Labour in the food supply chain

In order to secure the labour it requires to maintain production levels under the new immigration policy, the food supply chain will have to attract more resident staff. Although it must be recognised there are significant structural barriers preventing many domestic workers from substantial engagement in seasonal harvest work and this is not a new feature of the UK labour market. Additionally, as we explore in the following chapters, it should be recognised that it is not just a question of better pay, but also of improved conditions that will attract more UK workers to businesses in the food supply chain. While there are benefits to improving the attractiveness of the food supply chain as a place to work in terms of securing a more stable and predictable workforce, there is a risk that this may come at the cost of higher consumer food prices or a loss of market share to imports potentially produced to lower standards. This would impact on the UK’s food security and on the ability of some families to afford enough healthy nutritious food. As we made clear in our report on covid-19 and food supply there are already concerns about both. The Government should pay particular attention to food prices in the period after the introduction of the new immigration policy—if prices rise, due to a shortage of labour, it should stand ready to make appropriate policy adjustments. (Paragraph 15) Skilled workers

The UK is competing globally for skilled labour, the availability of which is vital to the ongoing success of the UK food supply chain. It is important therefore that bureaucracy and fees are minimised, and their impact kept under review. We are concerned that many potential candidates from EEA countries may prefer to work in other countries within the European Single Market exercising their rights of freedom of movement. We welcome measures taken by the Government to reduce both the skill and salary level for the Skilled Worker visa, compared to the Tier 2 visa, as more food supply chain roles will now be eligible. However, we are disappointed that the Government decided not to implement the Migration Advisory Committee’s latest review of the Shortage Occupation List prior to the start of the new immigration policy. Defra and the Home Office should consult food supply chain businesses during the first half of 2021 on the impact of the PBS and associated paperwork and fees to ensure that they are able to recruit sufficient staff from overseas where this is necessary so to do. They should provide the Committee with the outcomes of those consultations before the summer recess. The Government should reconsider its decision not to implement the Migration Advisory Committee’s latest Shortage Occupation List review to help ensure that food supply chain businesses can secure the labour they need.

The example of the veterinarian sector highlights the important role that overseas- trained employees undertake in the food supply chain, in this case working in abattoirs that are unattractive to UK-trained vets. In addition, these Official Veterinarians face an increase in their workload due to increased checks on exports 32 The UK’s new immigration policy and the food supply chain as a result of Brexit. These factors, combined with the fact it takes several years to train vets, risk creating a situation where there is insufficient veterinary labour, without which animal products cannot be cleared for export.

For those employing skilled workers, it is important to ensure that pay and conditions reflect the nature of the work in order to help attract more UK workers into the food supply chain. For example, the Government’s work to increase the number of Official Veterinarians and introduce Certification Support Officers is welcome although questions remain about whether they go far enough to meet the increased workload after the end of the transition period. Both Government and business have a role to play in ensuring that skilled work in the food supply chain is an attractive career option in order to address some sub-sectors’ reliance on migrant staff. However, in the short to medium-term the Government, in designing its policy, must also be more conscious of the time and investment it takes to train new skilled workers, especially professionals such as vets. This is particularly important when the industry faces substantial uncertainty such as new rules on trade and the impact of the pandemic. It should closely monitor the impact of the new immigration policy on the supply of skilled workers in the food supply chain and make immediate adjustments if bottlenecks emerge. (Paragraph 30) Low-skilled migrants

By focusing on academic qualifications, the new immigration policy takes a narrow focus on skills, although we welcome the Government’s decision to reduce the threshold to the equivalent of A-levels or Scottish Highers (RQF3/SCQF6). We are concerned that this policy will pose challenges for food manufacturers and others in the food supply chain who use lower skilled or lower paid staff, especially because of the limited time to prepare, exacerbated by the covid-19 pandemic, and the absence of a transition period (as proposed in the superseded 2018 White Paper). However, the anticipated rise in UK unemployment next year might provide opportunities for the sector to encourage people to change careers—the food supply chain can do more to encourage this by making itself more attractive to potential employees. The Government can also take steps to support the sector to encourage UK workers and the unemployed to consider roles in food production and to re-train or re-skill. The Union Learning Fund—for which Government funding will cease in 2021— has been brought up as an example of how this could be achieved. As data for the food and drink manufacturing sector demonstrates, businesses were able to source almost all their workers domestically prior to the eastern expansion of the EU in

