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APAC Edition
28th May 2024
 
THE HOT STORY
Sri Lanka's tea producers condemn government order to increase wages by 70%
Sri Lanka's tea producers have criticized the government's decision to increase wages by 70%, saying that it will make their tea globally uncompetitive and hinder the country's recovery from its financial crisis. The $1.3bn industry, which employs around 615,000 workers, exports about 95% of the 250 million kilos of tea it produces annually. The government's order to raise worker salaries to 1,700 rupees ($5.66) per day from 1,000 rupees is expected to increase tea production costs by 45%. The Planters' Association of Ceylon (PAoC) argues that the decision was made without proper consultation and will result in a decline in the quality of Sri Lanka's tea. The wage hike is set to cost plantation companies an additional 35 billion rupees. The industry's rivals, India and Kenya, have lower prices and higher productivity. Sri Lanka's Labour Ministry has warned that companies refusing to comply with the wage increase could be taken over by the government.
WORKFORCE
Migrant workers find respite in cricket tournament in crisis-hit Lebanon
In a car park in Beirut, migrant workers from Sri Lanka, the Philippines, India, and Pakistan find respite in a cricket tournament, France 24 reports. The workers, who are employed under Lebanon's controversial kafala sponsorship system, gather every Sunday to play cricket, which is a little-known sport in Lebanon. The tournament also features traditional food stalls, music, and teams from the British and Sri Lankan embassies. The tournament is organised by Fernando Sugath, a Sri Lankan migrant worker who first came to Lebanon in 1996. Sugath appeals to employers to give workers at least one or two hours off on Sundays to allow them some freedom and the opportunity to call their families. France 24 notes that rights groups have long criticised Lebanon's restrictive sponsorship system, saying it facilitates exploitation and leaves migrant workers at the mercy of their employers, amid persistent reports of physical and sexual abuse, unpaid wages and long work hours.
LEGAL
Country Road launches independent probe into harassment claims
Country Road has launched an independent investigation after staff complained that the Australian clothing retailer did not adequately handle their sexual harassment and bullying complaints. Woolworths Holdings, its South African parent company, has commissioned the probe after reviewing an employee survey alleging improper workplace behaviour in the company's sourcing and supply division. The unit was run by Rachid Maliki, who left the company in February. A spokesperson for the retailer said: “This independent review is currently in its final stages. The outcomes are expected to be shared with Country Road Group team members in June. It is critically important to us that our workplace is one where all team members feel safe, valued and included".
Protesters rally in Taiwan against legislation curbing president's powers
Protesters are gathering in Taipei as opposition lawmakers try to push through controversial legislation giving them greater investigative powers and effectively curbing the authority of President Lai Ching-te. The changes would expand lawmakers' ability to summon the president, companies, and even the general public for questioning, as well as give them access to confidential documents. Concerns arise that these powers could derail President Lai's agenda, lead to leaks of sensitive information, and punishments for non-compliance. The legislation has already sparked angry clashes and large-scale protests, reminiscent of the 2014 Sunflower student movement. The opposition Kuomintang and its Taiwan People's Party allies are expected to pass the legislation, despite the public's anger.
HEALTH & WELLBEING
Stress bragging can backfire, study finds
So-called stress bragging, or talking about one's stress levels in a bid for validation, can actually harm a person's reputation at work, according to a study by the University of Georgia Athens' Terry College of Business. The study found that stress braggers are often seen as unlikable and less competent by their co-workers. Additionally, stress bragging can lead to burnout and higher stress levels among colleagues. The research suggests that stress bragging creates a contagious effect, causing others to feel more stressed. Experts say it is important for individuals to find the right confidant to discuss their stress with, rather than boasting about it. Employers should also be aware of stress bragging, as it can negatively impact company morale. The findings were published in the journal Personnel Psychology.
CORPORATE
Workday cuts annual subscription revenue forecast
Human resources software provider Workday has lowered its annual subscription revenue forecast due to concerns about a hiring slowdown and IT budget cuts. The company's subscription revenue for fiscal year 2025 is now expected to be between $7.70bn and $7.73bn, down from the previous forecast of $7.73bn to $7.78bn. Workday CFO Zane Rowe stated that the updated guidance reflects the sales scrutiny and lower customer headcount growth experienced during the quarter. Workday's total revenue for the first quarter was $1.99bn, with subscription revenue rising 18.8% to $1.82bn. Shares of the company fell nearly 9% in extended trading.
