Defending champ Alcaraz to meet Medvedev in Indian Wells final again

March 17, 2024 | 6:43 pm

DEFENDING champion Carlos Alcaraz of Spain and Russian fourth seed Daniil Medvedev will clash in Sunday’s final of the Indian Wells in a rematch of last year’s summit clash after both prevailed in intense three-setters on Saturday.

Mr. Alcaraz came from behind to beat Jannik Sinner 1-6 6-3 6-2 before Medvedev edged out American Tommy Paul 1-6 7-6(3) 6-2 in the second semifinal.

Australian Open champion Mr. Sinner has been the hottest player on tour this year and looked poised to run away with the match when the Spaniard’s forehand went long to end the 34-minute opening set, which was halted by a three-hour rain delay.

Mr. Alcaraz would finally break serve with a powerful forehand that set up a put-away volley for a 3-1 second set lead and hit a drop shot even the speedy Mr. Sinner did not try to race down to force a decider between the young rivals.

With Mr. Sinner serving in the third set, the Italian dove to keep a ball in play on break point near the net, his hands scraping along the gritty Indian Wells hard court.

Mr. Alcaraz’s athletic volley secured the break and Mr. Sinner appeared to be bothered by his left hand after the exchange.

Mr. Alcaraz went up a double break and 4-1 on a forehand wide by a suddenly error-prone Mr. Sinner and sealed the win with a crosscourt forehand winner to keep Mr. Sinner from taking his world number two ranking and denying him a 20^th consecutive win going back to last year.

Mr. Medvedev eked out a similar comeback win against Mr. Paul, who was quick off the blocks, dropping just one game in the opening set before the Russian bounced back.

Mr. Paul was broken from 40-0 in the first game of the third set, which was pretty much a one-sided affair as Mr. Medvedev closed out the match to stay on course to avenge his loss to Mr. Alcaraz in last year’s final. — Reuters

Ugly game

March 17, 2024 | 6:42 pm

Bizarre may well be too mild an adjective to describe the turn of events that marred the end of what appeared to be yet another classic confrontation between the Lakers and Warriors. As if the premature departure of All-Star Anthony Davis due to an uncalled hit wasn’t enough, the hoops gods managed to wipe off more luster from yesterday’s tiff by stacking one unfortunate circumstance after another with the outcome still on the line. Multiple challenges of whistles and game and shot clock malfunctions had close to a third of an hour enveloping a mere 15 seconds of live ball action. And as frustration grew, the contest wound up being robbed of any rhythm and excitement.

In retrospect, it simply wasn’t the Lakers’ night. They lost Davis after a mere quarter, and to argue that they missed him for the remainder of the set-to would be an understatement. Against the Warriors’ relative lack of size, they were robbed of a natural force on both ends of the floor; not for nothing did he put up 27-15 and 29-13 lines in their two other meetings with their Bay Area rivals this season. As fellow purple and gold stalwart LeBron James noted in the aftermath, “We tried to pick it up, but, obviously, there are some things we can’t do without AD.”

Needless to say, the problems with time were, from the Lakers’ standpoint, akin to adding insult to injury. And it wasn’t simply in the waning minutes of the encounter, either. Early in the fourth period and down by just six, they were victimized by the shot clock resetting and effectively providing the Warriors with an additional 14 seconds to try to get a basket. Then again, they know only too well the importance of making the most of the hands they are dealt. And, really, they have no one but themselves to blame for ultimately failing to do so.

In any case, the record is what it is. The Lakers are now 10th in West standings and unlikely to avoid the burden of having to claim a couple of play-in matches just to make the playoffs. They lost to the Kings and then to the Warriors even though they had two days of rest heading into both contests. If they had any sense of urgency, they would have been well prepared for their opponents, and for any eventuality they stood to face.

