Hovis-Owner To Cut 900 Bread Jobs

The owner of Hovis has announced plans to cut 900 jobs in its struggling bread business as profits become harder to come by.

In a statement, Premier Foods said it was to close two bakeries and reform its delivery network.

The biggest impact will be felt in Birmingham, where 511 jobs are to be lost with the closure of a factory and distribution operation.

Hovis operations at Greenford in west London will also shut costing 196 jobs while Premier said it was also preparing to close distribution sites at Plymouth and Mendlesham in Suffolk resulting in 95 job cuts.

The closures are subject to consultation with employees but are scheduled to take place during the course of 2013.

St Albans-based Premier, which also makes Mr Kipling cakes and Bisto gravy, has seen its Hovis division hit by intense competition in the bread market and a surge in wheat price inflation caused by poor weather.

As a result it is set to lose a £75m-a-year contract with a major grocery chain from the middle of next year after Premier was unable to agree a new deal on sufficiently attractive terms.

It is cutting 130 distribution routes and closing the supply centres to take into account the expected reduction in volumes.

Premier chief executive Michael Clarke said: "We recognise the impact these actions will have for our employees at the sites affected.

"Decisions will not be taken lightly but they are necessary if we are to build a strong and successful future for the bread division and those who remain with our business."

Sky's City Editor Mark Kleinman revealed last month how the business had recruited Goldman Sachs to find a buyer for Hovis.

Premier has offloaded several well known brands in recent times, including Sun-Pat Peanut Butter and Branston Pickle, as it looks to concentrate on a portfolio of what it sees as core brands.

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Cheaper Power Tariffs Under Energy Shake-Up

Energy Secretary Ed Davey will flesh out proposals later to ensure all households are on the cheapest gas and electricity tariffs available.

After weeks of confusion about the Government's plans to simplify the market and reduce bills for hard-pressed families, the Liberal Democrat is expected to use an appearance before the Energy Select Committee to give more details.

It is thought energy firms may be prevented from offering more than four tariffs and be required to automatically move customers on to the cheapest one.

The move comes amid long-standing concerns that many households are paying hundreds of pounds a year more than is necessary for gas and electricity because of the confusing array of tariffs.

Ed Davey insists the Government backs a low carbon economy

The issue has become more acute in recent years because of rising wholesale prices that have seen energy charges soar.

Meanwhile, MPs have called on Chancellor George Osborne to reassure investors the Treasury is committed to moving towards a greener economy.

Mr Osborne must use the autumn statement next month to end the uncertainty over the direction of energy policy, which is undermining investment in the UK's power sector, the parliamentary Environmental Audit Committee (EAC) said.

MPs say George Osborne must "end the uncertainty"

The EAC also added its voice to calls from business leaders, trade unions and green groups for the Energy Bill, due to be published before the end of November, to include a target to slash emissions from the power sector by 2030.

The cross-party committee's chairwoman Joan Walley said: "The Treasury must end the uncertainty on energy policy and give investors and businesses the confidence to seize the enormous opportunities presented by new clean technologies."

Friends of the Earth's head of campaigns Andrew Pendleton said: "MPs are right to slam the Chancellor - his gas-fuelled economic strategy will send fuel bills soaring, jeopardise jobs and scupper UK efforts to tackle climate change.

"The Treasury seems hell-bent on killing off Britain's growing green economy, despite the tens of thousands of jobs it can create and business leaders' group CBI's pleas for more backing."

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easyJet Profit Soars By Over 27%

easyJet has reported a rise in pre-tax profit of 27.9% to £317m over the year to the end of September.

The budget airline said a surge in late summer bookings to destinations including Malaga, Alicante and Faro helped helped boost its revenue, which increased by 11.6% to £3.85bn.

Passenger numbers were up by over 7% at the company - which is Europe's second-largest budget airline after Ryanair - and it more than doubled its full year dividend from 10.5p to 21.5p, or £85m.

The company said its strong results come despite a rise of £182m in fuel costs and low consumer confidence across Europe as a result of the ongoing debt crisis.

Less disruption from weather and strikes helped easyJet reduce its amount of cancelled flights - fewer than 1,000 were cancelled over the last financial year, compared with over 4,000 in 2011.

Chief executive Carolyn McCall said: "These results demonstrate that easyJet is a structural winner in the European short-haul market against both legacy and low cost competition."

She added: "Whilst there is always the potential for unexpected events to temporarily impact financial results the Board of easyJet is confident that its business model, strategy and people will consistently continue to generate superior returns and growth for shareholders."

The airline has outperformed rivals, which continue to struggle with the tough economic conditions facing the sector.

