Redundant employees complain about consultation

Link to the article: Channel 4 News

By Channel 4 News

As redundancies rise, Channel 4 News has discovered the number of employment tribunals citing a lack of consultation has grown.

Employers have a legal obligation to consult with their employees before making them redundant but administrators insist the law backs business that need to take swift action without consulting staff.

We have spoken to former employees at the Nortel telecommunications company, who were made redundant earlier this year.

They claim joint administrators from Ernst & Young ignored the law on consultation.

Nortel went into administration in January and two months later, more than 200 staff in Belfast and Maidenhead were told they were being made redundant without a consultation period.

In response, the administrators say they acted lawfully. They said they acted "in accordance with their duties in a way that is entirely usual when a company is in administration".

The law requires businesses to consult with the affected employees, then avoid, reduce and mitigate the impact of redundancies.

Ernst & Young insist they did not have time to consult with the employees because Nortel was facing serious financial difficulties.

In a statement, they wrote: "No consultation took place as it was not reasonably practicable to do so; employment legislation recognises that there are situations in which swift action needs to be taken."

Employers can claim an exemption from consulting with their employees in situations that are sudden or unexpected.

Maidenhead MP Theresa May, the shadow secretary of state for work and pensions, attended a meeting with Ernst & Young along some of the redundant employees.

She said: "What was of most conern in our discussion with Ernst & Young was a clear indication that they would be very happy to use this strategy again in the future.

"They showed no remorse about having used this approach and I feel the employees have been treated extremely badly."

The Tribunals Service has shown that wider complaints about employers failing to consult have risen 250 per cent from 4,480 in 2007/8 to 11,371 this year.

The strange world of product testing

Link to the article: BBC Working Lunch

When you buy a product, how do you know it is safe? What do the CE and other official safety marks actually mean?

Working Lunch reporter Ben Shore visited a product testing centre in Milton Keynes to see how goods like lawn-mowers, rucksacks and buggies are put through their paces.

Inside a British watch-making firm

Link to the article: BBC Working Lunch

Accurist is a classic British brand that has been making watches, under the stewardship of the Loftus family, since 1946.

Working Lunch presenter Naga Munchetty met the current boss, Andrew Loftus, to find out what keeps the business ticking.

Creating brands: how data can help the creative process

Link to the podcast: FT

Case study 2: Daymon Worldwide, the world's largest private label food sales and marketing agency. Stephen Pritchard spoke to Abhi Beniwal, Daymon's senior director of information technology.

UK news group starts charging for content

Link to the article: Channel 4 News

By Channel 4 News

Every newspaper in the country will be watching Johnston Press after it decided to start charging for online news, Professor Tim Luckhurst tells Samira Ahmed.

Johnston Press is charging its readers £5 for three months' access to three of its publications, while another three titles will direct readers back to pay for the full article after a summary of each story.

Professor Tim Luckhurst, a former editor of the Scotsman and now a journalism lecturer, joined Samira Ahmed.

Mr Luckhurst said: "Every other newspaper company in Britain will be watching what Johnston Press are doing carefully because enabling newspapers to make money from online journalism is crucial to the future of journalism.

"As to whether or not it will succeed, well, what we have to understand is that this is a complete change of paradigm.

"What Johnston Press have realised is that it doesn't matter if a million people read your newspaper and pay nothing - you'd actually be better off if a thousand people read it and paid something."

Dubai debt fears spark stock market tumble

Link to the article: Channel 4 News

By Channel 4 News

Shares tumble amid fears that Dubai could push the world back into recession after the Gulf state delays payment on billions of dollars of debt.

The crisis flared yesterday after Dubai's government-owned investment company asked for a sixth-month delay on repaying debt.

Dubai World, which has debts of nearly $60bn, asked creditors if it can postpone its payments until at least next May.

"It's absolute paranoia. This is the last thing the market needed in the run up to Christmas," said Manus Cranny, head of sales at MF Global.

"It's not just the Dubai debt; investors are wondering what other black holes there are and what the ramifications are for global companies."

Blogpaper launches its first free newspaper

Link to the article: Channel 4 News

By Channel 4 News

A freesheet combined of articles that first appeared in the blogosphere hits the press for the first time.

