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UK Edition
16th October 2023
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THE HOT STORY
Bad management is driving workers to quit
Research carried out by the Chartered Management Institute (CMI) shows that almost a third of UK workers have quit a job because of a negative workplace culture. The poll, which highlighted concern about the quality of management, saw 28% of the 2,018 workers questioned say they left a job due to a negative relationship with a manager, while 12% pointed to discrimination or harassment. Among those who said they had an ineffective manager, a third said they were less motivated to do a good job, while around half were considering leaving in the next 12 months. The CMI found that 82% of new managers are “accidental managers” who have no formal training in management or leadership. Among this group, 15% said they had called out poor behaviour, while among managers who had undergone training, the rate was 25%. Anthony Painter, the CMI’s director of policy, said improving the performance of UK managers is crucial to preventing toxic workplace cultures developing, warning that “this stuff is dragging down businesses, dragging down the economy.”
EMPLOYEE ENGAGEMENT & BUSINESS OUTCOMES
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WORKFORCE
Net migration to UK is unlikely to fall below pre-Brexit levels
Net migration to the UK is unlikely to fall below pre-Brexit levels by the end of the decade and will remain above about 250,000 to 350,000, according to a report by the Migration Observatory at the University of Oxford and the London School of Economics (LSE). The analysis suggests net migration will decline compared to last year's record high, when 606,000 more people came to the UK than emigrated. Alan Manning, professor of economics at LSE, said: "Most plausible scenarios involve net migration falling in the coming years. But many different factors affect the outlook, including how many international students switch to long-term work visas, whether work visa numbers continue to increase as sharply as they have done in the past few years, and what happens to asylum applications." Madeleine Sumption, director of the Migration Observatory, notes that work visas are expected to be the largest factor shaping net migration, with the health and care sector playing a crucial role.
TECHNOLOGY
Companies use AI technology to root out meeting inefficiencies
Workers around the world are using AI technology to streamline tasks, and now companies are using it to improve meetings, the Wall Street Journal reports. AI tools record, analyse, and summarise what is said in meetings, allowing participants to skip gatherings and review the highlights. The tools can also remind people to share the mic and modulate their speaking pace. Users have found the tools helpful, with one person noting that AI-powered notetakers transcribe and recap meetings, providing follow-up reports within minutes. However, some find the technology creepy and have abandoned it. The use of AI assistants in meetings raises social questions about etiquette and power dynamics. While AI tools offer benefits, they also pose distractions and potential limitations on brainstorming. Despite this, many professionals find AI-powered meeting tools vital to their work, as they provide real-time subtitles, language translation, and mood analysis. AI technology can also help individuals improve their speaking habits by tracking their speech patterns and suggesting alternatives.
LEGAL
The rise of AI management means new legislation is necessary
The rise of AI management in the workplace raises urgent questions about data, big tech, and workers' rights, writes Francesca Bria, an innovation economist and expert in data and digital policy, for The Guardian. The proliferation of robots, algorithms, and artificial intelligence is transforming traditional workplaces, but it is the tech giants that seem to benefit the most, she says. Algorithms now monitor work activity in real time, but they bring the risk of exploitation and discrimination. Amazon, for example, relies on algorithms to oversee worker productivity, leading to legal scrutiny and complaints of dehumanisation. The European Union's proposed AI Act aims to regulate AI systems, but it does not explicitly consider the impact of algorithms on working conditions. To ensure a fair digital workspace, the author says Europe needs a comprehensive strategy that covers data accessibility, democratic control of algorithms, and the impact on working conditions. This includes the creation of a "data trust for digital workers" to give employees more control over their data and involve workers and unions in shaping the governance of data and algorithms.
Workers fear calling out employers on environmental issues
Fear of reprisals is preventing workers from calling out their employers on the climate crisis and other environmental issues, according to a survey from Protect, a charity that defends whistleblowers. The poll found that concern over being fired or victimised at work was one of the main barriers preventing workers from flagging poor behaviour and misleading information about the environment. Employees also pointed to uncertainty about providing proof, while there was also scepticism about whether concerns would be adequately dealt with. Protect launched the survey after seeing a “surprisingly” low number of calls about the environment to its whistleblowing advice hotline. Of those who did contact the charity over environment-related issues, three-quarters said they faced negative treatment as a result. It is noted that while workers can raise concerns directly to the UK’s environmental regulators, between April 2021 and March 2022 the watchdogs only received 38 disclosures. The Competition and Markets Authority, which has new powers to fine companies, invites anonymous tips but is yet to receive any whistleblowing disclosures related to environmental matters.
Female finance executive harassed by boss
A female finance executive, Louise Crabtree, has won an employment tribunal case against her boss, Marc Bandemer, who subjected her to a campaign of sexual harassment. Bandemer bombarded Crabtree with inappropriate messages, referring to her "fashion model looks" and even buying her a diamond ring. The tribunal ruled that Crabtree was a victim of sexual harassment and she is set to receive a damages payout. The judge highlighted the discriminatory language used by Bandemer and stated that he would not have used such language towards a male employee. Crabtree, who joined Integer Wealth Global as an executive director, claimed that she was demoted after failing to reciprocate Bandemer's advances. The tribunal also noted that Crabtree's failure to object to the comments did not mean she welcomed them.
