While the logistics industry’s labour shortage issue is a problem exacerbated rather than caused by Eastern European migrant workers returning home, UKWA is calling for a review of the proposed immigration caps post-Brexit, says the Association’s CEO, Peter Ward
There can be little doubt that Brexit – and particularly the prospect of a no-deal Brexit – has already had a major impact on the warehousing and logistics sector and is likely to bring more pain for businesses trading with Europe whatever the ultimate outcome.
The logistics sector’s labour shortage has been well documented and the UK Warehousing Association (UKWA) has, for some time, been warning about the impact of Brexit on our industry’s ability to access the workers it needs.
In common with the construction and hospitality industries, the warehousing and logistics business operates on low margins and utilizes low-cost immigrant labour, largely from Eastern Europe and the effects of the so-called Brexodus – and the likely immigration caps post Brexit – will certainly make our situation more challenging than ever this year. This is exacerbated by the fact that the EU deadline of 31st October coincides with peak season as retailers gear up for Black Friday, Cyber Monday and the Christmas period.
So, while the labour shortage issue is a problem exacerbated rather than caused by Eastern European migrant workers returning home, our plea to government is for a review of the proposed immigration caps post-Brexit. The fact is, with the lowest youth unemployment figures in the UK since the 70s, we are forced to look to the EU to supplement our workforce.
But, there is more to this issue than Brexit. Arguably, retraining is key. How can we support those who have lost their jobs in the retail sector to transition to online fulfilment roles, for example? What of robotics and automation – will this provide the solution to the vexed question of labour shortages? The digital world is upon us for sure and those who recognize the opportunity will flourish and grow, but while embracing technology is vital to the survival of businesses operating in this fast-changing industry, there will still be a requirement for people to work with technology. Technology will take the strain of repetitive tasks, improve efficiency, accuracy and productivity, but people will need to step into new roles that require different skills and deliver job satisfaction with higher financial rewards.
Brexit has brought increased pressure to areas already under siege in our sector, but it has also turned a welcome spotlight onto an industry that invisibly keeps the wheels of industry moving. While we can’t predict what lies ahead for the UK, from a UKWA perspective, our hope is that Brexit will prove to be the catalyst for a fresh approach from government, trigger much-needed change and a re-writing of the ‘rule book’ for warehousing and logistics in this new digital world.
Peter ward
UKWA, CEO
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