On paper one of the defining characteristics of a blog would seem to be that it is not on paper.

But in this rapidly changing media world, even that appears to be changing.

A new freesheet that consists entirely of blogs pulled off the web by popular demand - without the help of an editor - has now launched.

Unlike the national newspapers the Blogpaper has no editor and no team of journalists; instead all of the articles and photos have been submitted by bloggers to a website and the users vote for the content they would most like to appear in print - a process known as crowd sourcing.

Google launch Chrome operating system

Link to the article: Channel 4 News

At the Googleplex in California, Google executives unveil Google Chrome OS, their operating system that could challenge the dominance of Microsoft Windows.

After years of rumours have finally turned into reality. Google will be launching their own PC-based operating system and truly take on Microsoft.

The system will be offered free with most applications running via the web using the so called "Cloud", processing and data storage occur outside of the computer giving a better experience to lower powered computers.

Sweet news for Cadbury shareholders

Link to the article: Channel 4 News

By Channel 4 News

Shares in chocolate giant Cadbury have risen following reports of a joint takeover bid from Hershey and Ferrero. Samira Ahmed spoke to city analyst David Buik.

The move could thwart a 9.8 billion hostile bid by American food giant KraftFoods to take over the firm. Last week, the Dairy Milk manufacturers rejected the offer.

Ferrero has confirmed it is "in the preliminary stages of evaluating its options in respect of Cadbury". Hershey already has a business relationship with Cadbury, holding a licence to make Dairy Milk bars and Cadbury Creme Eggs in the US.

City analyst David Buik, from BGC Partners, told Channel 4 News: "I think this is just creating a little bit of bid warfare which is amusing everybody. The fact remains that if there were a merger between Ferrero and Hershey the inevitability would be jobs cut.

"The other thing is I don't think that Irene Rosenfeld of Kraft has finished her business. They really need Cadbury in a very big way. The bid of £7.17 was derisive. They will have to come back to somewhere between £8.00 and £8.25."

Cadbury shares have gone up more than 1 per cent following news of the possible deal. The intervention will put pressure on Kraft - also behind Kenco coffee and Dairylea cheese - to improve its offer for the business.

But Britain's most famous chocolate-maker has said the Kraft bid did not come "remotely close" to reflecting the value of the company.

Cadbury began life as a grocer's shop in Birmingham in 1824. Dairy Milk is the UK's top-selling chocolate bar and more than 250 million are sold every year in 33 countries.

'Strong sales' boost Sainsbury's

Link to the article: BBC News

Sainsbury's has seen its latest half-year profits rise by one-third, buoyed by an increase in sales.

The supermarket group's pre-tax profit in the six months to 3 October totalled £342m, up 32.6% from £258m a year ago.

Its like-for-like sales excluding fuel, which strips out the impact of new store openings, rose 5.7%.

It said it was a strong performance given the economic climate, but trading conditions could be even tougher in the second half of the financial year.

Argos launches comparison website

Link to the article: PA News (Channel 4 News)

Source PA News

Catalogue retailer Argos has launched a price comparison website for financial products ranging from insurance to mortgages.

The new service, Argos Compare, will offer price comparisons on products including home, car and travel insurance, mortgages, pensions, credit cards and utilities.

The service compares quotes from more than 65 car insurance and 25 home insurance providers, as well as 30 credit cards, while it will also put users in touch with one of 4,000 mortgage brokers.

Argos Compare will be advertised on the group's main website, which was the most visited website of a high street retailer during 2008.

The group said this meant it would not have to spend money advertising the site, enabling it to plough back some of the fees it receives for referring customers to financial services providers into giving vouchers to people who take out a product through it.

The site is currently offering £30 worth of Argos vouchers to every consumer who takes out car insurance through the service and £15 worth of vouchers to people who purchase home insurance through it.

Greg Ball, managing director of Argos Financial Services, said: "Argos has always been focused on providing choice, convenience and value to our customers, and the launch of Argos Compare is another example of us delivering that."

Tourism sector eyes brighter 2010

Link to the article: BBC News

By Will Smale
Business reporter, BBC News

The cold, grey morning in east London was an apt metaphor for the difficulties faced by the global tourism industry in 2009.

