Monday, October 6, 2014

World Bank cuts China, East Asia forecasts; UK new car sales at 10-year high; Facebook drivers push to unionize

1 World Bank cuts China, East Asia forecasts (Khaleej Times) The World Bank has trimmed its growth forecasts for developing East Asian economies this year and next, as China’s economic expansion loses momentum and policymakers face tighter global monetary conditions. Developing countries in East Asia and the Pacific are likely to see a growth of 6.9 per cent this year and in 2015, slower than the 7.1 per cent the bank had forecast in April.

China’s economy is forecast to grow 7.4 per cent this year and 7.2 per cent next year, compared with 7.6 per cent and 7.5 per cent projected in April as the government addresses financial vulnerabilities and structural constraints. China’s economy expanded 7.7 per cent in 2013. But the bank’s chief Asia economist Suhdir Shetty said China’s slowdown is unlikely to be “dramatic” enough to have a major impact on the region.

Developing East Asian countries, excluding China, are expected to grow 4.8 per cent this year and 5.3 per cent in 2015 from 5.2 per cent in 2013. Growth in Southeast Asia’s five biggest economies — Indonesia, Malaysia, the Philippines, Thailand and Vietnam — is forecast to slow down to 4.5 per cent this year from five per cent in 2013, but is likely to pick up and expand 5 per cent next year as demand for exports grow.


2 UK new car sales at 10-year high (The Guardian) Almost 430,000 new cars were sold last month, the biggest September total for a decade, taking the total number of cars sold this year to almost two million. September sales reached 425,861, 5.6% higher than a year ago. It was the 31st consecutive monthly increase, according to the Society of Motor Manufacturers and Traders (SMMT).

SMMT’s chief executive, Mike Hawes, said: “September’s strong performance underlined the continuing robustness of the UK new car market. In the months since March – which saw an 18% jump in registrations – the growth has shown signs of levelling off as the market starts to find its natural running rate.”

The UK switched to a twice-yearly plate change 15 years ago and number plates now change in March and September, with consumer demand for the latest plate meaning that these months typically account for a third of the entire year’s registrations. Richard Lowe, head of retail and wholesale at Barclays, said: “The heady cocktail of a new plate change, great finance deals and the appeal of increasingly fuel-efficient cars resulted in September being another strong month for new car sales.”


3 Facebook drivers push to unionize (Kristen V Brown in San Francisco Chronicle) Some bus drivers who ferry Facebook employees to and from Silicon Valley want to unionize, saying they are underpaid, overworked and unfairly compensated for time on the job. The drivers enlisted the Teamsters, a powerful labor union, to pressure their employer, Loop Transportation, to allow them to organize.

The Teamsters are also putting pressure on Facebook, which contracts Loop Transportation to manage its shuttle operations. The top Teamsters official for Northern California has sent a letter to Facebook CEO Mark Zuckerberg urging him to throw the social network’s support behind a union for the drivers.

“While your employees earn extraordinary wages and are able to live and enjoy life in some of the most exclusive neighborhoods in the Bay Area, these drivers can’t afford to support a family, send their children to school, or, least of all, afford to even dream of buying a house anywhere near where they work,” Rome Aloise, the Teamsters official, said in the letter.

In December 2012, a driver filed a class-action lawsuit alleging Google’s shuttle management contractor, WeDriveU, failed to pay drivers for time between split shifts, provide legally required rest breaks, and compensate them for time spent performing required inspections on vehicles before and after shifts. An August draft of a settlement in that case awarded 89 drivers a combined total of $125,000, amounting to just $730 per driver on average after expenses such as attorney’s fees.

Bus drivers aren’t the only low-wage workers contracted by tech companies, which often hire outside providers for services ranging from security to food preparation. Last week, under pressure to offer better pay and working conditions for such workers, Google announced that it will create its own in-house security force and end its relationship with Security Industry Specialists — a company that contracts security services for many tech companies and has long been a target of union activists.

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