quarta-feira, 28 de dezembro de 2022

Pubs struggle to retain staff after Brexit and Covid ‘double whammy’

 


Pubs struggle to retain staff after Brexit and Covid ‘double whammy’

 

Brexit brought the biggest shift in UK’s immigration regime in a generation, as free movement of people from the EU ended

 

Heather Stewart

Wed 28 Dec 2022 13.00 GMT

https://www.theguardian.com/uk-news/2022/dec/28/pubs-struggle-to-retain-staff-after-brexit-and-covid-double-whammy

 

In the second of our Brexit Undone? series, Heather Stewart reports on why so many businesses are still struggling to adjust to the new reality.

 

At the Rowan Tree hotel, just outside Aviemore, amid the spectacular snow-clad scenery of the Cairngorms, co-owner Tamasina Cassidy is blunt about what she and her husband, Jonny, have had to do to cope with post-Brexit staff shortages: “Work harder.”

 

She says the hotel previously had “a contingent of Czech people, who had friends in the Czech Republic and they would bring people over”.

 

“They were just great, a really great team: really hard grafters,” agrees Jonny. Some returned home during the pandemic, while three who remained have since been forced to move away, because of a severe lack of affordable housing.

 

This is such a challenge that two of the Rowan Tree hotel’s rooms have been given over to accommodating staff, while an adjacent cottage houses the chef.

 

The couple are having to run the hotel and its well-regarded restaurant with fewer staff than a year ago: Tamasina has just been practising making barista-style coffees. “We’ve definitely had to adapt how we’ve been working, to manage it,” says Jonny.

 

Business-owners in this year-round resort, who were revelling in unusually early snowfall when the Guardian visited, don’t blame Brexit alone for the staff shortages plaguing hospitality – but they certainly don’t think it has helped.

 

Samantha Faircliff, the managing director of the Cairngorm Brewery, sitting by a crackling woodburner in the brewery’s Winking Owl pub, says: “Prior to Brexit, we probably had six members of staff, who were really good; really good workers.”

 

She says they returned home to their families during the Covid pandemic, instead of staying to claim settled status. “The double whammy I feel was Brexit and then Covid,” she says. “It’s the opportunity for others to come, that’s gone”.

 

UKHospitality (UKH) estimates as many as half a million EU workers who may have been entitled to remain permanently went home during the pandemic and never completed their applications.

 

At the Winking Owl, a lack of front-of-house staff has meant closing for part of the week, increasing the number of part-time staff and relying on students during peak seasons.

 

“We close on a Monday, Tuesday for two reasons. One is it makes sure that our staff then get time out; and they have days off; and it then means we’ve got enough staff to do the job well, Wednesday through to Sunday,” Faircliff says. Half of UKH’s members are making adjustments such as these – to opening hours or capacity – as a result of labour shortages.

 

Faircliff says there has also been “a bit of a wage war” locally, as businesses struggle to recruit and retain staff.

 

Mark Tate, the chief executive of the Cairngorms Business Partnership, says: “The challenges of something like Brexit, in a rural economy like this, just become exacerbated because of the additional challenges of housing and transport.”

 

Curbing unchecked migration from continental Europe was one of the arguments for Brexit made by Vote Leave during the bitter referendum campaign of 2016. Six years on, businesses are still wrestling with the consequences.

 

 

Despite the government’s often harsh rhetoric, the system has arguably become more liberal for higher-paid roles – at least for those employers willing to navigate the Home Office’s skilled worker visa scheme.

 

But it is now all but impossible for low-paid workers to come, aside from a few specific exceptions, such as short-term schemes for agriculture.

 

Jonathan Portes, a professor of economics and public policy at King’s College London, says the rules in place since January 2021 are more open than he and many other experts expected.

 

“The simple way of describing this new system is: if you’re doing a job that requires A-levels or above, and you’re paid more than £25,000 – lower in some jobs, higher in others – then your employer can get you a visa,” he says.

 

Portes estimates that at least half the jobs in the economy, perhaps up to 60%, could in principle be opened up to overseas workers in this way: though employers complain that the application process is far from user-friendly.

 

“I think it is an arduous process and it’s an expensive process,” says Jonny Cassidy, of the Rowan Tree. “It is a little bit frustrating when we have a shortage of certain skills.”

 

Net migration in the year to June hit a record high of 504,000 – hardly a sign of pulling up the drawbridge. It was significantly boosted by one-off factors, including the conflict in Ukraine and the special visa scheme for Hong Kong; but the independent Office for Budget Responsibility (OBR) recently updated its forecasts for future net migration, having seen how the new rules are operating.