With much of the world having been in recession, this year has undoubtedly been a tough time for travel companies around the globe - commercial sunshine has been in short supply.

Put simply, people have been cutting back on taking holidays in the face of the economic uncertainty.

Either due to the direct impact of unemployment, or the wider sense of a need to be more financially cautious, would-be holidaymakers have been much more reluctant to book a vacation - as the latest figures show.

A report published this week to tie in with one of the world's largest gatherings of travel industry leaders - the World Travel Market fair in London - estimates that global travel bookings will fall 8% this year.

Is the iPod generation missing out?

Link to the article & video: BBC News

The emergence of the iPod dock means that people are increasingly listening to MP3 music at home, instead of old-fashioned CDs.

Ipod docks tend to be smaller and more convenient than CD hi-fis, but can they compete in terms of musicality?

Working Lunch reporter Sharif Sakr put it to the test.

Berlin wall: 20 years after the fall

Link to the article: Channel 4 News

By Channel 4 News, More4 News

Communism fell in eastern Europe 20 years ago. But did unification and European expansion come too fast? And has Europe lived up to the promise offered by the Berlin wall's toppling on 9 November 1989?

It was sudden, and with hindsight perhaps inevitable. Communism fell in eastern Europe just twenty years ago - terminating a European division that many feared would stand for all time.

Twenty years since the world changed for ever: 20 years since millions got their first taste of freedom: twenty years since the Berlin wall came tumbling down.

World leaders joined thousands of people at the city's Brandenburg gate to remember the events that finally brought an end to the cold war. Germany's Chancellor Angela Merkel described it as "the fulfilment of a dream".

The celebrations culminated in a massive concert and fireworks display, with 1,000 dominoes toppling along the site where the wall once stood.

Jens Reich, one of East Germany's main opposition leaders in 1989, told Channel 4 News it was a "happy day".

Cadbury rejects Kraft takeover bid

Link to the article: Channel 4 News

By Channel 4 News

The chocolate makers Cadbury have rejected a hostile takeover bid from the US food giant Kraft, dismissing the £9.8bn offer as "derisory".

Kraft's initial approach was rejected two months ago, but today the bid is worth even less thanks to falling share prices.

Cadbury's chairman said it was not "remotely close" to reflecting his company's true value, and appealed to shareholders to stand firm.

At stake is not just British jobs, but Cadbury's new ethical commitment to fair trade.

British Airways announces record loss

Link to the article: Channel 4 News

By Channel 4 News

The troubled airline company announces a pre-tax loss of £292m as cabin crew hours are "unwillingly" slashed in a bid to save money.

The airline, which recorded a loss of £401 million in its previous financial year, said total revenues slumped by almost 14 per cent in the six months to the end of September.

It is the first time that BA has recorded a first half loss - normally a buoyant period for the airline as it includes the holiday season.

Today's deficit is around £40m higher than city analysts had been expecting. Even when items such as pension costs are excluded BA made a loss of £111m, against a profit of £140m a year earlier.

The industry as a whole is expected to lose £6.65bn this year as a result of the recession's impact on passenger numbers and demand for business class travel.

Willie Walsh, chief executive, said the company reduced costs by some £400m after manpower was cut by 1,900 roles through reduced overtime, increased part-time working and voluntary redundancy.

"With revenue likely to be £1bn lower this year, we can't stand still and further cost reduction is essential," he said.

He said a further manpower reduction equivalent to 3,000 roles was planned by March next year, along with a 6 per cent cut in winter capacity.

BA is locked in a fight with unions over its plans for job cuts and a pay freeze and has faced the threat of industrial action from different sections of its workforce.

The union Unite launched legal action in the High Court yesterday in a bid to stop the imposition of new contracts for new cabin crew. It has agreed to work to the new schedule until the outcome of the legal action is known.

Business Correspondent John Sparks said:

"Analysts are now predicting that the airline will lose £600m for the entire year and if you add up those losses after the last two years you come to the grand total of a billion pounds.

"But here's the funny thing - BA's shares actually went up 12 per cent this morning which is strange when you consider that the full service airlines like BA have taken a real hammering this year because of the recession.

