Labour

PPG bid for Akzo fails narrative and maths tests

24 Mar 2017

The U.S. paint and coatings maker says cost savings and the benefits of scale justify a $24 bln offer for its Dutch rival. It’s hard to tell a more visionary tale in a low-growth sector where consolidation is the way to stay ahead. But PPG’s synergy targets don’t add up either.

Akzo shareholders, beware the double-Dutch defence

22 Mar 2017

The maker of Dulux paint says a sweetened $24 bln approach by U.S. rival PPG is bad not just for shareholders but the community, customers and employees. It’s hard for a suitor to counter those claims. If such defences become the norm, expect fewer takeovers and lower valuations.

Japan’s tight-fisted bosses face pay reckoning

17 Mar 2017

Staff are due another year of tiny pay rises. That reflects deep corporate caution, and will not help generate healthier levels of inflation. But the balance of power is ripe to shift in employees' favour, leading to more robust wage growth and easing a big headache for Japan.

Britain’s tax raid on gig economy misses the mark

9 Mar 2017

The UK budget means the self-employed will hand over more of their income. That eases one problem – the fact that gig workers pay lower national insurance rates. But it leaves intact a bigger issue, the difficulty of taxing contractors that drive the gig economy.

Britain needn’t fear SoftBank’s pass-the-parcel

8 Mar 2017

The Japanese tech group may shift part of its stake in British chip designer ARM to a $100 bln fund forged with Saudi Arabia. If SoftBank and ARM's board retain control, commitments over UK jobs should be upheld. A more international shareholder base may extend ARM's clout.

Nationality of Vauxhall’s owner is a red herring

6 Mar 2017

The sale of GM’s European operations to French carmaker PSA Group has caused fresh concern over its plants in the UK. Yet irrespective of the owner, the key risk for automotive jobs in Britain is Brexit. A stronger Peugeot may even have more patience with Vauxhall than GM.

Slower China growth plan begs for labour reform

6 Mar 2017

Beijing has set a GDP growth target for 2017 of 6.5 pct as it seeks to revive stalled reforms and cut industrial overcapacity. Yet the leadership still wants unemployment below 4.5 pct. This aggressive goal, alongside an inflexible labour policy, could create new problems.

VW can regain trust with sweeping pay reform

22 Feb 2017

The troubled carmaker plans to overhaul its ill-designed executive pay scheme. This is an opportunity to start rebuilding shareholders’ confidence. Essential changes include turning managers into entrepreneurs, introducing pay clawbacks and giving investors more say on pay.

China bankers: an asset with diminishing returns

9 Feb 2017

Mainland rainmakers are becoming a headache. Global banks still need them to navigate China’s corporate waters. But sudden disappearances of corporate and financial tycoons make high-flying staff a risky commodity. Compliance costs are rising, while their potential is shrinking.

Tokyo is no economic enemy for Trump

6 Feb 2017

Japanese Premier Shinzo Abe is preparing a big package of U.S. investment and job creation to placate the president. Trump's claims of deliberate yen devaluation are wide of the mark. But Tokyo has little choice but to respond, even though it is already an important U.S. ally.

MNCs need sharper edge in China talent wars

17 Jan 2017

Multinationals are losing the battle for top Chinese talent. Local firms poached almost a third of executives who changed jobs in the past five years, while only 10 percent went the other way, a survey finds. Still, MNCs retain one big advantage: a career escape from China.

Britain’s true income gap is between young and old

11 Jan 2017

Labour Party leader Jeremy Corbyn's clumsy plans to rein in executive pay overlook an inconvenient fact: UK income inequality has fallen. Since the crisis retirees have done better than workers, though. Tackling the tensions caused by this divide makes a better political target.

It’s past time for Japan to tackle overwork

6 Jan 2017

A suicide at a top advertising firm shines an ugly spotlight on Japan's dangerously long hours. Relaxing a culture of workaholic conformity won't be easy. But official plans to curb overtime are a good start. And a better work-life balance would bring real economic dividends.

Germany’s thriving job market no solace for Merkel

3 Jan 2017

Unemployment has fallen to its lowest since 1981, and the number of people in jobs is at a record. Chancellor Angela Merkel presided over this happy state but will struggle to leverage it in upcoming elections. Voters are more focused on less predictable flows of migrants.

Trump’s job spin pales beside Obama’s recovery

29 Dec 2016

Some 8,000 new roles at Sprint and OneWeb touted by the U.S. president-elect already were planned, part of a bigger pledge by investor SoftBank. Economic activity is creating 180,000 positions monthly. To keep that going much longer will require more than Trump's double-talk.

American inequality will widen under Trump in 2017

29 Dec 2016

A populist wave sent the real-estate developer to the White House. But his economic policies will help working-class folks the least. His tax cuts, repatriation of corporate cash and infrastructure push will line the pockets of the rich before trickling down to the less well-off.

Making pilots shareholders may save Lufthansa

23 Nov 2016

The carrier's pilots are striking to get a 20-pct pay rise that Lufthansa, dogged by high costs, cannot afford. Paying them in shares might end the gridlock. The airline would save cash, and entrepreneurial spirit in the cockpit could soften the pilots' outlandish demands.

VW finally makes it to third gear

18 Nov 2016

The German carmaker has convinced unions to let it shed 30,000 jobs. That's a second big step, after settling a big emissions cheating case. Next comes the shift to electric and self-driving cars, and beating an overly modest 4 pct operating margin target for its flagship brand.

U.S. labor unions look increasingly white collar

25 Aug 2016

A ruling that lets Ivy League graduate students organize will add to the growing share of cubicle-dwellers in the union movement. Education is one of the few sectors in which membership is increasing, albeit from a low base. The blue-collar stereotype is slowly fading away.

Wal-Mart learns limits of divide and rule in China

11 Jul 2016

The U.S. giant's Chinese employees used social media to co-ordinate nationwide strikes. That will make it harder to cut cosy deals with local governments. Telecom giant China Unicom has also faced cross-country protests. But foreign firms tend to enjoy less official protection.