Business
Travel disruption for Tube passengers because of strikes
London Underground services were disrupted on Sunday at the start of walkouts by thousands of workers which will cause travel disruption in the capital.
Members of the Rail, Maritime and Transport union (RMT), including drivers, signallers and maintenance workers, launched a series of strikes over pay and conditions which will lead to huge disruption for millions of travellers.
Transport for London (TfL) warned there will be few or no services between Monday and Thursday, as disruption started on Sunday.
TfL has offered a 3.4% pay rise which it described as “fair” and said it cannot afford to meet the RMT’s demand for a cut in the working week.
Nick Dent, London Underground’s (LU) director of customer operations, said union demands for a cut in the 35-hour week were “simply unaffordable” and would cost hundreds of millions of pounds.
The last Tube-wide strike was three years ago, over pay and pensions, but Mr Dent said next week’s action will be different because separate groups of workers will walk out on different days.
“It will be very damaging for us,” he added.
An RMT spokesperson said: “We are not going on strike to disrupt small businesses or the public.
“This strike is going ahead because of the intransigent approach of TfL management and their refusal to even consider a small reduction in the working week in order to help reduce fatigue and the ill health affects of long-term shift work on our members.
“We believe a shorter working week is fair and affordable, particularly when you consider TfL has a surplus of £166 million last year and a £10 billion annual operating budget.
“There are 2,000 fewer staff working on London Underground since 2018 and our members are feeling the strain of extreme shift patterns.
“London Underground is doing well financially and all our members want is fair consideration. But TfL is refusing to even consider marginally reducing the working week, citing costs ranging from tens of millions to now hundreds of millions.
“We remain open to talks, securing a negotiated settlement and call on the Mayor of London to intervene.”
Passengers have been urged to check before they travel, with Tubes that do run, as well as buses, which are expected to be busier than usual.
Docklands Light Railway services will also be hit next Tuesday and Thursday because of a strike by RMT members in a separate pay dispute.
Business
Can the plastic recycling industry be saved?
MaryLou CostaTechnology Reporter
Getty ImagesIn the plastic recycling industry, the casualties keep coming.
Waste management company Biffa’s Sunderland plant closed in February after opening in 2022 at a cost of £7m, while rival Viridor closed its Avonmouth plant in 2022, Skelmersdale in 2023 and confirmed this summer that its Rochester plant would close, too.
Like falling dominoes, plastic recycling plant closures have been endemic across Europe too: another big name, Veolia, will close its two German operations this year, while seven plastic recyclers closed in the Netherlands last year.
Meanwhile, companies Borealis, Dow and Nester have all dropped plans to construct new plastic recycling plants in Europe.
Industry body Plastic Recyclers Europe equates this to the loss of nearly one million tonnes of plastic recycling capacity since 2023.
“Without decisive political action, Europe will replace its recycling industry with dependency on unsustainable imports and growing volumes of waste, undermining both its economic resilience and its climate leadership,” the organisation told the BBC in a statement.
And more closures are likely, warns James McLeary, managing director for Biffa’s polymers division, as the industry here and in Europe faces its most challenging year yet. High energy and labour costs here are two factors, in parallel with the fact that sourcing virgin and recycled plastic from Asia is currently cheaper than buying European recycled plastic.
Plastic recycling plant closures are affecting the US as well, also prompted by the low price of virgin plastic, causing the country to miss its recycled content targets, as S&P Global reports.
“There’s a big global dependence building on Asian plants, and we then have the situation where (plant operators in the UK and Europe) are going to make very tough decisions. Either they run their plants at a point where they’re literally not making anything, or they decide to close,” explains Mr McLeary, who is based in County Durham.
Getty ImagesA dependence on exporting plastic waste also hasn’t helped. The UK exported around 600,000 tonnes of plastic waste last year, according to environmental analysts at ENDS Report – 5% more than in 2023.
Loopholes in current UK legislation mean plastic waste collectors are inadvertently incentivised to export rather than process domestically. Meanwhile, manufacturers using plastic packaging are still inclined to use cheaper virgin plastic from abroad, and stomach being taxed for it.
Ahmed Detta, CEO and founder of plastic waste recycler Enviroo, is frustrated by the flaws and contradictions that he feels are plaguing the industry and disrupting the goal of creating a circular economy that keeps materials in use for as long as possible.
“For me, a circular economy is a win-win. Every single person in that journey has to have some benefit, and that’s not working,” says Mr Detta, who is based in London.
“Brands aren’t aligning with the circular economy. They’re saying, ‘why should I buy recycled material when it’s cheaper for me to pay the fine for the plastics packaging tax, than actually pay for recycled materials? No one is saying, ‘let’s unite’.”
