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APAC Edition
13th February 2025
 
THE HOT STORY
NITES union takes on Infosys over layoffs
IT employee union NITES has lodged a formal complaint against Infosys, alleging illegal and unethical layoffs of recently onboarded trainees. The complaint, addressed to Labour Minister Mansukh Mandaviya, claims that Infosys violated labour laws by terminating recruits who had already faced a two-year delay in joining. Harpreet Singh Saluja, president of NITES, said: “It has come to our attention . . . that Infosys Ltd. has resorted to forcibly terminating recently onboarded campus recruits.” NITES wants an investigation, a halt to further layoffs, and reinstatement with compensation for affected employees. Infosys, however, claims that the separations, numbering under 350, were "mutual" and due to failures in an internal assessment programme. NITES also accused Infosys of using intimidation tactics against employees during the layoffs.
REMUNERATION
Union boss slams penalty rate cuts
Sally McManus, secretary of the Australian Council of Trade Unions, says she strongly opposes discussions among top Australian business executives regarding the removal of penalty rates for weekend and night work. She described the conversations as “stupid” and “massively out of touch,” and emphasised that penalty rates are essential for many workers' take-home pay. McManus said: “When they say that penalty rates are outdated or should go, they are saying people's pay should be cut.” She highlighted that such cuts would severely impact workers in low-paid industries, making it difficult for them to meet their financial obligations. The push for these changes comes as business leaders, including those from Woolworths and Coles, advocate for productivity boosts and reduced labour costs. Meanwhile, Treasurer Jim Chalmers has acknowledged the need for increased productivity in the Australian economy.
TECHNOLOGY
JD Vance warns against ‘excessive regulation' at Paris AI summit
At the Artificial Intelligence Action summit in Paris, US Vice President JD Vance cautioned global leaders and tech executives that “excessive regulation” could stifle the burgeoning AI industry. He warned European Union countries against overregulation and said the Trump administration wants AI to remain free from ideological bias. "The Trump administration is troubled by reports that some foreign governments are considering tightening the screws on US tech companies with international footprints," Vance said. "Now, America cannot and will not accept that, and we think it's a terrible mistake — not just for the United States of America — but for your own countries."  Vance said the US wants to ensure that the internet is a safe place, but suggested the European Union's Digital Services Act had overreached, enacting "massive regulations" and "policing so-called misinformation." He said:  "It is one thing to prevent a predator from preying on a child on the internet, and it is something quite different to prevent a grown man or woman from accessing an opinion that the government thinks is misinformation."
GenAI is set to boost Indian tech sector's productivity by up to 45%
According to a survey by EY India, the adoption of generative artificial intelligence (GenAI) is projected to enhance the productivity of India's $254bn software industry by 43%-45% over the next five years. The increase will be felt in around 500 roles and driven by the IT sector's internal integration of GenAI and the transition of client projects from proof of concept to production. Abhinav Johri, a technology consulting partner at EY India, said: "Enterprises are moving beyond experimentation to putting AI into production at scale." The survey indicates that software development roles will see the most significant productivity boost of approximately 60%, followed by BPO services at 52% and IT consulting at 47%. Collectively, these areas will contribute to 50%-60% of the overall productivity improvement in tech services. The growing use of AI is also enhancing customer service while reducing costs and improving revenue growth.
LEGAL
PwC sheds 66 partners after China audit ban
Dozens of PwC China partners have left their roles after authorities imposed a six-month ban in September for “concealing or even condoning” fraud during the firm's audit of property developer Evergrande.
STRATEGY
New plan to boost Singapore's marine and offshore energy firms
Singapore has launched a new initiative aimed at fostering sustainable growth within its marine and offshore energy sector, targeting the creation of 1,000 local job roles by 2030. The plan, announced by the Association of Singapore Marine & Offshore Energy Industries (ASMI) with support from Enterprise Singapore, seeks to achieve a 5% average annual productivity growth and secure new orders that will facilitate a reduction of at least 250 kilotonnes in annual carbon emissions. ASMI president Simon Kuik said: “To stay competitive, companies must innovate, adapt, and build new capabilities.” The initiative also focuses on upskilling the workforce to meet the demands of offshore renewables and maritime decarbonisation, so positioning Singapore as a key player in the global energy transition.
Pinsent Masons launches third mainland China office
Pinsent Masons has announced the opening of a new office in Shenzhen, marking the fourth foreign firm establishment in the city within two years, and Pinsent Masons' third mainland China office. Kanyi Lui, the firm's China head, will relocate from Beijing to lead the new venture. The office will be situated in the Qianhai Free Trade Zone, which is poised to become a key hub for the Belt and Road Initiative and a global centre for finance, logistics, technology, and legal services.