Earlier this month, IAG's Spanish airline Iberia reported profit of just £13.5m, and announced pay cuts and 4,500 job losses. 

While Spanair and Hungary's Malev have both ceased operations - leaving gaps in the market that easyJet has been able to take advantage of.

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Warning Over 'Burnout Britain' For Workers

More than half of British employees are now working longer hours than they were three years ago, a new report suggests.

Researchers said some 58% of workers say their job demands have expanded, while 34% believe they are affected by excessive pressure.

The study, published by professional services firm Tower Watson, surveyed 32,000 employees worldwide for its global workforce study (GWS), including 2,600 workers in the UK.

It claimed Britain is heading for a "well-being meltdown" due to the pressure of the recession.

"From pay cuts to longer working hours, the GWS highlights the demands on workers that the recession has brought about, with only half (53%) of UK workers feeling their stress levels at work are manageable," it said.

"Despite increasing requirements for businesses to provide workers with advice on health and well-being, just a third (31%) of employees feel that their senior leaders support such policies."

Researchers added that British workers feel a need to display their commitment to the job as more than a 25% have failed to maximise their annual holiday or personal time off entitlements since 2009.

Exacerbated by the trend of cutting workforce numbers, one-in-five employees now feels that the amount of work they are asked to do is unreasonable, meanwhile 30% believe their organisation is under-funded in human resources.

The study showed results for the UK were broadly in line with those seen across Europe, the Middle East and Africa, with similar numbers of workers feeling that there was excessive pressure, longer working hours and fewer resources.

Towers Watson said it also identified a clear link between the levels of well-being and engagement in a company's workforce and organisational performance.

It said that firms with low engagement produced an average operating margin of around 10% while organisations with high sustainable engagement performed nearly three times better - with operating margins of over 27%

Another issue that appeared was career development being hampered because staff were retiring at a later age, with a trend appearing of three generations appearing in the workforce.

Towers Watson's Nick Tatchell, who was involved in the research, said: "About a quarter of the people we interviewed thought because people weren't retiring it was becoming an issue.

"There is another issue and that is of people being 'stuck'. The want to contribute and they want to do a good job.

"But only about half of them say they have the 'tools' to achieve that and believe they are 'stuck'.

He added: "So they feel they are stuck both with tools and resources and also in their careers. People feel that is lacking at the moment."

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Empty Shops Rate Sets 'Alarm Bells Ringing'

One in 10 shops in UK high streets and shopping centres were empty in October - the worst figure since the British Retail Consortium's nationwide survey began in July 2011.

As retailers continue to battle against stagnating sales and rising costs, the new figures showed last month's town centre vacancy rate at 11.3%.

A fifth of store units are currently empty in Northern Ireland, while the rate for Wales is 15.1% and for the North & Yorkshire region the rate is 14.6%. Greater London had 7.6% of its units lying empty.

BRC director general Stephen Robertson said the latest figures would set "alarm bells ringing" and the financial challenges for both customers and retailers were far from over.

Big brands including JJB Sports, Clinton Cards, Blacks Leisure, Game and Peacocks have either disappeared or scaled back their presence in town centres after going into administration.

And the collapse of electricals chain Comet this month will be another blow.

Mr Robertson renewed his call for Chancellor George Osborne to freeze business rates, which are set to increase by 2.6% in April.

He said: "Many retailers are battling stagnating sales and rising costs, and next year's threatened business rates increase can only make matters worse.

"If the Government wants to breathe life back into our town centres and ensure the retail industry can play its full role in job creation, it needs to freeze rates in 2013."

In response, a Department for Communities and Local Government spokesman said: "Empty shops are a wasted economic opportunity that spoil the town centre.

"That is why we are proposing to scrap the damaging red tape that is keeping so many shops boarded up, allowing young entrepreneurs to open pop-up shops and turn the high streets into an exciting start-up launchpad.

"The best thing Government can do to help businesses is to provide them with a stable economic environment, which is why we want to protect local firms from soaring tax bills.

"We've postponed the revaluation, which will stop soaring tax bills for 800,000 firms, and given businesses the option of spreading this year's increases out over three years.

"Councils also have the power to grant discretionary discounts, and we've temporarily doubled small business rate relief, meaning approximately a third of a million businesses - including many small shops - are currently paying no rates at all."

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Business Bosses Slam 'School Exams Factory'

Britain's education system is fostering a "cult of the average", failing to help the brightest youngsters or those most in need, business leaders have warned.

In a new report, the CBI says too many children fall behind and never catch up, and that in some cases, secondary schools have become little more than exam factories.

