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27th November 2024
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THE HOT STORY
Vauxhall owner to close Luton factory, putting 1,100 jobs at risk
The owner of Vauxhall has announced plans to close its van-making factory in Luton, putting about 1,100 jobs at risk. Stellantis, which also owns brands including Citroen, Peugeot and Fiat, said it would combine its electric van production at its other UK plant in Ellesmere Port in Cheshire. Union Unite said the move was a "complete slap in the face" for its members working in Luton. Rules imposed to speed up the transition to electric vehicles (EVs) in the UK partly drove the decision, Stellantis said, and Labour is now expected to weaken targets for EV sales. Business Secretary Jonathan Reynolds is expected to announce a “fast track” consultation regarding potential changes to the current mandate, which requires at least 22% of new cars sold in the UK this year to be zero-emission vehicles (ZEVs). This target is set to rise to 80% by 2030 and 100% by 2035, coinciding with a ban on new non-zero-emission cars. Manufacturers, including Nissan, have expressed concerns that the ZEV mandate could jeopardise jobs and investment, warning of a “potentially irreversible impact” on the automotive sector.
EMPLOYEE RETENTION
State of employee retention report

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DIVERSITY, EQUITY & INCLUSION
FA aims for diverse coaching staff
The Football Association (FA) has set a target for 30% of the England men's coaching staff to come from ethnically diverse backgrounds by 2028. The initiative follows a recommendation from the Black Footballers Partnership, which highlighted the need for a more diverse pool of candidates for coaching roles. Currently, only 19% of the coaching staff are from diverse backgrounds. Mark Bullingham, FA chief executive, said: “Tackling discrimination is one of our core ambitions so we will continue to unite the game to confront this societal issue.” The FA also aims to increase diversity within the women's coaching staff and has introduced mandatory reporting of workforce diversity data for professional clubs. The strategy is outlined in the FA's new document, A Game Free From Discrimination.
Invest in Women Taskforce secures £250m
The Invest in Women Taskforce has successfully raised over £250m from various investors, including Barclays, Morgan Stanley, and Aviva, to support female entrepreneurs. This fund aims to enhance investment in female-led businesses and improve funding access. Notably, Barclays, M&G, British Business Bank, and Aviva each contributed £50m, while BGF and Morgan Stanley added £25m, and Visa Foundation contributed £5m. The Taskforce, succeeding the Rose Review, aims to unlock significant economic potential by empowering female entrepreneurs and investors.
LEGAL
Court battle ensues over the definition of woman
The Supreme Court is hearing a pivotal case brought by For Women Scotland (FWS) which challenges the legal definition of "woman" in relation to transgender rights. The case stems from the Gender Representation on Public Boards (Scotland) Act 2018, which has raised concerns about potential conflicts between the rights of trans women with a gender recognition certificate (GRC) and women's rights under the 2010 Equality Act. The appeal follows a 2022 ruling by Lady Haldane, which stated that the meaning of “sex” includes those with a GRC. Acting for FWS, Aidan O'Neill KC called for the court to take account of “the facts of biological reality rather than the fantasies of legal fiction”, and to uphold the appeal.
ECONOMY
Professional services sector 'punches above its weight' as driver of growth
Output in professional services, scientific and technical activities grew 0.7% in the third quarter even as overall growth slowed to 0.1%, according to FT analysis of official data.
REMUNERATION
Salaries lag house prices
House prices in the UK have increased by 2,534% over the past 50 years, while average salaries have only risen by 1,791%. According to Mojo Mortgages, today's average salary of £33,644 is £13,676 short of what is needed to keep pace with rising house prices. The average home now costs £265,012, compared to just £10,027 in 1974. John Fraser-Tucker, head of mortgages at Mojo Mortgages, said: "Today's first-time buyers are navigating a much tougher landscape than those who entered the market in 1974."  The average deposit has also risen significantly, now requiring 86.65% of a couple's income, compared to 15.05% in 1974. Despite these challenges, first-time buyer activity has increased by 21% in 2024, indicating that many are still pursuing homeownership.