"But investors clearly think that Willie Walsh and his team can cut costs and they can turn this airline around. But he has got serious problems with his cabin crew - a real industrial dispute.

"He will implement new changes to the cabin crew in ten days time. Their numbers will be reduced on planes and the union Unite is likely, I understand, to ballot members on a national strike starting next week with the potential of strikes before Christmas a real reality."

General Motors scraps plans to sell Vauxhall

Link to the article: Channel 4 News

By Channel 4 News

Union bosses welcome the shock decision by General Motors to scrap plans to sell Vauxhall, describing it as an "incredible turnaround" by the US car giant.

The announcement marked an abrupt U-turn from previous plans to sell its Opel and Vauxhall brands to Canadian car parts firm Magna - a deal that threatened thousands of jobs across Europe.

The GM board have now opted to retain and restructure its European subsidiaries.

Tony Woodley, secretary general of Unite, said he was "absolutely delighted" by the company's announcement, which appeared to catch most people by surprise.

In a statement, Fritz Henderson, president and chief executive of General Motors, said the decision to keep Vauxhall followed a more benign business environment in Europe and GM's improved financial health.

He said: "From the outset, our goal has been to secure the best long-term solution for our customers, employees, suppliers and dealers, which is reflected in the decision reached today."

Retaining the brand was "the most stable and least costly approach for securing Opel/Vauxhall's long-term future".

Restructuring costs are expected to run to around 3m euros (£2.7m) - significantly lower than the bids submitted, GM said.

Fire rages in leaking Timor Sea rig

Link to the article: Reuters Video

Nov 2 - Fire rages in PTTEP-operated Timor Sea oil rig after several attempts to plug a 10- week-old leak.

Catherine Macdonald reports.

Social networking costs companies

Link to the article: Reuters

Oct 30 - Access to social networking sites at work is costing UK businesses billions of pounds in lost productivity

Suranjana Tewari reports.

McDonald's closes in Iceland

Link to the article: Reuters

Oct 30 - Fast food chain McDonald's to close restaurants in Iceland.

Anna McIntosh reports.

Crackdown on credit rules

Link to the article: Channel 4 News

By Channel 4 News

Credit card rules could be changed to ensure the most expensive debts are paid off before cheaper amounts to give consumers a better deal.

Card providers usually force customers to pay their most expensive debts first, so consumers who transfer outstanding balances as part of an interest-free promotion have to pay off the amounts they have transferred before they can pay off any amounts interest-attracting amounts for purchases they later make using the new card.

But the government has told the card providers to "get their act together" and new rules could also increase the minimum monthly repayments from their current low level to avoid customers taking decades to clear borrowings.

Consumer Minister Kevin Brennan said: "Card companies have to get their act together and do more for consumers.

"My opinion is clear, the current relationship between card companies and consumers cannot go unchallenged. We need to put the customer back in the driving seat."

Other moves being considered by ministers are a ban on increasing credit limits without prior consent, possibly by forcing consumers to opt-in, and restrictions on rate hikes on existing debts without proper explanation.

Mr Brennan added: "It is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without a proper explanation.

"Consumers have a real responsibility to manage their finances properly, but they also have a right to clear information to enable them to do that. Consumers should not feel each month as if they've been exploited or disadvantaged."

The Government said in July's Consumer White Paper that it would tackle the way credit card repayment policies could lead to bigger than expected interest charges. It is already legislating to ban unsolicited credit card cheques in November. The current consultation will run until January 19.

Fiona Hoyle, head of consumer finance at the Finance and Leasing Association, said: "Many of the measures proposed today by the government have been under discussion with the industry for some time and reflect rapidly-changing market conditions.

"The industry's commitment to helping consumers is shown by the many measures already taken in recent months.

"But as our statistics today show, credit spending is still declining. We must avoid the risk of reducing further the availability of credit or increasing the potential for over-indebtedness.

"More regulation of the wrong kind risks further shrinkage. For many people the primary concern will be getting access to affordable credit. We must do nothing to make that more difficult.

"We will be working closely with the Government on the practical implications of their proposals to ensure a fair deal for all."

BA cabin crew's strike ballot

Link to the article: Channel 4 News

By Channel 4 News

In the middle of the postal dispute, 14,000 British Airways cabin crew are being balloted on industrial action in a row over new employment contracts. John Sparks reports.

