Monday, August 30, 2021
Investing in UK workers won't solve labour crisis
With the haulage industry and british agriculture amongst others, struggling in the face of a massive labour shortage, the government's solution has been for businesses to invest in UK workers. However the Institute of Directors has hit back, stopping just short of suggesting Ministers are living out a summer fantasy.
The Guardian reports that the IoD believes the idea will not solve short-term labour shortages that are increasingly putting retailers and supply chains under pressure. They have called for new, flexible visas that would allow foreign workers to step in to fill crucial roles, particularly as lorry drivers, after an exodus of workers due to Covid and Brexit:
A lack of lorry drivers, due in part to the Covid crisis and Brexit, has already put pressure on UK supply chains and left some retailers, fast-food chains and supermarkets struggling to refresh their stock.
Last week, the Confederation of British Industry (CBI) reported that stock levels in August had fallen to their lowest level since retail industry trends were first tracked nearly four decades ago, while McDonald’s ran out of milkshakes and Nando’s was forced to close 50 outlets because of shortages that meant it couldn’t provide its most popular peri-peri dish.
The supply crunch has been blamed on worker shortages in several key industrial sectors, which have been compounded by Covid pressures and a lack of foreign labour due to Brexit. It has forced companies to increase salaries to attract staff, including Waitrose, which is now reportedly prepared to pay £53,780 a year for large goods vehicle drivers, trumping the salaries of some of its head office executives.
Industry groups, including Logistics UK and the British Retail Consortium, have also called on the government to provide temporary UK visas to EU truck drivers to help address the issue.
As ever the solution is multi-faceted, something that tunnel-visioned ministers cannot see:
The number of small businesses saying that skill shortages are holding them back has soared in recent months, according to the FSB’s national chairman, Mike Cherry. “Unless we bring the situation to bear, we risk stifling our economic recovery before it’s even really started,” he added.
“Balance is key here: we need both an immigration system that’s accessible for firms of all sizes, enabling them to access the international talent they need to thrive, as well as renewed efforts to upskill the next generation and reskill workers already in the UK. It’s misleading and unfair to suggest this is an either/or – it’s not a choice,” he said.
“We need to attract back international HGV drivers temporarily, while at the same time investing in domestic training – a process which can take many months.”
So much for the Tories being the party of business.
The Guardian reports that the IoD believes the idea will not solve short-term labour shortages that are increasingly putting retailers and supply chains under pressure. They have called for new, flexible visas that would allow foreign workers to step in to fill crucial roles, particularly as lorry drivers, after an exodus of workers due to Covid and Brexit:
A lack of lorry drivers, due in part to the Covid crisis and Brexit, has already put pressure on UK supply chains and left some retailers, fast-food chains and supermarkets struggling to refresh their stock.
Last week, the Confederation of British Industry (CBI) reported that stock levels in August had fallen to their lowest level since retail industry trends were first tracked nearly four decades ago, while McDonald’s ran out of milkshakes and Nando’s was forced to close 50 outlets because of shortages that meant it couldn’t provide its most popular peri-peri dish.
The supply crunch has been blamed on worker shortages in several key industrial sectors, which have been compounded by Covid pressures and a lack of foreign labour due to Brexit. It has forced companies to increase salaries to attract staff, including Waitrose, which is now reportedly prepared to pay £53,780 a year for large goods vehicle drivers, trumping the salaries of some of its head office executives.
Industry groups, including Logistics UK and the British Retail Consortium, have also called on the government to provide temporary UK visas to EU truck drivers to help address the issue.
As ever the solution is multi-faceted, something that tunnel-visioned ministers cannot see:
The number of small businesses saying that skill shortages are holding them back has soared in recent months, according to the FSB’s national chairman, Mike Cherry. “Unless we bring the situation to bear, we risk stifling our economic recovery before it’s even really started,” he added.
“Balance is key here: we need both an immigration system that’s accessible for firms of all sizes, enabling them to access the international talent they need to thrive, as well as renewed efforts to upskill the next generation and reskill workers already in the UK. It’s misleading and unfair to suggest this is an either/or – it’s not a choice,” he said.
“We need to attract back international HGV drivers temporarily, while at the same time investing in domestic training – a process which can take many months.”
So much for the Tories being the party of business.
Comments:
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Remember Johnsons comment 'f..k Business'?!He and his govnt are more money orientated ,ie Mogg,Sunak.To bring in EU workers etc will indicate,to them,defeat and Brexit is not working.That tunnel vision will need to be removed.
As said, training our own will take time and is necessary but in the short term disruption will occur.What people think about it will be seen when lack of goods and limited supply hits them directly.Equally the shortage of fruit, veg will appear.
The arguement goes that paying higher wages is good but that will also increase prices as it is passed onto consumers for otherwise the companies will go out of business making the situation worse.
If something is not done prices rise supply and demand curve will appear.Taking away the £20 UC from people will make people poorer and more reliant on food banks,THEY ARE A SIGN OF POVERTY and a declining economy.
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As said, training our own will take time and is necessary but in the short term disruption will occur.What people think about it will be seen when lack of goods and limited supply hits them directly.Equally the shortage of fruit, veg will appear.
The arguement goes that paying higher wages is good but that will also increase prices as it is passed onto consumers for otherwise the companies will go out of business making the situation worse.
If something is not done prices rise supply and demand curve will appear.Taking away the £20 UC from people will make people poorer and more reliant on food banks,THEY ARE A SIGN OF POVERTY and a declining economy.
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