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30th October 2024
 
THE HOT STORY
National Living Wage to rise by 6.7%
The Chancellor has confirmed that the minimum wage for over 21s will increase from April 2025 by 6.7%, from £11.44 to £12.21. This will mean £1,400 over a year. For 18 to 20-year-olds, the minimum wage will rise from £8.60 to £10 - up more than 16% and worth £2,500 per annum. Apprentices will get an 18% pay bump, from £6.40 to £7.55 an hour. Rachel Reeves said the boost would benefit more than 3m workers and was a “significant step” towards delivering a “genuine living wage” for all employees. But the move was not welcomed by business leaders. John Foster, of the Confederation of British Industry, said that “with productivity stagnant, businesses will have to accommodate this increase against a challenging economic backdrop and growing pressure on their bottom line.” Elsewhere, Kate Nicholls, chief executive of trade body UKHospitality, said the pay increases would add £1.9bn to the sector’s wage bill and prove “simply unsustainable if taxes are going to shoot up at the same time.”
HEALTH & WELLBEING
Women are more likely to be addicted to work, study suggests
Preliminary results of a global study led by Polish academics on work addiction - defined as the compulsive need to work or engage in work over a long period of time - suggest women are more likely to be work addicted. Australian research lead Rachael Potter from the University of South Australia said workplace culture is one of the leading contributors to work addiction. Dr Potter said managers, people with a demanding job and family members addicted to work were at increased risk of becoming work addicted. ABC News notes that about 24% of Australians fall into this category. "In terms of the sample, we were one of the highest cultures that showed work addiction," Dr Potter said. "If your co-workers . . . if your manager was kind of reinforcing you working late at night, they're all going to contribute to feed that behaviour." Australia had the second highest prevalence of occupational depression, at 11%.
DIVERSITY, EQUITY & INCLUSION
Campaigners urge government to set out plans to encourage people over 50 back into the workplace
More needs to be done to tackle barriers faced by older UK jobseekers, experts say. The rate of economic inactivity in the UK among 50 to 64-year-olds has stalled since the pandemic at about 27%, more than twice that of 25 to 34-year-olds. The government has been told that it will have to tackle barriers to work for older people if it wants to “Get Britain Working” – the title of a forthcoming government white paper. “[Government ministers have] set out a really strong agenda for what they’re going to do about getting the youth employment rate up, which is super important. We need to hear their plans for the older end,” said Emily Andrews, deputy director at thinktank the Centre for Ageing Better. She identifies two types of challenges: practical and cultural. The practical issues are those that workers can face at any age, but which can be prevalent among those aged over 50. The cultural challenges are the attitudes both of employers and workers. “You’ve got straightforward ageism and age discrimination. The opportunities that people give us are limited because of our age: so someone being told, ‘we think you’ve got too much experience for the job’. But there’s also internalised ageism. That’s the opportunities that we think we deserve,” Andrews explains.
Female leaders in finance earn 30% less than their male counterparts
Women in senior finance roles earn nearly 30% less than their male counterparts, according to the Office for National Statistics (ONS). The average hourly wage for female financial managers is £11.71 lower than that of males, with the gender pay gap in finance at 28%, significantly higher than the overall average across professions. Jemima Olchawski, chief executive of the Fawcett Society, highlighted that the finance sector has "long had a very big problem" with gender inequality, exacerbated by a lack of transparency in pay and progression. The ONS noted that while the gender pay gap has decreased overall, it remains most pronounced in sectors dominated by men. The Financial Conduct Authority has proposed new rules for financial companies to set diversity targets to address under-representation.
LEGAL
Tesco settles harassment claim for £45,000
Lara Storey, a former Dotcom Personal Shopper at Tesco, has settled her sexual harassment and victimisation claims against the retailer for £45,000. She claimed that she had been sexually harassed by a colleague which included physical touching and "inappropriate messages." Despite assurances from Tesco, the colleague she complained about remained in the same position, leading Storey to feel victimised by senior staff after lodging her complaint. Geraldine McGahey, Chief Commissioner at the Equality Commission for Northern Ireland, emphasised the need for employers to ensure dignity and respect in the workplace. Tesco has expressed regret over how Storey's concerns were handled and has committed to reviewing its harassment policies.
Addison Lee executive admits to faking email in tribunal case
A senior Addison Lee executive has admitted faking an email that is a key part of the London private-hire taxi group’s evidence in an employment tribunal case over driver classification. 
WORKFORCE
Ford workers strike over pay
More than 1,000 employees at Ford are to strike for 24 hours in a dispute over pay and contract changes. Administrative staff working at the company's sites across the UK will walk out on Wednesday and the Unite union has warned there will be more strikes if the dispute is not resolved.
