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23rd August 2023
 
THE HOT STORY
Chinese spy used LinkedIn to hunt UK secrets
An investigation carried out by The Times reveals how a single Chinese spy used fake LinkedIn profiles to lure thousands of British officials into handing over state secrets. The intelligence officer, whose main alias is Robin Zhang, contacted individuals working in sensitive areas, such as the military, science and technology and politics, to try to build relationships. He would then offer cash for all-expenses paid trips to China in return for information. Tom Tugendhat, the security minister, warned that it was not just government employees who need to exercise caution, but also businesses with commercially sensitive information, as well as researchers and academics. He said: “We’re taking action to disrupt and deter these threats. Our new National Security Act has put our espionage laws back on the front foot, and MI5 are helping people understand the hallmarks of fake profiles used by foreign spies and other malicious actors through their Think Before You Link campaign.”
TECHNOLOGY
PwC partners take pay cut to invest £100m in AI
Partners at PwC have taken a hit to their annual payouts in favour of investing £100m in artificial intelligence (AI). The firm's 1,057 partners in Britain were paid an average of £906,000 for the financial year, down from just over £1m in 2022. PwC has made significant investments in the AI space, collaborating with Microsoft, Icertis, and Harvey AI. The firm's legal teams are already using AI technology to draft and read contracts and letters. PwC's investment in AI is focused on investigating how staff can use emerging technologies in the future. The firm's revenue rose 16% to £5.8bn for the year, driven by growth in consulting, tax, and audit services. PwC's partners believe that investing in AI is crucial for the firm's long-term success. "If ever there was a time to invest for the medium and long term, from which we'll all benefit as partners, it's now," said Kevin Ellis, senior UK partner of PwC.
AI is more likely to help workers than take their jobs, UN report says
A new report by the UN's International Labour Organization (ILO) suggests that AI can help with certain duties rather than take over entire jobs. However, clerical workers remain exposed to full automation. "Most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI," the ILO report said. The ILO calculated that 5.5% of jobs in high-income countries are potentially exposed to automation by generative AI, compared to 0.4% of jobs in low-income countries. The report found that clerical work was most at risk of being affected by generative AI. A quarter of tasks in clerical roles are highly exposed to potential automation, according to the ILO, and this would particularly impact women, especially in wealthier countries. "Therefore, for policymakers, our study should not read as a calming voice, but rather as a call for harnessing policy to address the technological changes that are upon us," the ILO said.
WORKFORCE
Brexit has had a 'devastating' impact on the music sector
A survey of music industry workers reveals that nearly half of UK musicians and workers in the music industry have had less work in the EU since Brexit than before it, and more than a quarter have had no EU work at all. The Independent Society of Musicians (ISM), which carried out the survey, said artists were losing work due to visa and work permit requirements and costs associated with moving goods such as equipment and merchandise. Deborah Annetts, the ISM’s chief executive, said: “Brexit should never have meant that musicians cannot share their talent freely with our closest neighbours. This damages our country, our soft power and our precious creative talent pipeline.”
British workers need £3k pay rise just to keep pace with costs
Research suggests British workers need a £3,000 pay rise in order for their salaries to keep pace with rising inflation. Investment platform easyMoney analysed historic changes to inflation and the average salary in the UK to determine the wage growth needed to beat the cost-of-living crisis. Employees would need a sizeable increase to mitigate the impact of the inflation-hiked prices for goods and services. According to easyMoney’s data, the average salary dropped by 0.7% to £31,437 in 2021 while inflation rose by 2.6%.
REMUNERATION
Call for reforms after FTSE bosses receive 16% pay rise
Companies should be required to have at least two elected representatives on the committees that set pay and should provide more detail on remuneration for top earners beyond the executives, the High Pay Centre has said. The call came after research by the group revealed median pay for chief executives of FTSE 100 share index companies grew to £3.91m in 2022, the highest level since 2007. The figure is up from £3.38m in 2021, marking a 16% pay rise.
HIRING
UK recruitment firms cut jobs amid hiring slowdown
UK recruitment firms are cutting jobs as economic uncertainty leads to a slowdown in the hiring market. Labour shortages and fierce competition for talent during the pandemic resulted in record results for recruitment firms. However, inflation and interest rate hikes have caused businesses to reduce investment and freeze new hires, leading to job cuts in the recruitment sector. While some recruiters are diversifying their offers and focusing on temporary work, others are experiencing declines in net fees and consultant headcounts. The outlook for recruiters remains uncertain, with forecasters from the Bank of England, KPMG and others predicting a rise in unemployment.
