lorries

The shortage of drivers could have a “devastating” effect on the food industry’s “just in time economy” and make next-day deliveries “a thing of the past”

Food industry leaders are to hold crisis talks with logistics bosses this week amid fears deliveries could grind to a halt because of an exodus of migrant workers sparked by Brexit.

The Grocer has learnt the Food and Drink Federation (FDF) is to meet with the Freight Transport Association (FTA) on Friday to discuss emergency contingency plans, with warnings the shortage of drivers could have a “devastating” effect on the food industry’s “just in time economy” and make next-day deliveries “a thing of the past”.

The meeting comes as trade bodies expressed dismay at the findings of a report by government experts this week, which recommended lower-skilled workers should not get work permits to come to the UK after Brexit.

The report by the Migration Advisory Committee (MAC) comes as the FDF warned a raft of industry sectors were already being hit by worker shortages because of uncertainty over EU workers’ futures.

It said picking and packing operations as well as the hospitality sector were also being hit but the shortage of drivers was having the most profound impact.

“Logistics companies are seeing a slowdown of workers coming to the UK,” said Angela Coleshill, FDF competitiveness director. “Logistics and transport organisation are very reliant on EU workers and food & drink in particular has been hit because of the high number of vehicles it employs.

“A shortage of drivers is a long-term problem facing the industry but it’s been brought into even sharper focus because of Brexit.”

The MAC report this week recommended high-skilled workers from the EU should not get preferential treatment compared to high-skilled workers form outside the EU after Brexit.

It also called for the cap on the number of high-skilled migrants coming to the UK to be scrapped but said EU workers should be subject to the same visa rules as other migrants.

Under the current system, workers from the European Economic Area (EEA) can travel and work without the need for a visa.

The FTA said this week there were already 52,000 vacancies for HGV drivers nationwide, with the overall logistics sector employing 43,000 HGV drivers, 113,000 warehouse workers and 22,000 van drivers from the EEA.

“The MAC report totally fails to recognise, and actively diminishes, the role of lower-skilled migrants within the UK’s economy, which is hugely disappointing from a logistics point of view,” said FTA head of skills Sally Gilson.

“The job roles covered by these workers are often based in areas of low unemployment where competition for workers is already high, so Britain’s supply chain could easily be at risk if they are forced to return to their home countries.

“Yes, highly skilled workers are valuable to the economy, but so too are those whose work keeps us able to operate at home and at work, 24 hours a day. Academic achievement is not the only measure for value which should be applied to the UK workforce - everyone has their role to play in keeping the country moving and solvent.

“Losing the services of these vital EU workers after Brexit would be devastating to the nation’s ‘just in time’ economy - and next-day deliveries would soon be a thing of the past.”

FDF chief executive Ian Wright added: “The proposals in the MAC report fail to suggest solutions that would ensure the UK’s food & drink manufacturing industry would continue to have access to EU workers across the full range of skill levels.”

“EEA nationals play an invaluable role in the retail industry and its supply chains,” said BRC chief executive Helen Dickinson.

“The retail industry accepts that free movement from the EU is coming to an end but tightly restricting the migration system would have a negative impact on consumers.

A quick inspection of any warehouse, food factory or city centre store will reveal how vital EU migrant workers are in serving British consumers, and that it is not only detrimental to agriculture to restrict access to EEA nationals.

“Failing to account for that in a future immigration system will have a profound effect on British retail.”