True, the sidelining of vital cogs — especially given the sterling on-ball defense of such notables as Jarred Vanderbilt and Gabe Vincent — has hurt the Lakers. And, true, unremarkable coaching and unpredictable rotations haven’t helped. That said, they aren’t worth squat if they can’t play through these concerns. Forget about championship mettle. Considering that the bar has been set so low, fans would settle for simply competing.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Gold beans all the rage with China’s Gen Z as deflation bites

March 17, 2024 | 5:50 pm

China-Jewelry — Customers select gold bracelets at Caibai Jewelry store, in Beijing, China, Aug. 6, 2019. — REUTERS

WITH China’s deflation at its worst in 15 years, a volatile stock market and bank interest rates too low for her liking, 18-year-old Tina Hong is placing her financial security in gold beans.

Weighing as little as one gram, the beans — and other forms of gold jewelry — are increasingly viewed as the safest investment bet for young Chinese in an era of economic uncertainty. It’s part of a larger consumer trend for all things gold — from bullion to beans and bracelets — that has gripped the mainland.

“It’s basically impossible to lose money from buying gold,” reasoned Ms. Hong, a college freshman studying computer science in Fujian province who in January began buying gold beans because of their relatively low cost of about 600 yuan ($83) per gram. She has more than two grams of the beans and will continue buying them as long as costs are lower than international gold prices, she said.

Branded as an investment entry point for young consumers, the beans, which come in glass jars, are the latest hot-selling items in Chinese jewelry stores. Generation Z consumers — buffeted by high youth unemployment and the nation’s slide into deflation — are now among the top consumers of gold accessories in the world’s second-largest economy, according to the 2023 China Jewelry Consumer Trends Report by Chow Tai Fook Jewelery Group Ltd. The attraction of gold comes as people pull back on shopping amid months of disappointing growth.

CHINA GOLD RUSH
A lack of faith in traditional investments has fueled this new China gold rush.

The nation’s stock market has seen declines after reopening from the pandemic, with one of its key benchmarks dropping to levels last seen in 2018. The country’s middle class is bearing the brunt of a property downturn — while the central bank has lowered a key interest rate four times since December 2021, eating into the return on wealth management products.

Young people are skipping “pleasurable consumption” and instead purchasing “asset-style jewelry” such as gold beans for adornment and investments, said Nikos Kavalis, managing director at the London-based consultancy Metals Focus Ltd.

However, he cautions that it makes no sense to invest in gold beans — or other gold items — because their price is often 10% to 30% higher than the commodity’s spot price. Investors would be better served by parking money in gold ETFs, he said.

Still, the fascination with gold is sweeping across social media. On Weibo, the Chinese equivalent of X, formerly Twitter, the hashtag “Why Are Young People Getting into Buying Gold” garnered 91 million hits. A lively discussion about the enduring value of gold dominates the social media site, with one popular post stating that “buying gold keeps troubles at bay.”

Three-quarters of gold consumers are now estimated to be between 25 and 35 years old and many believe investing in gold is low-risk, according to a 2021 report from the World Gold Council. That belief is reinforced as gold prices have hit multiple historic highs since December. Gold bullion passed the $2,100 per ounce threshold for the first time this month.

Sales of gold, silver and jewelry reached a six-year high in December, a 29.4% year-on-year jump, according to government data. Precious metals now represent one of the fastest-growing consumer markets in China.

Buying gold beans for gifting and investments also reached a peak during China’s lunar new year, says a spokesperson from Chinese jeweler Luk Fook Holdings International Ltd.

Even banks have joined traditional gold retailers to sell gold beans. China Merchants Bank Co., for example, introduced its line of gold bean sets in July 2023.

“Despite the recent surge in China’s gold price, consumers are still demonstrating a strong preference for gold,” said Cindy Yeung, chairwoman and managing director of Emperor Watch & Jewellery Ltd. Like other major jewelry retailers, Emperor is talking up gold on social media and e-commerce platforms.

There are perils for consumers of gold beans and other gold objects who aren’t knowledgeable about the difference between authentic gold and fakes, experts say.

Lily Chen, a 26-year-old Shanghai office worker, discovered almost all of the gold beans she had purchased were mixed with iron, zinc and copper when she recently tried to exchange them for a gold bracelet.

