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Labour plans to expand equal value pay claims to enable workers to sue for race and disability discrimination. The move marks a significant shift in the legal landscape for equal pay, which lets staff bring claims against their employers for discrimination if they are paid less than those in similar jobs. Equal pay claims have already effectively bankrupted Birmingham City Council and led to lawsuits against Asda and Next, which could cost the retailers £1.2bn and £30m, respectively. Commenting on the plans, Claire Coutinho, the shadow minister for equalities, said: "All this will do is cost taxpayers and consumers more, and encourage divisive identity politics in the workplace."

 

The Daily Telegraph

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Twenty-six employees of Meta Platforms have filed a lawsuit alleging the company used AI tools to unfairly target staff for layoffs. The lawsuit claims that the AI systems disproportionately affected workers with disabilities and those on medical leave. Filed in federal court, the plaintiffs seek to halt the layoffs scheduled for July 22. They argue that Meta violated federal and state discrimination laws and failed to test its AI for bias. A Meta spokesperson stated: "These claims lack merit and are not based on fact." The case marks a significant challenge to AI's role in employment decisions.

 

Metro

Management at the National Energy System Operator (Neso) allegedly accused whistleblowers of "letting the company down" for raising concerns about a potential blackout cover-up. Shadow energy secretary Claire Coutinho stated that whistleblowers should be celebrated, not criticised. The director of system operations, Craig Dyke, reportedly faced scrutiny for his comments. Neso denied the allegations, asserting that the grid remained stable during the June heatwave and that no criticism was directed at staff for their concerns. A spokesman said: "We reject the interpretation that Mr Dyke said a whistleblower had 'let the company down'."

 

The Daily Telegraph

Liquidators of China Evergrande have warned PwC partners in Hong Kong of potential personal liability for damages related to audit failures. They have filed a lawsuit against PwC for at least $8.5bn.

 

Financial Times

Nikhil Rathi, the chief executive of the Financial Conduct Authority (FCA), expressed concern about the claims management market during a Treasury Committee meeting on the regulator's motor finance redress scheme. He accused lenders of downplaying consumer harm and claims firms of prioritising profit. The FCA's £9bn motor finance redress scheme faces legal challenges with parts of the program suspended earlier this month due to the upcoming courtroom battle. Rathi went on to back calls for larger claims management companies to be subject to money laundering registration.

 

City AM

Dame Jayne-Anne Gadhia was grilled by MPs on Wednesday regarding her appointment as chair of the Financial Reporting Council. The role was advertised as a 10‑days‑a‑month commitment, but Gadhia has nine other roles, either as a director or chair, prompting MPs to question whether she would be overloaded. Dame Jayne-Anne argued that many of her roles demand only limited time. She went on to back putting the FRC on a statutory footing and agreed that bolstering the regulator’s powers should be a priority change once this is in place.

 

City AM

The UK is allowing Chinese companies to list securities in London using financial statements audited to Chinese standards, bypassing international audit norms. The change, effective from September, aims to attract more international investment. The Financial Reporting Council (FRC) announced the decision following a request from the UK Government to revise third country auditor policies. The move comes despite previous concerns about the equivalence of Chinese standards to international ones.

 

Bloomberg Tax

Financial Reporting Council

The LSE faces criticism over proposed changes to governance standards for AIM-listed firms. A letter from the Quoted Companies Alliance (QCA) and six fund managers warns that relaxing these standards could damage investor trust and deter institutional investment. The LSE aims to reduce red tape, including the removal of "comply or explain" rules, but critics argue this could worsen an already challenging market. However, a spokesperson said 70% of stakeholders support the proposed changes, pointing to the need to make AIM competitive.

 

City AM

Emma Reynolds, the environment secretary, condemned Thames Water's directors for awarding a 9.5% pay rise to its chief executive, Chris Weston, bringing his salary to over £1.16m. She described the bonuses as "outrageous" given the company's poor performance and increasing debt, which now exceeds £19.5bn. Reynolds stated: "It flies in the face of basic fairness." Thames Water's operational issues have worsened, leading to penalties of £157m. MPs are calling for the prime minister to consider special administration for the company, which serves 16 million customers.

 

The Guardian

The Times

Harwood Capital's Christopher Mills predicted that M&C Saatchi may not exist in its current form within a year. He noted that a piecemeal sale of the advertising agency is likely due to its ongoing struggles since the pandemic. Mills stated: "I would be very surprised if Saatchi was an independent company this time next year." The agency, founded in 1995, has faced significant challenges, including the recent departure of CEO Zaid al Qassab. Harwood Capital, a major shareholder, has been increasing its stake in the firm, indicating potential changes ahead.

 

City A.M.

James Sherwin-Smith has pledged to continue campaigning after 87.5% of voting Nationwide members rejected his bid for a board seat. Despite Nationwide opposing his candidacy, almost 76,000 members backed him. Sherwin-Smith, the first member-nominated board candidate in 21 years, plans to stand again and seek a special general meeting. He said proposed reforms “would give members stronger rights and greater accountability”, including votes on major acquisitions and executive pay following criticism of Nationwide’s Virgin Money takeover and Dame Debbie Crosbie’s £4.7m package.

 

The Times

Two hackers, Thalha Jubair and Owen Flowers, caused Transport for London (TfL) to incur £29m in damages through a serious cyber attack. The pair, linked to the group Scattered Spider, accessed TfL's systems between 31 August and 3 September 2024, forcing over 27,000 staff to reset their passwords. Prosecutor Mark Fenhalls KC described their actions as reckless, stating they had the potential to cause catastrophic damage. Both men admitted to conspiracy to commit unauthorised acts related to a computer, with sentencing expected soon.

 

The I

Mayor of London Sadiq Khan supports calls for a maximum workplace temperature as heatwaves intensify. The UK lacks regulations for maximum temperatures, despite rising heat levels causing significant disruptions. Unison and the Trades Union Congress advocate for a maximum of 30°C, or 27°C for strenuous work. Meanwhile, a government spokesperson confirmed no plans for mandatory limits but mentioned a forthcoming public consultation on workplace health and safety, including temperature thresholds.

 

The Guardian

Openreach chief executive Katie Milligan says the broadband market remains competitive and is unlikely to justify greater state control. “We’re not broken,” she said, responding to Andy Burnham’s plans for public intervention in essential services. With full-fibre reaching about 23m premises, Openreach is shifting from network construction to customer connections, targeting penetration of up to 55% from 39%. However, aggressive competition, continuing line losses and financially strained alternative networks are reshaping the sector, while Ofcom reviews Openreach’s proposed wholesale price reductions.

 

The Times

Asda has announced a significant change in its operational strategy, requiring shop floor staff to take on various roles, including stock picking and shelf stacking. This shift aims to enhance flexibility across four key areas: replenishment, process, service, and picking. The company stated: "We are moving away from colleagues working exclusively within a single department." This restructuring comes amid financial struggles, with 7,500 staff laid off in the past year and a looming £1.2bn lawsuit over equal pay. Asda hopes these changes will improve service and product availability in stores.

 

The Daily Telegraph