Decades of "patchwork" reforms have confused schools, encouraged a tick box culture that has put off teachers and resulted in a narrow focus on exams and league tables, the UK's biggest business group adds.

The report calls for a major overhaul to ensure that all children can succeed.

It recommends radical changes, such as reducing the importance of GCSEs and making A Levels the main exam for school leavers, and moving away from league tables in favour of Ofsted reports.

"The education system fosters a cult of the average: too often failing to stretch the most able or support those that need most help," the CBI says.

CBI director-general John Cridland said while businesses want school leavers to have a rigorous education, they also want it to be "rounded and grounded".

"Today we have a system where, sadly, a large minority of our young people fall behind," he said.

"They fall behind and never catch up. It's not the fault of any individual concerned. It's not the fault of children, parents or teachers. It's a system failure. It's not acceptable any more than it's not acceptable that the top 10% are not stretched enough."

Mr Cridland added: "This generation of young people are as streetwise as any, but sometimes in the education system we're not always bottling that.

"In some cases secondary schools have become an exam factory. Qualifications are important, but we also need people who have self-discipline and serve customers well."

Ministers have announced plans to scrap GCSEs and replace them with new English Baccalaureate Certificates in English, maths and science. Reviews of A Levels and the national curriculum are also under way.

Mr Cridland said: "Government reforms are headed in the right direction, but are not sufficient on their own. They need to go further and they need to go faster."

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Miliband Warns Of 'Sleepwalk' Towards EU Exit

Ed Miliband has called for major reforms of the European Union and a "hard-headed" approach taken by Britain, ahead of a crunch EU budget summit this week.

The Labour leader - who last month joined forces with Tory rebels to defeat the Government over its strategy to freeze the EU budget - said Labour must not ignore the legitimate concerns of eurosceptics.

He said reform was needed on the budget, on immigration rules, state aid restrictions and austerity measures - but declined to promise a referendum on the UK's future within the EU.

"What I would say is: never shrink from being open about the problems of the European Union," he told the Sunday Telegraph.

Mr Cameron travels to Brussels on Thursday facing pressure from his backbenchers to push for the real-terms spending cut approved in the non-binding Commons vote Labour helped secure.

The Prime Minister, who insists a rise in line with inflation is a more realistic target in the negotiations, has threatened to use the UK's veto if the rise proposed by the Commission is not drastically reduced.

He is under mounting pressure to set out plans for a referendum, with restless MPs increasingly concerned about the threat posed to the Conservatives by the UK Independence Party at the next general election.

Ukip scored its best parliamentary by-election result in Corby, coming in third ahead of the Liberal Democrats and an opinion poll today showed more than a quarter of Tory supporters would "seriously consider" switching.

Mr Miliband - who told French president Francois Hollande in the summer that he saw Britain's place as "firmly in Europe" - was accused of opportunism for voting with the Tory rebels.

But he insisted his party could be at once a keen supporter of EU membership and "realist" campaign for reform.

Mr Miliband, who is due to reinforce his points in a speech to business leaders at a CBI conference on Monday, said he believed bosses were "genuinely worried that we're going to sleepwalk towards an exit under Cameron".

"Nobody thinks he's at those negotiations with anything other than with an arm up his back from the people in his own party," he told the newspaper.

"People are always writing us off as if to say that these guys are going toward the exit. That's very dangerous for us."

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Jaguar Land Rover Launches China Expansion

By Mark Stone, China Correspondent

Jaguar Land Rover is to manufacture cars outside the United Kingdom for the first time.

The company has entered into a joint venture with one of China's largest car makers Chery.

The two firms began work to build a factory near Shanghai today.

"For the first time one of the most famous names in the British automotive industry, Jaguar Land Rover, is poised to begin manufacturing in a market outside the United Kingdom," the company's CEO Dr Ralf Speth said at the stone-laying ceremony.

"It seems only fitting that this new venture will take place here, in the People's Republic of China, the world's fastest-growing market for premium vehicles."

Kay Francis, the company's director of global corporate communications, told Sky News: "This is our first ever manufacture plant outside the UK."

"The facility here in China will include research and development, engine plants and production lines. Start to finish, the cars will be made in China," Ms Francis added.

Executives at Jaguar Land Rover have been in complicated negotiations with their counterparts at Chery for months.

Chery is a state-owned company and Chinese government approval was required before any deal could be signed.

The joint venture project was approved by China's National Development and Reform Commission last month.

The first bricks of the new factory were laid at a ceremony in Changshu, Jiangsu Province, to the northwest of Shanghai.

Yin Tongyao, the president of Chery Automobile, and Dr Speth were both there.