“I never tried cutting corners by buying gold at ultra-cheap prices, and I made sure to buy from star-rated web stores. But this could still happen,” she said.

Nonetheless, the craze for anything gold continues to play out on social media. College students are posting diary-like entries on gold purchases, couples share how they repaired strained relationships with gold gifts — and metal resellers and collectors offer gold investing advice. — Bloomberg

Iceland volcano erupts again, spewing fountains of lava

March 17, 2024 | 5:50 pm

COPENHAGEN — A volcano in Iceland erupted on Saturday for the fourth time since December, the country’s meteorological office said, spewing smoke and bright orange lava into the air in sharp contrast against the dark night sky.

In a video shot from a Coast Guard helicopter and shown on public broadcaster RUV, fountains of molten rock soared from a long fissure in the ground, and lava spread rapidly to each side.

The eruption began at 2023 GMT and the fissure was estimated to be about 2.9 kilometers long, roughly the same size as the last eruption in February, the Icelandic Meteorological Office said in a statement.

Authorities had warned for weeks that an eruption was imminent on the Reykjanes peninsula just south of Iceland’s capital Reykjavik.

The site of the eruption was between Hagafell and Stora-Skogfell, the same area as the previous outbreak on Feb. 8, the Met Office said.

“This was definitely expected,” said Rikke Pedersen, head of the Nordic Volcanological Centre.

“Of course the exact time of the eruption is impossible to predict. The first cues of this moving towards the surface actually only happened about 15 minutes in advance,” she said.

Reykjavik’s Keflavik Airport’s website showed it remained open both for departures and arrivals.

Lava appeared to be flowing rapidly south towards the nearby Grindavik fishing town, where a few of the nearly 4,000 residents had returned following earlier outbreaks, the Met Office said.

The town was again being evacuated, public broadcaster RUV reported. An outbreak in January burned to the ground several of its homes.

“We’re just like, this is business as usual,” Kristin Maria Birgisdottir, who was evacuated from Grindavik in November, told Reuters.

“My son…just called me and said, Mamma, did you know the eruption has started? And I was like, yeah, I did know. Oh, my grandma just told me. So it’s like we don’t even bother telling each other anymore,” she said.

Icelandic police said they had declared a state of emergency for the area.

The nearby Blue Lagoon luxury geothermal spa immediately shut its doors, as it did during previous eruptions.

Iceland, roughly the size of the U.S. state of Kentucky, boasts more than 30 active volcanoes, making the north European island a prime destination for volcano tourism — a niche segment that attracts thousands of thrill seekers.

In 2010, ash clouds from eruptions at the Eyafjallajokull volcano in the south of Iceland spread over large parts of Europe, grounding some 100,000 flights and forcing hundreds of Icelanders to evacuate their homes.

Volcanic outbreaks in the Reykjanes peninsula are so-called fissure eruptions, which do not usually cause large explosions or significant dispersal of ash into the stratosphere.

Gases from the eruption were traveling westwards out at sea, the meteorological office said.

Scientists fear the eruptions could continue for decades, and Icelandic authorities have started building dykes to divert burning lava flows away from homes and critical infrastructure.

The February eruption cut off district heating to more than 20,000 people as lava flows destroyed roads and pipelines.

Located between the Eurasian and the North American tectonic plates, among the largest on the planet, Iceland is a seismic and volcanic hot spot as the two move in opposite directions. — Reuters

Trump predicts the end of US democracy if he loses

March 17, 2024 | 5:49 pm

STOCK PHOTO | Image by Pexels from Pixabay

WASHINGTON — Donald Trump said on Saturday if he does not win November’s presidential election it will mean the likely end of American democracy.

The Republican presidential candidate, speaking to supporters in Ohio, made the claim after repeating his baseless assertion that his 2020 election defeat to Democratic President Joseph R. Biden was the result of election fraud.

