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11th December 2023
 
THE HOT STORY
Holiday rights changed for irregular and part-time workers
Government ministers are making changes to holiday rights, cutting allocations and pay for irregular and part-time workers. The alteration is considered one of the most significant erosions of employment protections since the UK left the EU. Instead of receiving full holiday rights at the beginning of the year, 5m British workers on temporary or irregular contracts will have to gradually gain them throughout the year. The change is aimed at simplifying overtime, holiday pay, and entitlement legislation for employers. However, critics argue that the government has broken its promise to level up rights at work. The change is estimated to save employers between £50m and £248m annually.
HEALTH & WELLBEING
Private healthcare premiums soar as employees turn to workplace schemes
Growing numbers of employees are turning to workplace health schemes, driving up the cost of premiums. Employers are watering down private healthcare perks after premiums rose by 60% due to NHS delays. Firms are removing dependent cover from policies, asking staff to 'co-pay' on claims and in some cases restricting cancer support to reduce the cost of delivering the workplace benefit. Insurers paid out a record of nearly £3bn in claims last year, the Association of British Insurers said, as NHS backlogs caused a growing number of employees to use their workplace scheme for the first time. Luke James, of health insurance consultancy Mercer Marsh Benefits, said: “Twenty per cent rises in premiums is on the low end of the cost rises. Our figures show that we are seeing 40% to 60% premium rises in the UK and across Europe. It's huge, and we don't expect much to change in 2024."
DIVERSITY, EQUITY & INCLUSION
Lack of diversity in UK executive pipeline points to slow progress for female CEOs
Research by the 25x25 initiative, which is backed by companies including Unilever and BP, has found that women are under-represented in positions from which FTSE 100 chief executives are typically recruited.
CORPORATE
Government cuts spending on Big Four
Data from government spending analyst Tussell shows that the civil service has slashed the amount it spends on contracts with the Big Four by 26%. Deloitte has been hardest hit by the reduction in contracts, with spending on its services down 38% this financial year. Public sector spending with PwC was down 36% this year, while EY saw a 19% decline. KPMG, however, has seen an increase, with the value of its public contracts rising by 18%. Tamzen Isacsson, chief executive of the Management Consultancies Association, commented: “It is totally inaccurate to claim that spending on consultancy services by the public sector has ‘collapsed’. In fact, we will record that it is increasing this year.” She added that research from member firms shows that overall consultancy spending for 2023 has grown by 11%. Meanwhile, in The Times, Laith Al-Khalaf says many large consultancies are struggling to find work as “cash-strapped clients cut spending on expensive corporate advice,” warning that a decline in demand has left many businesses in the professional services sector with excess capacity.
SUSTAINABILITY
PwC UK imposes restrictions on business-class travel
Senior staff at PwC UK have been told that only people travelling on long-haul night flights or those flying for business-critical reasons will be allowed to sit in business class. The firm’s Thoughtful Travel programme is designed to encourage staff to be more conscious of emissions as it pushes to reduce its carbon footprint and cut costs. PwC has pledged to cut emissions from its operations to net zero by 2030. Marissa Thomas, managing partner at PwC UK, said: “Flights account for the majority of our carbon emissions so we’re only going to meet our net zero target if our people take a really thoughtful approach to air travel. Given a business-class seat is roughly 50% more carbon-intensive than one in premium economy, we’re asking partners and directors to think carefully about if they need one.”
REMOTE WORKING
Festive bookings surge as hospitality bosses report remote working reunions
Festive bookings are up as hospitality bosses say remote working is encouraging staff to reunite at their work parties. Pub bosses report that Christmas bookings are the strongest since 2019, with lonely workers flocking to office parties to be reunited with colleagues. Despite an uncertain economic outlook, partygoers are willing to spend more per head, increasing from £33 to £37. Companies are opting for smaller departmental bookings rather than large set-piece parties, benefiting pub groups like Mitchells & Butlers.
WORKFORCE
Employment figure could be out by a million, admits Bailey
Bank of England Governor Andrew Bailey has admitted that Britain's official employment figure could be out by as much as a million, highlighting discrepancies in data published by the Office for National Statistics (ONS). Bailey's remarks during a select committee hearing have raised concerns about the accuracy of employment data used by the Monetary Policy Committee (MPC) in making decisions on interest rates. The Bank has signalled that interest rates will have to stay high for a prolonged period. However, there are fears that waiting to cut rates due to misleading labour market data could risk a recession. Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said: "Any uncertainty over accuracy means policy makers are not seeing a full picture of conditions, which can lead to damaging mistakes."
Asda faces Christmas lorry driver strikes
Asda is facing potential strikes by around 80 lorry drivers at its operations hub in Rochdale over the Christmas period. The drivers, who are employed by supply chain company Wincanton, are demanding pay parity with their counterparts at a different Asda facility. The strikes, scheduled for several dates in December and January, could result in shortages of chilled foods on supermarket shelves. Asda plans to use its own drivers on strike days to limit disruption. The strikes come amid scrutiny of Asda's billionaire owners, the Issa brothers, over their high levels of debt and complex business structures.
