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.