During an outdoor speech that was whipped by strong winds and punctuated by some profane language, Mr. Trump predicted that if he does not win the Nov. 5 general election, American democracy will come to an end.

“If we don’t win this election, I don’t think you’re going to have another election in this country,” Mr. Trump said.

Mr. Trump, who is under criminal indictment in Georgia for trying to overturn the result of the 2020 election there, this week won enough delegates to mathematically clinch the Republican nomination.

A general election rematch with Mr. Biden is likely to be extremely close. A Reuters/Ipsos poll last week found the two candidates in a statistical tie with registered voters.

Mr. Trump opened his remarks in Dayton with a tribute to his supporters who are currently in jail for rioting at the US Capitol on Jan. 6, 2021, as they sought to block certification of Mr. Biden’s 2020 election win.

Mr. Trump saluted and called them “patriots” and “hostages.”

The former Republican president has been using increasingly dystopian rhetoric in his campaign speeches about the state of the country.

In the middle of a section in his speech about placing tariffs on imported cars, and foreign competition for the U.S. auto industry, Trump declared: “If I don’t get elected, it’s going to be a bloodbath for the whole country.”

Asked what he meant, his campaign pointed to a post on the social media platform X by a New York Times journalist, which said Trump’s “bloodbath” comment came amid a discussion about the U.S. auto industry and the economy.

Asked for a response to Mr. Trump’s “bloodbath” comment, Biden campaign spokesperson James Singer condemned Trump’s “extremism,” “his thirst for revenge,” and his “threats of political violence.”

Mr. Trump also appealed to Blacks and Hispanics, voters who will play a key role in deciding November’s election.

Mr. Trump has been narrowing the gap with Mr. Biden in opinion polls with non-white voters, who formed a core part of Biden’s winning coalition when he defeated Trump in 2020.

Mr. Trump cited a central campaign theme, that too many illegal immigrants have crossed the US-Mexico border since Biden took office, in his appeal to minority voters.

“No-one has been hurt by Joe Biden’s migrant invasion more than our great African American and Hispanic communities,” Mr. Trump said. He claimed without citing any evidence that illegal immigrants were taking their jobs. — Reuters

Thailand’s flourishing cannabis culture to end as government seeks ban

March 17, 2024 | 5:47 pm

BANGKOK — Thodsapol Hongtong is enjoying a smoke with his friends at the “Green Party”, a venue where recreational cannabis enthusiasts meet in the Thai capital Bangkok to chat and have a good time. But it’s a pastime that may be coming to an end.

The 31-year-old influencer who runs his own cannabis shop regularly touts recreational marijuana as good for the country’s economy on his online platform “Channel Weed Thailand”.

The booming cannabis sector could be worth $1.2 billion by next year, according to the estimate by the University of the Thai Chamber of Commerce.

“Where (else) in the world can we lie around on the beach and enjoy a joint,” Thodsapol told Reuters, taking a puff from his bong.

But the Thai government is looking to stamp out cannabis culture with a ban on its recreational use to be rolled out by the end of the year. Medical use will still be permitted.

Thai Health Minister Cholnan Srikaew, in an interview with Reuters last month, described recreational marijuana as a “misuse” of cannabis that has a negative impact on Thai children and could lead to other drug abuses.

Recreational cannabis flourished in Thailand after the country became the first in Asia to fully decriminalize the substance in 2022, enabling a new public wave of weed appreciation culture.

Neon signs of cannabis leaf in multiple languages are highly visible on many street corners in Thai towns and cities, marking the tens of thousands of shops, spas, bars and gaming lounges where a variety of cannabis strains are readily available.

Many streetside shops in tourist areas sell smoking paraphernalia, while cannabis-related festivals became more common, like last year’s joint-rolling competition in the resort island of Phuket that drew in weed aficionados from around the world.

