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APAC Edition
12th December 2024
 
THE HOT STORY
Lawmakers in India call for new law after EY worker's death
Labour authorities in the Indian states of Maharashtra and Karnata are drafting tighter workplace rules and inspections to protect white collar employees following the death of a young executive at Ernst & Young, which her family blamed on overwork. Unions say that, hitherto, blue-collar workers get the most protection in India. "In India and other South Asian countries, many forms of protection in terms of labour rights are given to blue-collar workers only, and others are not often recognised as workers," Elena Gerasimova, labour law and labour standards specialist at the International Labour Organization (ILO), told Reuters. "From the perspective of the ILO standards and values, the rights shall be given to all those persons who work, both blue and white collar, and to managerial workers as well," she said.
RISK
Companies turn to isotopic testing to fight forced labour
Companies including Shein and Patagonia are making use of isotopic testing, a scientific method which allows them to scrutinise the atomic makeup of materials in their products, to help determine whether suppliers are being honest about where materials originate. Isotopic testing examines unique chemical signatures of certain materials, which vary based on environmental factors including rainfall or the soil where a crop was grown. A principal concern is whether goods might have been produced using forced labour by China’s Uyghurs, a Muslim minority ethnic group in the country's Xinjiang region. Shein has spent millions on the tests to identify cotton from Xinjiang. “To be able to statistically say where something was grown in the world is incredibly powerful,” observes Matt Dwyer, vice president of global product footprint at Patagonia, which is using isotopic testing.
HEALTH & WELLBEING
Start-up faces backlash over layoffs following mental health survey
YesMadam, a home salon start-up based in Noida, India, has come under fire after reportedly laying off over 100 employees via email following a mental health survey. An internal company email said: "We have made the difficult decision to part ways with employees indicating significant stress," sparking outrage among those affected. Anushka Dutta, a former UX copywriter, expressed her frustration on social media, questioning the ethics of the layoffs. Critics have labelled the company's actions as indicative of a toxic work culture, with one user observing: "Laying off stressed employees is not solving their problems; it's against humanity." Experts warn that using employee feedback as grounds for termination can create a culture of fear. The authenticity of the email remains unverified, and YesMadam has not issued an official statement regarding the controversy.
LEGAL
Mining giants face harassment lawsuits
Two mining companies, BHP and Rio Tinto, are facing class action lawsuits filed in Federal Court in Australia alleging unsafe workplaces where women experienced harassment and discrimination. The lawsuits detail incidents including a security guard receiving sexual advances in exchange for job security. Joshua Aylward, a lawyer for the plaintiffs, said: "BHP and Rio Tinto have sent female staff to these sites knowing there was a high risk of personal danger." The cases could potentially involve thousands of women subjected to similar treatment since 2003. Both companies have acknowledged the lawsuits and expressed their commitment to creating safe and respectful workplaces.
CYBERSECURITY
Employees risk security for productivity
A recent CyberArk survey found that 65% of office workers admit to circumventing security policies in the name of efficiency. Key findings include that 49% reuse passwords across applications, 30% share workplace passwords, and 80% access work apps from unsecured personal devices. The study highlights that 72% of employees use artificial intelligence tools, and that 38% ignore company policies on sensitive data. Writing for Forbes, Lars Daniel says "organisations must recognise that their employees are both their greatest assets and their most significant vulnerabilities . . . The greatest challenges and problems in cybersecurity have been, and remain, human."
CORPORATE
McKinsey promotes smallest group of partners in years
McKinsey & Co. is admitting around 200 employees into its partnership this year, down about 20% from last year, and one of its smallest intakes in years. Major companies hire McKinsey’s consultants to do everything from devise artificial intelligence strategies to find ways to take costs out of products. Demand for consulting services spiked during the pandemic but has returned to more normal levels this year. McKinsey launched a 30-person “partnership modernisation” task force earlier this year to debate issues tied to McKinsey’s governance, including the length of a term for the firm’s leader and how often it conducts elections. A McKinsey spokesman said its new partners “exemplify the values-driven leadership, entrepreneurial spirit, and a record of client impact that our firm aspires to. We’re thrilled for our new partners.”
