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APAC Edition
19th December 2024
 
THE HOT STORY
Qantas to pay $120m after illegally firing 1,800 workers
Qantas is to pay $120m to 1,800 ground and baggage handlers who were illegally dismissed in 2020, concluding a four-year legal battle with the Transport Workers Union (TWU). Chief executive Vanessa Hudson expressed her apologies regarding the episode, saying: "This is an important step in bringing closure to these individuals." The airline's decision to outsource jobs was aimed at saving $100m annually during the pandemic. Following the Federal Court ruling that the terminations were illegal, the compensation fund will be managed by law firm Maurice Blackburn and is expected to be established in early 2025. TWU national secretary Michael Kaine hailed the outcome as a positive result for the workers, who faced significant hardships during the ordeal.
LEGAL
Japan’s 'exploitative' foreign trainee scheme in the spotlight
A 23-year-old Cambodian woman who was employed under Japan’s technical internship training programme claims she was repeatedly raped by the manager of the strawberry farm where she worked, forced into an abortion, and threatened with deportation if she resisted. The programme, which is intended to provide skills to foreign workers, is said to have instead become a source of cheap labour amid reports of underpayment and unsafe working conditions. The woman has filed a lawsuit in Tokyo for ¥80m ($521,700) in damages. Human rights activists say the case is indicative of the systemic exploitation that plagues the programme, which they describe as akin to "modern slavery." Ippei Torii, executive director of NPO Solidarity Network with Migrants Japan, observed: “Almost every woman who takes part in this programme is sexually harassed at some point.” Despite the Japanese government's plans to abolish the programme by 2027, critics say that meaningful change remains unlikely.
HEALTH & SAFETY
Safety signs for workplaces in Korea employing foreign workers
Following a tragic incident at an Aricell plant in Hwaseong where 23 employees, including 18 migrant workers, lost their lives, Korea's Ministry of Employment and Labor and Korea Occupational Safety and Health Agency (Kosha) are introducing new safety signage for workplaces employing foreign workers. The signs aim to enhance safety awareness and prevent accidents by conveying hazards in a universally understandable manner, even for those who cannot read Korean. "Twenty different types of signage will be distributed. Surveys were conducted to ensure clarity, and the signs will also be downloadable from Kosha's website, with plans for an additional 80 signs next year.
WORKPLACE
US agency enforces drug testing overseas
The US Federal Aviation Administration (FAA) has finalised rules mandating drug and alcohol testing for employees at foreign aviation-repair stations performing safety-sensitive maintenance for US airlines. The regulation, effective by December 2027, will affect approximately 977 repair stations across 65 countries. FAA Administrator Mike Whitaker explained: "This rule will ensure these employees are held to the equivalent high level of safety standards, regardless of where they are physically located." The rule requires repair stations to electronically submit their testing data to the US Department of Transportation. The FAA has been considering the issue for decades, but concerns have been raised regarding potential conflicts with privacy and employment laws in various countries. Transport Workers Union President John Samuelsen said last year the proposal would close a "big safety gap," observing: "Airline mechanics in China and other lower-wage, lower-standard countries who work on US commercial aircraft will have to undergo drug and alcohol testing - just like mechanics [in the US]."
TECHNOLOGY
Amazon says its warehouse bots are creating jobs
Employees at Amazon's warehouses have raised concerns about unsafe working conditions and job security amid increasing automation, but Tye Brady, Amazon's chief technologist, argues that the company's investment in robotics is enhancing worker safety and efficiency. "We put people at the centre of our robotics universe", he said, highlighting the collaboration between humans and machines. The new systems, such as the Sequoia storage cell and Proteus robots, aim to reduce repetitive strain injuries and improve order fulfilment speed. Despite criticisms, Brady insists that automation is not about eliminating jobs but transforming them, with Amazon committing over $1.2bn to upskill its workforce. The company has created hundreds of thousands of new roles, demonstrating that "more robots, more jobs" is a viable approach, Brady maintains.
