3 Accepted

We note the apparent lack of fairness in many contractual arrangements as highlighted by the...

Recommendation
We note the apparent lack of fairness in many contractual arrangements as highlighted by the Minister for Farming, Fisheries and Food. We therefore welcome the Government’s decision to review fairness within the pig supply chain. However, pig farmers continue to experience real and distinctive hardships and need immediate support. Given the potential market failure represented by inherent inequity in sectoral contractual arrangements we call on the Secretary of State to use the powers under the Agriculture Act 2020 to intervene with measures aimed at providing support for pig farmers rather than pork processors. We also call for the Government’s review of fairness in the pig supply chain to be taken forward as a matter of urgency and for the final report to be published before the end of July 2022. (Paragraph 21) Responses to labour shortages
Government Response Summary
The government stated they introduced temporary visa schemes for poultry workers, food-sector HGV drivers, and pork butchers in recognition of the unique circumstances, and do not plan to re-introduce similar temporary visa schemes in the future.
Government Response
Accepted
HM Government Accepted
The Government introduced temporary visa schemes for poultry workers, food-sector HGV drivers, and pork butchers in recognition of the unique circumstances facing the food and farming sector due to global supply chain pressures. We listened to the concerns of the sector and acted to alleviate what was a very tight labour market in the lead up to Christmas 2021. These schemes were in addition to several skilled roles in these sectors, including butchers, already being eligible since January 2021 to apply to come to the UK through the Skilled Worker route as part of the Points Based System. The schemes were delivered as an emergency response to a number of short-term issues in the supply chain in the lead up to Christmas 2021 in the wake of the economy reopening post-pandemic, with Defra and the Home Office working closely to implement the schemes at pace. We utilised the existing framework of the Seasonal Worker route, which is a well-established route and has been subject to previous review, to successfully deliver these measures. There are no plans to undertake a formal lessons learned exercise for the temporary visa schemes. The scheme had a positive impact on food supply. As noted in the committee’s report, the poultry industry was able to access sufficient labour to meet peak Christmas trading demand in 2021 and credited the temporary visa scheme with this outcome. The reasons behind visa quotas not being met are likely to be complex and varied – including a decrease in the number of HGV drivers employed in other countries across the world during the pandemic and negative perceptions linked to pay and conditions. As the independent Migration Advisory Committee (MAC) outlined in their annual report from 2021, it could be that both sectors could do more to attract and retain British workers, particularly those who have not traditionally worked in those sectors, to help fill labour gaps. We have been clear that temporary visas are not a long-term solution to labour shortages, and that businesses must make investments in the UK domestic workforce and automation to reduce their reliance on migrant labour. The Government agrees with the MAC’s conclusions that “employers who are able to offer conditions that suit the greatest number of people are likely to be those who find it easiest to recruit staff.” The Government does not plan to re-introduce similar temporary visa schemes in the future. 4 Labour shortages in the food and farming sector: Government response