Connect with us

Business

Workers at risk as climate change results in high temperatures

Published

on

Workers at risk as climate change results in high temperatures

 As Texas baked in this summer’s record temperatures, local UPS driver Chris Begley started feeling unwell before collapsing at a customer’s premises. The 57-year-old’s death in hospital was announced in late August – just as his trade union was ratifying a deal with UPS on improved heat protections.

“Chris Begley should still be alive to experience them,” the Teamsters union said in a statement of provisions such as a promise to include air conditioning in new delivery vans from next year and to retrofit existing vehicles.

In a statement to local media, UPS said it was cooperating with the authorities as they investigated the cause of death. “We train our people to recognize the symptoms of heat stress, and we respond immediately to any request for help,” it said.

As global warming leads to more frequent spells of extreme heat around the world, workers are among the most exposed to serious health risks because their livelihoods often depend on them carrying on regardless.

Advertisement

At the same time, studies show that productivity starts to be impaired at temperatures above 24-26 degrees Celsius (75-79 degrees Fahrenheit) and, for some tasks, slashed by half from around 33-34C – levels repeatedly exceeded in a year which included the hottest July on record.

“Unlike some occupational health and safety risks you see a direct impact (from heat) on the health of workers and a direct impact on productivity,” said Halshka Graczyk, a specialist on the issue at the International Labour Organization (ILO).

“So does it make sense for the employer to keep a job site running that day if it is more than 35C and productivity is less than 50 per cent of what they are expecting?” Graczyk said of an awkward cost-benefit ratio that more workplaces will start to face.

Even on the optimistic assumption that the world hits its Paris Agreement goal of capping warming at 1.5C, productivity losses will amount to 2.2pc of global work hours or $2.4 trillion in output by 2030, the ILO estimates.

But finding the point at which employer costs can be minimised without compromising worker welfare is all the harder given the lack of clear data, uneven regulation, and the unequal way that workers around the world will experience heat stress.

Advertisement

Not surprisingly, white-collar workers in air-conditioned offices will be less affected: the big impact will remain initially on outdoor workers in sectors from construction to agriculture and in particular those in the Global South – including Pakistan.

Read more: Global warming: Phoenix in US on the cusp of a new heat record

Among the most exposed will be the world’s 170 million migrant workers. Chaya Vaddhanaphuti, a researcher at Chiang Mai University in Thailand, said his studies of migrant workers from Myanmar underlined their vulnerability.

“These labourers tend to display extra stoicism and endurance – partly because they need to show to their Thai bosses that they can work and hence still get hired,” he said.

“This puts them in more danger during the heatwave period and they often lack any paperwork or access to medical services.”

Advertisement

An internationally agreed ILO convention grants workers a right to leave a workplace without fear of retaliation if they have “reasonable justification” to believe they are in danger – but labour advocates say few workers know of the convention or dare use it.

Many European and other usually temperate countries still have no laws establishing maximum work temperatures. Where they exist – such as in China, with its decade-old 40C cap – monitoring and enforcement is patchy.

Often that is because workplace regulators lack resources: the US Occupational Health and Safety Authority (OCHA) would need 165 years to check each workplace in its remit, estimates labour advocacy group National Employment Law Project (NELP).

“There has to be both carrots and sticks – and without enforcement there are not enough sticks,” said Anastasia Christman, senior policy analyst at NELP.

While work temperature caps may prevent some casualties, they do not account for the fact that workers experience stress differently, according to their job role and health profile.

Advertisement

“The number on the thermostat is not as crucial as assessing the risks and talking to the workforce,” said Owen Tudor, Deputy General Secretary, International Trade Union Confederation.

Consultations might yield relatively cheap fixes: Tudor cited the example of a meatpacking plant which had found it could reduce heat transfer from worker to worker simply by spacing them out more.

Other solutions have wider societal repercussions. The oft-cited switching of work hours to the cooler hours of early morning or late evening leaves workers having to rearrange childcare or facing limited public transport options.

Automation will have a role to play. French winemaker Jerome Volle harvested before dawn this year – mechanising much of the process – to avoid daytime temperatures of 42C which, he told Reuters, “strain both plant and worker”.

