In early September it was announced that Europe’s listed companies could be forced to reserve at least 40% of their non-executive director board seats for women by 2020 or face fines and other sanctions under a proposal being drafted by the European Commission. Royal Mail chief executive Moya Greene became one of the most senior figures in corporate Britain to publicly back such recruitment quotas for women in the workplace. This is whilst Britain mustered sufficient support from nine European Union member states to block the proposal in favour of nationally mandated quotas, according to a letter sent to the European Commission’s president. Business Europe, the EU’s largest employers’ group, also said that ‘one-size-fits-all’ quotas fail to address the real problems that women face when trying to advance their careers. (Financial Times*, The Guardian, Financial Times*)
Higher fuel efficiency and solar powered cars in the US
The Obama administration has issued new rules that require automakers to nearly double the average fuel economy of new cars and trucks by 2025. The standards will increase the pressure on auto manufacturers to step up development of electrified vehicles as well as greatly improve the mileage of their mass-market models. The US transportation secretary, Ray LaHood, said the potential fuel savings would easily exceed the estimated $2,000 to $3,000 that more efficient vehicles would cost consumers to buy. Thirteen major automakers, including General Motors, Ford and Chrysler, endorsed the new standards during lengthy negotiations in 2011. This is whilst manufacturer Tesla has unveiled a network of solar-powered electric car chargers across the US, allowing customers to charge for free. (New York Times, Business Green)
Asia Pacific
2,000 staff in brawl at Apple factory in China
In late September a brawl between 2,000 workers at a Foxconn Technology Group factory, which makes electronic gadgets for Apple, Hewlett-Packard and Sony, erupted in northern China as regional rivalries between migrant workers became out of control. At least 50 people were injured. The incident is the latest case of labour unrest at Apple’s main supplier despite the efforts Foxconn has made since 2010 to revamp the way it manages its one million-strong Chinese workforce. (The Times*, Financial Times*, Reuters)
Samsung accused of China labour breaches
Samsung Electronics has been accused of breaching labour law at six factories in China by China Labor Watch, a US-based non-profit organisation. An investigative report published by the group alleged a series of “illegal and inhumane violations”, acting as a fresh blow to the Samsung's reputation following August's high-profile US legal defeat by Apple. Undercover investigators at eight Chinese factories supplying Samsung, of which six are controlled by the company, reported that workers at all the plants routinely worked more than the legally permitted amount of overtime and some employed workers under the age of 16. In response, the South Korean firm said it had a "zero tolerance" approach to employing under-age workers and would "re-evaluate working hours". (Financial Times*,BBC)
Africa
Lonmin strikes ending, tensions remain and investors lost
Striking platinum miners in South Africa accepted an agreement with Lonmin offering pay rises of between 11 and 22% and most returned to work. This represented a welcome end to five weeks of industrial action marked by mass protests and 46 deaths. However, there remains a danger that the manner of its resolution could cause further unrest in the future and that miners at other firms will see illegal strikes as effective, reported the Financial Times. This seemed proven when within hours of the pay rise agreement, workers at nearby mines including at Impala Platinum operations, called for similar rises.Unrest continues at Gold FieldsandAnglo American Platinummines. In addition, the business representative at theNational Economic Development and Labour Council, Johnny Goldberg, has said that the Lonmin wage deal contravenes labour law, which states that companies should not negotiate with unprotected striking employees unless the employer has committed a serious offence themselves.
Jacob Zuma, South Africa’s president said the value of production in the gold and platinum sectors lost to stoppages over the last nine months was close to R4.5 billion ($548 million). Also in response to this widespread unrest, leading international fund managers have reduced their holdings in South Africa’s natural resources sector, with some investors making a strategic decision to unwind their exposure in the country indefinitely. (The Times*, The Guardian, Reuters, Financial Times*, BD Live, Reuters, Financial Times*)
Trafigura lessons have not been learnt, report warns
In September, Amnesty International and Greenpeace released a report on a three-year investigation into a toxic waste dumping incident in the Ivory Coast and called for multinational oil trader Trafigura to face a criminal trial in the UK. In 2009, the Guardian fought a landmark legal battle to reveal the links between Trafigura and the dumping, which occurred in 2006 and caused a public health crisis that affected more than 100,000 people. There have also been indications that the authorities in the Ivory Coast have failed to properly distribute compensation to victims of the dumping. The new report states that such devastating dumping could easily recur in developing countries, and criticises the ongoing lack of agreed international process for preventing and dealing with toxic waste dumping activities. (The Guardian, Bloomberg)
Latin America
Deadly clash at Peru protest over Barrick gold mine
One person has been killed and at least four injured in clashes between police and protesters at a gold mine in the northern Ancash region of Peru. Canadian firm Barrick Gold, the world's largest gold producer, said it would temporarily suspend production at its Pierina mine following the clash. Pressure group Human Rights Watch has called on Peruvian President Ollanta Humala to stop police from using lethal force against protesters, who are demanding that the firm provide nearby towns with water. The incident is the latest in a wave of social conflicts that have seen Peruvian police clash with Andean communities protesting against Peru's mining sector. A number of other mining companies in Peru have been affected by protests recently, including those owned by Newmont Mining Corp and Southern Copper Corp. (BBC, Wall Street Journal)
Mexican Government orders investigation into fatal Pemex gas plant explosion
The Mexican national oil company Pemex is under scrutiny following an explosion at one of its compression stations in North-eastern Mexico. Up until 2012 Pemex had been reporting great strides in its safety record at once accident-prone plants, but acknowledged in a report that a series of smaller blasts and fires in late 2011 at refineries and petrochemical plants had "seriously impacted" its safety rate. The September 2012 explosion killed 30, injured around 45 and caused severe damage to the plant’s equipment. As a result Pemex has been ordered by Mexican President Felipe Calderon to conduct an investigation with Mexico’s Attorney General’s Office into the incident. (BBC, The Huffington Post)
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