STRATEGY
Amazon to launch quick commerce deliveries in India
Amazon India is launching a 15-minute delivery service - marking its first foray into the rapidly growing quick commerce sector - later this month. The company will initially sell 1,000-2,000 products ready to be delivered in 15 minutes in Bengaluru and then scale it to other cities, explained senior vice president for India and emerging markets Amit Agarwal. It will be Amazon's first 15-minute delivery service in any of its markets across the world.
ECONOMY
KPMG forecasts slight growth in global GDP
KPMG International forecasts a slight increase in global GDP growth in 2025, followed by a dampening in 2026 due to the incoming US administration's expected policies. The December 2024 KPMG Global Economic Outlook reflects the continued geopolitical and economic uncertainty slowing down central banks' efforts to return to sustainable growth. As such, it anticipates GDP growth picking up from 3.1% in 2024 to 3.2% in 2025, before decreasing to 3% in 2026. KPMG forecasts the pace of inflation will continue cooling between now (4.5%) and mid-2025 (3.5%). "Thereafter, the forecast depends heavily on the pace of tariffs and whether we see a full-blown trade war erupt," the report reads, citing elevated geopolitical risk and the outcomes of the US election, such as inflationary trade, immigration policies and tariffs.
INTERNATIONAL
Morale dips as UK employers end working from home
Writing for The i, Eleanor Peake says many UK office workers fear the end of widespread remote working as companies revert to pre-pandemic office work arrangements. A report by Virgin Media O2 found that, since the beginning of the year, 40% of UK companies now operate from the office full time. Meanwhile, according to research by IWG, 36% of workers who have been instructed to come back into the office five days a week say their employer is at risk of losing talent. Gen Z is likely to find the office mandate hardest to deal with. Career expert Carolyn Parry observes: “Gen Z entered the workplace during an unprecedented period of workplace flexibility. Their foundational professional experiences have been shaped by remote work. This make the shift back to office-centric policies feel like a step backward rather than a return to normal.” She also notes that a full-time return to the office can effectively represent a salary reduction of 5%-10% when factoring in commuting, meals and work clothes.
Mexico's lower house approves labour reform for app workers
Mexico's lower house has approved a labour reform that seeks to regulate conditions for delivery drivers working for apps such as Uber. The law will in due course pass to the Senate, which must vote on any changes. The legislation would ensure that workers who earn at least a minimum wage on the app (around $414 monthly starting in 2025) have the right to unionise and access to benefits including social security, accident insurance, pensions, maternity leave, the right to receive company profits, and a Christmas bonus. "We celebrate this great legislative step that combines flexibility and labour rights," Labour Minister Marath Bolanos said.
LGBTQ+ advocates in Russia say they are experiencing a climate of fear
LGBTQ+ advocates in Russia say they have experienced a climate of fear and intimidation in the year since Russia’s Supreme Court effectively outlawed any promotion of LGBTQ+ rights. Any public representation of gay and transgender people is banned, and gender-affirming medical care and changing one’s gender in official documents are prohibited. Members of the LGBTQ+ community can be prosecuted and imprisoned for up to six years in the wake of the Supreme Court ruling in November 2023 that “the international LGBT movement” is extremist. Meanwhile, finding employment is increasingly difficult, both for those in the trans community who haven’t changed their gender marker in documents and those who have.
Alberta government cancels UAE foreign worker recruitment trip
The Alberta government has decided to cancel a foreign worker recruiting trip to the United Arab Emirates. The trip was tentatively scheduled for late February or early March next year. The ministry had planned to recruit skilled workers from the UAE as part of a 2025 international recruitment program. News of the initiative had raised concerns among labour leaders in Alberta, and had precipitated criticism from the Alberta Federation of Labour (AFL), including its president, Gil McGowan. "To see the Alberta government facilitating employers going overseas to find workers when there's plenty of people who could fill these positions, it's not just galling, it's completely unacceptable," McGowan said last week.
 


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