Heat exposure is already emerging as a source of worker grievance – be it the strikes by staff at the Greek Acropolis tourist site in July, or the successful suing of a Chinese employer last year for the heat stroke death of a cleaner.

Advertisement

As temperatures rise further, pay and performance practices currently favoured in some sectors – for example piece work and output targets that discourage workers from taking rest breaks – may prove indefensible. And if an extreme weather event like a tornado destroys a factory, should workers still get paid?

“Climate change is such a paradigm shift that all of us need to rethink these legacy economic assumptions,” said NELP’s Christman. “Just doing workplace protection standards won’t be enough.”

Business

Weaker yen, cheaper Japan and over three million foreign tourists

Weaker yen, cheaper Japan and over three million foreign tourists

Published

on

By

Weaker yen, cheaper Japan and over three million foreign tourists

Japan welcomed more than three million visitors for a second straight month in April, official data showed on Wednesday, setting the stage for a potential record year for tourism.

The number of foreign visitors for business and leisure was 3.04 million last month, edging down from the monthly record of 3.08 million achieved in March, data from the Japan National Tourism Organization (JNTO) showed.

Arrivals in April were up 56pc from the prior year and 4pc higher than in 2019, before the COVID-19 pandemic shut global borders. Visitors from France, Italy, and the Middle East rose to record levels in April for any single month.

The yen’s slide to a 34-year low has made Japan a bargain destination for foreign visitors, with arrivals set to blow past the annual record of 31.9 million seen in 2019.

Advertisement

Read more: Weak yen boosts tourist wallets in Japan, per head spending up 52pc when compared to 2019

While the surge in arrivals is good news for Japan’s economy, it has caused frictions with locals. Complaints of litter and illegal parking caused local officials to erect a barrier this month to block a popular photo spot of Japan’s iconic Mt Fuji.

Trail restrictions and a new 2,000 yen ($12.79) fee will go into effect for Mt Fuji climbers this summer after a rise in pollution and accidents during last year’s hiking season.

Visitors from Mainland China, Japan’s biggest tourist market before the pandemic, exceeded 500,000 in April for the first time since January 2020 but were still 27pc below the level in 2019.

Advertisement
Continue Reading

Business

Beijing considers local government purchases of Chinese unsold homes

Beijing considers local government purchases of Chinese unsold homes

Published

on

By

Beijing considers local government purchases of Chinese unsold homes

China is considering a plan for local governments nationwide to buy millions of unsold homes, Bloomberg News said on Wednesday, after a meeting of leaders of the ruling Communist Party called for efforts to clear mounting housing inventory.

The State Council is gathering feedback on the preliminary plan from various provinces and government bodies, the report added, citing people familiar with the matter.

China’s blue-chip CSI 300 real estate index climbed as much as 6 per cent at one point following the report, before paring gains, while the yuan firmed.

China’s property sector has been in a deep slump for years, hit by a debt crisis among developers. Since 2022, waves of policy measures have failed to turn around the sector that represents around a fifth of the economy and remains a major drag on Chinese consumer spending and confidence.

Advertisement

Banks have been reluctant to heed Beijing’s repeated nudges to bolster credit to the embattled sector given the risks of more bad loans and continued weak sales. Home sales value of top 100 developers in April slid 45pc from a year earlier, according to recent surveys published by CRIC, a major real estate information provider.

The Politburo of the Communist Party held a meeting on April 30, saying it would improve policies to clear mounting housing inventories.

Dozens of cities have offered subsidies to encourage residents to replace their old apartments with new ones, in order to sell their growing stock of new apartments and provide crucial cash-flow to ailing developers.

Local state-owned enterprises would be asked to help purchase unsold homes from distressed developers at steep discounts using loans provided by state banks, according to the report, adding that many of these homes would then be converted into affordable housing.

Officials in China are debating the plan’s details and feasibility, and it could take months for it to be finalised, if the country’s leaders decide to go ahead, the report said.

Advertisement

Linan district in the eastern city of Hangzhou issued a notice on Tuesday that the local government will purchase new apartments from private developers for public rental housing.