WORKPLACE
Smithfield market faces permanent closure
London's historic Smithfield market, which has been operational for over 900 years, is set to close after the City of London Corporation voted to abandon plans for its relocation to Dagenham Dock. The decision follows concerns over cost overruns in the £1bn project. Traders will continue operations until at least 2028, during which time the Corporation will assist them in finding new sites. Chris Hayward, policy chairman, said: “This decision represents a positive new chapter for Smithfield . . . in that it empowers traders to build a sustainable future.” However, three barristers have warned that the decision might be unlawful, as it was made before a study on the markets' significance to London's food supply was completed.
STRATEGY
German steel giant ThyssenKrupp to cut 11,000 jobs
ThyssenKrupp, Germany's largest steelmaker, has revealed plans to reduce its workforce from 27,000 to 16,000 by the end of the decade. The company said it aims to eliminate around 5,000 jobs in its European steel operations by 2030 through "adjustments in production and administration." Additionally, 6,000 jobs will be outsourced or removed through spin-offs or divestitures. Under the plan, the company's plant in Kreuztal-Eichen, which employs 500 people, is to close. The goal is to reduce personnel costs by some 10% on average in the years to come. "Urgent measures are required to improve Thyssenkrupp Steel's own productivity and operating efficiency, and to achieve a competitive cost level," the company said. "Anyone who wants to cut over 11,000 jobs and close a site must expect fierce resistance from IG Metall," said Knut Giesler, head of the IG Metall union in North Rhine Westphalia, the home state of Thyssenkrupp.
CORPORATE
New Chief HR Officer at Nike
Treasure Heinle is to replace Nike’s current HR leader Monique Matheson, who has been at the company for 26 years and in the CHRO role since 2017. Matheson will retire. In an internal memo, new Nike chief executive officer Elliott Hill noted Matheson’s accomplishments and his long history of working with her. Hill has appointed a new diversity leader as well as marketing and legal executives since taking over at the top of the world’s largest sportswear retailer.
INTERNATIONAL
Walmart to roll back on some diversity policies
Walmart is rolling back some of its diversity, equity and inclusion (DEI) initiatives as the world’s biggest retailer joins a growing list of businesses retreating on DEI programmes that have been targeted by conservative activists. The company has said it will no longer consider race and gender to boost diversity when granting supplier contracts and that eligibility for financing will not be assessed based on suppliers providing certain demographic data. It will also scale back racial equity training, stop participating in rankings by an LGBTQ advocacy group and review its support for Pride and other events.  "We are willing to change alongside our associates and customers who represent all of America," a Walmart spokesperson said, adding that decisions come from “a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers.” David Larcker, a professor at the Stanford Graduate School of Business, says the decision could reverberate across corporate America. “Walmart is a key part of the economy and when you see them do something, you’re doing to see a lot of other companies follow along,” he said.
Are UAE employers doing enough for staff retention?
Writing for Gulf News, Marilyn Pinto wonders whether UAE organisations are doing enough for employee retention. She observes that financial wellbeing is by far the most neglected area of an organisation’s wellbeing activity according to the latest CIPD/ Simplyhealth Health and Wellbeing at Work survey, and says employers need to push hard on the theme of financial wellbeing to retain talent.
More Indian states and companies offer period leave
More employers and politicians in India are taking the provision of employee menstrual leave more seriously than ever before. Writing for Straits Times, Rohini Mohan says that in the past four years, the idea of menstrual leave has gone from being a one-of-a-kind corporate policy by a food delivery app in Bengaluru to featuring prominently in the election manifestos of political parties during recent polls in western India's Maharashtra state.
OTHER
Bookmakers and casinos to pay £100m harms levy
The Labour government is expected to impose a £100m annual levy on gambling companies to fund research, education and treatment of gambling harms. The levy, proposed by the previous Conservative government, could be announced by gambling minister Baroness Twycross as soon as today. Iain Duncan Smith, who chairs the all-party parliamentary group (APPG) examining gambling harms, said he was delighted, adding: “For the first time the gambling industry will be mandated to pay for the harm they cause. Whilst there is much more to do but this is a seismic moment and a huge step forward and I welcome it unreservedly.”
 


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