 
Law
WORKFORCE
Worker housing rents surge in Singapore
In the second half of 2024, rents for worker housing in Singapore increased by an average of 10.8%, driven by a surge in foreign labourers. According to the Dormitory Association of Singapore and Knight Frank, there were 442,900 foreign workers employed in various sectors, while the available dormitory beds totalled 439,198. The report predicts that rents will continue to rise by 5% to 8% in 2025 due to ongoing demand and limited supply. Centurion CEO Kong Chee Min stated, “Investor interest in the purpose-built worker accommodation asset class has been rising due to its attractive demand-supply dynamics.”
REMOTE & HYBRID WORKING
The baffling WFH puzzle
The FT's Pilita Clark says all kinds of large employers have been tightening their rules on working from home - but statistics suggest homeworking levels have remained noticeably steady.
ECONOMY
Consumer sentiment struggles in Australia
In February, Australian consumer sentiment remained stagnant, with the Westpac-Melbourne Institute index rising only 0.1% from January, despite a 7.2% increase year-on-year. Matthew Hassan, Westpac's head of Australian macro-forecasting, noted: "The consumer mood improved materially over the second half of 2024, but the recovery has stalled in the last three months". The survey revealed that 36% of respondents anticipated a decline in mortgage rates, while 28% expected an increase. The index measuring family finances compared to the previous year fell by 3.4%, indicating ongoing financial pressures. However, the outlook for family finances over the next year showed some optimism, rising 0.6%.
INTERNATIONAL
Disney changes DEI to focus on business outcomes
Disney is changing its diversity, equity, and inclusion (DEI) programs to focus more closely on business outcomes, according to a memo. The note to employees from Disney's chief human resources officer, Sonia Coleman, says the company's "Reimagine Tomorrow" site will be rebranded as "MyDisneyToday." The "Reimagine Tomorrow" program was an online space for "amplifying underrepresented voices" that featured some of Disney's DEI commitments and actions. The rebranded program will now focus on how well the company attracts top talent, champions a culture where everyone belongs, and creates and supports underserved communities, Reuters reports. Meanwhile, Disney is to replace the "Diversity & Inclusion" performance factor that it used to evaluate executive compensation with a new "Talent Strategy." This new factor includes concepts from the old one, but is more focused on how values drive business success. "We create entertainment that appeals to a global audience," wrote Coleman. "And having a workforce that reflects the consumers we serve helps drive our business."
UK employers lead Europe for salary transparency
Research from recruitment platform Indeed reveals that 71% of British employers include salary details in job advertisements, compared to just 16% in Germany. The figure has risen from 48% in 2019, indicating a growing trend towards pay transparency in the UK. Jack Kennedy, an economist at Indeed, observed: "The culture around pay secrecy and negotiation is a bigger factor in some countries than others." Legislation is next year due to come into force in the European Union which will require employers to provide salary details either in a job advertisement or before an initial interview, in a bid to reduce gender or ethnicity-related pay  differentials. Britain does not have similar legislation on pay transparency, although courts last year ruled that fashion chain Next was discriminatory when it paid retail staff - who were mostly female - less than predominantly male warehouse workers for doing work that judges said was of equal value.
 


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