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APAC Edition
5th December 2024
 
THE HOT STORY
Starbucks and Nestlé under the spotlight for labour practices in China
China Labor Watch, a New York-based human rights group, says that coffee farms in Starbucks’ and Nestlé’s supply chains in China are not living up to the multinationals’ ethical standards, sometimes using children as workers, and mandating excessive hours and lax safety standards to meet targets. A new report investigated 26 farms that form part of the Starbucks and Nestlé supply chains in the mountains surrounding Pu’er city, traditionally a tea-producing region of southern Yunnan province that now produces about half of China’s homegrown coffee beans. China Labor Watch said it found evidence of what it called labour injustices that directly violated the companies’ claims to ensure ethical sourcing and robust health and safety standards. The malpractice manifested itself in “ghost farms,” often family-run plots of land that informally supply the larger estates that have been certified by Starbucks or Nestlé. This enables the estates to meet their quotas while keeping labour violations out of sight. Farmworkers are paid according to weight picked, meaning they often work from dawn to dusk, seven days a week, during harvest to earn as much as possible during peak season. The alleged violations of the companies’ standards in Yunnan underscore the increasing scrutiny that multinationals operating in China face to demonstrate that their local supply chains are free of labour violations and human rights abuses.
CYBERSECURITY
Cybersecurity budgets set to soar
According to the 2025 Global Digital Trust Insights survey by PwC, 77% of organisations anticipate an increase in their cybersecurity budgets over the next year due to growing cyber vulnerabilities. The survey, which included 4,042 business and tech executives from 77 countries, revealed that only 2% of companies have fully implemented cyber-resilience. Sean Joyce, global cyber and privacy leader at PwC US, said: "Cyber-resilience is everyone's responsibility, from the boardroom to the employee." The report highlights that 66% of tech leaders view cyber threats as their top risk, with cloud-related threats and hack-and-leak operations being the most concerning. Despite challenges in integrating generative artificial intelligence (GenAI), 78% of leaders have increased their investment in it, recognising its role in enhancing cyber-resilience. The findings underscore a significant shift towards prioritising cybersecurity as a competitive advantage, driven by customer trust and regulatory pressures.
WORKFORCE
India's services sector employment grew at fastest pace since 2005
India's services sector experienced unprecedented employment growth in November 2024, marking the fastest pace since the survey's inception in 2005. The HSBC India Services Business Activity Index recorded a robust 58.4, indicating strong domestic and international demand. Despite a slight easing in total sales growth, firms reported sustained demand, leading to increased output and job creation. However, this growth came with rising input costs, which surged at their steepest rate in 15 months, prompting service providers to raise output prices at the fastest rate in nearly 12 years. The HSBC India Composite Output Index also reflected robust private sector growth, with the services sector outperforming manufacturing in employment growth and cost pressures.
HEALTH & SAFETY
‘Production first, safety later’: inside the world’s largest nickel site
Nickel facilities in Indonesia, including the Indonesia Morowali Industrial Park (IMIP), recorded a total of 114 incidents that resulted in 101 deaths and 240 injuries between 2015 and the first half of 2024.
TECHNOLOGY
People not AI will make games, says PlayStation boss
Hermen Hulst, co-chief executive of PlayStation, believes that artificial intelligence (AI) could "revolutionise" gaming, yet he insists it will never replace the "human touch" in game development. As Sony marks the 30th anniversary of its console, the company faces challenges, including job losses and the impact of AI on employment. Hulst stated: "I suspect there will be a dual demand in gaming: one for AI-driven innovative experiences and another for handcrafted, thoughtful content." Despite setbacks like the failed game Concord, Sony aims to expand its gaming IP into films, with successful adaptations like The Last of Us. The PS5 continues to gain traction, and the company is exploring new ways for players to engage with games, including cloud streaming on the PlayStation Portal.
STRATEGY
Paul Weiss to close Beijing office
Paul Weiss plans to close its Beijing office by the end of the year, following a trend among major US law firms of reducing their presence in China. Established in 1981, the office currently employs one partner, a counsel, and two associates. A spokeswoman for Paul Weiss said: “We remain committed to having a strong presence across Asia, including in Hong Kong and Tokyo.”
RISK
TikTok layoff videos pose risks for posters and employers
Young workers are increasingly posting videos of themselves being made redundant, or talking about it, creating new challenges for companies managing their public image, and potentially harming the workers' future prospects.
INTERNATIONAL
US workers indicate a growing preference for female bosses
Writing for the Wall Street Journal, Vanessa Fuhrmans looks at how female bosses in the US have made gains this year. She says the most powerful recent shift may be that after years of favouring male leaders by sizable margins, workers now indicate a growing preference for female bosses in their daily work life. Given the choice, more women under 50 said they would choose to work for a woman than a man, while men in their twenties were nearly evenly split on their preference, according to an August survey of nearly 6,000 U.S. adults by the Survey Center on American Life. A decade ago, far greater numbers of workers said in Gallup surveys that they preferred working for a man, and fewer than half were neutral on the matter. In the August survey, two-thirds said they had no preference between a male or female manager. 
Harassment law threatens Christmas parties in UK
The introduction of the UK's Worker Protection Act, an amendment to the Equality Act, has raised concerns about the future of office Christmas parties. Legal experts warn that the new regulations impose a duty on employers to prevent sexual harassment, with potential unlimited compensation claims for non-compliance. Charlie Barnes, head of employment law at legal services company RMS, said: “With increasing legal responsibilities for staff safety and mounting financial pressures brought about by the recent budget, some companies could decide to scrap the Christmas party altogether this year as they may feel such events are becoming too risky, too difficult to manage and too costly.” Updated guidance published in September by the Equality and Human Rights Commission highlighted that workplaces must take an active approach to assessing risk, including a requirement for regular reviews of systems.
Nearly 100,000 workers joined Volkswagen strikes across Germany, union says
A total of 98,650 employees at nine Volkswagen plants across Germany joined walkouts on Monday in protest at management plans to cut wages and even close sites at Europe's biggest auto maker, the IG Metall union said. "This was the first, powerful impact of a winter of protest, Volkswagen should come to its senses and finally shelve its nightmare plans, otherwise our colleagues will find the right answer," said IG Metall's chief negotiator Thorsten Groeger.
Kuwait's new rules to protect Filipino workers
Kuwait has introduced new guidelines to safeguard the rights of domestic workers coming in from the Philippines. According to Bassam Al Shammari, a Kuwaiti specialist in house labour affairs, recruitment agencies will be blacklisted if they receive more than five labour complaints. This measure aims to enhance worker safety and prevent exploitation. Additionally, a “white list” system will require agencies to monitor workers and report any incidents. Al Shammari also urged Kuwaiti authorities to establish more memorandums of understanding with countries supplying domestic workers to mitigate potential shortages.
OTHER
Audemars Piguet eyes China expansion
Audemars Piguet is set to enhance its presence in China and the surrounding region, driven by a growing interest in mechanical watches among younger consumers. Chief executive Ilaria Resta said: “The interest and curiosity is far more pronounced now in the younger generation from China.” The company has experienced double-digit growth in mainland China, Hong Kong, Macau, and Taiwan, prompting plans for new showrooms, including an “AP House” in Macau. Despite a decline in Swiss watch exports to China, Audemars Piguet remains optimistic, with luxury watch sales in China projected to reach $12.82bn this year.
 


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