Royal Mail couriers vote to strike as labour tensions mount
The Independent Workers’ union of Great Britain says 70 members working for Royal Mail’s eCourier unit are preparing to walkout over demands to be recognised as employees, rather than as independent contractors.
HIRING
London businesses freeze hiring ahead of Budget
London businesses are hesitating to hire new staff ahead of the upcoming Budget, driven by concerns over potential tax increases. A survey by KPMG, the Recruitment and Employment Confederation (REC), and BusinessLDN revealed that the London permanent placement index dropped to 43.7 in September, indicating a significant slowdown in hiring compared to the national average of 44.9. Muniya Barua, deputy chief executive at BusinessLDN, said: “With the number of people out of work in the capital at its highest level in almost three years, the Chancellor needs to do more to get private investment motoring.” The anticipated tax hike of £35bn, particularly an increase in employers' national insurance, is expected to further deter hiring and wage growth, with business groups warning of long-term impacts on employees.
STRATEGY
BAE Systems boosts workforce and facilities
BAE Systems is set to invest £220m to enhance its Rochester facilities, aiming to increase its workforce from 1,600 to approximately 2,000 employees. The investment will facilitate the construction of a new 32,000 square metre factory, focusing on advanced aerospace technologies, including helmet-mounted displays and flight control systems for both civil and military aircraft. This project is part of a broader strategy, with additional investments of £300m in shipbuilding in Glasgow and over £200m in the UK munitions sector. Despite a slight dip in share prices, BAE's stock has risen by 15.2% this year. Separately, a large fire at a BAE Systems nuclear submarine shipbuilding site in Barrow in north-west England broke out early on Wednesday. Police said there was “no nuclear risk.”
Santander to cut more than 1,400 jobs
The UK division of Santander saw its profit in the three months to the end of September fall 18.5% from a year earlier to €346m. This comes after a 23% slide in the previous quarter. Santander CEO Hector Grisi said more than 1,400 jobs across its UK business would be cut as the bank pushes forward with efforts to automate more parts of its operations.
INTERNATIONAL
Citigroup moves some staff out of Lebanon amid conflict
Citigroup says it has relocated a "very small" number of employees from Lebanon to Turkey due to the escalating conflict between Israel and Hezbollah. Clashes have intensified over the past month, with Beirut, where Citi's local office is located, coming under attack. A spokesperson for Citi said: "The safety and well-being of our people remains our top priority and we have taken every measure to ensure our colleagues' safety." The bank, which re-established its Lebanon branch in 1996 after initially retreating in 1987, says it continues to monitor the situation and has the necessary resources in place to support its employees and their families.
PepsiCo shutters Chicago facility in ‘despicable' move
PepsiCo's abrupt closure of its southwest side facility in Chicago has left many employees without jobs, prompting Teamsters Local 727 to label the move as "despicable." The union claims the closure violates the workers' collective bargaining agreement and the Worker Adjustment and Retraining Notification Act, which mandates a 60-day notice for mass layoffs. PepsiCo maintains that it has complied with legal requirements and will continue to pay affected employees through December 28. John Coli Jr., secretary-treasurer of Teamsters Local 727, expressed his frustration, saying: "To lay off over a hundred Teamsters workers with no notice . . . is about as low as you can get." The union has filed an unfair labor practice charge with the National Labor Relations Board, alleging bad faith bargaining and retaliation.
Germany's metalworkers launch strikes over pay
Strikes have commenced in Germany's metal and electrical industries, initiated by the IG Metall union amid ongoing collective bargaining affecting approximately 3.9m workers. The protests began with 250 workers striking at the Volkswagen (VW) plant in Osnabrück, followed by around 400 workers in Hildesheim. IG Metall negotiator Thorsten Gröger said: "The fact that production lines are now at a standstill and offices are empty is the responsibility of the employers." The union is demanding a 7% wage increase over 12 months, while employers have proposed a 3.6% increase over 27 months. Protests are expected to escalate nationwide.
Singer caught dancing while off sick with bunions was ‘fairly sacked’
A singer who was caught dancing in high heels for a music video while on sick leave for her bunions was fairly sacked, a court in the Canary Islands has ruled. Aspiring pop star Virya Cruz was fired a week after she appeared online performing with two male dancers. She had been off work for 10 months after undergoing surgery on bunions. Cruz challenged her dismissal as unfair, but the Canary Islands’ superior court ruled that her employer, an audiovisual company in Las Palmas de Gran Canaria, was within its right to fire her. “Dancing and jumping in heels are incompatible with recovery from her foot condition, which requires rest and periods of immobility,” the court said in its ruling.
 


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