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Work, jobs and skills in UK food manufacturing
Dr#Michael#Heasman#
Lecturer#in#Health#and#Wellbeing,#Faculty#of#Health#Studies,#University#of#Bradford#
#Dr#Adrian#Morley#
Research#Fellow,#Hollings#Faculty,#Manchester#Metropolitan#University.##
#
Today…
• Discuss#employment#and#jobs#in#the#UK#food#manufacturing#sector#
• Situate#these#within#wider#food#supply#
• Consider#whether#employment#issues#in#the#food#sector#are#different#from#wider#structural#changes#impacJng#labour#markets#more#generally#
• Look#at#specific#problem#areas#in#food#manufacturing#sector#labour#market#
Common problems/characteristics • GlobalisaJon#and#technology#–#changing#nature#of#jobs#
• Three#trends:##P#High#level#skills#–#variety#of#job#opportuniJes,#higher#wages,#longer#term#career#paths#P#‘Hollowing#out’#in#the#middle#P For#others#increasing#risk#of#geSng#trapped#in#low#pay#work#(+#poor#working#condiJons)#
• UK#has#a#large#number#of#low#pay,#low#skilled#jobs#(compared#to#other#developed#economies)#P#~5m#people/21%#of#all#employees)#
#####################################################################################################################################Source:#Clayton,#N.#et#al#2014;#Wison,#R.#et#al#2014#
EU labour market trends (general)
• Types#of#jobs#changing#–#shia#away#from#lowPskills#towards#high#skill#(highPskill#–#40.6%;#mediumPskill#42.7%;#lowPskill#16.7%)#
• FullPJme,#permanent#contracts#shrunk##
• Some#changes#cyclical#(e.g.#economic)#other#structural#(e.g.#new#technology)#
• Other#issues:#educaJon#levels;#skills#(including#skills#mismatches/rePtraining);#parJcipaJon#in#lifePlong#learning;#overPqualificaJon#of#workers;#involuntary#partPJme#working;#low#number#of#people#in#highPskill#jobs)#
#################################################################################################################################################################Source:#IPPR,#2015#
What impacts a food job?
• Pay#• Job#security#• Progression#(workplace#training,#career#development)#
• Job#quality#(working#condiJons)#• Technologies#• Needs#of#employers/business#–#matching#workers#to#jobs#(food#manufacturing#not#seen#as#career#choice;#skills#misPmatches)#
Industry structure: EU28 – food and drinks manufacturing and processing (FDMP) Source: FoodDrinkEurope, 2015 • Largest#manufacturing#industry#in#EU#–#turnover#€1,244#billion#(2013);##(15%#manufacturing#in#EU28;#automoJve#12%)#
• FDMP#employment:#4.2#million#
• Number#of#companies:#289,000#(2012)##• EU#SMEs#–#49.6%#of#food#and#drink#turnover;#63.3%#of#food#and#drink#employment;#99.1%#of#F&D#companies#
#• Labour#producJvity#in#FDMP#sector#lower#than#most#manufacturing#sectors#
• Average#number#of#people#employed#per#company#=#16#(2012)##
EU FDMP workforce trends
• Growth#in#temporary#contracts#at#the#expense#of#permanent#appointments#P#involuntary##
• Migrant#workers#from#both#inside#and#outside#the#EU#have#become#important#feature#of#the#workforce#in#many#(although#not#all)#EU#countries.#
• 400,000#migrant#workers#in#the#FDMP#sector,#of#which#200,000#are#EU#naJonals#
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Source:!Jassi,!S.!et!al.,!2013!
EU FDMP workforce trends
• The#proporJon#of#migrant#workers#in#the#workforce#rose#from#around#5%#to#nearly#double#this#figure#in#the#course#of#a#decade#
#
• The#FDMP#sector#workforce#has#a#greater#proporJon#of#“precarious#workers”#than#the#economy#as#a#whole#
• Has#greater#numbers#of#employees#in#the#mediumPlow#income#band#(37%#versus#24%)#than#the#all#sector#average#for#the#EU.#
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Source:!Jassi,!S.!et!al.,!2013!
Skills and training in FDMP (EU)
• FDMP#workforce#is#less#wellPqualified#than#the#general#EU#working#populaJon#–#also#reflected#in#UK#
• Weak#training#P#relaJvely#lisle#spent#on#acJvity#likely#to#make#the#organisaJon#more#producJve#
• Recruitment#challenges:#is#linked#to#the#poor#image#of#the#sector#
• As#a#result:#Some#subPsectors#such#as#butchery#are#almost#enJrely#reliant#upon#migrant#labour.##
Jobs in the UK food supply chain (Defra, 2016)
• Total#food#sector#–#3.4m;#or#3.9m#including#agriculture,#fishing#and#selfPemployed#farmers;#14%#of#UK#workforce#
MAIN#SECTORS:#
• Caterers#(restaurants,#cafes#and#canteens)#–#1,658,000#(1,441,000)#• Food#and#Drink#Retailers#–#1,157,000#(1,128,000)#• Food#and#Drink#Wholesalers#–#225,000#(213,000)#
• Food#and#Drink#Manufacturing#–#422,000#(382,000)#
• Farmers#and#Primary#Producers#–#464,000#
Food sector labour market characteristics
• 50%#of#food#sector#jobs#are#partPJme#(compared#to#25%#for#UK#workforce#as#a#whole)#
• Women#large#part#workforce#in#retailing#(56%)#and#nonPresidenJal#catering#(51%);#FDM#–#twoPthirds#employees#male#
• Work#more#‘precarious’#–#zero#hours#contracts,#self#employment#(14%#UK#workforce);#temporary#employment#(precarious#work:#“employment#that#is#uncertain,#unpredictable,#and#risky#from#the#point#of#view#of#the#worker”#(Kalleberg,#2009,#p.2)#
Pay
• Significant#number#of#UK#Minimum#Wage#jobs:#
P#Agriculture#6%;#food#processing#~15%;#hospitality#~25%#
• Moving#from#Minimum#Wage#(£6.50#in#UK#–#from#October#2014)#to#‘Living#Wage’#
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Source:!Buckle,!A.,!2014!