The Thai government’s draft law banning recreational use of cannabis will be up for cabinet approval later this month. — Reuters

Philippines’ budget surplus at $1.58 bln in January

March 15, 2024 | 3:57 pm

MANILA – The Philippine government posted an 88 billion Philippine pesos ($1.58 billion) budget surplus in January, up 92% from a year ago, the Bureau of the Treasury said on Friday. — Reuters

Philippine c.bank sees narrower 2024, 2025 current account deficit – Reuters News

March 15, 2024 | 3:55 pm

BSP-main office — Bangko Sentral ng Pilipinas main office in Manila. — BW FILE PHOTO

MANILA – The Philippines’ current account deficit is seen narrowing to $5.8 billion in 2025, or 1.1% of gross domestic product (GDP), from a projected deficit for this year of $6.1 billion, or -1.3% of GDP, the central bank said on Friday.

The Bangko Sentral ng Pilipinas’ (BSP) previous forecast of current account deficit for 2024 was at $9.5 billion, or -2.0% of GDP, which was a narrower gap versus the $11.2 billion deficit of 2023.

The lower deficit reflects the downward revision in forecast for goods import and export, the BSP said in a statement.

The outlook for 2024 and 2025 “is largely underpinned on expectations of a slight improvement in both global and domestic economic conditions”, the BSP said, adding that risks to the growth outlook are broadly balanced.

It expects a balance of payments (BOP) deficit of $0.5 billion, or 0.1% of GDP, for next year, reversing a $0.7 billion surplus, 0.1% of GDP, forecast for 2024.

Cash remittances from the millions of Filipinos living and working abroad will grow by 3% this year and the next, the BSP said.

It will help the Southeast Asian nation record end-2024 gross international reserves of $103 billion in 2024 and $102 billion in 2025. — Reuters

Volatile bitcoin falls from record high as crypto frenzy hits pause

March 15, 2024 | 1:32 pm

Bitcoin-cryto currency trading — KANCHANARA-UNSPLASH

SINGAPORE – Bitcoin eased to a one-week low in volatile trade on Friday, as investors took profit from its run to a record high and as another upside surprise on US inflation dimmed prospects of early rate cuts there and dented demand for riskier assets.

Bitcoin BTC= fell more than 5% in the Asian session to bottom at $66,629.96, before paring some of its losses to last trade 3.5% lower.

The choppy moves in the world’s largest cryptocurrency came a day after its charge to a high of $73,803.25, setting a new record for a fourth straight day.

“Bitcoin has an established history of getting volatile and ruthless after hitting (a) record high,” said Matt Simpson, senior market analyst at City Index.

“And not only did it recently hit a new high, but it looks like the (Federal Reserve) won’t be as dovish as traders had hoped.”

A slew of data out on Thursday showed that while US retail sales rebounded less than expected in February, producer prices increased more than expected.

The releases came on the heels of U.S. consumer price data out earlier in the week that pointed to still-sticky inflationary pressures.

Markets reacted by paring the chances of a Fed easing cycle beginning in June, with futures now pointing to a roughly 60% chance of a rate cut that month, down from roughly 74% a week ago, according to the CME FedWatch tool.

A higher-for-longer rates scenario, particularly in the United States, is typically bad for risk-sensitive assets such as crypto.

Still, bitcoin BTC= remains nearly 60% higher for the year to date, helped by a crypto frenzy driven by flows into U.S. spot exchange-traded crypto products and as traders remain broadly focused on the prospect of global interest rates being lower by the year-end.

In a show of optimism over bitcoin’s bull run, software firm MicroStrategy MSTR.O said it is planning to raise capital through a convertible bond offering to buy bitcoin for the second time in less than 10 days.

The company had on March 5 announced a $600 million private offering in convertible notes, as it looks to increase its exposure to the booming digital asset.

Some experts say the news also contributed to bitcoin’s volatile moves on Friday.

“Unlike traditional stock markets, the crypto market lacks regulations that limit the impact of influential individuals or entities with concentrated holdings,” said Joshua Chu, chief risk officer at Invess, an AI-enabled algo risk management financial engineering company.

“This absence allows whales to make substantial trades that can trigger cascading effects and rapid price fluctuations, leading to heightened volatility.”