Roadworkers to wear body cameras after rise in abuse
Roadworkers in Southampton City Council will be equipped with body cameras following a surge in abuse from drivers. Over half of the city's highway staff reported being abused on a monthly basis, with incidents including hurling barriers and cones, drivers mounting pavements to avoid road closures, and verbal abuse. The council plans to install more mobile CCTV at roadworks sites alongside the body cameras. Balfour Beatty Living Places, responsible for managing 594km of roads in the city, will use footage from the cameras to report incidents. Brenton McClean, a worker, shared his experience of being attacked by a man with a baseball bat during a road closure. The roadworks firm is urging witnesses of threatening behaviour towards roadworkers to contact the police.
LEGAL
Former Met Police officers sentenced for racist WhatsApp messages
Six former Metropolitan Police officers have been given suspended sentences after being found guilty of sending grossly offensive racist messages on WhatsApp. The men, aged between 62 and 67, were sentenced to between six and 14 weeks' imprisonment, suspended for 12 months. The charges relate to messages shared between September 2020 and 2022, which included racist, homophobic, and sexist content. The group, known as the "Old Boys Beer Meet - Wales" chat, exchanged over 60 offensive messages during the period. The case was brought to light by a BBC Newsnight investigation, leading to a probe by the Met's Directorate of Professional Standards. The officers, who retired between 2001 and 2015, served in various parts of the Met, including the Diplomatic Protection Group. Adeniyi Ogunleye, senior crown prosecutor at the CPS, said the sentences demonstrated that such offensive messages will be prosecuted robustly.
Rising tide of bullying and harassment among barristers
Barristers have reported a rising tide of bullying and harassment, with 44% claiming to have been victims - a 13-percentage-point rise in six years. Judges and senior lawyers were said to be the most likely perpetrators of inappropriate behaviour, according to Bar Council figures. The report highlighted a "systemic" problem in the profession, with 44% of barristers experiencing or observing bullying, harassment, or discrimination at work. Women, barristers from ethnic minority backgrounds, and junior members of the Bar were found to be most at risk. A fear of repercussions was the main reason given by the surveyed barristers for not reporting incidents. Nick Vineall KC, the Bar Council's chairman, said the profession "should not tolerate any bullying, harassment or discriminatory behaviour." He added: "Wellbeing, retention and progression of barristers are all affected by the way we are treated by colleagues and the Bar Council is committed to addressing the problems highlighted by the data."
TECHNOLOGY
ChatGPT tool could be abused by fraudsters
A ChatGPT feature allowing users to easily build their own artificial intelligence assistants can be used to create tools for cyber-crime. An experiment by the BBC found an AI bot could easily be set up to write spam emails. Jamie Moles, senior technical manager at cybersecurity company ExtraHop, has also made a custom GPT for cyber-crime. "There is clearly less moderation when it's bespoke, as you can define your own 'rules of engagement' for the GPT you build," he said. Although large language models (LLMs) are already being used by criminals, experts say OpenAI's GPT Builders could be giving criminals access to the most advanced bots yet.
INTERNATIONAL
US fast-food chains' AI drive-thrus rely on humans behind the scenes
Presto Automation, a provider of AI-powered drive-thrus for US fast-food chains, has revealed that humans play a crucial role in ensuring order accuracy. The company, which initially marketed its technology as highly autonomous, now admits that "off-site agents" in the Philippines assist in over 70% of customer interactions. These off-site workers help train the AI system and reduce the need for human intervention over time. The disclosure has raised questions about the level of transparency that companies should provide to investors regarding AI technology. Presto's acknowledgment of human intervention highlights the importance of investors understanding the capabilities and limitations of AI companies. The company's shares have plummeted over 60% this year. While AI-powered drive-thrus have been touted as a solution to labour shortages, the technology still faces challenges in accurately processing orders and dealing with various accents and noises. Presto's business model has also raised concerns about outsourcing customer service to cheaper labour markets. However, the company expects the need for humans to decrease as its system improves with the help of OpenAI's development platform.
Australian workers' union files class action against McDonald's
An Australian workers' union has filed a class action against McDonald's, alleging that the restaurant chain asked current and former employees to work before and after their rostered shifts for free. The SDA union for retail, fast food and warehouse workers alleged that McDonald's did not pay about 25,000 managers and supervisors across its 1,000 stores over six years, and is seeking A$100m ($66.13m) in back pay. "The SDA is alleging that this was a deliberate and systematic practice by McDonald's and franchisees," the union said in a statement. McDonald's will respond to the claims in due course, it told Reuters in a statement, adding that the company takes its obligations under all applicable employment laws very seriously. Mikayla Martin-Coats, former McDonald's shift supervisor and department manager, said that "getting to work 30 minutes early was not a choice, it was an exception." SDA National Secretary Gerard Dwyer said "McDonald's is operating on a broken business model."
Kenya sends 1,500 farm workers to Israel
Kenya is sending 1,500 farm workers to Israel to fill a severe labour gap. The workers will be deployed on three-year renewable contracts with a guaranteed net income of $1,500. The move comes after a mass exit of foreign workers and the barring of Palestinian workers due to the war with Hamas. The announcement has sparked mixed reactions in Kenya, with concerns about the workers' safety and working conditions. However, some Kenyans support the deal as it provides much-needed jobs in a time of unemployment crisis. Kenya has an unemployment rate of 5.5%.
 


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