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APAC Edition
18th March 2024
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THE HOT STORY
Unions seek millions in compensation over illegal sacking of Qantas workers
Unions representing hundreds of former Qantas workers are seeking millions of dollars in compensation over their illegal sacking during the COVID-19 pandemic. The compensation hearing, described as the largest case of its type in Australia's corporate history, has started in the Federal Court in Sydney. The Transport Workers Union (TWU) is acting on behalf of the workers and is demanding that Qantas pay up. The hearing will feature three test cases that will determine the amount of compensation. If the workers were stood down legally, they would have been employed for longer and entitled to substantial compensation. There are 1,600 workers seeking compensation, and the court aims to decide on the matter as soon as possible. Qantas has expressed its regret and hopes for a quick resolution. The hearing is scheduled to run for two weeks.
BACKGROUND SCREENING
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STRATEGY
Land scarcity in an Indian industrial park as companies shift from China
Land is becoming scarce in a sprawling industrial park in southern India as companies shift their base from China. The Greenbase industrial park, near Chennai, is attracting European and American companies looking to diversify their supply chains. Inquiries for leasing space in the park have skyrocketed, prompting Greenbase to invest $800m to expand its industrial park space, and developers like Greenbase are scouting for land nationwide to meet the demand. India is seen as an alternative to China for manufacturing facilities, and companies in the e-commerce and manufacturing industries view India as a hub for exports. The growth potential in India has attracted developers like Panattoni and Prologis, which are investing in warehouse complexes. However, developers face challenges in acquiring land due to complex ownership issues and rising prices.
US business delegation visits Vietnam
A large US business delegation, including Meta, Boeing, and wind energy firm GE Vernova, is visiting Vietnam this week. About 50 companies will participate, including Koch Industries, UL Solutions, Chubb, Roblox, ATMO, and AES. Many of these companies are already active in Vietnam. US President Joe Biden upgraded relations with Vietnam last year and pushed for increased cooperation in the semiconductor industry. The business mission will hold meetings with local authorities from Tuesday to Thursday. A smaller delegation of security firms plans to discuss possible business opportunities with representatives from Vietnam's ministries of defence and police.
LEGAL
Uber to pay $178.3m to settle Australian lawsuit
Uber has agreed to pay A$271.8m ($178.3m) to settle a lawsuit in Australia brought by taxi operators and drivers. The class action, filed by Maurice Blackburn Lawyers on behalf of more than 8,000 taxi and hire car owners and drivers, accused Uber of causing them to lose income. Uber has made contributions to state-level taxi compensation schemes since 2018 and sees the settlement as putting these issues in the past. Maurice Blackburn Lawyers said that the group members wanted an outcome, not excuses.
South Korea urged to grant amnesty to illegal Thai workers
Thailand's Labour Ministry has urged the South Korean government to offer an amnesty to 150,000 illegal Thai workers and legalise their work status. Minister Phiphat Ratchakitprakarn proposed the amnesty, explaining that most of the labourers have lived in the country for at least three to four years and have developed essential skills, including the Korean language. He asked for help in gaining legal work permits and suggested that skills tests could be conducted by the Korean authorities. The Korean minister expressed some concerns and said he would discuss the issue with the Justice Ministry and Immigration Bureau. The two men also discussed bringing in Thai labourers on E7, E8, and E9 visas. The Korean government said it appreciated the quality of Thai workers but suggested improving their language skills. Additionally, four memorandums of understanding (MoU) were signed to send more labourers to work in Korea's agriculture and fishery industries. The Thai Foreign Affairs Ministry's Consular Affairs Department stated that Japan's visa-free policy for Thai travellers is set to expire next year, and it is unknown if Tokyo will extend it. Mr Phiphat will be in Japan next month to discuss these issues.
TECHNOLOGY
China has 12½ times more robots in its workforce than industry experts predicted, report says
China's robotics industry is rapidly catching up to leading-edge technology, according to a report from the US think tank, the Information Technology and Innovation Foundation (ITIF). The report reveals that China has 12½ times more robots in its workforce than expected, indicating that Chinese workers are being replaced by robots at the fastest rate in the world. While China still lags in software development and innovation, the country's production and deployment rates of robotics are increasing rapidly, the report says. The Chinese government has made the robotics industry a priority, suggesting that Chinese robotics companies are likely to become leading-edge innovators in the near future. However, the report also highlights that China's robotics industry heavily relies on foreign technologies and imported parts.
TRAINING & DEVELOPMENT
Japan plans to replace intern program with training system
The Japanese government plans to replace the intern program with a new training system to address local labour shortages. The legislation to amend related laws, including the immigration control and refugee recognition law, will be submitted to the current parliamentary session. The new system is expected to begin in 2027 if the legislation is enacted. As a transitional measure, foreigners accepted under the existing intern program will be allowed to stay in Japan until their three-year internship is completed, even after the new system is launched. The government hopes that foreign workers trained under the new system will be able to obtain residency status under the specified skills scheme smoothly. Justice Minister Ryuji Koizumi said: "We'd like foreign workers to stay in Japan longer and apply higher skills to contribute to the country." The new training system will also allow foreign trainees to switch employers under certain conditions.