CULTURE
KPMG develops platform to reinforce corporate culture among employees
KPMG has developed a platform that aims to connect its 36,000 US employees to company culture efforts. The Culture Champions Network (CCN) "brings together people that raise their hand . . . and [are] really committed to leading the way as it relates to culture, and being an ambassador, and a role model for culture," according to vice chair of talent and culture Sandy Torchia. The CCN platform is gamified, so as employees participate in qualifying virtual and in-person events — such as business resource group events, mentoring sessions, volunteer work, nonprofit board service, and learning and development courses — they can earn titles ranging from “enthusiast” to “catalyst” and eventually “legend.” Torchia said: “We wanted to give people the path and recognize them for the things that they’re doing, and also it’s helpful sometimes to have a reminder of what else you might want to do to not only achieve status along the culture legends journey, but also just to make KPMG a great place to work."
TAX
One in four Indonesia firms involved in tax evasion, World Bank says
A World Bank survey indicates that over 25% of firms in Indonesia engage in tax evasion. Rong Qian, a senior economist at the World Bank, observed: “the complexity of the tax system may play a role in determining [taxpayers'] choice of committing an evasion.” The report also highlighted that Indonesia conducted significantly fewer audits per million people from 2018 to 2021 compared to similar income countries. President Prabowo Subianto, who took office in October, has pledged to pursue fiscal reforms by collecting more, spending better, and using more innovative financing measures to achieve his 8% annual growth target.
CORPORATE
Nissan and Honda eye merger
Japan's Nissan and Honda are set to enter into merger negotiations. The talks come as the firms face challenges in the electric vehicle (EV) market. In 2023, they sold a combined 7.4m vehicles but have been losing market share in China, which represents nearly 70% of global EV sales. A merger could lead to the formation of a single holding company, with Mitsubishi Motors potentially joining the alliance.
INTERNATIONAL
Remote and offshore work could hurt audit quality, US regulator warns
The US Public Company Accounting Oversight Board (PCAOB) has released a staff report emphasising the importance of internal culture in audit firms for ensuring audit quality. Based on over 150 interviews with partners at major US audit firms, the report highlights that a culture of accountability is essential. PCAOB Chair Erica Williams said: “Culture is crucial at audit firms, since it lays the foundation for the work auditors perform in our capital markets.” The report also notes that centralised processes correlate with better audit quality and that the remote work environment has affected training and cultural dissemination. “Those we interviewed told us that the remote and hybrid work environment impacted their apprenticeship model for on-the-job training, the dissemination of culture, and professional scepticism,” Williams said. Additionally, it points out that some personnel may lack essential skills, and mixed messages from leadership regarding quality incentives need to be addressed. The findings suggest that audit firms must prioritise cultural improvements to enhance overall audit quality. 
Tesla slams German union over bid to oust works council head
Tesla has described as "desperate" an attempt by IG Metall, Germany's most powerful union, to oust the head of the works council at the EV maker's gigafactory near Berlin. The union said earlier it had filed a motion with a local court to remove the plant's works council head - who is not a member of the union - from the committee, citing violations to German labour law restricting its influence and preventing it from properly representing workers' interests. IG Metall says conditions at the factory are sub-par, noting also that it is the only car plant in Germany that is not governed by a collective wage agreement. Tesla denies that working conditions at the facility are below average, and maintains it offers equal or better terms than those negotiated by unions.
OTHER
China cracks down on illegal financial services online
The Cyberspace Administration of China (CAC) has intensified its efforts to combat illegal financial services on social media platforms, taking action against accounts on Douyin, Kuaishou, Weibo, and WeChat. The crackdown targets unauthorised stock recommendations and unlicensed financial intermediary services, which have led to significant investor losses. The CAC aims to regulate the dissemination of financial services, especially as the number of individual investors in China surged to over 220m by the end of last year. Notably, Dalan, a popular influencer with 9.5m followers, was banned for providing unlicensed stock advice. Donghui Shi, a finance professor at Fudan University, observed:“This is to do with the composition of stock market investors – there is an especially large number of individual investors in China's A share market who don't have a lot of knowledge on stocks.”
 


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