The district, which has 650,000 residents, said the total area of the flats purchased does not exceed 10,000 square metres. The homes will be existing houses or pre-sold homes available for delivery within one year.

China’s housing ministry did not respond to Reuters request for comment.

One of the biggest drags on property demand is that cash-strapped private developers have halted construction on a large number of new homes that were pre-sold but now cannot be delivered on time. The buyers of these homes, meanwhile, are continuing to pay off their mortgages.

Estimates vary widely, but analysts agree there are tens of millions of uncompleted apartments across China after a building boom turned to bust.

Advertisement

“It’s been our view that Beijing will eventually have to address concerns about homes being delivered,” economists from Nomura said in a recent research note.

“Beijing should reach into its own pockets, even with printed money from the People’s Bank of China, to support the completion of new homes that were pre-sold by developers,” noting such a move made more sense than building public housing from scratch.

Nomura expects that eventually Beijing will set up a special agency and set aside a special fund for such a rescue.

Advertisement
Continue Reading

Business

Pakistan external financing needs estimated at $22bn, lower power tariffs proposed for industries

Pakistan external financing needs estimated at $22bn, lower power tariffs proposed for industries

Published

on

By

Pakistan external financing needs estimated at $22bn, lower power tariffs proposed for industries

As talks are progress between the visiting International Monetary Fund (IMF) mission and Pakistan, the government economic team has given an initial estimate of external financing of around $22 billion, sources say.

At the same time, Islamabad has shared a power tariff rationalisation plan for industrial sector with the IMF, meant to boost much-needed domestic production and exports by giving a package to the related industries.

When it comes to external financing, issuance of sukuk bonds worth $1.5bn during the next fiscal year 2024-25 is part of the plan.

On the other hand, Pakistan is also hopeful of friendly nations extending loan rollover of around $12bn, the sources say, as the cash-starved country badly needs external financing to meet its financial obligations.

Advertisement

Read more: Talks start to secure IMF programme, agreement reached on budget targets

Pakistan requires to ensure debt repayments as per schedule which includes not only the principal amount but also interest payments.

At the same time, the bonds issued by Pakistan repeatedly during the past years have been attractive only because of the high interest rates, which thus worsens the debt repayments challenge for the country.

PAKISTAN PANDA BONDS

Meanwhile, panda bonds – which are denominated in Chinese yuan but issued by foreign borrowers, including companies, multilateral agencies and governments – are also part of this plan.

Advertisement

Finance Minister Muhammad Aurangzeb had stated earlier in March that Pakistan was keen to tap Chinese investors by selling as much as $300 million in panda bonds for the first time ever.

He had told Bloomberg in an interview that selling yuan-denominated debt would allow Pakistan to diversify its funding sources and reach investors in a new market. “It’s something “we should have looked at quite frankly some time back.”

China has the second-largest and deepest bond market in the world and “it is the right thing to do” for Pakistan to tap that market, given Pakistan has already sold dollar and Eurobonds, Aurangzeb said.

According to the sources, the Pakistani authorities are confident that there will be an over $2bn inflow during the current fiscal year before June-end, while financial assistance from the World Bank and the Asian Development Bank (ADB) is also expected in 2024-25.

BOOSTING PAKISTAN EXPORTS

Advertisement

Through the planned tariff rationalisation, the government wants to offer a package to the industrial sector to increase domestic production required to boost exports of Pakistani products by making the same competitive in international markets.

Read more: Power basic tariff hike is one of the IMF demands

Rising costs of doing businesses – an obvious result of high interest rates and energy prices – has crippled the economy and made the goal of increasing exports impossible.

In this connection, the sources say different proposals are being drafted for industrial power tariff cuts meant to boost the export-oriented industries.

The industrial sector, the sources added, have to make additional payments for providing subsidy to the domestic electricity consumers.

Advertisement

With estimated cost of Rs100bn to be incurred in 2024-25, the plan will be included the next budget document after its approval by Prime Minister Shehbaz Sharif – a move that can increase exports by $2bn to $3bn. 

Continue Reading

Trending

Copyright © GLOBAL TIMES PAKISTAN