Elsewhere, ether ETH=, the second-largest cryptocurrency, similarly touched a one-week low, and was last down more than 4% to $3,670. – Reuters

Japan unions will unveil results of wage talks, presaging shift at central bank

March 15, 2024 | 10:47 am

TOKYO – Japan’s largest trade union group is due to announce results of this week’s annual wage talks on Friday, with expectations for a rise of more than 4%, which would be the biggest boost since the early 1990s and strengthen the case for a central bank shift.

The Rengo union group will unveil the results on Friday at around 4:15 p.m. (0715 GMT), officials said, days after Toyota Motor 7203.T, the bellwether of annual talks, unveiled its biggest pay increase in 25 years, prompting analysts to raise pay hike projections to 4% or more.

Analysts had previously seen increases at around 3.9% this year, after last year’s 3.6%, itself a three-decade high.

Rengo represents about 7 million workers, many at large companies.

Japanese businesses are facing a chronic labor shortage due to an ageing and dwindling pool of workers. Prime Minister Fumio Kishida is pushing companies to raise wages to help Japan shake off years of deflation.

The higher wage hikes are likely to boost expectations the central bank will end negative interest rates as early as its next policy setting meeting on March 18-19.

“Taken together, we can expect hikes to top my forecasts to reach around 4.5% or closer to 5%,” said Yasunari Ueno, chief market economist at Mizuho Securities.

“That should give the Bank of Japan a strong tailwind as the central bank is expected to remove negative rates policy as early as in March.”

On Wednesday, Panasonic 6752.T, Nippon Steel 5401.T and Nissan 7201.T were among some of Japan Inc’s biggest names that agreed to fully meet union demands for pay hikes at the annual wage talks.

The annual pay negotiations – called “shunto” or “spring labour offensive” – are one of the defining features of Japanese business, where relations between labor and management tend to be more collaborative than in some other countries. – Reuters

US FDA expands use of Bristol Myers’ cancer therapy

March 15, 2024 | 10:45 am

about-breyanzi-CAR-T-cell-lymphoma-cell-desktop — Source: https://www.breyanzi.com/lbcl/about

The US Food and Drug Administration on Thursday expanded the use of Bristol Myers Squibb’s cell therapy, Breyanzi, for a type of slow-growing blood cancer, marking the second approval for the treatment.

Breyanzi was initially approved in the United States in June 2022 to treat a type of blood cancer known as large B-cell lymphoma in adult patients whose disease has returned or stopped responding to treatment.

With the FDA’s decision, the therapy is now approved to treat patients with chronic lymphocytic leukemia or small lymphocytic lymphoma.

The disease is characterized by increased production of abnormal white blood cells that have difficulty fighting infections. These faulty cells can be found in the bone marrow or lymph nodes.

The therapy brought in $364 million in revenue for Bristol in 2023.

Sales of Breyanzi are expected to reach $2 billion by 2030, according to LSEG estimates, helping it fill in some of the expected gap when top-sellers such as cancer drug Opdivo lose patent protection.

‍The wholesale list price of the therapy is $487,477, a company spokesperson said in an emailed statement.

Like other CAR-T therapies, Breyanzi comes with a serious warning about the risk of secondary malignancies, or cancers, in patients who use the drug.

The warning was added to the label information for similar therapies earlier this year after reports of T-cell cancers that occurred after treatment with CAR-T.

Breyanzi is also under review for use in patients with two other types of cancers that affect disease-fighting white blood cells, known as follicular lymphoma and mantle cell lymphoma.

A decision from the US FDA is expected by May.

The current approval was based on an early-to-mid stage study in which the therapy showed a complete disappearance of tumors in 18.4% of patients of either refractory chronic lymphocytic leukemia or small lymphocytic lymphoma.

The rate of new cases for both cancers is 4.4% per 100,000 men and women in the United States per year, according to government data. – Reuters

Can EU’s gig worker rules tame management by algorithm?

