Connect with us

News

The inescapable tyranny of the bad boss

Published

on

The inescapable tyranny of the bad boss

Unlock the Editor’s Digest for free

Imagine you are in your early twenties and you head off to your work Christmas party only to end up being hung upside down, topless, from a crane. Then imagine that your boss joins in the fun and slaps you on your bare chest, repeatedly.

A young man named Ilyas Elkharraz says this happened to him when he was an apprentice carpenter at a glass installation company in the Australian city of Melbourne in 2020. When a TV show broadcast a video of the incident, it made headlines across the world. 

Last week, his then boss, Steven Yousif, pleaded guilty in court to failing to provide a safe workplace, after a regulator charged him with “repeated, unreasonable bullying behaviour”.

Advertisement

My first job was in Melbourne and I had some dubious bosses when I was close to Elkharraz’s age. 

I still remember jamming a guitar up against my cabin door handle on a Queensland fishing boat after another female crew member advised that such a barricade would be useful to keep out the captain, which it did. 

But if anything like that crane incident was happening I don’t remember ever hearing of it, which raises two questions: how common are bad bosses and how do they get away with being so dire for so long?

The prevalence of the bad boss depends on how the problem is measured.

More than two-thirds of American workers say they have dealt with a toxic boss and 31 per cent believe they currently work under one, a Harris Poll report showed last month.

Advertisement

Those findings were based on 1,233 employees being asked if their supervisor displayed behaviour such as micromanagement, favouritism, unreasonable expectations and unprofessional behaviour.

But academics who studied 28,000 European workers came up with a different finding in 2018 using a more elaborate scoring method that assessed things like how much praise or help supervisors gave.

They estimated 13 per cent of employees had a bad boss, and the problem was worst in the transport sector. But white-collar workers are by no means immune.

Take Ray Dalio, the billionaire founder of Bridgewater Associates, the world’s largest hedge fund. 

It’s long been known that Dalio, who has stepped back from daily management, ran his firm in a highly unconventional way. 

Advertisement

Employee meetings were recorded and staff were expected to hold each other to account by following a forbidding set of rules called “The Principles” and a culture of “radical transparency”.

Dalio’s system fascinated leadership and management experts, including his idea that no one had the right to hold a critical opinion at work without speaking up about it. 

“It’s pretty extreme, but it’s provocative and I love that,” said Harvard Business School professor Amy Edmondson. Other Ivy League professors wrote approvingly of Dalio in their books. Wharton’s Adam Grant created a personality test with him that used the billionaire’s insights to help “understand yourself and others better”.

But a new book called The Fund, by journalist Rob Copeland, casts a hellish light on Dalio’s reign at Bridgewater. Tales of breakdowns, tears and surveillance litter its pages. 

“You’re a dumb shit,” Dalio reportedly told one woman in a group meeting that had been called to discuss why she was behind schedule on a project. Copeland writes that she collapsed into sobs and ran from the room. A recording was later shared with other staff. I’m told “dumb shit” is a term commonly used at the firm, and by Dalio about himself, to mean a person who doesn’t know as much as they need to know. But still.

Advertisement

A man hired to be CEO became ill, sleepless and “pallid, often non-verbal, broken” after his exposure to radical candour. He quit after less than six months. 

The page I cannot unsee reproduces a C-word-laced verse Dalio chanted at a work do in front of mostly female employees. But perhaps most shocking of all, the fund also allegedly rigged a system that ranked employees to keep Dalio on top.

That’s just a taste of the cultish atmosphere Copeland invokes in the book, which Dalio has dismissed as “sensational and inaccurate”.

If even a tenth of it is true though, Dalio was clearly a worrying leader. Yet on he went, as so many do. Being a billionaire founder helped, and at least his staff were handsomely paid. But Copeland’s book is a reminder that the most extraordinary workplace horrors can happen in any type of company.

pilita.clark@ft.com

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

Chinese borrowers default in record numbers as economic crisis deepens

Published

on

Chinese borrowers default in record numbers as economic crisis deepens

Stay informed with free updates

Defaults by Chinese borrowers have surged to a record high since the outbreak of the coronavirus pandemic, highlighting the depth of the country’s economic downturn and the obstacles to a full recovery.

A total of 8.54mn people, most of them between the ages of 18 and 59, are officially blacklisted by authorities after missing payments on everything from home mortgages to business loans, according to local courts.

That figure, equivalent to about 1 per cent of working-age Chinese adults, is up from 5.7mn defaulters in early 2020, as pandemic lockdowns and other restrictions hobbled economic growth and gutted household incomes.

Advertisement

The soaring number of defaulters will add to the difficulty of shoring up consumer confidence in China, the world’s second largest economy and a crucial source of global demand. It also throws a spotlight on the country’s lack of personal bankruptcy laws that might soften the financial and social impact of soaring debt.

