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APAC Edition
25th March 2024
 
THE HOT STORY
Boundary between work and life disappears as Chinese workers face 'invisible' overtime
For Jewel Wong from China's southern Guangdong province, the boundary between life and work disappeared during the pandemic when people began to do their jobs from home. The extra demands of managing her company's communications around the clock led to work intruding constantly into her personal life. China's politicians have proposed more legal protections for employees who had to continue work online after office hours — a form of "invisible" overtime. China's labour laws stipulate that employees are entitled to double pay for working overtime on weekends and triple pay for public holidays. However, companies in China often violate labour laws without being held accountable. Younger generations in China are challenging the existing working culture and demanding work-life balance. The government's proposal to address unpaid online overtime is seen as a step towards recognizing the issue. However, structural changes and stronger enforcement of labour laws are needed to protect workers' rights.
WORKFORCE
Elderly Chinese forced to work beyond retirement age as pension system struggles
Many elderly Chinese people are returning to work after retirement as the nation's pension system struggles to meet their financial needs. The system, initially intended to supplement the caregiving role of adult children, has expanded to cover almost the entire population but major disparities still exist. While urban salaried employees receive an average monthly basic pension of about $470, rural and migrant workers can receive as little as $25. The migration of workers to major cities has worsened the gaps in the pension system, and China's property crisis has added to the funding shortfall. With China's population rapidly ageing and the birthrate hitting a record low, the pension system is facing a severe crisis. Experts suggest the need for pension reforms and the consolidation of fragmented pension schemes into a more unified system. However, any reform could face public backlash, as seen in protests against cuts to retirees' medical benefits.
Japanese firms agree to largest pay raise since 2013
Japanese firms have agreed to raise pay by 5.25% this year, the biggest amount and ratio under comparable data available since 2013, according to Rengo, the country's largest union group. Prime Minister Fumio Kishida hopes that these wage hikes will benefit smaller and medium-sized firms, which make up 99.7% of all enterprises and about 70% of Japan's workforce. However, many of these firms lack the ability to pass on higher costs to customers. Rengo will assess the extent of the wage hike trend at a meeting on April 4.
HIRING
Gen X workers contend with ageism in the job market
Gen X workers face ageism in the job market, with many employers preferring younger candidates. The confluence of post-pandemic economic uncertainty and rapid technological change has hit Gen Xers hard: many are struggling to find jobs, leadership roles are not open, and ageism is a key factor when roles do become available. It's said that the perception that Gen Xers don't fit into either the tech-savvy digital native or highly experienced older worker categories leaves them in a vulnerable position. Anne Burmeister, an Academy of Management Scholar and assistant professor at Rotterdam School of Management, Erasmus University, Netherlands, says perpetuating age-based biases makes "no business sense," adding "Very few organisations recognise this external demographic trend, and even the ones that do seem to not see the urgency to act." Instead, argues Burmeister, "what organisations should be doing is putting in place policies that leverage older workers' skills, expertise and experience."
LEGAL
Dutch court considers prosecution of companies for exploiting North Korean workers
A Dutch court is currently considering whether two Dutch companies, Shipkits and Boskalis, should be prosecuted for potentially profiting from exploited North Korean workers. The companies had ships or ship parts built at a Polish shipyard known for using exploited workers. Between 2013 and 2018, around 80 North Koreans were systematically exploited by the shipyard. In 2020, charges were filed against the two Dutch companies for profiting from human trafficking. The court questioned the companies during a closed hearing and will rule on whether they should be prosecuted in six weeks. Boskalis claimed to be unaware of the exploitation, while Shipkits has merged with another company and it is unclear who is responsible for its past activities. "The North Koreans cannot stand up for themselves and have already left the country, so we will do it for them," said lawyer Suzanne Hoff, representing the NGO network that filed the charges.
DIVERSITY, EQUITY & INCLUSION
Number of women in Indian C-suite roles on the rise, survey shows
An exclusive survey for The Times of India conducted by Executive Access indicates that the number of women in C-suite roles in India is increasing, with around 16% of all women hires now being CXOs and 8% being CEOs or MDs. This is a significant improvement compared to a decade ago when the number of women CEOs was only around 2%. Women are also making progress in traditionally male-dominated fields such as marketing and finance. However, experts emphasize the need for more inclusivity in sectors like manufacturing, construction, and project management. The survey predicts that the percentage of women in top roles will increase by at least 50%-60% in the next few years. The report highlights the importance of widening the talent pool and creating an inclusive work environment to drive better business outcomes.
