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UK Edition
23rd August 2024
 
THE HOT STORY
Union pressure to repeal Thatcher era anti-strike laws
The Fire Brigades Union (FBU) is urging the repeal of all anti-union laws, including those enacted during Margaret Thatcher's government, at the upcoming Trades Union Congress. Matt Wrack, the FBU's general secretary, said: “The UK has the most restrictive and authoritarian anti-union laws in the western world.” The motion, expected to pass, seeks to eliminate laws that restrict collective bargaining and mandate secret ballots before strikes. The FBU also wants Labour to uphold its commitment to repeal recent anti-union legislation, including the Minimum Service Levels (Strikes) Act. The union's push comes amid a backdrop of significant financial support from unions for Labour, contributing £2.4m during the last election campaign. Additionally, the PCS union is advocating for public sector pay restoration, citing a 1.5% annual decline in real-terms pay since 2011. The proposal would cost an estimated £50bn.
LEGAL
Birmingham schools face strike action
The GMB union has announced that 15 additional schools in Birmingham are set to vote on strike action due to ongoing disputes over equal pay. Over 250 school workers will participate in the ballot that started Thursday; results are expected by mid-September. The union warned that a second wave of strikes could be "imminent" following Birmingham City Council's failure to resolve the issue. Alice Reynolds, GMB organiser, stated that the council must address the "underpayment of women delivering essential services" and cannot "duck responsibility" for its failures. The council, which declared itself effectively bankrupt in September 2023 due to an equal pay bill of up to £760m, has expressed its commitment to resolving these issues and has says it has been engaging with the GMB since November 2021.
REMUNERATION
UK employer pay awards soften in three months to July
Pay awards granted by UK employers fell in the three months to July, aligning with the Bank of England's predictions for a slowdown in wage growth, according to human resources data provider Brightmine. Median basic pay settlements in the three months to July were 4.5% higher than a year earlier, the smallest increase since the three months to April and down from 5% in the three months to June. "Employers that have made pay awards so far this year have already reacted to the falling inflation environment by putting in place lower pay awards than made last year," said Sheila Attwood, senior content manager at Brightmine, adding "This practice is likely to continue among those concluding deals later in the year, with this group also looking like they will agree increases at a lower level than those seen in the year so far." Pay deals can be expected to slow further going into 2025, Brightmine said.
HEALTH & WELLBEING
Small businesses brace for sick pay storm
Small businesses in the UK are expressing concerns over Angela Rayner's proposal to strengthen statutory sick pay, fearing it could lead to bankruptcy. Craig Beaumont from the Federation of Small Businesses (FSB) highlighted that the average cost of sickness absence for small businesses exceeds £3,000 annually, amounting to £5bn across the sector. He said: "If we want to tackle economic inactivity, we've got to help those who we know disproportionately recruit those with health issues." With the number of sick days taken last year reaching a decade high, small businesses say they are anxious about the potential financial burden from increased sick pay and other employment costs associated with Labour's "New Deal for Working People."
DIVERSITY, EQUITY & INCLUSION
Tech sector lags on social mobility
The technology sector in the UK faces a diversity issue: only 9% of its workforce come from lower socioeconomic backgrounds, compared to 29% in finance and 23% in law. Debbie Forster, the Tech Talent Charter chief executive, believes that greater access to jobs will not only plug "the gaping chasm between supply and demand for tech skills" but also ensure that the industry does not "leave behind those sectors of society not adequately represented within its ranks.” Sarah Atkinson from the Social Mobility Foundation notes that the tech industry is “dragging its heels,” with many companies not participating in the Social Mobility Employer Index. Barriers such as unequal access to technology education and resources must be addressed to create a more inclusive workforce, it is said.
STRATEGY
AstraZeneca threatens vaccine plant shift to US after Reeves weighs aid cut
AstraZeneca is threatening to re-locate its vaccine manufacturing site from Merseyside to Philadelphia after the Labour government said it would cut state aid promised to the project.
ECONOMY
UK private sector activity surges
Activity in the UK's private sector reached a four-month high in August, driven by a "robust upturn" in new business, as indicated by the S&P Global flash UK composite purchasing managers' index (PMI), which recorded a reading of 53.4, up from 52.8 in July. Chris Williamson, chief business economist at S&P Global Market Intelligence, noted: “August is witnessing a welcome combination of stronger economic growth, improved job creation and lower inflation.” The easing of inflationary pressures, particularly in the services sector, contributed to this growth, with the rate of employment growth being the fastest since June 2023. Despite expectations of a slowdown in GDP growth for the third quarter, the PMI suggests a solid quarterly expansion rate of around 0.3%. The data also indicates a cautious approach from policymakers regarding interest rate cuts due to persistent inflation in the service sector.
