Gi Group Talks Brexit – Expert opinion on the impact of Brexit on the staffing industry

As Brexit negotiations continue our latest Gi Group Talks Brexit update provides a summary of  latest developments, expert opinion from relevant trade bodies and recommendations for organisations to consider.

THE GOVERNMENT SAYS:

The Home Office have confirmed that EU citizens currently living and working in the UK will be able to apply for settled status to stay in the UK. It has also been confirmed that close family members will be able to join them, and whilst the finer details have yet to be confirmed, the Government have committed to ensuring that the application process will be “easy” and “inexpensive”.

It has also been recently announced that the long-anticipated immigration White Paper and Bill will now be delayed until the Autumn. This decision has not been generally well received and various bodies, including the Recruitment and Employment Confederation, are urging
the Prime Minister to bring the White Paper and Immigration Bill forward for the sake of their members who are already experiencing applicant shortages.

Rights for EU citizens to include:

• EU citizens looking to remain in the UK will be asked to apply for settled status through a new user-friendly scheme. This is due to launch in 2018.
• EU citizens who arrive in the UK by 29 March 2019 and have 5 years of continuous residence in the UK will be eligible for settled status.
• People who will not have been here for 5 years when the UK leaves the EU will be able to apply to stay until they have reached the 5-year threshold.
• Rights to healthcare, pensions and other benefits in the UK will remain the same.

EXPERT OPINION:

The Confederation of British Industry Director General (CBI), Carolyn Fairbairn, has recently said that time is running out
and businesses urgently need decisions to protect UK jobs and growth. Along with  the Recruitment and Employment Confederation (REC), Carolyn Fairbairn is calling for a “jobs first transition” to be nailed down within the next 70 days. The TUC’s Secretary, Frances O’Grady, has expressed concern that a “Canada-style Brexit” would be bad for jobs, bad for public services and bad for rights at work.

Representatives from the Freight Transport Association (FTA) have recently met with  the Shadow Secretary of State for exiting the European Union, Keir Starmer, MP. During the meeting the FTA shared their ten point plan for a seamless customs border and they also shared their concerns for the potential for serious restrictions on the cross-border movement of trucks if new arrangements for trucks are not negotiated in time. The Association of Labour Providers (ALP) have recently submitted evidence to the Environment, Food and Rural Affairs committee to support the “Feeding the Nation” consultation. Key statistics provided include:

• 70%of labour providers were unable to meet their food industry clients’ labour demands for the Christmas peak in 2017.
• 49% of labour providers do not expect to source and supply sufficient workers for the food manufacturing and distribution sectors in 2018.
• 71% of food and beverage manufacturing companies anticipate labour shortages in low and unskilled roles in 2018. Around 1 in 3 companies
  expect a labour supply crisis.
• 7.3% EU unemployment stands at 7.3%, is falling fast and is approaching an historic low of 6.8%.
• Feed growers and manufacturers are reporting real impacts on their businesses caused by labour shortages, from increased costs to relocation with scaling down and threats to viability.

The most recent UK labour market report on jobs produced by IHS Market and sponsored by the REC, dated 8th March 2018, shows that although permanent placements grew at a slightly slower pace compared to previous months, the overall growth of placements remained sharp, with demand for temporary placement rising at a faster pace during the first quarter of 2018. This is against a backdrop of a continued candidate and skills shortage. The increasing competition for good quality staff is also continuing to drive salaries up.

Gi GROUP UK – BREXIT INITIATIVES

As part of our on-going commitment to support all of our key stakeholders, Gi Group in the UK has committed to the following initiatives:

• Production of a candidate fact sheets about UK Citizenship for EU Nationals
• Sharing information provided by recruitment industry trade associations and Brexit subject experts
• Tracking, analysing and sharing demographic workforce availability data
• Organising regular surveys of temporary workers to sense check those EU workers’ position about working in the EU
• Leveraging the Gi Group European network to gain information, data and input about the findings in the UK Workforce
• Conduct Risk Analysis Exercises with existing and prospective clients
• Re-evaluate current working patterns with a view to readjusting and opening up roles to a broader audience
• Implementing innovative candidate attraction campaigns, initiatives and events. Continuing our work with disadvantaged and minority groups in the UK to support increased workforce diversity and employment opportunities for all members of the community including ex-offenders
• Continuing work with clients to further develop engagement programmes and competitive pay and benefits packages for temporary workers to
  improve retention
• Working with clients to develop Apprenticeship Programmes to provide an additional source of skilled, engaged and productive employees.

Click here to download the latest edition of Gi Group Talks Brexit