March 15, 2024 | 10:42 am

matrix-6876842_1280 — STOCK IMAGE | Image by Mohamed Hassan from Pixabay

BRUSSELS – Low pay, few labor rights and dangerous working conditions – for millions of European gig workers, it can be a rough job. But a deal thrashed out by EU ministers this week addresses one of their biggest headaches – management by algorithm.

Drivers and delivery riders for online platforms such as Uber and Deliveroo say the opaque nature of algorithmic management tools can result in random job assignments and performance ratings, and even account deactivation – hitting their earnings and morale.

While Monday‘s watered-down deal to boost gig workers‘ employment rights fell short of unions’ demands, they hailed the Platform Work Directive‘s provisions for greater transparency over algorithmic management systems as a crucial step to protect European workers from machine-made decisions.

The draft rules should act as a “wake-up call” over the risks of artificial intelligence (AI) turning Europe into a “wild west” for workers’ rights, Jonathan L’Utile Chevallier, who coordinates a delivery riders’ cooperative in the French city of Bordeaux, told the Thomson Reuters Foundation.

Under the new rules, automated decisions affecting working conditions must have some human oversight, and workers would have access to the information driving AI-powered decisions. Such provisions complement parts of the landmark EU AI Act endorsed by European lawmakers on Wednesday.

By guaranteeing greater transparency over algorithmic decisions, workers’ and labor advocates will be able to establish whether structural injustices such as racial or gender bias are baked into the code used to allocate jobs or evaluate performance.

That information could be used in potential lawsuits challenging discrimination or other labor rights infringements, said Oguz Alyanak, a researcher at Fairwork, a gig research project at Britain’s Oxford Internet Institute.

“This is a big step,” Mr. Alyanak said.

AI’S WORKPLACE REVOLUTION

Algorithmic management is not limited to gig work, as artificial intelligence (AI) begins to revolutionize the workplace – increasingly used as a tool to monitor workers performance and taking over tasks previously carried out by humans.

The boom in the technology that started in 2022 could replace 300 million full-time jobs – approximately 18% of work globally, according to Goldman Sachs.

Some companies are also embracing automation in the hiring process, including resume screeners that scan applicants’ submissions, assessment tools that grade an online test, and facial or emotion recognition tools that can analyze a video interview.

The draft EU rules are the first attempt at regulating the impact of algorithmic management for Europe’s roughly 28 million gig workers, and set the standard for future legislation, union leaders said.

“This directive is the antidote to uberisation,” said Brahim Ben Ali, a former Uber driver and secretary-general of the INV union in France who has been pushing for the EU rules since 2019.

“It’s important to recognize the work of working-class communities in achieving something so monumental,” he added.

Move EU, a Europe-based group representing ride-hailing companies, declined to comment on the draft EU rules. Delivery Platforms Europe, which represent food delivery firms, did not immediately reply to requests for comment.

‘BITTERSWEET VICTORY‘

Still, Monday’s provisional deal on the directive – which focused primarily on recognizing gig workers as employees with rights including sick pay, pensions and unemployment benefits, was “a bittersweet victory”, said L’Utile Chevallier.

It fell short of unions’ hopes and scrapped a set of criteria proposed by the European Commission to determine if an online company is an employer.

Instead national law, collective agreements and case law will dictate whether a worker is an employee, in effect maintaining the status quo. The burden of proof will be on companies to show that their gig workers are not employees.

“It’s not the deal we wanted,” said Livia Spera, general secretary of the European Transport Workers Federation, adding that workers would have benefited more from EU-wide employment criteria.

By leaving the details up to each member state, the risk is that gig workers in one country may end up with tougher employment criteria than in another.

Once endorsed by a final vote in the European Parliament, the countries generally have up to two years to transpose the directive into national law, and unions vowed to maintain their pressure for greater social and labor rights.

“This is a long fight,” said Felipe Corredor Alvarez, a former Deliveroo rider in Barcelona and member of the RidersXDerechos (Riders for Rights), saying gig workers would now shift their attention to laws in individual countries.

“We have a long road ahead of us,” he said. – Reuters