Public sector pay rises spark fears over public finances
The recent wave of public sector pay rises, amounting to £9.4bn, has raised concerns about the sustainability of the UK's finances. Rachel Reeves, the Chancellor, faces tough choices as the Office for Budget Responsibility (OBR) reported that the UK has already overspent by £4.7bn this financial year. Philip Shaw, chief economist at Investec, said: “The numbers certainly show that the public finances are in a worse state than the OBR thought in March,” indicating that tax increases may be necessary. The UK has borrowed £51.4bn in the first four months, contributing to a national debt of £2.8trn. With public sector employment at its highest since 2012 and average wages rising, the government’s decision to grant substantial pay rises has intensified financial pressures.
INTERNATIONAL
Ban on remote work at X beats disability bias claim
A federal judge in California has dismissed a lawsuit against social media platform X, previously known as Twitter, which had accused the company of discriminating against employees with disabilities after Elon Musk's takeover. U.S. District Judge Araceli Martinez-Olguin stated that the plaintiff, Dmitry Borodaenko, did not demonstrate how Musk's mandate for employees to return to the office specifically affected workers with disabilities. Borodaenko, a former engineering manager and cancer survivor, claimed he had his employment terminated for refusing to return to the office during the COVID-19 pandemic. The judge said: "Borodaenko's theory improperly relies on the assumption that all employees with disabilities necessarily required remote work as a reasonable accommodation." The lawsuit is part of a series of legal challenges faced by X following Musk's $44bn acquisition and subsequent layoffs. Other cases accuse the company of not giving employees and contractors advance notice of layoffs, failing to pay billions of dollars in promised severance, and disproportionately targeting women and older workers for job cuts. X denies wrongdoing.
Complaint is filed against EU Parliament over data breach affecting employee privacy
Austrian advocacy group NOYB has lodged two complaints with the EU privacy watchdog against the European Parliament, alleging insufficient protection of employees' data. Led by privacy activist Max Schrems, the complaints were filed on behalf of four employees following a data breach in the parliament's recruiting platform, which compromised sensitive information, including passports and criminal records, as well as over 8,000 marriage certificates. NOYB expressed concern that the parliament, which informed staff of the breach in May, discovered it months later and remains unaware of its cause. Lorea Mendiguren, a data protection lawyer at NOYB, said: "This breach comes after repeated cybersecurity incidents in EU institutions over the past year," emphasising the need for the Parliament to implement robust security measures to protect its employees from potential threats.
India's top court creates task force on workplace safety for healthcare staff
Following the rape and murder of a trainee doctor in Kolkata, India's Supreme Court has established a task force of medical professionals to develop safety guidelines for healthcare workers. Chief Justice Dhananjaya Yeshwant Chandrachud said: “Protecting safety of doctors and women doctors is a matter of national interest and principle of equality.” The formation of the panel comes amid widespread protests from doctors across the country, who have temporarily halted non-emergency services to demand stricter laws against violence towards medical staff. The court has also instructed the federal agency investigating the case to provide a report on its progress. Despite existing laws, sexual violence against women remains a significant issue in India, with a reported 31,516 cases of rape in 2022, marking a 20% increase from the previous year.
Many forced to quit Venezuela's PDVSA over their political views, workers say
Following the disputed election on July 28, over a hundred employees at Venezuela's state oil company PDVSA have been forced to resign due to their political views. Workers and unions report that those who did not support President Nicolas Maduro are being pushed out. "They call you to human resources, sit you down, and give you a resignation letter you must sign," said a source familiar with the situation. The political purge has exacerbated staffing issues in a company already struggling with a lack of qualified workers. Other public sector entities are also affected. Union leader Jose Bodas said: "This is political retaliation against numerous workers who in the most recent electoral process have shown themselves against Maduro."
OTHER
GCSE results show regional shifts
This year, six of the nine regions in England experienced an increase in the percentage of GCSE entries awarded grade 7/A or above. London maintained the highest proportion at 28.5%, while north-east England had the lowest at 17.8%. Notably, the gap between these regions has decreased for the first time since 2016, now standing at 10.7 percentage points. The East Midlands and eastern England saw declines in their top grade percentages, while Northern Ireland continues to lead with 31.0% of entries achieving A/7 or above, despite a drop from 34.5% in 2023. The overall trend indicates a positive shift in GCSE performance across most regions, with a report highlighting that "nearly all regions of England saw a higher proportion of entries getting the top grades this year compared with the pre-pandemic year of 2019."
 


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