LEGAL
UK doctors' conduct guidelines updated to address workplace sexual harassment
Conduct guidelines for UK doctors are being updated to address workplace sexual harassment, as concerns about unchallenged abuse grow. The General Medical Council is adopting a zero-tolerance policy, clarifying that verbal and written comments, as well as sharing images, can be considered breaches. A recent survey by the British Medical Association found that a third of female and a quarter of male doctors had experienced unwanted physical conduct at work. Dr Amy Attwater, an accident-and-emergency doctor, emphasized the under-reporting of sexual harassment and shared her own experiences. The new guidelines also outline steps for doctors to take when witnessing bullying or harassment. However, campaigners argue that more needs to be done to support victims and ensure transparency and thorough investigations. The guidelines will come into effect at the end of January after a five-month familiarisation period for staff.
Former OPEC president charged with bribery offences
A former president of OPEC is being charged in the UK with bribery offences following an investigation by the National Crime Agency (NCA). Diezani Alison-Madueke, who had a career at Shell and ministerial posts in Nigeria before being elected as the first female president of OPEC in 2014, is suspected of accepted bribes during her time as Minister for Petroleum Resources in Nigeria in exchange for awarding multi-million pound oil and gas contracts. Andy Kelly, head of the NCA's International Corruption Unit (ICU), said: "Bribery is a pervasive form of corruption, which enables serious criminality and can have devastating consequences for developing countries. We will continue to work with partners here and overseas to tackle the threat."
Company paid staff to write positive reviews on Glassdoor
Fintech firm Lanistar offered staff more than £2,000 to write positive reviews of the business on company comparison site Glassdoor, Financial News can reveal. Lanistar, which was founded by entrepreneur Gurhan Kiziloz in 2019, had a low Glassdoor rating following allegations of bullying and sexual harassment.
STRATEGY
US video game company that worked on Fortnite to open Wales office
A US video games company, Rocket Science Corporation, known for working on popular games including Call of Duty and Fortnite, will be opening its European headquarters in Wales. The move is expected to boost the games sector in Wales, which has a small but growing video games development sector. Rocket Science Corporation has received £825,000 from the Welsh government to establish its new base and create employment opportunities for at least the next five years. The company's co-founder, Thomas Daniel, expressed his excitement about bringing the experience of their American-based teams to Cardiff. Wales Interactive, the largest publisher in Wales, has also emphasized the potential of the games industry, which makes more money than the local film and music industries combined.
Getir to cut 2,500 jobs across five countries
Fast-track grocery service Getir is to slash more than 10% of its workforce, amounting to about 2,500 jobs across five countries including the UK. The cost of living crisis and stiff competition from rivals such as Deliveroo, Uber Eats and JustEat have hit revenues.
TAX
Wealthy expats misunderstand inheritance tax threat
Tax experts say British expats moving to Dubai are being wrongly told that their families will not be liable to pay inheritance tax when they die. Around 240,000 British people have moved to the Gulf state in recent years, with many buying “golden visas” that allow them to stay for ten years and pay zero income and capital gains tax in the country. But Chris Etherington, of tax advisers RSM, points out that British expats living overseas are still liable to pay inheritance tax on their worldwide or UK assets. “You need to make a more permanent change to your lifestyle to cut ties with the UK for inheritance tax purposes.”
INTERNATIONAL
Gannett discriminates against white workers, lawsuit claims
The largest US newspaper publisher, Gannett, is facing a lawsuit filed by five current and former employees alleging discrimination against white workers. The plaintiffs claim that Gannett's efforts to diversify newsrooms resulted in the firing and promotion denial of white employees in favour of less-qualified women and minorities. The plaintiffs argue that Gannett executed a reverse race discrimination policy without regard for civil rights laws or worker welfare. Companies including Starbucks, Target, and Progressive Insurance are facing similar challenges. Experts anticipate an increase in such challenges following a Supreme Court ruling that struck down race-conscious college admissions policies.
Woodside Energy making progress in resolving labour dispute, CEO says
Woodside Energy is making good progress toward resolving a labour dispute in Australia that has jolted natural gas markets worldwide, the company's chief executive officer Meg O'Neill has said in an interview. Woodside is proceeding with respect in its talks with unions to avert any strike at Australia's largest liquefied natural gas (LNG) facility, O’Neill said on Tuesday, while a union alliance warned its members were "primed and ready to go."
 


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