BA wants to cut nearly 4,000 jobs, but said it would not reduce the salaries of current cabin crews, who are better paid than staff at other airlines in the country.

Three more days of nationwide postal strikes are also looming this week. Royal Mail and the Communication Workers Union met today at the Trades Union Congress to try to settle their dispute over pay and modernisation.

Unite said 14,000 of its members at the airline will vote on whether to launch a campaign of action in protest over the imposition of the new employment contracts.

Derek Simpson, the union's joint general secretary, said: "BA management's determination to impose unacceptable contractual changes on cabin crew leaves us no alternative.

"We will strongly support our members if they vote for industrial action, while of course remaining ready to negotiate with the company.

"Negotiation, not imposition, is the only proper way to conduct industrial relations."

Cabin crew had already decided to hold an emergency meeting next Monday to decide whether to fight plans to cut jobs, freeze pay and introduce worse wages and conditions for new staff.

Thousands of workers are expected to attend the meeting, at Sandown Racecourse in Surrey, two weeks before the cuts come into effect. Two former sections of the Transport and General Workers Union - Bassa and Cabin Crew 89 - have joined forces for the first time in over 20 years to hold the joint meeting.

BA chief executive Willie Walsh met with Unite leaders earlier this month after which the airline issued a statement which said: "The discussion, about cabin crew pay and productivity issues, was open and frank."

Unite have complained that the changes being introduced next month constituted a "fundamental attack" on the jobs, wages and career prospects of all 14,000 cabin crew members of the union.

"They will not only hit the customer service core of the business, but will forever undermine BA's international reputation as a premier airline with premier crew providing a premier service.

"You are now being bullied into the very real possibility of accepting inferior contracts in just a few weeks' time," union leaders said in a letter to workers earlier this month.

"While we accept these are tough times for aviation generally, we do not accept that this is a company on its knees. This is still a prestigious airline with a high reputation to uphold not only at home, but also around the globe."

BA has announced plans to cut staff numbers by 3,700, in addition to a reduction of around 2,500 achieved between June 2008 and March 2009.

Talks between BA and Unite and the GMB have been continuing for months, with little sign of reaching an agreement. BA insisted it had to cut costs in the face of a downturn in travel caused by the recession.

Public backs striking postmen - just

Link to the article: Channel 4 News

By John Sparks

Nearly 80,000 postmen and women went on strike today, following industrial action yesterday by Royal Mail drivers and mail centre staff. John Sparks reports.

Two successive days of postal strikes this week have led to 30 million letters being delayed.

The 48-hour stoppage by the Communication Workers Union, over pay and conditions will be followed by three more days of strikes next week.

The public is divided over who is responsible for the disruption, with marginally more pointing the finger of blame at Royal Mail, according to a YouGov poll for Channel 4 News.

Longest recession since records began

Link to the article: Channel 4 News

By Channel 4 News

Despite expectations that today’s official figures would show the recession had ended, output dropped by 0.4 per cent between July and September, meaning the UK has suffered six straight quarters of negative growth. It appears Britain’s dependence on the City has left the economy floundering. Faisal Islam reports.

The Office of National Statistics said British gross domestic product fell by 0.4 per cent between July and September. It means the economy has contracted for six successive quarters for the first time since records began in 1955.

Year-on-year, output shrank by 5.2 per cent, only marginally better than the record 5.5 per cent annual fall registered in the second quarter. The quarterly decline between April and June was unrevised at 0.6 percent.

More strikes deepen Royal Mail dispute

Link to the article: Channel 4 News

By Channel 4 News

The Communication Workers Union says that it will hold more strikes next week, in addition to the 48 hours of industrial action already underway.

Up to 40,000 mail centre staff and drivers are on strike today in a dispute with Royal Mail over pay and modernisation. They will be followed by postmen and women tomorrow.

It is an industrial dispute that does not just involve employers and employees, but has also dragged in the Labour government, with the union criticising the role ministers have played.

The CWU and Royal Mail have accused one another of walking away from an outline agreement reached on Tuesday night to end the confrontation.

