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UK Edition
22nd January 2025
 
THE HOT STORY
Warning lights flash over jobs market
The British Chambers of Commerce (BCC) has raised the alarm about the UK jobs market, indicating that "warning lights" are flashing due to rising unemployment and falling vacancies. Recent data shows a 4.4% unemployment rate for the three months leading to November, up from 4.3%, alongside a significant drop of 47,000 payrolled workers in December, marking the largest decline since November 2020. Despite wage growth of 5.6% in regular pay, the BCC warns that businesses face increasing employment costs, particularly with Labour's plans to raise national insurance contributions and the minimum wage in April.
WORKFORCE
Aldi boosts wages for workers
Aldi has announced a wage increase for its UK shop floor workers, raising the minimum hourly rate to £12.71 from £12.40, effective from March. Employees in London will see their pay rise to at least £14. The decision follows concerns raised by Aldi UK boss Giles Hurley regarding the impact of rising taxes on businesses, particularly the planned increase in National Insurance Contributions. Hurley said: “Our colleagues are the best in the business and this latest pay rise reflects our ongoing commitment to ensuring they remain the best paid.” Sainsbury's is also set to increase its minimum wage to £12.60 in August, while Lidl's workers will earn at least £12.40. The national living wage will rise to £12.21 in April.
CORPORATE
Waterstones profits soar as workers return
Waterstones has reported a healthy increase in pre-tax profit, rising from £11.2m to £42.9m for the year ending 27 April 2024. The bookseller attributed the growth to the return of employees to offices, saying: “Footfall and sales continue to grow year on year with encouraging growth in London and other metropolitan city centres.” Revenue also rose from £452.4m to £528.3m, aided by increased tourist numbers and a successful online sales strategy. Despite a previous year’s profit drop of 80% due to warehouse issues, Waterstones is optimistic about future expansion, with plans to open new bookshops in 2025. The company is also considering a potential flotation in London or New York.
UK leaps ahead in investment appeal
The UK has emerged as the second most attractive country for investment, surpassing Germany, China, and India, according to PwC's annual CEO survey. The survey is seen as a "vote of confidence in the UK," with 14% of global CEOs believing the UK will attract significant international investment, trailing only the US at 30%. Optimism among UK chief executives has increased, with 61% expecting economic growth in the next year, up from 39% in 2023. Despite concerns over rising debt and recent sluggish growth figures, over half of UK CEOs plan to expand their workforces. Marco Amitrano, senior partner at PwC UK, stressed the importance of maintaining a consistent government approach to business and investment, saying: “The UK's relative stability at a time of instability should not be underestimated.” The survey included responses from 4,701 CEOs across 109 countries from October 1 to November 8, 2024.
REGULATION
MPs conclude Office for Value for Money is a waste of cash
MPs have raised concerns about Rachel Reeves' new Office for Value for Money, labelling it an "understaffed, poorly defined organisation" with unclear objectives. A report by the Treasury select committee highlighted the office's lack of resources and potential for duplication, questioning its ability to drive efficiencies in government departments. Dame Meg Hillier, the committee's chair, said: "It is understaffed, poorly defined, set up with a vague remit and no plan to measure its effectiveness." The office has only 12 full-time employees and David Goldstone, who will become the chairman of the organisation, will be paid £950 a day. This is in return for working just one day a week on average.
Ministers force out chair of UK’s competition regulator
The chair of the UK Competition and Markets Authority (CMA) has been forced out by the Business Secretary, Jonathan Reynolds, for not being sufficiently focussed on growth. Marcus Bokkerink was appointed in 2022 and could have served a five-year term. Former Amazon UK boss Doug Gurr is expected to take over as CMA chair in the interim with eyes now on whether CMA chief executive Sarah Cardell adjusts her approach. Tom Smith, competition lawyer at Geradin Partners and former CMA legal director, said the move came as a surprise. “Government seems to be sending a strong signal, especially about merger control,” he added. “It is tempting to say that now would be a good time to file a merger at the CMA.”
CYBERSECURITY
HR leaders grapple with ‘revenge quitting’ phenomenon
The Work Trend Security Report from data backup and recovery company CrashPlan highlights an increase in so-called 'revenge quitting', a trend which sees a sudden resignation accompanied by destructive actions that jeopardise company data. Todd Thorsen, CISO at CrashPlan observed: “The signs of employee disengagement and dissatisfaction show up in the way they use technology. IT teams are often positioned to know about a potential rage-quitter long before HR does. How people treat the data they produce on the job generally predicts their job satisfaction.” Leena Rinne, global head of coaching at employee training platform Skillsoft, noted that “Employees are still saying the same things about why they’re considering a move: they want more opportunities to grow, better training and stronger development programs,” while Iffi Wahla, CEO of recruitment platform Edge, says firms must develop a culture and environment that prioritises retention and puts employees first.
INTERNATIONAL
Commerzbank employees are worried about job cuts report
Reports that Germany's Commerzbank is considering cutting thousands of jobs as it contends with an unwanted advance from Italy's UniCredit have unsettled staff, a senior trade union official has said. Frederik Werning, a Verdi trade union official and a member of the supervisory board at Germany's second-largest lender, said rumoured redundancies reported in the Financial Times on Saturday, citing two sources familiar with the matter, had caused "uncertainty among employees." The union's "absolute priority" was to "consistently represent and defend employees," Werning said.
Australians are increasingly searching for new roles despite lacking qualifications
New research by LinkedIn has found that some 59% of Australian workers will be looking for a new job this year, even as HR professionals highlight a lack of necessary qualifications among applicants. Adam Gregory, senior director, ANZ, LinkedIn Talent and Learning Solutions, observed: “Hirers are increasingly challenged by people applying for jobs that don’t match their skills and finding the right person for a role often feels like finding a needle in a haystack. It’s also natural that companies have been finding it harder to find the talent they need when many of the fastest-growing job roles we see today didn’t even exist 20 years ago.”
Indonesian garment workers' jobs in peril
Hundreds of thousands of garment workers in Indonesia may lose their jobs this year, Redma Gita Wirawasta, chairman of the Indonesian Filament Yarn and Fiber Producers Association, has warned, citing competition from cheap Chinese-made clothing. He said: “We are getting information that some companies are starting to close their factories,” and noted that “If the government doesn’t do anything to halt Chinese products into Indonesia, I think another 500,000 people will lose their jobs this year.” The local industry lost some 80,000 jobs in 2024 alone. Redma highlighted Indonesia's inability to effectively restrict illegal products from entering the country.
Worker caught watching porn on work phone wins case
A security guard in Spain has been reinstated and awarded €7,500 in compensation after being dismissed for watching pornography at work. The High Court of Justice of Catalonia ruled that the dismissal was unfair, saying: “On its own, viewing sexual content during working hours on some occasions cannot be held to constitute a serious breach of contractual good faith.” The court also highlighted that the company violated the worker's right to privacy by monitoring his phone without consent.
OTHER
Lifting of whistle ban sparks local uproar
Residents near Cornwallis Academy in Maidstone have expressed their discontent after Maidstone Borough Council lifted a ban on referees' whistles at the school's new £700k all-weather sports pitch. Initially imposed to minimise noise disturbance, the ban was a condition of the planning approval granted in January 2023. Local resident David Sanderson described the noise as "relentless," claiming: "We can hear the shouting in every room in the house whenever it's being used." Despite 127 complaints about noise, the council has allowed the use of whistles, which are deemed "tonal, impulsive and intrusive" according to Duncan Haynes, MBC's environmental protection team leader. Residents are now calling for reduced noise levels and limited hours of use, seeking "some peace in the evenings and weekends." 
 


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