It was welcome news, although arguably inevitable, that the government has again formally recognised those who work in the warehouse and logistics sector as ‘essential workers’ as we enter yet another national lockdown.
How could it be otherwise, when last year our industry stepped out from behind the scenes to take a vital role in ensuring that the nation was clothed and fed, delivering goods to people’s doorsteps as all retail outlets but food stores and pharmacies closed. Although those making deliveries were the visible ‘frontline’ as far as the public were concerned, workers in logistics and warehousing businesses across the nation were also busy, ensuring that vital supplies continued to flow, whether PPE for health workers or toilet rolls to restock empty supermarket shelves.
In 2021, logistics workers have become more important than ever as restrictions tighten once again and e-commerce continues to soar. This is a trend unlikely to be reversed. Home delivery has become not just a matter of convenience, but key to keeping the most vulnerable people safe.
Of course, logistics has always been central to keeping UK plc moving, but now it is at a greater cost to the industry. As most businesses close, warehouses remaining in operation must maintain highly COVID-secure workplaces. For many, this represents significant capital investment in terms of equipment, screens, sanitation stations and more, as well as reduced profitability as productivity is hampered by social distancing, split shifts and so on. Despite this, the logistics industry is still being overlooked by government in terms of financial support.
Our other challenge, as ever, is shortage of labour. The problem remains for our industry how to attract sufficient workers to meet the rapidly increasing requirement for online order fulfilment, as the UK’s new immigration policy kicks in. Designed, according to the government, to end ‘reliance on cheap labour from Europe’, the consequent ‘Brexodus’, particularly of Eastern European workers, has hit our sector hard. The impact of the pandemic has further exacerbated the situation, with an estimated 700,000 migrant workers leaving Britain just since March last year.
The problem seems here to stay for the foreseeable future, despite rising unemployment amongst the young in this country and our support of government employment schemes such as ‘Kickstart’. Young people are unwilling to work for the minimum wage and until we address the issue of low margins, we will be unable to shake off our reputation for low pay, which is a key driver for workforce shortages.
Our message to the government is simple. Of course, logistics workers are essential – they always were! Recognition is the first step, but concrete support is required too, both in terms of financial assistance for hard pressed businesses in this sector and an understanding that to continue to deliver, we must have access to the affordable labour we need.
Peter Ward
UKWA, CEO
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