BiffaSo concerned is RECOUP, a UK-based plastic recycling independent authority, that its head of policy and infrastructure, Steve Morgan, warns: “We are almost witnessing the demise of plastic recycling as we know it, unless we have some interventions. There’s no way a lot of recyclers in the UK can compete.”
UK regulations have benefited foreign markets more than they have the UK, and serious reform is needed, Mr Morgan argues.
“There are an awful lot of fantastic technologies developing. But it’s a scale up of those and how they can actually make money, to continue to exist and then also thrive, is the secondary thing,” says Mr Morgan, who is based in Peterborough.
“The commercial viability long term is just not there at the moment. There are some really good people producing technologies that we couldn’t even dream of 10 years ago. But I just feel we’re not going to see any real change in the next two to three years without some intervention.”
RECOUP is urging the UK government to introduce a single plastic recycling certification scheme aimed at reducing the export of plastic waste and making more companies more inclined to use recycled packaging.
Mr Morgan is optimistic that a UK government consultation this year will seriously consider what changes should be implemented to save the plastic recycling industry.
Plastics EuropePackaging reforms are indeed being implemented, alongside £10bn of investment in new plastic sorting and processing facilities, according to a spokesperson from the UK Department for Environment, Food and Rural Affairs (DEFRA).
They also say the Deposit Return Scheme, launching in October 2027, will create higher quality material for recycling, as consumers will be encouraged to return drinks bottles and cans to collection points to collect the small deposit they will have paid on purchase. The government has also convened a Circular Economy Taskforce.
“Our collection and packaging reforms will support UK-based recycling, meaning we can reduce our dependency on exports of plastic waste,” says the spokesperson. “The export of waste is subject to strict controls set out in UK legislation.”
Over in Brussels, Virginia Janssens is the managing director at Plastics Europe, which represents plastic producers, including those with recycling operations and that use recycled materials. She’s concerned that the plastic recycling industry is set to flourish outside Europe.
“Business will go where it makes sense and where it’s cheapest to build. If those big production plans are built somewhere else, with huge investments of billions, they’re not all of a sudden then going to decide to go back and build one in Europe,” says Ms Janssens.
“It will have a huge effect on our value chain. It would set us back to 20 years ago, when we would have to incinerate or use landfill more, and that would be a real shame. Nobody wants this.”
But there are some bright spots in an otherwise struggling industry.
Biffa, for example, has recently acquired bottle manufacturer Esterform, which uses recycled PET.
Meanwhile, Enviroo recently secured £58m to build a new recycling facility in the north-west of England, specialising in converting PET drink bottles into a recycled granulate that can be used in food packaging.
Due to be operational by 2026, the plant is expected to process up to 35,000 tonnes of plastic annually.
Mr Detta believes being a specialist in an industry of generalists, and going back to the fundamentals of plastic recycling, will be his key to success.
“I’m not here to tell you I’ve got the most innovative technology. No – I’ve looked at the real, hardcore problems and said, ‘What is it that I need to resolve?”
Plastic Energy, meanwhile, is successfully converting plastic waste into pyrolysis oil that can be used to make food and medical grade plastic. Headquartered in London, the company has plants in Spain, France and the Netherlands.
CEO Ian Temperton is preparing to benefit from an anticipated under supply of recycled plastic as recycled content targets kick in across Europe: by 2040, plastic drinks bottles must contain at least 65% recycled content.
“We’re about developing and continuing to enhance the technology that deals with waste plastics. Having partners commit to new investments over the next couple of years is going to be a bit harder, but it’s very clear the market will be very significantly under-supplied against any version of the targets,” says Mr Temperton.
“So I will keep my team focused on the best technology for when that comes.”
Business
JLR shutdown after cyber hack drives slump in UK car production
The five-week shutdown of Jaguar Land Rover’s (JLR) factories following a cyber-attack drove car production down by more than a quarter in September.
JLR facilities did not produce a single vehicle last month, after the cyber-attack forced the car maker to shut down its IT systems and halt its global manufacturing operations, including at its three UK plants.
Overall UK car production fell by 27% with just over 51,000 made last month, data from the Society of Motor Manufacturers and Traders (SMMT) showed.
It is the lowest number of cars made in any September in the UK since 1952, including the pandemic, the SMMT said.
The JLR cyber-attack was largely responsible for the slump in UK car production, the SMMT said, because other manufacturers reported stable figures for the month.
The attack is also estimated to cost £1.9bn and be the most economically damaging cyber event in UK history, according to research published on Tuesday.
The Cyber Monitoring Centre (CMC) found 5,000 businesses have been affected by the event and a full recovery will not occur until January 2026.
JLR said production across sites in Solihull, Wolverhampton and Halewood was returning in a phased approach.
The maker of the Jaguar I-Pace and Range Rover Sport is the second-largest car producer by volume in the UK after Nissan.