Apple iPod - Daft Punk Video

Apple iPod - Breakdance Video

Fairtrade gets £12m bumper grant

Link to the article: BBC News

Fair trade has been given £12m of government money to mark 15 years since the organisation launched in the UK.

It is hoped that the grant will double the number of farmers helped by the scheme and treble sales of products.

Last year more than £700m was spent on Fair trade goods in the UK, an increase of more than £200m on 2007.

It was a pioneering concept 15 years ago, offering farmers in poor countries a better price for their produce by making Western shoppers pay a bit more.

Healthier, wealthier and wiser

Link to the article: Economist.com

Where quality of life has improved most since 1990.

NORWEGIANS live the best lives in the world, according to the UNDP's “Human development index” published on Monday October 5th. Rich western countries as usual score well in the UN's measure of health, education and wealth data for 2007. But other countries can claim notable improvement in the past two decades. Of the 116 nations for which there are data, Mozambique has improved the most, scoring almost 50% higher in the 2007 index than it did in 1990. Many other African countries have also seen increases in their quality of life. China has seen its score rise by 27% on the back of strong economic growth. Six nations have slipped backwards, as AIDS or an ailing economy has driven down life expectancy and wealth.

The demise of the dollar

Link to the article: The Independent

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading.

By Robert Fisk

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

Google catches its newest Wave

By Benjamin Cohen

The internet giant announces its newest tool, combining email, messaging and wiki-style editing. But will Google Wave turn out to be just another internet fad?

Starbucks' latest jolt

Sept. 30 - Starbucks brews new strategies tailored to the recession and rising competition.

Bobbi Rebell, Reuters, New York.

SOUNDBITE:
# RJ Hottovi, equity analyst, Morningstar,

Jimmy Choo for H and M

Sep 30 - British luxury brand Jimmy Choo is teaming up with high street retailer H&M creating a capsule collection which will be sold in around 200 stores around the world.

Basmah Fahim reports.

Brown says markets 'need morals'

Link to the article: BBC News

Prime Minister Gordon Brown has said financial markets need "morals" if they are to function properly.

Speaking at the Labour conference in Brighton, he defended the government's handling of the financial crisis and stressed his economic credentials.

He vowed that the banks that were bailed out would pay back taxpayers.

And Mr Brown said the government would pass new rules covering bankers' behaviour, including disqualifying those unfit to run banks.

"Any director of any of our banks who is negligent will be disqualified from holding any such post," he said.

Boardroom lessons for the dugout

Link to the article: BBC News

Major sports such as football, cricket, rugby, Formula 1, and many others are now recognised as being part of a multimillion pound global industry, with extensive budgets, media exposure, and customer bases.

However, despite the outward trappings of a FTSE or Dow-listed bluechip company many sports clubs, particularly in football, do not operate along traditional business lines.

Many still operate with a "fan-turned-chairman" ethos, or, at the other extreme, they are destabilised by a sudden influx of cash and become a billionaire's trophy asset.

All of which makes the jobs of both managing the team from the touchline and managing the business from the boardroom increasingly difficult.

To try to address some of these problems top business leaders and major figures in football management met at Arsenal's Emirates Stadium for the League Managers' Association (LMA) annual meeting.

Visa to sponsor Olympic hopefuls

Link to the article: BBC News

Visa is to sponsor Team 2012, the 1,200 British athletes training to participate in the London Olympics, the British Olympic Association has said.

The multi-million pound deal with the US credit card giant will provide funds to help the Olympic and Paralympic hopefuls continue their preparation.

The association said it was the largest national team to gain sponsorship.

BA launches business-only plane

Link to the article: BBC News

Transport correspondent Richard Scott takes a look at the new British Airways business class only plane.

BA chief executive Willie Walsh said he is confident about the service, which will link London's City Airport to New York.

The Airbus 318 in use will carry only 32 passengers, in seats that recline to fully flat beds.

However, the service has been criticised by environmentalists.

Ending the postal dispute?

Link to the article: Channel 4 News

By Channel 4 News

Ben King reports on how delivery disruption is hitting businesses, as Royal Mail workers take their dispute to Labour conference.

Outside the hall at the Labour party conference today will be members of the Communication Workers Union, who are there ahead of a nationwide post office strike which could start next month.

