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APAC Edition
7th January 2025
 
THE HOT STORY
Lawson seeks overseas staff to tackle labour shortage
Lawson, a leading 24-hour convenience store chain in Japan, is addressing its labour shortage by hiring remote cashiers from Europe and the Americas. Lawson's remote staff will interact with customers through the use of digital avatars, with animated characters mimicking the movements of the cashier and appearing on a screen at checkout. The first overseas cashier, a Japanese national residing in Sweden, will assist customers in Tokyo and Osaka during early morning hours. The initiative, which has been trialled at 28 of Lawson's 11,000 outlets, aims to enhance productivity by employing staff in regions with significant time differences. As part of its growth strategy, Lawson plans to open 20% of new stores in rural areas, using artificial intelligence and avatar-operated checkout systems to meet local demand.
WORKFORCE
US workers are concerned about blockage of Nippon Steel takeover
President Joe Biden's decision to block Nippon Steel's near-$15bn takeover of U.S. Steel has raised concerns about job security in the American steel industry. Nippon Steel had pledged to invest $2.7bn in U.S. Steel's aging blast furnace operations in Gary, Indiana, and Pennsylvania's Mon Valley. The company also promised not to reduce production capacity in the US over the coming decade without first getting US government approval. “They were going to invest in the Valley,” said Jason Zugai, an operating technician and vice president of the United Steelworkers union local at a U.S. Steel plant in the Mon Valley. “They committed to 10 years of no layoffs. We won't have those commitments from anybody.” Biden said he was halting the Nippon takeover because “a strong domestically owned and operated steel industry represents an essential national security priority. . . . Without domestic steel production and domestic steel workers, our nation is less strong and less secure.”
Foxconn completes $230m ‘home' for its workers in India
Apple supplier Foxconn has completed a $230m dormitory project in Tamil Nadu that is designed to house its 41,000-strong, predominantly female, workforce. The complex features six 10-storey residential blocks and amenities such as sports facilities and a subsidised canteen. A source familiar with the project said:  “Workers won't need to commute by bus anymore—they can simply walk to their dorms.” The initiative marks Foxconn's first investment in worker dormitories in India.
China's retirement age rises after decades
China has implemented a gradual increase in the statutory retirement age, marking the first adjustment in over 70 years. The statutory retirement age for men will be gradually raised from 60 to 63 over the course of 15 years starting January 1, 2025, while that for women cadres and women blue-collar workers will be raised from 55 to 58 and from 50 to 55, respectively. The reform seeks to address the challenges posed by an aging population, with 297m individuals aged 60 or above, representing 21.1% of the total Chinese population. Projections suggest this number will exceed 400m by 2035. As part of the reform, the minimum pension contribution period will also increase from 15 to 20 years by 2030.
WORKPLACE
More employees in Singapore are relaxed about dress
The Straits Times says office workers in Singapore are increasingly switching out formal suits and ties for more comfortable or expressive dressing styles. Many employers maintain a dress code for workplace attire, but the formality of such codes is now generally more relaxed compared with previous years, observed country manager Linda Teo of recruitment firm ManpowerGroup. “This shift reflects a move towards more relaxed and employee-centric approaches,” she said, adding that there has been a greater emphasis on employee comfort and individuality. Although some feel the phenomenon is specific to Gen Zers and millennials, most believe it to be the result of an evolving workplace culture which transcends generations.
STRATEGY
Vietnam's bold bureaucratic overhaul
The Vietnamese government has introduced three decrees aimed at supporting officials, civil servants, and public employees affected by significant bureaucratic reforms. This restructuring, described by Communist Party Chief To Lam as a “revolution” in organisational reform, seeks to enhance governance efficiency and alleviate pressure on the state budget. The initiative will require approximately 130tn dong (S$7bn) but is projected to save 113tn dong over five years. With around 100,000 workers facing employment changes, the reform includes the merger and abolishment of various ministries and agencies, and aims to reduce administrative size by at least 15%. Richard McClellan from the Tony Blair Institute observed: “The state apparatus overhaul demonstrates the political will to pursue transformational change.”
SUSTAINABILITY
Mandatory climate reporting begins this year in Australia
Australia has enacted new mandatory climate reporting regulations requiring businesses to estimate their emissions and outline strategies for future risks. This legislation, described by Mark Rigotti, managing director and CEO of the Australian Institute of Company Directors (AICD), as "a fundamental step change in reporting," will initially apply to the largest companies but will expand to thousands of organisations by 2027. Companies must publish an annual climate statement detailing their greenhouse gas emissions and potential climate risks, using scenarios that include global temperature increases of 1.5C and 2C. The new standards align with the International Sustainability Standards Board (ISSB) guidelines, marking a significant shift in corporate reporting practices. Investors are increasingly demanding consistent sustainability reporting, which will help address climate change and promote transparency in business operations.
TRAINING & DEVELOPMENT
Firms game for playing out challenging scenarios
Board games are increasingly being used as educational tools, allowing trainees to engage in themed scenarios that address real-life challenges so they can explore problems and devise solutions while exploring the ramifications of their decisions. Melvin Bell, director of Focus Games, notes that games are often used for learning at a senior level," adding: "Serious games started off being used to disseminate ideas and are now used at companies including KPMG and EY."
INTERNATIONAL
Amazon's Seattle campus is quiet as five day mandate takes effect
Amazon's policy requiring employees to return to the office five days a week — instead of three — went into effect Thursday. The new requirement makes Amazon one of the strictest companies among its tech rivals when it comes to in-person work. Amazon CEO Andy Jassy has previously emphasized the need for a full-time return to strengthen company culture, but some employees suspect it may be a strategy to reduce workforce numbers. The Seattle Times surveyed the local scene Thursday in the South Lake Union and Denny Triangle neighborhoods — home to Amazon’s largest corporate campus with more than 50,000 employees — reporting that "Amazonians trickled into office towers throughout the morning and streamed out at lunchtime to visit food trucks. Lines formed but didn’t fill the sidewalks. The neighborhood was still quiet after the New Year’s holiday."
Spanish government rift over shorter working week
Spain's Labour Minister Yolanda Diaz, who leads the far-left Sumar party within the country's left-wing coalition government, has told state radio broadcaster RNE there were "manifest disagreements" with Prime Minister Pedro Sanchez's Socialist Party over a plan to implement a shorter working week with the same pay, and appealed to colleagues to "respect the committee of experts" that drafted the plan. Diaz accused Economy Minister Carlos Cuerpo, who suggested the plan should be delayed by a year to give small businesses time to adapt, of "siding with employers." Cuerpo "must decide on whose side he is on, that of the workers of this country who ask to live a bit better, or that of employers," Diaz said. Her stated goal is to reduce working hours to 37.5 per week from the current 40, with no change in salary, before the end of 2025.
Big UK firms order staff back to their desks
As British workers return to the office post-festive season, many face stricter attendance mandates from major employers. Amazon has implemented a five-day in-person requirement, while BT has introduced a "three together, two wherever" policy for its 50,000 office-based employees, and PwC has curbed remote working. Despite a gradual increase in office attendance, with figures rising from 29% to 33% between July 2022 and September 2024, many workers are reluctant to abandon the hybrid model. The trend is echoed globally, with hybrid job postings increasing by 31% in 2024. As companies tighten attendance rules, tensions may rise, the Guardian suggests, as demonstrated in a recent strike vote by Metropolitan police staff over increased office requirements.
 


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