Germany’s minimum wage threatens to shake up ‘generation intern’
German Chancellor Angela Merkel’s coalition plans to introduce a minimum wage next year that some analysts and business groups are warning could lead to sharp reductions in the number of internships. The legislation will require employers to pay everyone at least €8.50 an hour from the age of 18. The legislation has unleashed a debate about internships – whether they bring young people into the labour force or are a cynical means for companies to profit from cheap labour. A consequence of the legislation is that it would drive up the cost of many companies of using interns. German employers, which typically accept interns for three or six months for a pay between zero and €1,000 monthly, could see costs increase to €1,300 a month for interns on a 35-hour week. Per Ankersen, personnel director at BMW’s Berlin motorcycle plant, says this will cut the number of places available: “In future each section will want to take fewer people,” he said. (Financial Times*)
Policy
Low-carbon transport report highlights importance of biofuels
A new two-part report released by the Low Carbon Vehicle Partnership (LowCVP) sets out how the UK can hit the 2020 target of 10% transport energy from renewable sources, as defined in the EU’s Renewable Energy Directive. Among its recommendations, the report proposes increasing the biofuel content of ordinary diesel and petrol to 10% (up from up to 7% currently for diesel, and up to 5% for petrol). The report also points out that in 2020, two separate factors are expected to enable electric vehicles to make a significant contribution to renewable transport energy: improved technology and infrastructure for electric vehicles, and a significant increase in the share of renewable electricity in the UK grid. According to the Renewable Energy Association (REA)’s recent Renewable Energy View: 2014, the UK sustainable biofuels sector attracted £740m investment over the period 2010-13, and currently supports 3,510 jobs and 200 companies. “For investment and jobs in both current and advanced biofuels, the single most important step the Government can take is to set out a trajectory… towards the 2020 target,” said the REA’s head of renewable transport Clare Wenner. (Edie)
Inclusive Business
Fashion brands empowering women in developing countries
Online retailer Fashion ComPassion is providing a platform for socially responsible brands that are making a strong social impact but are restricted to local markets. Partners include Palestyle, a brand providing jobs to Palestine refugees from Syria; Rags2Riches of Philippines, Indego Africa of Rwanda and Sougha of the United Arab Emirates. Aside from providing a platform for socially responsible brands, Fashion ComPassion also creates awareness around sustainability by supporting girls’ education in partnership with the UN World Food Program. Founder and director of Fashion ComPassion, Ayesha Mustafa, states that ethical fashion companies do not have to compete with big retailers; they are different and can grow alongside them. Although the bigger players will always dictate the fashion landscape, smaller retailers can also have a profound impact on the industry, she says. (The Guardian)
Environment
‘Global vision’ launched to make paper industry more sustainable
More than 100 environmental and social organisations have unveiled the Global Paper Vision, which calls for the paper industry to adopt more sustainable practices. The strategy, by the collective Environmental Paper Network, identifies seven key areas for change: reducing consumption, maximising recycled content, strengthening social responsibility, sourcing fibre responsibly, reducing greenhouse gas emissions, ensuring clean production and transparency. Woro Supartinah of Indonesian green group Jikalahari said, “Jikalahari realised one of the underlying causes of deforestation in Indonesia comes from activities of timber plantations to fulfil the demand of world’s pulp and paper, and that is why we need a Global Paper Vision.” The Global Paper Vision aims to become a global movement that will allow for the respect of the environment and local communities. (Blue and Green Tomorrow)
Governance
British chemical company executives guilty of paying bribes to sell toxic additive to Indonesia
Two executives at a British chemicals company Innospec Ltd have been convicted of conspiring to pay bribes to secure sales worth millions of points of toxic fuel additive to Indonesia. Dennis Kerrison, the former chief executive and Militiades Papachristos, a former regional sales director were convicted of plotting regular cash inducements to Indonesian officials between 2002 and 2008 to smooth sales of tetraethyl lead (TEL) for addition to petrol. Innospec made sales of TEL to Indonisia worth about £168 million, a significant proportion of which was secured corruptly. The substance was banned in Europe and North America in 2000 following evidence that it causes brain and nervous damage in children. Its disappearance has since been linked to a subsequent decline in violent crime in many countries. The conviction is seen as a significant success for the UK’s Serious Fraud Office. (The Independent)
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