Labour has called for the Government to adopt a 5-point plan to
tackle supply chain disruption, including establishing a minister
with responsibility for tackling worker and supply shortages, and
working with business and unions to improve terms and conditions
in key sectors.
The party is warning the Government that it must get a grip on
the chaos and disruption hitting British businesses and supply
chains or risk the country’s economic recovery, empty shelves and
consumers being hit in their pockets.
Around a quarter of manufacturing and retail businesses have seen
extra costs due to additional transportation costs, and figures
this week showed that shop prices rose last month.
The supply chain disruption, caused by increased barriers at the
border, worker shortages following the end of the transition
period and long-standing issues around terms and conditions in
key sectors like HGVs, as well as global supply shortages as a
result of the Covid crisis, were completely foreseeable. Yet
having been repeatedly warned by business about looming driver
shortages, the Conservatives dismissed concerns as “crying wolf”.
Labour has slammed the Government's failure to prepare for the
disruption, including their failure to boost employment and raise
standards in key sectors like transport and logistics.
The Government has overseen a chronic weakening of the
foundations of Britain’s skills system and a boom in poor
employment conditions, creating the conditions for the current
crisis.
The impact is being felt across the economy and hitting
consumers, with shops cancelling deliveries because of driver
shortages, running out of goods and issuing stark warnings about
serious Christmas disruption.
Labour is calling for the Government to act urgently with
a clear plan to solve the acute supply chain crisis:
- Appoint a government minister with specific responsibility
for tackling the supply chain crisis and coordinating across
multiple government departments.
- Set up a taskforce to work sector by sector to identify gaps
and recruit into key roles. This should include rapidly expanding
testing for HGV drivers, and part or wholly funding HGV training
drawing on available funding for targeted sectors. The Government
should also support 100,000 new apprentices this financial year
to help boost employment in key sectors.
- Bring together business and unions to address long-term
issues of wages and conditions in key sectors to agree improved
terms and conditions, recognising that the Government’s belief in
a low-wage, insecure labour market is key to the crisis we are
seeing.
- Refer the issue of adding HGV drivers to the Shortage
Occupation List to the Migration Advisory Committee to provide
advice to government to help address the crisis in the
short-term, given warnings from businesses about the risk to
Christmas trade.
- Limit further disruption to supply chains from the planned
introduction of initial food import controls on October 1st by
working to secure an urgent veterinary agreement with the
European Union.
Labour’s Shadow Business Secretary, MP, said:
"The Government must get a grip on the supply chain crisis facing
our economy. While they act as if the problem will solve itself,
businesses are telling government these problems are only going
to grow. The serious disruption and added costs risk harming our
recovery and passing costs to consumers.
“Ministers have a habit of ignoring warnings and shifting the
burden of blame to businesses. But it is their undermining of our
country's skills training system, failure to deliver on their
promise to cut barriers facing businesses and belief in an
insecure labour market with poor terms and conditions that has
created this crisis.
“The long-term problems in the HGV sector will not be solved by
making drivers work longer hours but by training workers and
improving their terms and conditions. What we are seeing across
our economy should be a wake-up call to government that
insecurity and low pay cannot build the high performing economy
we need.
“It’s time for the Prime Minister to take this situation
seriously and appoint a minister to work across government and
come up with a clear plan with businesses and unions to improve
wages and conditions in key sectors. Any responsible government
would act to sort out the problems firms are facing. This is what
Britain’s businesses, workers and consumers have a right to
expect.”
Ends
Notes to Editors
SWAPS info
Government announced £17 million in 2020/2021 to triple the
number of sector-based work academy placements in England. The
Government could partly or wholly fund HGV training including by,
for example, ringfencing funding for targeted sector-based work
academy placements.
https://www.gov.uk/government/publications/budget-2021-documents/budget-2021-html#fn:132
According to the ONS Business insights and
impact on the UK economy - Office for National Statistics
(ons.gov.uk):
- 30% of manufacturing businesses have seen extra costs due to
increased red tape, and 16% of wholesale and retail trade
businesses.
- 28% of manufacturing businesses have seen extra costs due to
additional transportation costs, and 25% of wholesale and retail
trade businesses.
- 40% of all businesses have seen increased paperwork when
importing.
Labour pledges new
opportunities for young people to earn and learn with plan to
create 100,000 apprenticeships - The Labour Party
Shop prices rise amid
driver shortages and Brexit red tape | Inflation | The
Guardian
