The document provides a summary of top HR and management stories from the week ending April 15, 2011. Key points include: - The Prime Minister said employers should be able to recruit short-term migrant workers but fewer should be allowed to settle in the UK permanently. - Unexpectedly low inflation figures may ease fears over rising wages and reduce pressure for pay increases from unions. - Nurses have voted to ballot for industrial action if the government imposes a two-year pay freeze. - Other stories cover pension changes at Unilever, doctors' views on fit notes, potential rejection of a pay offer by rail unions, and HR strategy improvements at Orient Express.

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This week in HR
A round-up of the top HR and management stories
Week ending 15 April 2011
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‘Fewer migrant workers
must settle in UK’ LINKS
Employers should be able to continue to  Firms feel adverse impact of immigration cap
recruit short-term migrants to fill skills gaps bit.ly/adversecap
but fewer of them must be allowed to settle
in the UK, the prime minister said in a
speech on Thursday. In an address to
Conservative party members, David
Cameron said that the government’s
permanent immigration cap – which came
into force on 6 April – is already working to
create what he said was “good immigration,
not mass immigration”. He said that the next step was to “break the link between
temporary visas and permanent settlement” and that ministers would be
consulting on how best to achieve this in the coming months. The new cap will
limit the number of visas for skilled migrants under Tier 2 to 20,700 per year.
Read the full stoRy at bit.ly/migrantcap
Surprise fall in inflation eases pay fears  Inflation knocks £1,000 off take-home
Read the full stoRy at bit.ly/emS656 bit.ly/gHRsPC
The inflation rate in the UK fell back last month, surprising experts and easing fears
over a growing wage-price spiral. Figures revealed by the Office for National
Statistics showed that the consumer prices index (CPI) dropped from 4.4 per cent
to 4 per cent, while the retail prices index (RPI), often used in wage negotiations,
dropped from 5.5 to 5.3 per cent. The fall will also mean employers are less likely to
face inflated pay demands from unions and staff.
Nurses threaten industrial action over pay freezes  Thousands of nursing jobs ‘at risk from cuts’
Read the full stoRy at bit.ly/htGPSe bit.ly/dLxbwc
Members of the Royal College of Nursing have voted to ballot for industrial
action if the government imposes a two-year pay freeze for workers who are
promoted up a grade. Nurses called for the emergency motion vote after
health minister Anne Milton provoked anger at the RCN annual conference
when she said nurses should reconsider a deal to freeze pay to avoid
compulsory redundancies.
Comment: Happiness and wellbeing are not HR fads  Action for Happiness
Read the full stoRy at bit.ly/g2fYuM bit.ly/dKOcyL
In response to the launch of Lord Layard’s “Action for Happiness” movement, Cary
Cooper writes that HR should not neglect the importance of job satisfaction and
happiness on their employees’ wellbeing at work.
Comment: HR should note takeover consultation  Kraft to close Cadbury’s Somerdale factory
Read the full stoRy at bit.ly/i0H4P5 bit.ly/er8Ux4
Memories of Cadbury’s takeover by Kraft should linger as changes to the
Takeover Code are finalised, writes Louise Redmond.
Unilever to close final salary pension scheme  Unilever UK Pension Fund
Read the full stoRy at bit.ly/hhYQyC bit.ly/gwuGip
Unilever is to close its final salary pension scheme, in the latest example of a large
employer backing out of this form of pension provision. The household goods
group, which is behind brands such as Persil, Flora, Hellmann’s and Domestos,
closed its main final salary scheme to new members in 2008, but is now seeking to
close for accrual for current members too.
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LINKS
Doctors believe fit note is working, shows survey  PM feature: Getting the right fit
Read the full stoRy at bit.ly/gEbdDx bit.ly/eSX7Xf
Most doctors believe the “fit note” has made a positive difference in helping
their patients get back to work, government research has shown. The
Department for Work and Pensions commissioned a survey of doctors to
mark the one-year anniversary of the introduction of the note. The research
found that 70 per cent of doctors agreed that the note had assisted patients
make their return to work, while 61 per cent agreed it had improved the
quality of the conversation they had with patients about work.
Rail unions may reject inflation-linked pay offer  Surprise fall in inflation eases pay fears
Read the full stoRy at bit.ly/eWs4i4 bit.ly/emS656
Rail unions are poised to reject a
long-term pay deal offered by
London Underground which would
give staff inflation-linked pay rises
over five years. The offer, covering
drivers and other Tube staff, would give
a 4 per cent rise in the first year
followed by inflation plus 0.25 per cent
for the following four years. But the
RMT and TSSA leadership say the offer
is not enough because it lags inflation in the first year.
HR strategy puts Orient Express on right track  Orient Express
Read the full stoRy at bit.ly/e8DWZ6 www.orient-express.com
The introduction of a worldwide HR strategy at Orient Express has helped to
boost staff engagement and improve customer satisfaction, PM has learnt. Sara
Edwards, worldwide HR director at the luxury travel firm, told PM that when
she joined the company in September 2009 she had to build an international
strategy from scratch.
Home Office first to earn disabled employer mark  BT gets tough with suppliers over disability recruitment
Read the full stoRy at bit.ly/g3vkKo bit.ly/dN6dON
The Home Office has become the first organisation to achieve a new
benchmark in good practice for employing disabled people. The
“ClearAssured” kitemark will recognise employers who have achieved a high
standard in the recruitment and retention of disabled talent.
Renault executives resign over espionage hoax
Read the full stoRy at bit.ly/gBhjhn
Several senior managers at Renault have been forced to resign following an
episode in which three employees were sacked after being falsely accused of
leaking confidential information. Patrick Pelata, chief operating officer at
the French carmaker, stood down after an internal inquiry into the affair.
Executive staff manager Jean-Yves Coudreau will also leave the company,
along with the firm’s head of legal department, its general secretary and
security director.
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