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APAC Edition
2nd May 2024
 
THE HOT STORY
Biden says 'xenophobia' hinders Asian economies
US President Joe Biden has claimed that "xenophobia" is hindering the economic growth of China, Japan, and India, while he emphasized the positive impact of immigration on the US economy. Speaking at a fundraising event in Washington, Biden stated that countries like China and Japan are struggling economically because they do not welcome immigrants. The International Monetary Fund has forecasted a deceleration in growth for these countries, while the US is expected to grow at a slightly brisker rate due to migrants expanding the local labour force. Biden's remarks come as concerns about irregular migration become a prominent issue ahead of the US presidential election. He has been working to strengthen economic and political relations with countries like Japan and India to counter global powers such as China and Russia.
MANAGEMENT
Tesla's top HR executive departs
Tesla's top human resources executive, Allie Arebalo, has left the company, joining a handful of other senior leaders that have recently departed. It is unclear whether Arebalo was let go as part of broader job cuts or if she stepped down. Tesla has been slashing jobs across the organization, targeting a staff reduction of about 20%. Arebalo, one of the most senior women at the company, had been in her role since February 2023 and worked for Tesla for about six years. Musk and Arebalo didn’t immediately respond to requests for comment.
Hong Kong shareholders pressure HSBC to appoint Asian chief
HSBC shareholders in Hong Kong are calling for the bank to hire an Asian CEO in the wake of Noel Quinn’s surprise resignation. Hong Kong is HSBC’s largest market and shareholders there have been pushing for the bank to re-domicile its headquarters to Asia, split off an Asia-focussed unit and give more prominence to Asian talent.
HIRING
Stellantis cuts costs by hiring engineers in lower-cost countries
Stellantis is recruiting a majority of its engineering workforce in lower-cost countries such as Morocco, India, and Brazil to contend with cheaper Chinese electric vehicles and slower demand. The carmaker is cutting costs to make more affordable vehicles and is seeking savings by hiring engineers in countries where the cost per employee is significantly lower than in hubs like Paris and Detroit, and it aims to have roughly two-thirds of its engineers in lower-cost countries in the long term. Western carmakers, including premium automakers like BMW, are also adding white-collar jobs in countries like India to tap local talent. The strategy is expected to add expertise in areas such as software, artificial intelligence, and battery-cell chemistries. However, the push to hire engineers in lower-cost countries has caused some development problems, requiring engineers from France and Italy to fix local issues.
WORKFORCE
World Bank urges Papua New Guinea to address 'human capital crisis'
The World Bank has called on Papua New Guinea to address its "human capital crisis" by investing more in education. The country's annual economic update revealed that economic growth was only 2.7% last year due to delays in the reopening of a gold mine and lower liquefied natural gas production. The report highlighted the high rates of stunted growth and illiteracy among children in Papua New Guinea, and recommended providing basic materials such as textbooks and toilets for schools. The World Bank emphasized the importance of education in building economic growth and creating peaceful and prosperous societies. Education specialist Lars Sondergaard stated that the same problems were seen in both urban and rural areas of the country. 
Tea workers in Assam deprived of minimum wage and basic necessities
More than 1,600,000 tea workers in both the organised and unorganised sectors in Assam have been deprived of their minimum wage and basic necessities like healthcare and education, according to the president of Assam Chah Mazdoor Sangha (ACMS) and former DoNER minister Paban Singh Ghatowar. ACMS has been demanding a hike in daily wages to at least Rs 350 for over a decade. The unorganised workers are even more deprived, not receiving subsidised ration, health benefits, provident fund, and maternity leaves. The workers and their families in the gardens are also deprived of quality education and healthcare facilities.
Japan's jobless rate holds steady at 2.6% in March
Japan's jobless rate remained unchanged at 2.6% in March, in line with economists' expectations. The jobs-to-applicants ratio rose to 1.28, surpassing the forecast of 1.26.
TRAINING & DEVELOPMENT
'Dry promotions' are the latest workplace trend
The Times of India reports that a new workplace trend called "dry promotion" is on the rise. It involves giving employees a raise in terms of designation and responsibilities, but no change in their salaries. Over 13% of employers in India have chosen to give dry promotions instead of increasing compensation, according to a report by Pearl Meyer. The comparable number was 8% in 2018. High-performing employees are left with few options - either accept the dry promotion or look for a job that compensates them fairly. It is suggested that employers can retain their best performing employees by instigating dry promotions in a positive way and showing appreciation through other means such as better learning and training opportunities or flexible working hours.