Birmingham City Council reaches agreement with unions to stem equal pay claims
Birmingham City Council has reached an agreement with trade unions to address equal pay claims. Last month, the council declared itself bankrupt due to a bill of up to £760m for settling such claims. Council leader John Cotton expressed his delight over the agreement, which focuses on a job grading scheme. The council's issue with equal pay dates back to 2012, when a Supreme Court ruling found that mostly female employees in roles such as teaching assistants, cleaners, and catering staff missed out on bonuses given to staff in traditionally male-dominated roles. Cotton emphasized the importance of a fair and robust job evaluation scheme to resolve the dispute and avoid costly industrial disputes. The agreement marks a significant step towards putting the council on a sound financial footing.
Citibank analyst dismissed over lying about meals expenses claim under €100 limit
Citibank has won a UK employment lawsuit against a banker which it dismissed for submitting an expenses claim that included coffee and sandwiches for his partner and lying about it.
REMOTE WORKING
Remote working employment tribunals hit record high
Employment tribunals relating to remote working have hit record highs, with analysis by HR consultancy Hamilton Nash having found that 42 tribunals cited remote working in 2022. This is up from the 27 recorded in 2021. In the first half of 2023, 25 cases involved issues around remote working. Jane Bradshaw-Jones, HR technical consultant at AdviserPlus, said: “The rise in claims is likely down to employees knowing that their roles can be done flexibly and are in a strong position to evidence this.” She added: “Denying flexible working requests is getting harder to justify as the past three years has proven that some jobs can be done just as effectively and efficiently solely based at home - or at least with some flexibility."
REMUNERATION
NatWest looks to resolve issues around Rose's payoff
Sources say NatWest’s board has yet to make a final decision on a payoff for Dame Alison Rose, who left her role as the bank's chief executive in the wake of a scandal involving the closure of former UKIP leader Nigel Farage's accounts. Dame Alison has been receiving an annual £2.4m package comprising base salary, pension contribution and a share-based fixed-pay allowance since her departure at the end of July. She is also eligible to be considered for a pro rata portion of a £2.9m annual bonus and long-term share awards – and holds unvested shares in NatWest which are currently worth around £5.65m. A source said it was "inconceivable" that Dame Alison would be awarded any discretionary pay for 2023, adding that it was "highly likely" that NatWest would seek to cancel the unvested shares. However, the source noted that cancelling the shares could prompt a legal challenge.
CORPORATE
Insolvencies increase in September
Insolvencies were up 16.5% year-on-year in September, with Insolvency Service data showing that there were 1,967 company insolvencies last month. Of these, 1,576 were voluntary liquidations. This marked a 14% increase on September 2022. In addition, there were 255 compulsory liquidations and 125 administrations. Despite the year-on-year increase, the number of insolvencies was down slightly on August’s total. Over the three months to the end of September, 6,011 companies were declared insolvent, down from a seasonally adjusted total of 6,342 in Q2. David Kelly, head of insolvency at PwC said: “While this dip is welcome, we expect the respite to be short-lived, with the UK remaining on track for the highest number of insolvencies since 2009."
HEALTH & WELLBEING
Construction industry faces mental health crisis with two suicides daily
The UK's construction industry is facing a hidden mental health epidemic. A "macho culture" in the industry is said to lead many to bottle up work pressures. Research by charity The Lighthouse Club found that two construction workers commit suicide daily, while support helplines are seeing a surge in workers using their services. Clive Holland, a broadcaster who works with The Lighthouse Club, says men in the industry often find it difficult to talk about their feelings.
INTERNATIONAL
Sri Lanka, Thailand, Vietnam and others in Asia are getting old before they get rich
Sri Lanka, Thailand, Vietnam, and other countries in Asia are experiencing an ageing population before achieving economic prosperity. Thailand's population aged 65 and above has increased from 7% to 14% between 2002 and 2021, reaching the ageing threshold faster than Japan, America, and France. The trend is significant for the region, with South-East Asia projected to become "aged" by 2042. The economic and social consequences of this demographic transition are concerning, including shrinking workforces, increased poverty among pensioners, inadequate health care systems, and weakening family support. Women, who outlive men, are particularly affected by financial and health disparities in old age. Policymakers in affected countries need to take bolder steps to address the challenges posed by their ageing societies, such as promoting higher-paying jobs for women and allowing people to work past retirement ages.
Women in Japan's top banks earn half as much as men
Women working for Japan's top banks earn little more than half the amount of their male colleagues, highlighting the country's gender divide. Japan has a high labour participation rate for women, but many hold part-time positions with limited prospects for better pay or career development. Japan has one of the worst gender pay gaps among OECD nations, with the banking sector being a major offender. The gender pay gap disclosure revealed that female workers at the five largest banks in Japan earned on average 54.9% of what male workers were paid. Experts argue that transparency alone is unlikely to bring gender pay parity in Japan.
 


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