“Fat Cat Thursday” – pay disparity between bosses and workers widens
Bosses of top British companies will have made more money by lunchtime on Thursday than the average UK worker will earn in the entire year, according to an independent analysis of the vast gap in pay between chief executives and everyone else. Bosses of FTSE 100 companies are paid a median average of £3.45 million a year, approximately 120 times more than that collected by the average full-time UK worker, according to analysis carried out by the Chartered Institute of Personnel and Development (CIPD) and the High Pay Centre. The analysis shows that the gap between bosses and workers’ pay has more than tripled in 20 years. Tim Roache, the general secretary of the GMB union, said the prime minister had failed in her promise to tackle excessive executive pay. Peter Cheese, chief executive of the CIPD, suggested that the nation needs a “significant rethink on how and why we reward CEOs”. (The Guardian)
Human Rights
Workers held captive in Indian mills supplying Hugo Boss, Next and Mothercare
The luxury fashion retailer Hugo Boss has found cases of forced labour, a form of modern slavery, in its supply chain. Hugo Boss raised concerns regarding the free movement of resident mill workers, such as those in a Tamil Nadu factory run by Best Corporation, in its 2016 sustainability report. It added that it has been working to resolve the issue with suppliers. A subsequent Guardian investigation has found that Best Corporation also supplies garments to other brands including Nextand Mothercare. The policy of housing large numbers of young female migrant workers in dormitories on factory premises is widespread in southern India as demonstrated in a recent survey conducted by the Indian Committee of the Netherlands. More than half of mills surveyed were illegally restricting the movement of resident workers. (The Guardian)
Corporate Reputation
Facebook declines to say why it deletes certain political accounts, but not others
Facebook has declined to explain why it appears to be choosing political leaders to censor at the request of the US government, after the social media accounts of Chechen leader Ramzan Kadyrov were deleted. Facebook claimed to have a “legal obligation” to disable Kadyrov’s accounts after the US imposed travel and economic sanctions on him over allegations of human rights abuses. However, other key individuals on US sanctions lists such as Venezuelan president Nicolás Maduro and Syria’s Bashar al-Assad have not had their accounts deleted. Facebook declined to explain why it had deleted some accounts but not others. A company spokeswoman told the Guardian: “We operate under the constraints of US laws, which vary by circumstance.” (The Guardian)
McDonald’s UK gives pay rise to staff in response to strikes
McDonald’s UK has pledged to give its employees their biggest pay rise in ten years, in response to strikes that took place at two branches last year – a British first for the company. The pay rise will come into effect on 22 January 2018, with the rises only for company-owned restaurant staff and banded by position, region and age. 16-17 year olds will join on a minimum wage of £5.75 whilst staff over the age of 25 will initially receive £8 per hour. The strikers acknowledged the pay rise as a “step in the right direction”. However, they said concerns remained over working conditions. McDonald’s management previously promised to give permanent positions to workers on zero-hour contracts, but it is unclear whether this has been implemented. (The Mirror)
Energy
Presidential palace of Chile powered by solar panels
The incoming president of Chile, Sebastián Piñera, will receive 18% of energy for his presidential palace from solar panels installed on the roof. The panels were installed by Solcor, a start-up founded by two young Belgian entrepreneurs, one of whom received the 2014 Start-up Chile prize. The start-up has previously worked with companies in the farming sector and the Chilean state, aiming to create an ecological companies’ ecosystem in Chile. The Chilean government has set a target of producing 90% of the country’s energy from the sun and the wind by 2050. Nuclear reactors are unsuitable due to the high risk of earthquakes in the country, whilst the year-round sun makes solar energy a viable alternative. (The Santiago Times)
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