The CWU have been in an ongoing dispute with Royal Mail's management over modernisation and working practices.

Talks are on to resolve the dispute before the planned industrial action, but months of regional strikes have already caused massive disruption to postal services.

The benefits and pitfalls of G20 shift

Link to the article: BBC Newsnight

Emily Mailtlis is joined by entrepreneur Sir David Tang, academic Dr Linda Yueh and MEP Daniel Hannan to discuss the decision to make G20 into a permanent fixture and whether it will be beneficial in avoiding future global financial crises or not.

Maitlis begins by asking Sir David whether Foreign Secretary David Miliband, who appeared on the programme just prior to the discussion, was right to say that the world needed an alliance like the expanded bloc.

CBI sets out plan for economic growth

Link to the article: Channel 4 News

By Channel 4 News

The CBI put forward a 12-point agenda today, setting out what any new administration should do to help put the economy on a path to sustainable growth.

The CBI said that whichever party wins the next general election, a new government should act quickly, and establish clear timetables for putting the 12 points into place within 100 days of taking power.

The business group particularly emphasised the need for a new government to commit to getting the public finances balanced by 2015 with a clear and credible plan for doing so.

This target year would require a new explicit commitment by the main political parties.

The CBI has launched the plan, titled New Government in Action: The Business Agenda, during the party conference season that precedes the next election, which must take place by June.

Its 12 priorities range from tackling youth unemployment because of its potential to scar a generation, to developing a stronger banking system.

John Cridland, CBI Deputy Director-General, said: "Any new government will have a lot to do in its early days, but the economy must be central to its plans, especially given the state of the public finances and the global downturn.

"Our proposals make clear what the priorities should be to help put our economy on the road to sustainable growth.

"The major political parties really need to focus on the public finances, even though this requires tough decisions. They should make it their ambition to set out a clear, credible plan that would return the budget to balance by 2015.

"We also emphasise the need for speed. A new administration should act quickly and decisively. This will not only put the right priorities in place quickly, but also help win confidence.

"Some of the priorities may surprise people. Not everybody expects youth unemployment to be a particular priority for business, but we know from previous recessions that it can scar generations and create lasting problems for young people as they make the transition to the world of work."

The 12 priorities spelt out in the CBI agenda are:

- Set out a sustainable path for the public finances

- Establish competitive business taxes

- Develop a strong banking system

- Prioritise energy security

- Work towards a low-carbon economy

- Develop the infrastructure for economic growth

- A global voice for UK business

- Skill students for the future

- Tackle youth unemployment (including a £2,500 subsidy for firms giving offering apprenticeships)

- Attract and cultivate enterprise and industry

- Reforming services to improve the economy

- Address public sector pensions

Ireland's Guinness marks 250 years

Sep 25 - Ireland marks 250 years since Sir Arthur Guinness founding his stout beer brewery in Dublin.

Jennifer Marostica reports.

Jaguar Land Rover to close UK plant

Link to the article: Channel 4 News

By Channel 4 News

Jaguar Land Rover is closing one of its three British factories, but says there will be no compulsory redundancies.

Jaguar Land Rover has announced that it intended to close one of its factories in the West Midlands.

Either Castle Bromwich or Solihull will be closed with a final decision to be made next year.

Around 7,000 people are employed across both the sites. But Jaguar, who is owned by the Indian firm Tata, insists there will be no compulsory redundancies.

The company also said it will create 800 new jobs at its factory on Merseyside.

Jaguar Land Rover gave details of a new business plan it said was designed to increase its global competitiveness significantly, drive growth and sustained profitability, and respond to the challenges of climate change.

Chief executive David Smith said: "This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands.

"We are confident that a new, more efficient and competitive structure combined with future investment will unlock the true potential of this business."

Jaguar Land Rover employs more than 14,000 people, including 2,000 at its Halewood plant near Liverpool, 5,500 at Solihull and approximately 2,200 people at Castle Bromwich.

The Castle Bromwich site thought to be most at risk, though a union agreement promises no compulsory redundancies.

The future for the company will be fuel-efficient cars. The LRX, the smallest, most fuel-efficient Range Rover ever, is to be built in Halewood, with the creation of 800 new jobs. And Jaguar will launch new, lightweight sport cars, with electric or hybrid engines.

