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APAC Edition
19th April 2024
 
THE HOT STORY
Samsung Group implements six-day workweek for executives
Samsung Group has implemented a six-day workweek for its executives in response to economic challenges and disappointing financial results. The new schedule aims to inject a sense of crisis amongst executives and encourage all-out efforts to overcome the company's challenges. Samsung Electronics executives will have the option to work on either Saturday or Sunday, while employees below the executive level will continue to work five days a week. Most of Samsung's technology divisions will follow the new schedule immediately. South Korea is known for its demanding work culture, and Samsung is not alone in asking its employees to come back to the office at weekends. SK Group, a South Korean conglomerate, has also reintroduced regular Saturday meetings for its chief executives.
LEGAL
Non-binary and women medical trainees report higher instances of bullying and mistreatment
Non-binary and women medical trainees in Australia have reported higher instances of bullying, harassment, discrimination, and racism. A survey conducted by the Australian Health Practitioner Regulation Agency (AHPRA) revealed that non-binary individuals experienced the most instances of mistreatment, with 16% disagreeing that such behaviour is not tolerated in the workplace. Female trainees also reported facing more bullying and mistreatment compared to their male counterparts. The survey highlighted the need for ongoing attention to the culture of medical training. Trainee doctors also reported gender-based differences in their training, including access to research, quality of orientation, and payment for overtime. The survey emphasized the urgent need for building a culture of respect in medicine and medical training. The report called for immediate action to address the link between poor culture and increased risks to patient safety and doctors' wellbeing. 
REMUNERATION
Japanese companies agree to largest pay raise in 33 years
Japanese companies have agreed to raise pay by 5.20% on average this year, the biggest increase in 33 years, according to Rengo, the country's largest union group. The outcome of these pay talks is seen as a barometer for spending and inflation. Bank of Japan Governor Kazuo Ueda and Prime Minister Fumio Kishida have both emphasized the importance of sustained wage growth and inflation for the country's monetary policy and to combat deflation. The first round of talks resulted in a 5.28% pay raise, the highest in 33 years, with subsequent rounds seeing slightly lower increases. A separate survey found that 77% of companies raised wages this year, although two-thirds of them fell short of the 5% demanded by Rengo.
STRATEGY
OpenAI hires government relations head in India
ChatGPT developer OpenAI has hired its first employee in India, appointing a government relations head to shape AI regulations in the South Asian country. The move highlights OpenAI's efforts to push for favourable local rules as governments consider how to regulate the technology. India, with its large population and fast-growing economy, presents a significant growth opportunity for global tech companies. OpenAI faces competition from Google, which is developing an AI model specifically for India. OpenAI's CEO, Sam Altman, has called for more regulations and emphasized the importance of integrating AI technologies into government services. Altman also noted that India was an early adopter of OpenAI's generative-AI service, ChatGPT. The new hire, from Stockholm-traded contact verification firm Truecaller, will lead public policy affairs and partnerships for OpenAI in India.
WORKFORCE
Australian employment falls in March, jobless rate rises
Australian employment fell in March after a significant gain the previous month, while the jobless rate increased. The figures from the Australian Bureau of Statistics showed a drop of 6,600 in net employment in March, with full-time employment rising by 27,900. The jobless rate climbed slightly to 3.8% from 3.7%. Despite the small gain forecasted, the hot labour market is still expected to loosen. 
CYBERSECURITY
Global financial firms fall behind on monitoring and archiving personal messaging apps, survey shows
Global financial companies are not adequately monitoring and archiving business-related communications on personal messaging apps, according to a survey by SteelEye. The survey found that 63% of compliance executives in the US, Europe, and Asia Pacific were not monitoring staff usage of WhatsApp for compliance purposes. Only 27% said they were investing in communications surveillance capabilities. The failure to monitor personal messaging apps could lead to regulatory breaches and fines. The US Securities and Exchange Commission has already cracked down on business-related text messages over personal messaging platforms. Financial penalties linked to record-keeping missteps across personal messaging tools have exceeded $2bn.
CORPORATE
Business travel for bankers in Hong Kong takes a hit
Business travel perks for bankers in Hong Kong are being cut back as firms tighten their belts amid a deal drought in the region. Some banks have reduced hotel allowances to below $100 a night, while other cutbacks include car pooling, taking the train instead of a taxi, and booking second-class tickets for high-speed rail. The austerity measures are a far cry from the days when bankers could book flights on a whim and travel in business class. The prolonged real estate crisis and concerns about China's economy have led to job cuts and warnings against financial elitism. Even at the likes of Goldman Sachs and UBS, austerity is being felt, with some bankers voluntarily booking premium economy seats instead of business class.
