Work/Life - international employment news update

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Issue 116

Welcome to the latest edition of our international employment news update.

In this edition we look at:

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European companies instructed to comply with US DEI executive orders

European companies which have contracts with the American government have been instructed to comply with President Trump's DEI executive order. Companies have received questionnaires about their compliance. They must confirm that they have not violated any anti-discrimination laws and accept that the confirmation is material in the government continuing to pay them. French politicians have spoken out in relation to the questionnaires, with the French foreign trade ministry commenting that 'American interference in the inclusion policies of French companies…is unacceptable'.

Global trade tensions could cause Slovakian job losses

A snapshot from Slovakia indicates escalating global trade conflict, driven by the new US import tariffs, could threaten up to 20,000 jobs in Slovakia by 2026. The automotive sector there (as in the UK and elsewhere) is expected to be most affected. Employers may come under increased pressure to engage in delicate negotiations with trade unions and to reconsider their broader employment strategies.

Lawyers tie bonuses to AI usage

Shoosmiths is to link a firm-wide bonus to the usage of AI by its staff. A pot of GBP1 million will be unlocked if one million Microsoft Copilot prompts are used. The collegiate bonus will be available to all staff. The idea behind this is to create a culture where change is embraced, with people being able to spend more time doing work where human involvement is needed, such as building trust with clients. The target will be reached if every member of staff uses the AI software four times per working day. It will be interesting to see whether this target is reached and the use of AI is embraced across the firm. This announcement follows the UN suggesting that 40% of jobs worldwide could be affected by AI.

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Dutch bank sued for alleged climate failures

Friends of the Earth have filed a lawsuit against the Dutch bank, ING, alleging that the bank has not properly addressed its responsibilities around climate change. The case demands that ING cease financing new oil and gas projects and halve its total emissions by 2030 compared to 2019 levels. This is similar to a French lawsuit against BNP Paribas, showing a trend of banks facing greater scrutiny about their environmental impact.

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Executive pay influenced by ESG targets

A new report from KPMG found that 78% of businesses link the compensation of senior executives to sustainability targets. The most common targets are linked to climate change and the workforce, with a focus on female leadership being common. The research found that investors expect to see a balance between short-term and long-term targets for measuring board performance. The research did reveal some regional disparities, with companies in the EU more likely to adopt sustainability-linked pay than non-EU countries.

Greater wage transparency requested of retailers

Shareholder activists are placing pressure on retailers like Next and JD Sports to have greater transparency about the pay of their staff. Investor groups have suggested resolutions for the firms' upcoming annual general meetings to gain clarity on how many employees earn at least the 'real living wage', which is GBP12.60 per hour nationally and GBP13.85 in London for those over 21. They have reportedly chosen to target companies which have not committed to ensuring all staff, including third party contractors, receive the real living wage. The resolutions whilst not binding, may put pressure on the retailers to be more transparent about their pay.

Amazon to reintroduce theft screening of workers

Amazon is to reintroduce the screening of employees when leaving its US warehouses to try to prevent theft. Similar measures were suspended during the pandemic. Along with using metal detectors, workers will be asked to register their personal phones so security will know they are not stolen. Staff will receive a sticker for their phone and will provide the last six digits of their phone's serial number. Amazon has made this move to ensure their warehouses are secure and safe for companies that place their trust in its services, but it remains to be seen how the policy will be received by staff.

French management: a harsh diagnosis

According to a report published by the General Inspectorate of Social Affairs, managerial practices in France are less efficient than in other European countries. The purpose of the report was to assess the impact of managerial practices on social policies, as measured by employment rates and absenteeism. The report compared France with Germany, Italy, Sweden and Ireland. The report showed that the management weakness in France may be due to French managerial practices being too vertical and hierarchical, recognition at work being rarer and manager training being more academic. The report makes a series of recommendations, including that manager training should be more practical and geared towards professional life.

Mandatory returns to the office put talent off

A recent survey by Hays found that almost 50% of professionals would consider leaving their role if they were required to be in the office full time. 58% of female workers expressed this, along with 42% of men. 77% of the workforce prefer a hybrid way of working, with the most common arrangement being three days in the office. The COO of Hays commented how employers 'need to realise they are at serious risk of losing top talent if they make a full-time return-to-office compulsory'. Factors that employees seem to be particularly concerned about include the cost of commuting, which 73% of professionals said impacted their decisions about office attendance.

Some employers have experienced practical difficulties in facilitating a return to the office, with the advertising agencies Ogilvy and Grey being unable to implement their four day a week office mandate because they do not have enough desks.