HIRING
TCS offers incentives for quick hiring of senior employees
Tata Consultancy Services (TCS) is offering a special incentive to its vendors for the quick hiring of senior employees. The "Quick Joiner Incentive Plan" rewards vendors with an additional ₹40,000 per candidate if they join within 30 days. However, the incentive is recoverable if the employee leaves within 180 days. TCS is looking for experienced employees with skills in Microsoft Teams, Microsoft 365 tools, Endpoint, and SharePoint. The move indicates that TCS expects new mandates and projects. Analysts note that TCS is hiring mid- to senior-level talent with 10 years of experience and above to ramp up deals. The preference for experienced employees over fresh hires is evident in the IT services sector. TCS's additional incentives aim to streamline bench strength and stabilise utilisation rates. The market is seeing rising demand for experienced professionals in programs like Flutter, Windchill, and Workday. TCS's utilisation rate is estimated to be around 85%-89%.
WORKFORCE
Korea needs to create jobs for 894,000 more people in next decade
The Korean government needs to create jobs for 894,000 more people in the next decade to tackle the economic slowdown caused by the country's population decline, according to a report by the Korea Employment Information Service. The report emphasized that the aging population and declining birthrate will directly impact the local labour market. It also stated that there will be an increased demand for workers in sectors such as child care, health and welfare, information and communications, and scientific technologies. However, the number of workers in manufacturing will see a decline. To address the decreasing working-age population, the government plans to implement policies to boost employment for the youth, women, and middle-aged and elderly individuals. This includes expanding flexible work programs, enhancing child care support, and supporting job changes. The government also aims to support the issuance of work permits for foreign workers and assist their settlement in the country. "We will make efforts to place workers with the right skills in appropriate positions," said Vice Labor Minister Lee Sung-hee.
CORPORATE
Japan Inc's pursuit of overseas deals is set to accelerate as interest rates rise
Japan Inc's pursuit of overseas deals is expected to accelerate as interest rates rise, boosting the yen and making overseas targets cheaper for potential acquirers. Bank of Japan policymakers are considering raising interest rates, which would have a positive impact on Japanese companies looking to do outbound deals. Last year, Japanese companies saw an 81% increase in outbound deal value, and this year has already seen $17bn worth of overseas acquisitions. The push for better capital efficiency and the pressure to make use of cash or return it to shareholders are also driving the increase in overseas buying. While there are risks involved, such as overpaying and geopolitical risks, Japanese buyers are seen as reliable and have better access to financing. The U.S. and Australia have been the main target nations for Japanese companies. Advisory firms are also expanding their teams to meet the growing demand for overseas deals.
INTERNATIONAL
Manchester United staff sue the club over HR breach
A group of Manchester United employees is reportedly suing for up to £100,000 ($127,000) over an HR error that saw 167 casual workers employed by the English Premier League club accidentally sent emails containing confidential details of some permanent employees. The data included wage slips, names, addresses, National Insurance numbers and pension benefits and tax contributions. The incident, which happened six years ago, was reported to the Information Commissioner’s Office. A total of 32 staff are lodging a High Court compensation claim. Jonathan Whittle of Your Lawyers says the soccer club’s owners should take responsibility for the error.
Americans are living farther and farther from their workplaces
Freed from daily commutes with the rise of remote working, the average American worker now lives almost three times farther from their job than before the pandemic, according to a study by Gusto and the Stanford WFH Group. The study analyzed payroll data from 5,800 small and midsize businesses and found that workers' average distance to their employer increased from 10 miles in 2019 to 27 miles in 2023. The trend is most pronounced among workers hired after the pandemic hit, with an average distance of 35 miles from their employer. The study also reveals that workers in their 30s, office workers in tech, finance, and professional services, and higher-income earners live farthest from their employers.
Kenya's online workers are the unsung heroes who are fueling the AI revolution
Kenya is becoming a key player in the global AI revolution as the East African country's online workers provide essential support to international companies. However, their contributions often go unnoticed. France 24 reports on how many are now calling for greater recognition.
OTHER
Talks start to enable joint use of QR code payment services
Japan is talking with Southeast Asian countries to enable the joint use of QR code payment services, in an initiative which would allow international travellers to make purchases overseas using their own payment methods. It is hoped to make QR code systems compatible with each other by the beginning of fiscal 2025. The Payments Japan Association, the operator of the country's standardised QR code payment system, called JPQR, will build a new system as early as this year in a bid to connect it to overseas service providers. Some Southeast Asian countries also have their own standardised QR code payment systems. Singapore, Indonesia, Thailand, Malaysia and the Philippines exchanged a memorandum of understanding in 2022 aiming to unify their QR code.
 


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