MANAGEMENT
JPMorgan's Lin is retiring
JPMorgan's head of China for its private bank, Grace Lin, is retiring after eight years. Lin will remain in the role until mid-year, and her replacement will be announced "in due course." JPMorgan made changes to its leadership in Asia last year, appointing Harshika Patel as the new CEO of the region. The bank is also making broader changes to its leadership overseeing China as the country faces increasing economic difficulties. JPMorgan is considering naming new China chiefs to fill the vacancy left by Mark Leung, who resigned as China CEO last month.
ECONOMY
Japan's factory activity shrinks at slower pace in March
Japan's factory activity shrank at a slower pace in March, while the service sector showed further expansion, according to a business survey. The Bank of Japan recently ended radical stimulus and raised interest rates for the first time in 17 years. The manufacturing purchasing managers' index (PMI) rose to 48.2 in March, indicating a softer decline in production. The subindexes of output and new orders also improved. Meanwhile, the service sector grew at the fastest pace in 10 months, with demand conditions improving. However, price pressures increased in both sectors. The composite PMI, which combines manufacturing and service sector activity, reached the highest level since last August. "Manufacturers saw a sustained, albeit softer decline in production," said Usamah Bhatti at S&P Global Market Intelligence.
INTERNATIONAL
Five-decade UK study finds that aggression at school leads to better-paying job
A new study suggests that children who displayed aggressive behaviour at school, such as bullying or temper outbursts, are likely to earn more money in middle age. Researchers from the Institute for Social and Economic Research at the University of Essex in the UK examined data from primary school teachers who assessed the children's social and emotional skills when they were 10 years old in 1980, and matched it to their lives at the age of 46 in 2016. Prof Emilia Del Bono, one of the study's authors, said: "We found that those children who teachers felt had problems with attention, peer relationships and emotional instability did end up earning less in the future, as we expected, but we were surprised to find a strong link between aggressive behaviour at school and higher earnings in later life." The researchers found that an increase in teachers’ observations of conduct problems – such as temper outbursts or bullying or teasing other children – was associated with an increase in earnings in 2016 of nearly 4% for a given rise in conduct problems for boys and girls. That compared with a 6% rise for higher cognition skills.
The Middle East's AI dream depends on luring talent
The best use for the $200bn that Saudi Arabia and the UAE have committed to spend on AI-related development is to create homegrown AI chip design capabilities, writes Karen Kwok for Reuters.  If the intellectual property originates in the Gulf region, Riyadh and Abu Dhabi would be able to send designs to Taiwan Semiconductor Manufacturing Co, which dominates the production of chips globally, without restrictions from the United States. But the author says the catch here is that designing chips requires deep knowledge of the industry to avoid missteps, like violating existing intellectual property - and the Gulf lacks homegrown talent. “Instead, Riyadh and Abu Dhabi will have to persuade the global AI elite to move from desirable areas like Japan and California to the Middle East. Even with golden visas and generous tax rebates in the UAE – and Saudi Arabia recently easing rules on alcohol consumption – that’s a big ask,” Kwok writes.
Italian regulator struggles to hire AI experts amid growing demand
Italy's data protection agency, Garante, has faced difficulties in hiring artificial intelligence (AI) experts, highlighting the challenges regulators worldwide are encountering in recruiting AI talent. The demand for AI expertise has surged since the launch of OpenAI's ChatGPT, leaving regulators competing for talent from a limited pool. Low pay, lengthy hiring processes, and visa problems have hindered recruitment efforts. The European Union (EU) is also expected to face similar problems as it rolls out comprehensive AI regulation. The EU has been recruiting for its newly opened AI Office and the European Centre for Algorithmic Transparency (ECAT). However, the salaries offered by EU agencies are significantly lower than industry standards. In contrast, the United States has shown a willingness to pay more and expedite the recruitment process for AI experts. 
Large banks are attracting more talent from their smaller peers
Goldman Sachs and JPMorgan Chase are leading the push for employees to return to the office, but smaller banks are more likely to require full-time on-site work, according to job market data tracker Revelio Labs. While only 4% of banks with 5,000 or more employees demand full-time office attendance, nearly a third of the smallest banks do. This policy difference may be influencing where bankers choose to work: the share of new employees coming from smaller banks to larger banks has increased. The majority of bigger banks use hybrid work arrangements, and the flexibility offered by these arrangements can be seen to have a positive impact on attracting talent. “Having a flex-work policy yields a larger talent pool, more job applicants, and a better employer brand,” a recent LinkedIn report said.
 


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