HIRING
Tesla posts openings for AI and Autopilot following weeks of staff cuts
Tesla has listed 17 job openings in its "Autopilot & Robotics" division, signaling workforce growth after recent layoffs. The positions primarily focus on engineering roles for Tesla's driver-assistance efforts, with a couple of AI research positions. The company's career site had been mostly empty during the layoffs, but now it also includes positions related to a service center training program. CEO Elon Musk ordered the job cuts due to declining electric vehicle sales, while emphasizing Tesla's focus on building a robotaxi and positioning the company as an AI, robotics, and sustainable energy company. Musk mentioned that OpenAI has been aggressively recruiting Tesla engineers, leading to increased compensation for Tesla's AI engineering team. The new job postings offer salary estimates ranging from $104,000 to $360,000 per year, along with cash and stock awards and benefits.
INTERNATIONAL
The modern workday is fuelling an epidemic of isolation
More meetings, faceless chats, and fewer work friends are fuelling an epidemic of isolation among US workers, writes Te-Ping Chen for the Wall Street Journal, noting that rates of loneliness in the US continued to rise last year even as the pandemic subsided. The situation is increasing staff turnover and worker absences, and making it a business issue for more employers, executives and researchers say. Health insurance company Cigna estimates that loneliness is costing US companies $154n a year in absenteeism alone. Julie Rice, co-founder of fitness chain SoulCycle, says that her work schedule, which was once packed with coffees and in-person meetups, is now an avalanche of Zooms. “Even people I’m meeting with here in New York, we’ll just Zoom,” she says. Sarah Wright, an associate professor at New Zealand’s University of Canterbury who studies worker loneliness, observes:  “We used to think loneliness has to be overcome by developing meaningful relationships and having that degree of intimacy . . . More and more, though, we’re seeing it’s these day-to-day weak ties and frequency of [interactions] with people that matters.”
Portugal cuts income tax for young people in bid to prevent emigration
Portugal's centre-right minority government has approved a significant income tax reduction for young people aged 18-35 in an effort to prevent emigration. The average rate they will pay from next year will be lowered by two-thirds, with the maximum rate for all young people earning up to €5,800 a month set at 15%. The measure, which is expected to be approved by parliament, aims to reverse the trend of emigration that has plagued the country. Prime Minister Luis Montenegro stated: "We are giving more hope to young Portuguese to settle in Portugal. We need them here." The tax cut is estimated to cost the state coffers about €1bn a year. In addition to the tax reduction, the government will provide young people with a public guarantee for housing loans and exempt them from municipal transaction taxes. According to the Emigration Observatory, around 850,000 young people have left Portugal due to poor working conditions and low wages.
Calling a woman ‘frumpy’ at work is discrimination, UK employment tribunal finds
A judge has ruled that calling a female colleague "frumpy" could potentially amount to sex harassment, according to a UK employment tribunal. The ruling came in the case of an investment firm worker who claimed she had been "humiliated" after her boss described her outfit as making her look like a "frumpy grandma."  Although the claim was dismissed due to being brought too late, the tribunal found that the comment was unwanted conduct related to sex. Employment Judge Paul Singh said: “The very nature of the comment . . . was inherently linked to gender and we also found that such conduct had the purpose or effect of violating [the claimant's] dignity." This ruling is one in a series of recent judgments in the UK that suggest new legal avenues for discrimination claims at work.
OTHER
McDonald's and KFC face sales dip in Middle East and Asia
McDonald's and KFC are among the US fast food brands experiencing a decline in sales in Asia, the Middle East, and parts of Europe due to boycotts linked to the conflict in Gaza. The boycotts have led to a decrease in demand for fast food from American retailers, with McDonald's and Starbucks being particularly affected. The impact has been more significant in countries such as Egypt, Jordan, and Morocco. While McDonald's did not disclose the cost of the boycotts, its CEO stated that the Middle East and Muslim countries like Indonesia and Malaysia were the most affected. KFC outlets in Southeast Asia, including Malaysia, have also faced temporary closures. In Pakistan, local brands are being preferred over Coca-Cola and Pepsi due to their perceived links to Israel. The boycotts have also affected can makers for Pepsi and Coca-Cola, with sales dropping by 11% in Pakistan. The impact of the boycotts in Europe is harder to determine, but France has seen a meaningful impact, particularly in Muslim areas. Recovery for McDonald's and Starbucks may take until the end of the year.
 


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