Food supply chain businesses should seek to attract the unemployed who may previously have worked in other sectors of the UK economy through better pay and conditions and offering training opportunities. The Government should also play a role in supporting the retraining of labour through engagement with employers and unions, and given its decision to terminate the Union Learning Fund should ensure there is an effective replacement for the valuable work that the Committee recognises it has done. (Paragraph 40) The UK’s new immigration policy and the food supply chain 33

The lack of a transition period for the introduction of the new immigration policy creates risks and therefore Defra, the Home Office and the Department for Work and Pensions must work together to closely monitor the food supply chain to monitor the impact of the absence of a low skilled immigration route, and be prepared to take action that will swiftly alleviate any labour supply problems as the food supply chain adjusts to the new immigration policy. (Paragraph 41) Seasonal agricultural workers

It is a matter of concern that there continues to be no single, agreed figure for the aggregate number and the breakdown by nationality of seasonal agricultural workers, given the importance of this data for the formulation of policy. The Government, employers and representative bodies must work together to develop a common methodology for measuring the aggregate number and the breakdown by nationality of seasonal workers in the food supply chain. In order that Defra’s data commands confidence with stakeholders and within Government it should seek to ensure that these statistics are designated as “National Statistics” by the independent Office for Statistics Regulation.

While we commend Defra for standing up the Pick for Britain scheme so quickly and for promoting it successfully, this cannot hide the fact that it did not achieve what it hoped to do: attract a significant number of British works to pick crops. Given the favourable conditions in which it operated this year, i.e. the pandemic causing significant slack in the labour market coupled with significant media coverage of the need for seasonal labour, it is clear that structural changes are required if seasonal jobs are to appeal to UK workers. While the flexibilities under Universal Credit highlight the support that the Government can give through bringing forward targeted policies, the onus is on businesses to improve the pay and conditions they offer. These changes cannot be achieved overnight, especially when the industry is also facing significant uncertainties caused by the pandemic and the end of the transition period. But more fundamentally, the UK has required migrant seasonal workers since the end of the Second World War, highlighting that UK workers are not attracted to such work—it is simply not realistic to expect UK workers to return to harvesting roles in significant numbers in the short to medium-term, if ever. If there is insufficient seasonal labour, there is a danger that some agricultural companies and others in the food supply chain that rely on it may relocate abroad.

We therefore recommend that the Seasonal Workers Pilot for 2021 should be expanded to include other food supply chain and agricultural sectors beyond edible horticulture, and have a sufficiently generous cap that allows all businesses to recruit the labour they need. Given that farmers need to ensure that the crops they plant will be harvested, it is essential the Government publishes the cap for 2021 immediately. This policy should be kept under review—particularly in the first half of 2021—by a joint Defra and Home Office group with a specific remit to monitor and forecast the levels of demand and supply of seasonal workers in the food supply chain to ensure that there is sufficient labour to harvest our crops. (Paragraph 62) 34 The UK’s new immigration policy and the food supply chain The role of technology

While the agricultural and food manufacturing sectors have a good record on investing, one way of meeting the challenges of the new immigration policy is for the food supply chain, assisted by innovative and well-designed Government schemes, to become more capital intensive and both drive forward and exploit technological opportunities. However, this will take time to have an impact, and it is likely that many roles throughout the food supply chain will be difficult to affordably mechanise for many years, especially for smaller businesses. This further points to the difficulties the industry faces with the sudden changes to the availability of labour as a result of the Government’s new immigration policy.

We welcome the announcement in November of additional Government funding for new technology, and call upon Defra to publish a strategy within 6 months setting out how it will work with technology providers and the food supply chain to ensure our farming and food production sectors can help develop and take advantage of the latest technological advancements. The Government should monitor the speed at which the mechanisation of roles currently done by seasonal labour becomes economic for all farmers, including small farmers, and this should be reflected in the setting of the cap on the Seasonal Workers Pilot. (Paragraph 68) The UK’s new immigration policy and the food supply chain 35