Overall, total vehicle production slumped by 35.9% in September compared to a year ago to about 54,300 vehicles.
The SMMT chief executive Mike Hawes said: “September’s performance comes as no surprise given the total loss of production at Britain’s biggest automotive employer following a cyber incident.
“While the situation has improved, the sector remains under immense pressure,” he added.
The majority of vehicles made in the UK are shipped overseas, and exports in September also slumped – down 24.5% – with the EU, US, Turkey, Japan and South Korea the top five destinations.
This year so far UK car and van factories have made 582,250 vehicles, which is 15.2% lower than at the same point in 2024.
The five-week JLR shutdown was a “severe, but short-term issue” for the overall industry, the boss of Autotrader Ian Plummer said.
“It’ll be a bit like Covid, where after the shutdown and delays end, there’s a surge in demand and sales,” he said.
Mr Plummer, who runs the UK’s biggest car-selling platform said, JLR brands had risen to have the highest number of monthly sales leads on Autotrader, “so there is demand out there, even as the pipeline is currently stuck”.
The SMMT’s Mr Hawes also said a recent ambition from the UK government to help foster a resurgence in domestic car production to 1.3m vehicles a year is in doubt if the chancellor Rachel Reeves ends tax breaks offered to Employee Car Ownership Schemes (ECOS).
“The industry is calling for rapid interventions to shore up its competitiveness,” he said.
Keeping manufacturers’ ECOS schemes would be “an immediate relief”, he said, and bringing forward other interventions including programmes to bolster supply chain resilience “would further boost the sector”.
Business
Target cuts 1,800 corporate jobs in its first major layoffs in a decade
Target said on Thursday it’s cutting 1,800 corporate jobs as the retailer tries to get back to growth after four years of roughly stagnant sales.
It marks the first major round of layoffs in a decade for the Minneapolis-based retailer. It announced the layoffs in a memo sent by Target’s incoming CEO Michael Fiddelke to employees at its headquarters.
The eliminated roles are a combination of about 1,000 employee layoffs and about 800 positions that will no longer be filled, a company spokesman said. Together, they represent an approximately 8% cut to Target’s corporate workforce, according to the memo. Affected employees will be notified Tuesday.
The retailer announced the cuts as it nears a leadership change.
Target in August named Fiddelke, currently its chief operating officer and formerly chief financial officer, as the successor to longtime leader Brian Cornell. He takes the helm February 1.
Fiddelke has also overseen the Enterprise Acceleration Office, an effort announced in May, which looked for ways to simplify company operations, use technology in new ways and speed up Target’s growth.
Target has been fighting a sales slump, as it tries to rebound from declining store traffic, inventory troubles and customer backlash. The company has said it expects annual sales to decline this year.
Its shares have fallen by 65% since their all-time high in late 2021.
Compared to retail competitors, Target draws less of its overall sales from groceries and other necessities, which can make its business more vulnerable to the ups and downs of the economy and consumer sentiment. About half of Target’s sales come from discretionary items, compared to only 40% at Walmart, according to estimates from GlobalData Retail.
As a result of that and other company-specific challenges, Target’s sales trends and stock performance have diverged sharply from competitors. Shares of Walmart are up about 123% in the past five years, compared to Target’s decline of 41% during the same time period.
In a memo sent Thursday to employees at Target’s headquarters, Fiddelke said the employee cuts will help Target make urgent changes.
“The truth is, the complexity we’ve created over time has been holding us back,” he said in the memo. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
He said the cuts are difficult, but “a necessary step in building the future of Target and enabling the progress and growth we all want to see.”
Target employees affected by the layoffs will receive pay and benefits until January 3, in addition to severance packages, according to a company spokesman. No roles in stores or in Target’s supply chain were impacted by the cuts, the company spokesman said.
Read the full memo from Fiddelke:
Team,
This spring, we launched our enterprise acceleration efforts with a clear ambition: to move faster and simplify how we work to drive Target’s next chapter of growth. The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.
On Tuesday, we’ll share changes to our headquarters structure as an important step in accelerating how we work. This includes eliminating about 1,800 non-field roles — about 8% of our global HQ team. As we make these changes, I’m asking all U.S. HQ team members to work from home next week. Target in India and our other global teams will follow their in-office routines.
Decisions that affect our team are the most significant ones we make, and we never make them lightly. I know the real impact this has on our team, and it will be difficult. And, it’s a necessary step in building the future of Target and enabling the progress and growth we all want to see.
Adjusting our structure is one part of the work ahead of us. It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution so we can:
- Lead with merchandising authority;
- Elevate the guest experience with every interaction; and
- Accelerate technology to enable our team and delight our guests.
Put together, these changes set the course for our company to be stronger, faster and better positioned to serve guests and communities for many years to come.
Michael
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