Late stage HRtech startup Rippling raises $200m in new funding round
Late stage HRtech startup Rippling is raising $200m in a new funding round, with the potential to raise its valuation to $13.4bn. The Series F round includes $670m worth of shares being sold by existing stockholders. Rippling's previous round was during the Silicon Valley Bank crisis, when founder and CEO Parker Conrad worked to raise funds to cover payrolls. Existing investor Napolean Ta at Founders Fund is prepared to invest up to $310m, the largest check the fund has ever written. The HRtech market for payroll services and remote labour management is growing. Rippling's valuation puts it in the same league as well-funded competitors such as Gusto, Deel, and Remote.
REMOTE & HYBRID WORKING
Nike CEO blames remote working for sales slump
The CEO of Nike, John Donahoe, has criticised remote working for the company's first sales slump in over two years. Donahoe stated that it is difficult to achieve bold and disruptive innovation, such as developing new shoes, through Zoom meetings. Donahoe emphasised the importance of rebuilding the innovation pipeline and plans to showcase Nike's new approach during the Olympics in Paris.
INTERNATIONAL
US business groups seek permanent block of Biden rule on worker classification
The US Chamber of Commerce and other major business groups have asked a Texas federal judge to permanently block a Biden administration rule that would make it more difficult for companies to treat certain workers as independent contractors rather than their employees. The groups argue that the US Department of Labor failed to adequately explain why it was abandoning a Trump-era regulation that drew clearer lines for determining worker classification under federal wage laws. The business groups claim that reclassification will harm many independent contractors and may drive some out of the workforce altogether. The rule, which took effect on March 11, is expected to have a broad impact on industries relying on gig workers. Multiple challenges to the rule are pending, and Republicans in Congress are pushing for its repeal. The case is currently before US District Judge Marcia Crone in Beaumont, Texas.
Sweden passes law allowing easier gender change
Sweden's parliament has passed a law that will make it easier for people to change their legal gender, lowering the age requirement from 18 to 16. The new law, which will come into force next year, will require a shorter consultation with a doctor or psychologist, along with approval from The National Board of Health and Welfare. The process of legal gender change will also be decoupled from medical procedures like sex reassignment surgery. Supporters argue that this is a modernisation of the existing law and brings Sweden closer to its Nordic neighbours and other European countries. However, the bill has faced criticism, with 59% of Swedes considering it a bad proposal. The law has also divided the government, with the centre-right Moderates and the Liberals working with the centre-left opposition to pass the bill. Critics argue that more evaluation is needed and express concerns about potential consequences for women sharing changing rooms with those who have transitioned.
Female-led businesses provide economic lifeline for Afghan women under Taliban restrictions
A study by the United Nations Development Programme (UNDP) has found that female-led businesses are serving as an economic lifeline for Afghan women living under Taliban restrictions. However, these businesses face challenges in accessing capital and markets. The study revealed that 41% of surveyed Afghan female entrepreneurs had to take on debt, with only 5% able to gain credit through banks or micro-finance institutions. Additionally, over 70% reported restrictions on their operations, including the inability to travel to local markets without a male guardian. While the Taliban have not formally banned women from work, their restrictions have led to a decline in female formal employment. The study emphasizes the importance of international support for these businesses, as they play a crucial role in sustaining local economies. Challenges faced by female-led businesses include competition from cheap imports and a lack of credit access. The future of Afghanistan depends on the success of these businesses, according to the UNDP.
UK Supreme Court rules trade union law breaches workers' rights
The Supreme Court has ruled that the UK trade union law breaches the country’s duty to protect the right to take part in lawful strikes. The ruling came in the case of Fiona Mercer, a care worker who was suspended by her employer after participating in a planned strike. Lady Simler, who delivered the judgment, stated that if employees can only take strike action by exposing themselves to detrimental treatment, the right dissolves. The Unison union's general secretary Christina McAnea described the ruling as "a victory for every employee who might one day want to challenge something bad or unfair their employer has done," adding: "The government must now close this loophole promptly. It won't cost any money and isn't difficult to do." A spokesperson for Britain's Department of Business and Trade was equivocal on whether the law would be amended, saying "the government will consider the judgment carefully before responding."
OTHER
High return rates plague luxury brands in China
Some luxury brands in China are experiencing unusually high rates of returns, well above the global luxury industry's normal level. The trend has persisted since China exited COVID Zero, indicating weakening consumer demand. The returns trend threatens to undermine efforts to boost sales through promotions. Tmall, one of the largest official bazaars for global luxury brands in China, has seen return and cancellation rates rise for various luxury houses. Shoppers are increasingly requesting returns and cancellations before their products are even shipped, artificially inflating initial sales figures. China's e-commerce platforms are making returns and refunds easier, which poses challenges for premium brands. Despite the challenges, luxury brands are investing in concierge services and private sales to build long-term relationships with wealthy customers. China's luxury sales are expected to slow down this year and be primarily driven by high-net-worth individuals. Luxury brands need to refine their strategies for the Chinese market to address the high return rates.
 


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