Analysis: What is ‘fair’? Co-operatives, bonuses and the living wage issue
The UK government introduced a Co-operatives Bill to remove barriers to employee-owned businesses, aiming to create a fairer economy. However, the proposal contrasts sharply with reports of excessive executive bonuses in banking and poverty wages in major supermarket chains.
Heads of flagship government apprenticeship schemes quit
Leaders of two major government apprenticeship schemes have resigned simultaneously, with the head of the Skills Funding Agency citing completion of his task and the National Apprenticeship Service chief seeking more family time. The departures come amid investigations into fund misuse and questions about apprenticeship quality.
Analysis: Increasingly fragile UK jobs market set to get “much worse”
UK unemployment rose to 8.4% in November, the highest since 1996, with 118,000 job losses in three months. Underemployment and youth joblessness surged while full-time employment fell, signaling a fragile labor market expected to worsen significantly ahead.
Update: Public sector job cuts ‘only just beginning’
The TUC forecasts 710,000 public sector job losses by 2017, up from earlier estimates of 400,000, with the poorest UK regions facing the most devastating impact on employment and local economies.
Unemployment to hit 9.3% by 2013, warns economic think tank
Economic think tanks warn the UK may already be in recession, with unemployment expected to reach 9.3% by 2013 as GDP stagnates due to Eurozone uncertainty and weak business confidence. The ITEM Club forecasts only 0.2% growth this year before recovery in 2013.
Tax reform in works to create “John Lewis economy”
The Deputy Prime Minister unveiled tax reform plans to encourage employee share ownership, aiming to create a “John Lewis economy” where workers own stakes in their companies. The government plans to introduce a right for employees to request shares, citing research showing that companies with employee ownership have higher productivity, lower turnover, and better resilience during economic downturns.
NHS spends £7m on management training after axing 2,000 bosses
NHS London spent £7 million on management training consultants for GPs after cutting 2,000 management positions, despite critics arguing the expertise already existed within the NHS and the funds could have been spent on patient care instead.
100 employers pledge to open up equality of internship opportunities
Over 100 companies, including Barclays, HSBC, Tesco, and BP, have pledged to open up internship and work experience opportunities to young people from all backgrounds as part of the Government’s social mobility initiative. Signatories commit to advertising positions publicly, providing financial support, and using fair recruitment practices to ensure ability and merit, not connections, determine access to opportunities.
One third of UK businesses have no staff contingency plans for Olympics
A third of UK businesses lack contingency plans for disruptions caused by the Olympic Games, risking missed opportunities from increased demand. With less than 200 days until the event, companies should develop clear staffing policies, manage leave requests carefully, and thoroughly vet temporary labor providers to avoid legal and reputational risks.
70,000 charity jobs lost last year due to Government spending cuts
Government spending cuts have resulted in 70,000 charity sector job losses over the past year, according to a new study. Employment in the voluntary sector fell 8.7%, marking the third consecutive quarter of decline, with female workers disproportionately affected.
PM U-turns on plans to scrap 50p tax rate – till 2015 at least
Prime Minister David Cameron will delay scrapping the 50p income tax rate until at least 2015, citing political concerns about appearing to favor the wealthy during economic difficulties. Simultaneously, he announced plans to give shareholders binding votes on executive pay to address excessive bonuses.
20,000 financial services jobs to be axed by end of quarter
UK financial services firms plan to cut 11,000 jobs in the first quarter amid Eurozone crisis concerns and economic uncertainty, accelerating layoffs that have eliminated 101,000 positions since 2008.
PM’s “war” on health and safety branded “appalling and unhelpful”
Prime Minister David Cameron’s pledges to dismantle health and safety regulations have been criticized as “appalling and unhelpful” by industry experts who argue the legislative system exists to prevent workplace deaths and injuries, not burden businesses.
Start-up NI holiday created only 1,000 jobs, admits PM
The Coalition Government’s start-up National Insurance holiday scheme created only 1,000 jobs since its launch, Prime Minister David Cameron has admitted. Introduced to encourage new companies to hire employees, the initiative proved too complicated and overly targeted, falling far short of expectations with just 7,000 participating businesses instead of the predicted 400,000.
EU proposals could “kill off” workplace pensions
Proposed EU regulations requiring higher funding levels for pension schemes could force UK employers to inject up to £500 billion, potentially causing them to close occupational pensions altogether, according to PricewaterhouseCoopers and industry groups.
Communication key to morale in face of ongoing pay restraint, advises CIPD
As pay freezes become widespread, employers must improve communication with staff about compensation decisions to maintain morale and engagement, according to a CIPD survey of over 3,000 workers showing satisfaction levels are declining sharply.
Private sector pensions hit by “seismic collapse”
Nine out of ten private sector defined benefit pension schemes are now closed to new entrants, according to a study by the Association of Consulting Actuaries, widening the gap with better-protected public sector pensions and raising concerns about worker retirement savings.
Update: Ministers claim pensions deal – even as unions pull out
The UK government claims to have reached a pensions agreement with 26 of 28 trade unions, but major unions including the Civil Service’s largest have rejected the deal and threatened renewed strike action over public sector pension reforms.
3m jobs rely on UK being at Europe’s heart, warn businessmen
Twenty prominent British businessmen warn that more than three million UK jobs depend on maintaining strong European Union ties. Led by figures including Richard Branson and Martin Sorrell, they urge the government to re-engage in EU decision-making, arguing the single market is vital to Britain’s economic interests.
Self-efficacy: Limiting the damage of redundancy
Job redundancy often triggers a damaging loss of confidence in workers’ ability to find new employment. Self-efficacy—the belief that you can overcome obstacles—plays a crucial role in job search success, and research links it to resilience, performance, and burnout rates. Building self-efficacy requires gradual confidence-building through action, observation, and social support rather than positive thinking alone.