Under Chinese law, blacklisted defaulters are blocked from a range of economic activities, including purchasing aeroplane tickets and making payments through mobile apps such as Alipay and WeChat Pay, representing a further drag on an economy plagued by a property sector slowdown and lagging consumer confidence. The blacklisting process is triggered after a borrower is sued by creditors, such as banks, and then misses a subsequent payment deadline.

“The runaway increase in defaulters is a product of not only cyclical but also structural problems,” said Dan Wang, chief economist at Hang Seng Bank China. “The situation may get worse before it gets better.”

The personal debt crisis follows a borrowing spree by Chinese consumers. Household debt as a percentage of gross domestic product almost doubled over the past decade to 64 per cent in September, according to the National Institution for Finance and Development, a Beijing-based think-tank.

But mounting financial obligations have become increasingly unmanageable as wage growth has stalled or turned negative in the midst of the economic malaise.

Advertisement

As a growing number of cash-strapped Chinese consumers have struggled to make ends meet, many have stopped paying their bills. More Chinese residents are also struggling for work: youth unemployment hit a record 21.3 per cent in June, prompting authorities to stop reporting the data.

“I will pay my Rmb28,000 ($4,000) credit card balance when I have a job,” said John Wang, a Shanghai-based office worker who defaulted on his payments after being laid off in May. “I don’t know when that will happen.”

China Merchants Bank said this month that bad loans from credit card payments that were 90 days overdue had increased 26 per cent in 2022 from the year before. China Index Academy, a Shanghai-based consultancy, reported 584,000 foreclosures in China in the first nine months of 2023, up almost a third from a year earlier.

Life for blacklisted borrowers can be difficult as they navigate dozens of state-imposed restrictions. Defaulters and their families are barred from government jobs, and they can even be prohibited from using toll roads.

Jane Zhang, owner of an advertising company in south-eastern Jiangxi province who defaulted on a bank loan, said she panicked when a local court banned her in May from using WeChat Pay to buy meals for her toddler.

Advertisement

“I thought my son was going to starve since I didn’t have any cash at hand and all my daily purchases were made through WeChat,” said Zhang, who later persuaded the court to drop the mobile payment ban while keeping other punishments in place.

As defaults climb, legal experts have proposed the introduction of personal bankruptcy laws with debt relief for individual insolvencies.

“We need to figure out a way to help individual defaulters rise up again,” said Liu Junhai, a law professor at Renmin University who helped draft China’s corporate bankruptcy law.

But a lack of transparency concerning personal finances has made such measures difficult to implement. Policymakers have made little progress in passing regulations on individual asset disclosures due to a backlash from government officials and other interest groups who fear the rules may reveal corruption.

With little hope of relief, many blacklisted borrowers have given up on restoring their financial health. Zhang decided to close her advertising business after losing accounts from local government departments, which are banned from working with blacklisted companies.

Advertisement

“The court said my life will return to normal if I pay off the debt,” she said. “But how can I make money when I am facing so many restrictions?”

Continue Reading

News

Iran-linked cyberattacks threaten equipment used in U.S. water systems and factories

Published

on

Iran-linked cyberattacks threaten equipment used in U.S. water systems and factories

This photo provided by the Municipal Water Authority of Aliquippa shows the screen of a Unitronics device that was hacked in Aliquippa, Pa., on Nov. 25.

Municipal Water Authority of Aliquippa via AP


hide caption

toggle caption

Advertisement

Municipal Water Authority of Aliquippa via AP


This photo provided by the Municipal Water Authority of Aliquippa shows the screen of a Unitronics device that was hacked in Aliquippa, Pa., on Nov. 25.

Municipal Water Authority of Aliquippa via AP

An Iran-linked hacking group is “actively targeting and compromising” multiple U.S. facilities for using an Israeli-made computer system, U.S. cybersecurity officials say.

The Cybersecurity and Infrastructure Security Agency (CISA) said on Friday that the hackers, known as “CyberAv3ngers,” have been infiltrating video screens with the message “You have been hacked, down with Israel. Every equipment ‘made in Israel’ is CyberAv3ngers legal target.”

Advertisement

The cyberattacks have spanned multiple states, CISA said. While the equipment in question, “Unitronics Vision Series programmable logic controllers,” is predominately used in water and wastewater systems, companies in energy, food and beverage manufacturing, and health care are also under threat.

“These compromised devices were publicly exposed to the internet with default passwords,” CISA said.

The agency did not specify how many organizations have been hacked, but on Friday CNN reported that “less than 10” water facilities around the U.S. had been affected.

CyberAv3ngers was behind the breach at a water authority outside of Pittsburgh on Nov. 25. The Aliquippa water authority was forced to temporarily disable the compromised machine, but reassured citizens that the drinking water is safe.