Jaguar Land Rover has been losing money since the Indian company Tata bought it from Ford last year. Demand for its luxury cars and four-wheel drive vehicles has been hit by high fuel prices and the recession. From April to June the company lost £62m.

The company has already responded to the downturn over the past year by cutting production by 100,000, axing 2,500 jobs, freezing pay and cancelling bonuses.

Tata had asked the government for a bailout, but when the terms offered were too harsh, it managed to raise cash from private sources.

Business Secretary Lord Mandelson said: "Today's announcement of Jaguar Land Rover's business plan shows how focused it is on the future of the industry and the opportunities available as we move to a low carbon future.

"The Government will continue to do everything it can to help businesses fully exploit the opportunities that green manufacturing has to offer.

"I know that trading conditions are difficult for the car industry as a whole. It is inevitable that we will see further re-structuring across the industry.

"There is global over-capacity and car manufacturers recognise that they have to take some of this capacity out and cut back on their costs. There are opportunities and that's why we must continue to innovate and lead the way."

World's cheapest car is unveiled

Link to the video: BBC News

he Tata Nano, the world's cheapest car, has been launched in India.

Costing just 100,000 rupees ($1,979; £1,366), the Nano will now go on sale across India next month.

£129m fines for construction firms

Link to the article: Channel 4 News

By Channel 4 News

Some of the country's biggest construction firms are fined millions of pounds for illegally rigging contracts across England at the taxpayers' expense. Faisal Islam reports.

The Office of Fair Trading found firms guilty of anti-competitive collusion during the bidding process and warned the practice had been "endemic" throughout the industry. But the companies involved will not be barred from future tenders for public sector work. And the fines, which follow a five-year investigation, are far lower than had been expected.

The OFT found 4,000 instances of bid-rigging involving more than 1,000 companies but only focused on the cases where the evidence was strongest.

Most of the cases came in the form of so-called "cover pricing", where one or more bidders arrange for competitors to put in high bids so they will not win the contract, but will increase the appearance of competition.

Adidas and Puma end feud

Link to the article: Channel 4 News

By Channel 4 News

More than 60 years after a feud between brothers Adi and Rudolf Dassler produced the Adidas and Puma sportswear firms, the two companies are making peace for one day.

A historic handshake today between the chief executives of the two firms was followed by a football match in which employees from both companies played on mixed teams to celebrate International Peace Day.

"We are uniting on this day as a commitment to Peace Day," Puma CEO and Chairman Jochen Zeitz said in the statement.

In a joint statement last week, the two companies said they were making up to support the Peace One Day organisation, which has its annual non-violence day today.

They say that the events will be the first joint activities held by the two companies since the brothers left their shared firm in 1948.

"I am looking very much forward to our Adidas and Puma football match and I hope that our joint initiative helps to raise further awareness for Peace One Day around the world" – Adidas CEO Herbert Hainer.

Company split
In 1924 Rudolf Dassler joined his brother Adolf’s sports shoe business, which subsequently became Gebruder Dassler Schuhfabrik.

In 1936 the company provided the spiked shoes for Jesse Owens, who went on to win four gold medals in the Berlin Olympics that year.

But the brothers fell out during the war, and in 1947 went on to found separate companies. Rudolf formed a new firm called Ruda (from Rudolf Dassler), later renamed Puma. Adolf formed Adidas (Adi Dassler).

The rivalry that developed between the two companies even divided the firms' home town of Herzogenaurach, a small town of 23,000 people in southern Germany, where Adidas and Puma have rival factories on opposite sides of the river.

Both names went on to become huge global brands and continue to dominate the trainer market today in both fashion and professional sport.

The world's fastest man Usain Bolt wears Puma shoes, while tennis star Novak Djokovic is sponsored by Adidas.

Neither group is now controlled by the descendants of its founding families, although Rudolf's grandson Frank Dassler raised some eyebrows in the town by working for both Puma and Adidas.

Since 2007, Puma has been majority-owned by PPR, the French luxury goods maker that also owns Gucci.

Adidas Group is much more widely-owned, with no individual shareholder having more than 5 per cent.