London, UK: Logistics business can expect labour shortages to increase if the government implements its planned immigration restrictions.
Low-skilled workers would not get visas under post-Brexit immigration plans unveiled by the government.
The government, which said it was aiming to reduce overall migration to the UK, wants a “points-based” immigration system – as it promised in its election manifesto.
Under the scheme, workers who want to come to the UK have to speak English and have the offer of a skilled job with an “approved sponsor”.
Entitlement to work in the UK will depend upon qualifications, the salary on offer and working in a sector with shortages. But the government said it would not introduce a route for lower-skilled workers, urging businesses to “adapt and adjust” to the end of free movement between EU countries and the UK. It is urging employers to “move away” from relying on “cheap labour” from Europe and invest in retaining staff and developing automation technology.
The Freight Transport Association warns that restrictions on EU migrants deemed to be ‘low-skilled’ will worsen the severe labour shortage in the logistics sector. Sally Gilson, head of skills policy , FTA, said: “The sector is already facing a severe labour shortage – 64% of transport and storage businesses are now struggling to fill vacancies – and with EU workers currently constituting 13% of the entire logistics workforce, it is obvious how detrimental this policy will be on the very businesses charged with keeping the UK trading. If the government insists on withdrawing access to EU workers, it will have to adapt and adjust its allowances for training; the burden should not solely lie on UK businesses.
“FTA is also appalled that the government has deemed HGV driving – along with many other logistics occupations – to be ‘low skilled’ activities; these are, in fact, very challenging roles. Vocational occupations make a significant contribution to the UK economy; FTA is urging the government to realise it is not just academically trained workers that hold value.”
“FTA is urging the government to give special dispensation to EU logistics workers; they must be welcomed post-Brexit transition period to ensure the sector can continue operating. While businesses within the logistics sector will do everything possible to keep the UK trading, without adequate levels of staff, operations will become strained and UK plc will inevitably suffer.”
EU workers currently constitute 13% of the entire logistics workforce, and declining EU net migration has contributed to a 43% rise in job vacancies in the transport and storage industry over the past couple of years, according to the FTA’s Logistics Skills Report 2019.
The UK Warehousing Association predicts a shortage of workers. Peter Ward, chief executive of the association said: “‘Companies operating in the logistics and warehousing industry need access to low-skilled, low-cost labour and with low youth unemployment figures in the UK, the sector has traditionally looked to the EU to supplement its workforce.”
“While it is hoped that the majority of EU citizens currently working in UK warehouses and distribution centres will choose to stay in Britain by applying for EU settlement scheme status, it is clear that the inability to recruit shop-floor operations staff from other countries will add to the recruitment pressure that the logistics industry is already under.”
Ward questioned the government’s suggestion that businesses will be able to reduce their reliance on foreign workers by increasing levels of pay and investing in automation. “The logistics industry operates on the narrowest of margins and it is hard to see how any significant across-the-board pay increases for low-skilled staff could be introduced without passing on the additional costs, unless the days when online shoppers expect low priced goods with cost-free and immediate delivery become a thing of the past.
“And, while it is true that the use of automation is growing across the logistics industry, there are many roles within a typical warehouse operation that remain difficult to automate. Although recent developments have made automation more scalable and flexible, for many warehouse operators the outlay on the type of fixed assets found in automated systems – is impossible to justify. Furthermore, automation does not replace a workforce, but creates new jobs with different skills, which needs investment in training and cannot be achieved overnight.”
Under the planned scheme employees need 70 points awarded as follows:
Mandatory requirements points
Job offer from approved sponsor 20
Job at appropriate skill level 20
English at required level 10
Points for salary
£20,480 – £23,039 0
£23,040 – £25,599 10
£25,600 or above 20
Additional points
Job in a shortage occupation 20
PhD in subject relevant to the job 10
PhD in relevant Stem subject 20
Changes to the system would be implemented through an immigration bill needing approval from MPs and peers to come into force.