"Soon, on this very site, will be a fully-fledged manufacturing plant, to create employment, stimulate the supply chain and develop game-changing environmental technologies for China. A total of 10.9bn renmimbi (£1bn) will be invested in this joint venture," Dr Speth said.

"In our shared vision with Chery, this partnership will offer Chinese customers the latest generation models from Jaguar and Land Rover, as well as vehicles designed specifically for Chinese customers," he said.

The company hopes that the first cars will roll off the production line in 2014.

It is understood the first vehicle to be built at the factory will be the Land Rover Freelander.

The company would not confirm that suggestion.

"We intend to build Jaguar and Land Rover branded products here... It's likely that a Land Rover badged vehicle will be the first to come out of the plant when it opens in 2014," Ms Francis said.

Volkswagen already manufactures VWs, Audis, Skodas and Seats in China

China has become Jaguar Land Rover's largest market and experts say it has not even begun to reach its potential.

Sales of the company's cars reached 53,000 there in the first nine months of this year - that's up 80 per cent from the year before.

The reason behind the boost is China's demand for luxury goods.

Jaguar Land Rover has sold 20,000 Range Rover Evoques this year alone.

The firm hopes to boost last year's record £1.5bn profits when the new Chinese factory begins work.

Building cars in China rather than importing them from the UK allows the company to avoid massive import duties.

Chinese-made vehicles can be sold for less and the hope is that more will be bought.

The company insists the expansion to China is in addition to their business in the UK and that no UK jobs will be lost as a result.

"Everything we do in China is in addition to our UK operation. We are not shifting production and it doesn't impact the head count and state of play of the plants in Britain," Ms Francis said.

Jaguar Land Rover does have a factory in Pune, India, but that acts simply as an assembly plant, constructing flat-packed cars which are manufactured in the UK.

Compared with other European car makers, Jaguar Land Rover is very late in expanding production to China.

Volkswagen began its first joint venture in China in 1984. Volkswagen Group China now manufactures VWs, Audis, Skodas and Seats in China with year-on-year record sales.

Ageing Volkswagens are a common sight in Beijing; a sign of just how long the company has been operating here.

Audi is now the favoured brand for the political elite in China. Black Audi A6 cars, manufactured in China, are seen all over Beijing.

Jaguar Land Rover says that as well as building cars identical to those built in the UK, it plans to build a new vehicle designed specifically for the Chinese market. 

"We may also build a brand of car that is a blend of the two: a car that is new and designed and developed entirely in China," Ms Francis said.

"Having Chinese research and development means we can tailor cars for Chinese tastes."

British brands are very popular in China. Combine that with the fact that China has an increasingly wealthy urban population and there are significant opportunities which could help strengthen the UK economy.

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British Airways 'Twitter Account Hacked'

British Airways has launched an investigation after its Twitter account was apparently hacked and an offensive message retweeted.

The official BA Twitter account seemingly retweeted an offensive and racist message on Saturday afternoon.

After the offensive retweet was deleted, staff at the airline then tweeted an apology.

It said: "Apologies for the last RT. We are sorry for any offence caused and are investigating how this may have happened."

Within minutes, hundreds of Twitters users resent the retweet and later more than 160 followers had retweeted the apology.

The BA account has more than 210,000 followers.

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Ikea 'Regrets' Using Forced Prison Labour

Ikea says it "deeply regrets" the use of forced prison labour by suppliers in communist East Germany more than two decades ago.

The Swedish furniture giant apologised after commissioning a report into claims political prisoners worked in factories making its products in the 1960s and 70s.

The company says it never condoned the use of forced labour but the report showed it failed to properly vet how its suppliers were operating.

The report concludes that Ikea managers "were aware of the possibility that political prisoners would be used in the production of Ikea products in the former GDR".

"We deeply regret that this could happen," said Jeanette Skjelmose, an Ikea manager.

"The use of political prisoners for manufacturing was at no point accepted by Ikea."

But she added: "At the time we didn't have the well-developed control system that we have today and we clearly did too little to prevent such production methods."

Ikea commissioned accountants Ernst & Young to look into claims aired by a Swedish TV documentary in June but first raised by a human rights group in 1982.

Rainer Wagner, chairman of the victims' group UOKG, said Ikea was just one of many companies that used forced prison labour in East Germany.

"Ikea is only the tip of the iceberg," he told The Associated Press in an interview earlier this week.

Wagner said he hoped that Ikea and others would consider compensating former prisoners, many of whom carry psychological and physical scars.

"Ikea has taken the lead on this, for which we are very grateful," he told a news conference in Berlin, where the report was presented.

Peter Betzel, the head of Ikea Germany, said the company would continue to support efforts to investigate the use of prisoners in East Germany in future.

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