The latest business Intelligence for HR professionals and people managers everywhere
Sign UpOnline Version
APAC Edition
27th November 2024
 
THE HOT STORY
Indonesian employers want no changes to minimum wage setting
Employers in Indonesia are calling for the government to maintain the existing method of setting the minimum wage for 2025 after a court last month ordered changes to labour laws that it is said could precipitate wage rises. Employers Association (Apindo) chairwoman Shinta Kamdani claimed changes in the wage formula would create uncertainty among investors, who she said created jobs. "The wage formula has been changed over and over and it creates uncertainties for investors . . . we hope the government could create a conducive business ecosystem and not give preferential treatment," she said. Labour groups have called for an increase of up to 10% in the minimum wage for 2025. They have said there will be protests if this does not happen.
LEGAL
Chatime Australia fined after 'vulnerable workers' found to be underpaid
Bubble tea retailer Chatime Australia has been fined over A$120,000 after the Federal Circuit and Family Court found that the company underpaid its workers, some as little as $7.59 per hour. The case found that 152 employees, including 41 junior workers and 95 visa holders, were collectively underpaid a total of A$162,533 between August and December 2016. Fair Work Ombudsman Anna Booth expressed her concern over the "large number of vulnerable employees underpaid in this matter," emphasising the seriousness of underpayment cases involving junior workers and visa holders. Despite Chatime's argument that the wage theft was not "serious," the court highlighted significant underpayments, with some exceeding A$2,300. Managing director Chen 'Charlley' Zhao has been fined A$11,880, while Chatime Australia faces a penalty of A$120,960. 
Ex-Bank of China chairman receives death sentence
Liu Liange, the former chairman of Bank of China, has received a suspended death sentence for bribery and illegal loan issuance. Liu, who has a long history in banking, was expelled from the Communist Party last year for illegal activities. The court noted that he accepted bribes exceeding 121m yuan and approved loans totalling over 3.32bn yuan, resulting in significant financial losses. Because Liu "truthfully confessed" to his crimes and most of the stolen assets have been recovered, the court opted for a reprieve rather than immediate execution.
STRATEGY
Canada's CSA Group expands in China
International standards development, testing and certification service provider CSA Group is set to enhance its presence in China. The Canadian organisation's recent opening of a new laboratory in Kunshan, a joint venture with China Certification & Inspection Group, aims to provide essential testing and certification services for various products, including electric vehicle chargers and energy storage systems. Chief executive David Weinstein highlighted the importance of helping Chinese manufacturers "demonstrate compliance" with global standards. With plans for additional labs in Guangzhou and potentially Chengdu and Chongqing, CSA Group is strategically investing in sectors like energy storage and photovoltaic testing, securing double-digit growth in China amidst a competitive landscape. The Kunshan facility, spanning 8,000 square metres, benefits from its logistical advantages and a skilled workforce.
Singapore data centre pivot benefits Malaysia's Johor
The southern Malaysian state of Johor is experiencing a significant surge in data centre investments driven by a moratorium on new facilities in Singapore. Johor is projected to be Southeast Asia's fastest-growing data centre market in 2024, according to one projection. The anticipated Johor-Singapore Special Economic Zone (JS-SEZ) is expected to further boost economic activity, with property transactions in Johor already rising by 5.3% in the first half of the year. However, environmental concerns have been raised regarding the high energy consumption of data centres, which could strain local power resources.
TRAINING & DEVELOPMENT
Blackstone to train Hong Kong wealth managers as private assets gain investor favour
Blackstone, the world's largest alternative asset manager, has partnered with the Private Wealth Management Association (PWMA) to launch a certification programme in Hong Kong aimed at enhancing the skills of wealth managers. The initiative, set to commence in February 2025, will provide resources to help wealth managers support individual investors seeking to diversify their portfolios into private markets. Ed Huang, head of Asia-Pacific for Blackstone Private Wealth Solutions, said: “While there's momentum in the adoption of private markets, individual investors remain under-allocated.” The programme reflects Hong Kong's growing status as a wealth management hub, with over 90% of high-net-worth investors in the region planning to increase their allocations to alternative assets. The course will consist of half-day sessions at Blackstone's offices, and is available to PWMA's 43 full members.
CORPORATE
Business seeks details on climate finance
