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European Edition
18th October 2024
 
THE HOT STORY
Migrant workers in the Netherlands are 'being illegally dismissed to save agency costs'
The meat industry in the Netherlands is under scrutiny for its treatment of foreign workers, who are said to be disproportionately affected by unfair dismissals. According to data from the employee insurance agency UWV, in 2023, 83% of the 4,237 agency workers summarily dismissed were foreign nationals, a significant increase from two-thirds in 2020. The Socialist Party (SP) has highlighted these alarming statistics, revealing that some agencies have dismissed over 20% of their workers in multiple years. In one instance, more than 80% of migrant workers were sacked on the spot in 2021, compared to a national average of just 0.56%. The Dutch labour inspectorate has raised concerns that agencies are systematically firing workers to evade compensation costs, saving between €1m and €5m over four years.
HEALTH & WELLBEING
UK employers should be fined for unhealthy workplaces, thinktank says
The Institute for Public Policy Research (IPPR) has proposed that employers in the UK should face fines for creating unhealthy workplaces, as part of a plan by health secretary Wes Streeting to help unemployed individuals return to work. Chris Thomas, head of the IPPR's Commission on Health and Prosperity, stressed the need for a healthier work environment, saying: “One of the big factors we find in whether a workplace is conducive or detrimental to someone's weight and their nutrition is access directly to healthy food.” The proposal includes regulatory action by the Health and Safety Executive against firms that fail to mitigate health risks, particularly concerning obesity and mental health. Additionally, financial incentives for smaller firms to improve employee health are suggested, alongside potential waivers on national insurance contributions for those that adopt evidence-based health strategies.
HIRING
Germany seeks Indian workers to boost economy
The German Cabinet has introduced 30 measures aimed at attracting skilled workers from India to address labour shortages threatening the country's economic growth. German Labour Minister Hubertus Heil said: "Germany needs more economic dynamism and that requires qualified skilled labour." With an ageing population and a lack of skilled workers, Germany is looking to India, where "one million new people enter the labour market each month." The new strategy includes a digital visa by the end of 2024, job fairs in India, and German language classes for prospective migrants. Currently, around 137,000 Indians are employed in skilled positions in Germany, with a low unemployment rate of 3.7% among them.
WORKFORCE
Decrease in employee turnover in Poland
The Polish labour market is witnessing a decline in employee turnover, which is being primarily attributed to fewer attractive job offers. Over the last six months, only 18% of employees changed employers, with the most mobile groups being women (20%), young individuals (29%), and those with higher education (19%), according to Randstad's Labor Market Monitor.  Engineering staff exhibited the highest turnover at 41%, while manual workers had the lowest at 10%. Job search durations have slightly decreased to three months, yet remain lengthy compared to previous years. Notably, only 41% of employees are not seeking new jobs, marking the lowest level recorded. Despite the reduced job changes, job satisfaction is on the rise, with 74% of employees expressing contentment, particularly in sectors like telecommunications, IT, and healthcare.
Healthcare workers in Greece on strike
Doctors and healthcare workers in Greece are striking today, advocating for improved pay and working conditions. The Panhellenic Federation of Public Hospital Workers highlights a significant staffing crisis, with over 45,000 vacancies in hospitals nationwide. The federation's call for action underscores what is said to be an urgent need for reform in the healthcare sector, as they demand "higher pay and better working conditions" to address the ongoing challenges faced by medical professionals.
CORPORATE
EY slims workforce for first time in 14 years
EY's global revenue increased by 3.9% to $51.2bn in the year ending June, marking the slowest growth in over a decade. Janet Truncale, global chairwoman and chief executive of EY, stated: "Over the past year, EY teams have demonstrated extraordinary resilience in a challenging economic climate." The consulting sector, traditionally a growth driver, saw fees stagnate at $15.6bn, while audit and tax services grew by 6.3% each, contributing significantly to overall revenue. The firm also reduced its workforce for the first time in 14 years, employing 392,995 people, down from 395,442. The weakest performance was in Asia, where fees remained flat at $7.2bn, while growth was noted in the Americas and Europe, the Middle East, India, and Africa.
STRATEGY
Meta lays off employees at WhatsApp and Instagram
Meta is laying off employees across units including Instagram, WhatsApp and Reality Labs, the Verge reports, citing people familiar with the matter. A Meta spokesperson told Reuters that a few of its teams were making changes to align with long-term strategic goals and location strategy. "This includes moving some teams to different locations, and moving some employees to different roles. In situations like these when a role is eliminated, we work hard to find other opportunities for impacted employees," the spokesperson said. Separately, the FT reports that Meta fired another two dozen staff in Los Angeles for allegedly using their daily $25 meal credits to instead buy household items including wine glasses and laundry detergent.
MANAGEMENT
Gen Z workforce worries CEOs
Managing a Gen Z workforce poses significant challenges for chief executives, with only 38% expressing confidence in addressing their demands for more pay and workplace benefits. Pay is not a unique issue for the younger generation, but the workplace benefits play a huge factor, City AM notes. A report from The PHA Group, based on insights from 150 UK professional services CEOs, highlights that less than a third have a crisis communications plan to tackle these issues. A Hayes 2024 salary and recruiting trends report reveals that job security (66%), team culture (60%), and flexible working policies (50%) are crucial for attracting young talent. Stuart Skinner, managing director at The PHA Group, remarked: “CEOs can’t cover every challenge on their own and it’s no wonder many feel under-prepared.”
INTERNATIONAL
Indians in Punjab fear dispute with Canada endangers their work and study plans
Indians in Punjab are increasingly concerned that recent tit-for-tat expulsions of diplomats in Canada and India could jeopardise their plans to work, study, or visit family in Canada. Karan S. Thukral, an immigration lawyer, said: "Many clients have reached out, worried about how this might affect their plans to migrate to Canada." With over 800,000 Sikhs in Canada, many of whom are students from Punjab, the impact of these tensions is significant. In 2022, Indian students held more than 41% of Canadian student permits, contributing approximately C$22bn to the country's economy. Political science professor Kanwalpreet Kaur emphasised the interdependence of both nations, saying: "It is something that both countries cannot afford." The diplomatic rift began after Canadian Prime Minister Justin Trudeau alleged Indian government involvement in the murder of Sikh separatist Hardeep Singh Nijjar.
McKinsey cuts hundreds of jobs in China
McKinsey is overhauling its China business after cutting back on government-linked clients and reducing the unit’s workforce by nearly 500 people, about a third of the total. In recent times, the company has been separating the China unit from its global operations to reduce security risks with doing business in the country. Over the past two years, McKinsey’s workforce in Greater China, which includes Hong Kong and Taiwan, has shrunk by hundreds of employees. McKinsey first opened in mainland China in 1993 and grew quickly alongside the nation’s economy, winning business from state-owned firms including China Construction Bank, and China Telecom.
 


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