While it did not cause any major disruptions to the water supply, the incident revealed just how vulnerable the nation’s critical infrastructure is to cyberattacks.

Advertisement

“If a hack like this can happen here in Western Pennsylvania, it can happen elsewhere in the United States,” Sens. John Fetterman and Bob Casey, and Rep. Chris Deluzio, who all represent the state, wrote in a letter to Attorney General Merrick Garland on Tuesday. The lawmakers urged the Justice Department “to conduct a full investigation and hold those responsible accountable.”

It also showed the scale and scope of Israel and Hamas’ cyberwarfare. Alongside the fight on the ground, both sides of the conflict are armed with dozens of hacking groups that have been responsible for disrupting company operations, leaking sensitive information online and collecting user data to plan future attacks.

“We’re now tracking over 150 such groups. And since you and I started to correspond, it was probably 20 or 30 or 40. So there’s more groups, and more hacktivist groups are joining,” Gil Messing, the chief of staff at the Israeli cybersecurity firm Check Point, told NPR.

In response to the cyber concerns, Israeli authorities recently gave themselves new emergency wartime powers, which allows the government to step in if a company that specifically deals with cloud storage and digital services gets hacked.

Advertisement

NPR’s Jenna McLaughlin contributed reporting.

Continue Reading

News

US warns that Israel risks ‘strategic defeat’ unless it protects civilians in Gaza

Published

on

US warns that Israel risks ‘strategic defeat’ unless it protects civilians in Gaza

Unlock the Editor’s Digest for free

US defence secretary Lloyd Austin has warned Israel that it risks “strategic defeat” unless it protects Palestinian civilians in Gaza.

In a sign of growing tensions between the close allies as Israel resumes its military campaign in southern Gaza, Austin said Israel would only win if it protected civilians and created humanitarian corridors.

“In this kind of a fight, the centre of gravity is the civilian population. And if you drive them into the arms of the enemy, you replace a tactical victory with a strategic defeat,” Austin said in a speech to the Reagan National Defense Forum in California.

Advertisement

US president Joe Biden and other senior American officials have warned their Israeli counterparts that they must avoid the kind of mass internal displacement triggered by their bombardment of Gaza’s north. They have urged Israel to be more precise in the next phase of its campaign.

Austin and other US military officials have invoked lessons learned in Washington’s fight against Islamic State in Iraq, which involved intense urban combat.

Lloyd Austin said urban warfare was winnable only if the civilian population was protected © AP

“Like Hamas, ISIS was deeply embedded in urban areas. And the international coalition against ISIS worked hard to protect civilians and create humanitarian corridors, even during the toughest battles,” said Austin, who is a former commander of US forces in the Middle East.

“The lesson is not that you can win in urban warfare by protecting civilians. The lesson is that you can only win in urban warfare by protecting civilians.”

US secretary of state Antony Blinken said on Friday that Israel had shared with him its plans about how to protect civilians in the next phase of the military effort, and said the US would monitor the ongoing campaign closely.

Advertisement

Biden is under increasing pressure from within his administration and the Democratic party to do more to constrain Israel.

“It is critical that Israel defeats Hamas. If they continue killing this many civilians, they’re going to make them stronger,” Democratic congressman Seth Moulton said.

The Israeli military intensified air strikes in southern Gaza on Saturday and ordered residents of some Palestinian border towns to leave their homes.

Since the breakdown of the truce on Friday, Israel’s renewed offensive in Gaza has killed 193 people, Palestinian health officials said.

Israel’s military said it had hit multiple “terror targets” in northern Gaza, including a mosque it said was being used as a command centre by militants. It added that its jets “struck over 50 targets in the area of Khan Younis” in southern Gaza overnight.

Advertisement

Palestinian health officials say more than 15,200 people have been killed by Israel’s military response to the attacks by Hamas on October 7, in which the militant group kidnapped 240 people and killed 1,200 in southern Israel.

During the temporary ceasefire Hamas freed 84 women and children while Israel released about 240 Palestinian women and children from prison. The Israel Defense Forces said Hamas was still holding 136 people hostage, among them 17 women and children. The remainder of the hostages are mainly Israeli soldiers and reservists.

Israel’s defence minister Yoav Gallant said the military campaign was degrading Hamas’ capabilities as well as forcing it to negotiate over hostages.

“Through our military action, we also create the conditions that push [Hamas] to pay a heavy price, and that is in the release of hostages,” he said.

He asserted that Israel had killed “thousands” of Hamas fighters, “struck dozens of headquarters” and detained “hundreds” of operatives.

Advertisement

The UK government said it would conduct military surveillance flights over Gaza to help the hostage rescue operation. British nationals are among those held. The UK Ministry of Defence said only information related to hostage rescue would be passed to Israel.

Additional reporting by Chloe Cornish in Jerusalem and Lucy Fisher in London

Continue Reading
Advertisement

Trending