Reuters reports that business is seeking details about countries' national climate plans amid mixed messaging in the wake of the COP29 United Nations Climate Change Conference, in Baku, Azerbaijan. COP29 deals on finance and carbon markets could precipitate billions more dollars flowing around the business world if countries next year can deliver climate plans with clear policies for markets and investment. Businesses want the plans to include projects and efforts that are detailed and "investment ready" to help investors gauge their long-term commitments and risks.  Thomas Tayler, head of climate finance at asset manager Aviva Investors, says money will only be forthcoming after the shared COP29 goals are translated into "regulation, legislation and other policy measures."
SUSTAINABILITY
Inditex increases fast fashion flights from India
Reuters reports that Inditex has sharply increased its use of air freight to bring clothes from factories in India to its logistics hub in Spain to avoid shipping delays. Unpublished data and analysis on Inditex's shipments from India, one of its major supplier countries, show that the company sent 3,865 consignments by air in the 12 months to end-August this year, a 37% increase on the previous year. Increased use of air freight could drive up Inditex's transport emissions, which have jumped by 37% in the 12 months to January 31st compared to 2022, according to Reuters calculations based on the group's annual reports. An Inditex spokesperson said the company is working hard to reduce emissions through measures like alternative fuels, optimising routes, and occupancy levels.
INTERNATIONAL
Walmart to roll back on some diversity policies
Walmart is rolling back some of its diversity, equity and inclusion (DEI) initiatives as the world’s biggest retailer joins a growing list of businesses retreating on DEI programmes that have been targeted by conservative activists. The company has said it will no longer consider race and gender to boost diversity when granting supplier contracts and that eligibility for financing will not be assessed based on suppliers providing certain demographic data. It will also scale back racial equity training, stop participating in rankings by an LGBTQ advocacy group and review its support for Pride and other events.  "We are willing to change alongside our associates and customers who represent all of America," a Walmart spokesperson said, adding that decisions come from “a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers.” David Larcker, a professor at the Stanford Graduate School of Business, says the decision could reverberate across corporate America. “Walmart is a key part of the economy and when you see them do something, you’re doing to see a lot of other companies follow along,” he said.
Germany will need 288,000 foreign workers annually until 2040, study says
Germany is grappling with a significant shortage of skilled workers, says a study by the Bertelsmann Foundation. Its research indicates that without substantial immigration, the German workforce could shrink by 10% by 2040, dropping from 46.4m to 41.9m. Susanne Schultz, a migration expert at Bertelsmann, said: "This demographic shift demands immigration," as she noted a need for around 288,000 skilled foreign workers annually. The study also says that barriers to immigration must be removed to attract talent, because current labour migration reforms may not suffice. The impact of workforce decline will vary across regions, with areas like North Rhine-Westphalia facing the brunt of the contraction. Major cities like Hamburg and Berlin, however, are expected to be less affected due to their existing high levels of immigration.
Homeless migrant workers in the Netherlands 'should go home for healthcare'
Fleur Agema, the Dutch health minister representing the far-right PVV, has sparked controversy by suggesting that foreign workers in the Netherlands who lose their jobs should return home for non-urgent health treatment. She said:  “It is not up to me to decide what urgent care is. That is for the professionals . . . And they should decide together ‘who do we have in front of us and is it not time that they went home’?” Currently, around 5,000 uninsured migrants, primarily from Eastern Europe, are in the Netherlands after losing their jobs. Doctors have expressed their shock at Agema's comments, emphasising their commitment to all patients. The Dutch hospitals association NVZ has called for clarification on the minister's stance. The situation is exacerbated by legislation that has delayed protections for low-skilled workers, leaving many vulnerable to exploitation and without access to healthcare.
Are UAE employers doing enough for staff retention?
Writing for Gulf News, Marilyn Pinto wonders whether UAE organisations are doing enough for employee retention. She observes that financial wellbeing is by far the most neglected area of an organisation’s wellbeing activity according to the latest CIPD/ Simplyhealth Health and Wellbeing at Work survey, and says employers need to push hard on the theme of financial wellbeing to retain talent.
 


The Human Times is designed to help you stay ahead, spark ideas and support innovation, learning and development in your organisation.

The links under articles indicate original news sources. Some links lead directly to the source material. Others lead to paywalls where you may need a subscription. A third category are restricted by copyright rules.

For reaction and insights on any stories covered in the Human Times, join the discussion by becoming a member of our LinkedIn Group or Business Page, or follow us on Twitter.
Follow us on FacebookFollow us on XFollow us on Linkedin

This e-mail has been sent to [[EMAIL_TO]]

Click here to unsubscribe