STRATEGY
Barclays cuts hundreds of roles in investment bank
Barclays has reportedly started cutting hundreds of roles, including at its investment bank, as the group looks to cut costs and improve its share price. The cuts will impact several hundred employees in Barclays' global markets, investment banking, and research divisions. The news comes as Barclays implements its biggest restructuring since the financial crisis, designed to save £2bn in costs and return £10bn to shareholders by 2026.
INTERNATIONAL
Google workers file complaint over firing for protesting Israeli government contract
A group of workers at Google has filed a complaint with the US National Labor Relations Board, claiming that the company unlawfully fired them for protesting its cloud contract with the Israeli government. The workers allege that Google interfered with their rights under US labour law to advocate for better working conditions. The complaint seeks reinstatement to their jobs with back pay and a statement from Google that it will not violate workers' rights to organise. Google has not yet responded to the complaint. The workers claim that the project supports Israel's development of military tools, but Google has stated that the contract is not related to sensitive or military workloads. One of the workers, Zelda Montes, who was arrested during a protest, said that Google fired employees to suppress organising and send a message to its workforce. The NLRB general counsel will review the complaint and attempt to settle the claim. If that fails, the general counsel can pursue the case before administrative judges and a five-member board appointed by the US president.
Exxon oil traders in Belgium protest mandatory move to London
Unions say that around 37 trading-related jobs are at stake as Exxon Mobil plans to move its trading floor from Brussels to London. Protesters gathered outside Exxon's Brussels office to voice their concerns over the job cuts. The move is part of the company's expansion in trading, but employees are dissatisfied with the terms being offered. The new contracts would tie half of a trader's pay to undisclosed performance criteria. The majority of affected traders do not want to relocate to London due to family concerns and unsatisfactory moving conditions. Exxon is trying to avoid triggering official negotiations with employees by favouring informal bilateral conversations. Over the past three years, more than 300 employees have left their jobs in Brussels, with trading-floor departures accounting for a further 6%.
Saudi activist sentenced to 11 years in prison for supporting women's rights
Saudi Arabia has sentenced women's rights activist Manahel al-Otaibi to 11 years in prison for criticising laws in the kingdom. The 29-year-old fitness instructor was arrested in November 2022 and sentenced by a counterterrorism court in January. Her charges were related to her choice of clothing and expression of her views online, including calling for an end to Saudi Arabia's male guardianship system. Otaibi had been a supporter of reforms brought in by Crown Prince Mohammed bin Salman. However, the country still has laws that discriminate against women in marriage and divorce. The reforms have drawn criticism from human rights groups, and the government continues to crack down on critics and female activists. This is not the first time a Saudi court has handed down harsh sentences to those who criticise the government. Despite Prince Mohammed's acknowledgment of bad laws, it remains unclear why he has not taken action to end such sentences.
Inviting a woman to a work meeting because she's ‘pretty' is sex discrimination, UK tribunal rules
An employment tribunal in the UK has ruled that calling a female colleague a "pretty woman" at work constitutes sex discrimination. The case involved an accounts manager, Emma Nunn, who sued her employers after her boss invited her to a meeting because a male client liked "pretty women." The judge said that the comments reduced Nunn's value to the business and would not have been made to a male colleague. Nunn, who felt humiliated and undermined, resigned from her job and is now set to receive compensation. The tribunal heard that Nunn and her boss had a longstanding friendship, which led to a blurring of their working relationship. While the tribunal found that this dynamic was encouraged by both parties, it upheld Nunn's complaint about the "pretty woman" comment. The judge concluded that the comment was sexual in nature and made because of Nunn's gender. A further hearing will determine the compensation to be awarded.
OTHER
Louis Vuitton returns to Times Square in Hong Kong
Louis Vuitton is set to return to Times Square in Hong Kong, signalling a positive outlook for the city's luxury retail market. The French luxury brand has signed a five-year lease for a larger 12,000 sq ft store. Other high-end brands like Omega, Chanel, and Fendi have also recently opened retail spaces in Hong Kong. According to a report by Knight Frank, the luxury retail market in Hong Kong is expected to regain lost ground as more brands make their way back into the city.
 


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