 

The chancellor, Jeremy Hunt, said recently that migration was “very important” for the economy – though he stressed that he still wanted to bring it down.

 

 

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The Home Office issued “worker visas” for 145,258 people to come to the UK in the year to September: a 128% increase on 2019, before the pandemic. More than 40% of these were “skilled worker, health and care” visas, as the government looked overseas to fill spiralling vacancies in the NHS.

 

The spread of countries involved underlines the profound shift under way in the mix of nationalities coming to the UK to work. India is at the top of the list, with more than 56,000 worker visas granted, followed by the Philippines with 9,974 and Nigeria, with 9,944.

 

Nick Allen, the chief executive of the Meat Processors Association, offers one explanation for the rapid increase in Filipinos coming to the UK to work (up 93% on the year).

 

“The Philippines recently has been quite a good source of butchers for us,” he says. “They do seem to have got quite a few butchers there, and they don’t seem to have too much trouble passing the English test to get here.”

 

It’s not cheap, however – for a butcher earning typically £35,000 to £45,000, Allen explains, once search costs, visa fees, flights, and finding suitable accommodation are included, “the ballpark figure is it costs you about £12,000 to bring every individual worker in”.

 

At the CBI conference last month, where the director general, Tony Danker, calls for more visas to be issued to tackle shortages. The immigration minister, Robert Jenrick, says: “If I was a business manager, I would be looking to the British workforce in the first instance, seeing how I could get local people into my business.”

 

Allen, who says 65% of staff in meat processing pre-Brexit were from outside the UK, insists his members have been trying to do that – but with limited success. “We’ve struggled to recruit on the home market. We’ve now got a situation where probably most of our big plants are running about 10% to 15% short on staff,” he says.

 

Similarly, Kate Nicholls, the chief executive of the UKH, says the experiences of Faircliff and the Cassidys in Aviemore are echoed widely among her members. “We have vacancy rates running at about 9% in the sector,” she says.

 

She acknowledges the new visa regime means recruiting overseas is now a possibility for a wider range of jobs – but like other business groups, the UKH argues that it is not an option for many firms. “It’s very costly, it’s very bureaucratic, it takes a long time.”

 

Neil Carberry, the chief executive of the Recruitment and Employment Confederation (REC), says: “While the system itself is more permissive than the old non-EU system, most firms experience it as more complex and more costly because they weren’t used to the old system, and it is not particularly user-friendly.”

 

But he says it’s important to acknowledge there are labour shortages in many major economies. “When I talk to my colleagues from around the world, everyone is experiencing a candidate shortage right now,” he says.

 

Madeleine Sumption, of the Migration Observatory at Oxford University, agrees. “The end of free movement is one of the factors but it’s probably not the most important one exacerbating labour shortages,” she says. “We’ve seen labour shortages in other countries that haven’t had a big change in immigration policy. So this is not just about Brexit.”

 

And she says it may take firms some years to adapt their business models to cope without a pool of cheap labour – perhaps by upgrading technology. “Automation can be quite a long-term project. This is quite a long-term thing, but in the short run they’re still running the old business model that relied on EU workers.”

 

Low rates of business investment have been a long-term bugbear for the UK, which some proponents of Brexit blame partly on the free and easy availability of low-cost workers.

 

The Labour party is clear it will not be arguing to reverse free movement, and instead will upgrade skills and training, to try to ensure the right workers are available for the needs of businesses.

 

The shadow immigration minister, Stephen Kinnock, says: “Labour supports points-based immigration, and we are clear that there will be no return to free movement when we are in government. However, we are equally clear that the system as it stands is not fit for purpose because the Conservatives have failed to link it up with strategic workforce planning.”

 

Portes – not by any means an optimist about Brexit – says now the details of the post-Brexit immigration regime are clear, he has changed his mind about its likely effects on the economy.

 

“Five years ago, I would have said the macro impact of the post-Brexit migration regime would be significantly negative. If you were to ask me today, I would say positive, because I think over the medium- to long-term, the gains from a significant expansion in medium and high-skills migration outweigh the losses to visible but relatively low productivity sectors that are suffering at the moment,” he says.

 

But that is cold comfort for the firms at the front line of this historic shift in the UK’s labour market, who are also having to contend with the long shadow cast by covid.

 

Back at the Rowan Tree, Jonny Cassidy sighs. “An immigration policy that was perhaps a bit more progressive so we could bring people in, that might help – but we are where we are.”

 

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