in April 2023. Houston acknowledged the challenges, stating, "We're in a transitional period as a company," and emphasised the necessity of these changes to strengthen core products and accelerate growth. Affected employees will receive severance packages, healthcare support, and job placement services.
RISK
Asia-Pacific risks growth amid climate crisis, ADB says
The Asian Development Bank (ADB) warns that rising sea levels and declining labor productivity could severely impact growth in the Asia-Pacific region. The ADB's Asia-Pacific Climate Report indicates that the region may require at least $102bn annually over the next five years for adaptation measures to mitigate economic losses from climate change. Under a high-emissions scenario, regional GDP could drop by 17% by 2070, with up to 300 million people at risk of coastal flooding. Only $34bn in adaptation finance was tracked from 2021 to 2022, falling short of the estimated $102bn to $431bn needed annually until 2030. To attract private investment, regional governments are advised to implement supportive policies like carbon pricing and clean energy subsidies.
WORKPLACE
Hong Kong construction firm fined after worker's death
A Hong Kong engineering firm, Aggressive Construction Engineering, has been fined HK$44,000 for failing to implement safety measures that resulted in a worker's death two years ago. The incident occurred during the dismantling of a steel beam, leading to the death of 55-year-old Luk Wai-ying. The court found that the firm did not provide adequate training or safety protocols. The total fines for Aggressive Construction Engineering and its subcontractors amounted to HK$130,000. Defence counsel Flora Cheng Suk-yee said that the companies found the accident “very regrettable” and have since hired an independent consultant to improve safety management systems.
TECHNOLOGY
AI bridges educational gap in Vietnam
Researchers at Coventry University in the UK are leveraging artificial intelligence (AI) to support teachers in rural northern Vietnam, where access to technology and training is limited. Led by Dr Petros Lameras, the GameAid project aims to demonstrate how generative AI can enhance educational practices. Dr Lameras stated: "We are not just enhancing skills but fundamentally changing how educators engage with technology in the classroom." The initiative seeks to provide educational materials and improve student learning outcomes, addressing the disparity between urban and rural educational resources.
INTERNATIONAL
Boeing raises pay offer in bid to end seven-week strike
Striking Boeing workers are set to vote on a new offer from the aviation giant, which includes a 38% pay rise over the next four years. The International Association of Machinists and Aerospace Workers (IAM) union, which represents more than 30,000 striking workers, has endorsed the offer and says it will hold a ballot of its members on Monday. A seven-week strike by more than 33,000 U.S. West Coast factory workers has worsened Boeing's cash burn. The union had previously called for a 40% pay increase and workers have rejected two previous offers, including the last offer of a 35% rise. As well as the proposed pay rise, the latest offer includes a $12,000 bonus for the workers if a deal is reached, up from $7,000. "It is time for our members to lock in these gains and confidently declare victory," stated an IAM social media post. "We believe asking members to stay on strike longer wouldn't be right as we have achieved so much success." Boeing said the offer would see average annual pay rise to $119,309 over the next four years. "We encourage all of our employees to learn more about the improved offer and vote on Monday, November 4," Boeing said in a statement. The new offer also includes changes to workers' retirement plans.
FIFA bid report faces backlash
A report by Riyadh-based law firm AS&H Clifford Chance on Saudi Arabia's 2034 FIFA World Cup bid has been heavily criticised for neglecting the abuse of migrant workers. Rights groups, including Amnesty International and Human Rights Watch, argue that the report “contains no substantive discussion of extensive and relevant abuses in Saudi Arabia.” James Lynch, co-director of FairSquare, described the report as “shockingly poor,” suggesting it has facilitated the bid's acceptance despite ongoing human rights violations. Martha Waithira, an investigator for Equidem, highlighted the risks faced by migrant workers, saying: “Hundreds of thousands of people expected to arrive in Saudi Arabia . . . are at great risk of severe exploitation and even death.” The report's limited scope, focusing only on ratified human rights instruments, is said to have led to significant omissions regarding systemic abuses in the country. FIFA is expected to publish an evaluation report on the bid ahead of its Congress meeting on 11 December.
European gas industry abandons deal to retrain workers for low carbon economy
The European gas industry has walked away from the Just Transition European Framework Agreement - a deal on retraining for hundreds of thousands of workers to prepare for a low carbon economy.
 


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