FROM THE OFFICE OF
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Martin Reid RHA Director for Scotland and Northern Ireland.
EVER DECREASING CIRCLES Recently I, along with a number of industry bodies, took part in a round table discussion with the Home Office at Stormont House. The topic of the discussion was the Government’s white paper which sets out the proposed skills-based immigration system. It was an interesting day on a number of fronts. Firstly it was good that the Home Office are engaging with a number of industries to hear their concerns (I think our event was one of 4 or 5 they had held in NI over the space of a few days), and secondly it was also good to know that other sectors have the same concerns that we do over the plans. I was also pleasantly surprised to see a couple of faces from my past there to speak on behalf of the NI construction sector, which made me think. The new immigration system will go live in 2021 and will be based on the eponymous white paper. This means that unlike previous times when we admitted highly skilled NonEU workers, but EU nationals of all skill levels were allowed in to work in the UK, now there will be only one scheme all migrant workers out-with the UK Shortage Occupation List (and we know that HGV Driver is not included on the list), must meet skills and salary criteria. The recommended salary threshold at present is £30k but the representatives from the Home Office were at pains to say this point is open to discussion, and it was certainly discussed. I have attended a similar event in Edinburgh with the Home Office and the Scottish Govt and the message was equally as clear. The £30k salary threshold is both unhelpful and very much skewed to levels set in the south of England, not NI, Scotland or Wales.
Visas & Cashflow There was also discussion on the length that a temporary work visa should last for (1 year with a 1year cooling off period or 6 months with a 6-month cooling off period) but the message from both the haulage/logistics sector and the NI construction sector was clear. Both industries are underpinned by foreign, often migratory labour. Although there are geographical areas where they have full employment, overall, neither the construction or logistics sectors are bringing enough new workers in to sustain current levels and doing anything to block that labour will be detrimental as we move forward. Another area where the two sectors share a common pain is in the area of payment practices. I have written about this before,
Stormont House, Belfast.
but cashflow is becoming even more of an issue in these times of uncertainty.
work. It is a total house of cards. But enough of my pet hate, we were talking about immigration.
I am constantly explaining to politicians and civil servants how hauliers bear an unreasonable amount of risk within the supply chain, often waiting 90 days for payment when they only get 7 days credit for the fuel they use but in many cases these types of contract were “pioneered” in the construction sector.
This will always be a bit of a political hot potato, and let’s face it, it is the issue that started the whole Brexit debate. There will always be a regional element to the problem with some areas having little requirement to look outside for labour and others crying out for it.
The case of major contractor Carillion who went the wall having used withheld sub-contractor’s money (by making subbies sign 120- day payment agreements and then using a pernicious retentions system too) effectively as their own cashflow was well documented, but they were by no means alone. This has been the model for many a “Tier 1” contactor who not only followed the Carillion model but also offered Tier 2 and Tier 3 contractors a chance to get paid quicker by accepting a reduced amount. You can effectively pay for the privilege of getting paid. This practice still goes on and there are still companies who accept the terms just to get the
There is also the major issue of training up indigenous people to fill the gaps, but in many cases, this has been tried and the locals don’t want the job on offer. This sets up a different debate entirely on wage rates, conditions and benefits none of which was in the remit of the group gathered that day. I hope the Home Office took on board what was said around the table, particularly from the hauliers there present. The coming years are going to be difficult enough as we make the transition to leave the EU and no doubt industry models will change too, but whatever happens there will still be a logistics sector and we will still need the people to move the goods.
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