Organisations that represent retailers and food manufacturers in the UK have criticised the Government’s proposed immigration system, arguing that it will impact recruitment and supply chains.
The new points-based system is due to come into effect on 1 January 2021 and aims to reduce overall levels of migration by giving priority to higher-skilled workers. The same system will now apply to both EU and non-EU citizens with applicants required to meet new skills and salary thresholds.
However, the Government is not introducing a general low-skilled or temporary work route, which some industries fear could lead to labour shortages.
Tom Ironside, Director of Business and Regulation at the British Retail Consortium, said: “Retailers rely on complex supply chains and for these to function effectively must be able to access an adequate supply of workers. Although we welcome the reduction in the salary threshold, it is disappointing that the Government has not understood the needs of the economy and the vital contribution of workers supporting the operation of warehouses, food factories and city centre stores. When vacancies cannot be filled from the local labour market, businesses must be able to recruit from the widest talent pool available across all skill levels.
“We continue to call for a system that enables straight-forward recruitment from a range of skill levels and avoids significant increases to the cost of employment.”
Meanwhile, Mark Harrison, Policy Manager at the Food and Drink Federation (FDF) said: “The food and drink industry is reliant on workers at all skill levels. We have concerns about access to those potential employees who won’t qualify through these ‘skilled’ routes such as bakery assistants, meat processors, and workers essential to the production of huge array of basic foodstuffs such as cheese, pasta, and sausages.
“While we are committed to promoting the use of automation and technology in our sector, the benefits of such innovations will not be felt overnight and some food chain roles remain challenging to automate. With the UK experiencing historically low unemployment rates and high vacancy levels, we believe a route for entry-level workers should be introduced which retains control of immigration while also supporting business needs, incentivising upskilling, and boosting productivity.”
A statement from the Government said employers will have to adjust as the UK needs to shift the focus of its economy away from a reliance on cheap labour from Europe and instead concentrate on investment in technology and automation.
“We recognise that these proposals represent a significant change for employers in the UK and we will deliver a comprehensive programme of communication and engagement in the coming months. We will keep labour market data under careful scrutiny to monitor any pressures in key sectors,” it added.
NAM Implications:
- For ‘negative’ read ‘monumental impact’.
- i.e. paying more for workers in increasingly short supply.
- Anticipate upward movement in food prices.