• Not#impossible:#Nestlé#UK#one#of#1st#companies#accredited#as#a#Living#Wages#employer#for#its#UK#workforce#(8000)#June#2014#
Described#as#a#‘milestone!in!the!campaign!to!tackle!in?work!poverty’!
The Living Wage in Food Manufacturing
In#2015,#based#on#data#from#the#Annual#Survey#of#Hours#and#Earnings:#
• 10#–#20%#of#employees#earned#less#than#NaJonal#Living#Wage#(£7.20#p/h)#
• 30P40%#of#employees#earned#less#than#Living#Wage#FoundaJon#rate#(£8.25#p/h)#
• 40P60%#of#employees#earned#less#than#NaJonal#Living#Wage#2020#target#(£9.90#p/h)#
The Living Wage in Food Manufacturing
In#2015,#based#on#data#from#the#Annual#Survey#of#Hours#and#Earnings:#
• 10#–#20%#of#employees#earned#less#than#NaJonal#Living#Wage#(£7.20#p/h)#
• 30P40%#of#employees#earned#less#than#Living#Wage#FoundaJon#rate#(£8.25#p/h)#
• 40P60%#of#employees#earned#less#than#NaJonal#Living#Wage#2020#target#(£9.90#p/h)#
UK FDMP
• UK#FDMP#employees#fell#17%#between#2000P2010#
#
• 8,597#FDMP#enterprises#in#UK;#6,100#micro,#small#and#mediumPsized#(excluding#drinks);#subPsectors#important#–#third#SMEs#manufacturers#of#bakery#products#(others#meat,#drinks,#dairy,#‘various’)#
• 26%#of#workforce#made#up#of#migrants,#predominantly#from#Eastern#Europe##
#
UK Food Manufacturing Employment 2006 to 2014.
Changes in regional employment in UK Food Manufacturing sector
Average Annual Payments for Agency Workers per Business Unit from 2009 to 2013.
Protecting UK’s vulnerable and exploited food workers #• The#Gangmasters#Licensing#Authority#(GLA)#came#into#operaJon#in#April#1st#2005#P#protects#workers#from#exploitaJon#(legislaJon#2004)#
• An#employment#agency,#labour#provider#or#gangmaster#who#provides#workers#for#agriculture,#horJculture,#shellfish#gathering#or#any#associated#processing#and#packaging,#need#a#GLA#license#
• Since#the#seSng#up#of#the#GLA,#2,532#gangmasters#licenses#have#been#issued;#there#are#1,100#current#licenses#
• GLA#covers#sector#400,000#farmer#workers,#500,000#food#packing#and#processing#workers,#10,000#shell#fish#industry#
• NOTE:#GLA#legislaJon#did#not#establish#new#employment#rights#for#workers#contracted#by#a#gangmaster#(e.g.#reduced#working#hours,#sick#pay,#etc)#
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Source:!www.gla.gov.uk!
Tackling criminal activity
• GLA#involved#in#~90#completed#or#onPgoing#criminal#invesJgaJons#
• #GLA#Chief#ExecuJve#Paul#Broadbent#:#“Cases!can!range!from!those!who!pay!to!enter!the!UK!and!become!financially!indebted!to!their!‘master’,!through!to!those!forced!to!work!under!threats!of!physical!or!psychological!violence!and,!in!extreme!cases,!human!trafficking!for!the!purposes!of!forced!labour.”!
• Funding#cut:#£4.7m#2010/11#to#£3.9m#2014/15;#69#staff#
GLA Annual Report 2013-14 (July 2014)
During#2013P14#the#UK#has#seen#a#marked#increase#in#labour#exploitaJon#ranging#from#unlawful#travel#and#
subsistence#schemes#and#withholding#holiday#pay#up#to#and#including#examples#of#human#trafficking,#forced#labour,#benefit#fraud#and#other#crimes#commised#by#organized#criminals#who#have#sought#to#infiltrate#the#
legiJmate#human#resource#supply#chain.#
Meat and Poultry – Equality and Human Rights Commission (2010) • Meat#and#poultry#industry#relies#heavily#on#agencies#to#supply#labour#
• Evidence#agency#workers#are#treated#differently#to#those#employed#directly#in#terms#of#pay#and#condiJons#and#their#treatment#at#work#
• Can#range#from#10%P50%#of#workforce#employed#from#agency#
• Migrant#workers:#Polish#(largest#group),#Lithuanian,#Latvian,#Czech,#Slovakian,#Portuguese##
Meat and Poultry – Equality and Human Rights Commission (2010) • Companies#reported#it#was#difficult#to#asract#BriJsh#workers#to#lowPpaid#meat#processing#jobs#especially#on#an#agency#basis#
• Job#reasons:#adverse#to#handling#meat,#rates#of#pay,#the#working#condiJons#(frozen#products,#low#temperatures),#physical#demands#(intensive#manual#labour,#long#shias)#
• 70%#of#workers#supplied#by#agencies#to#meat#and#poultry#processing#firms#are#migrant#workers#
Workplace problems:
• PrevenJng#toilet#breaks;#physical#abuse;#verbal#abuse;#health#and#safety#breaches;#working#Jme#breaches#(long#hours,#no#days#off);#lack#of#language#skills#
• Companies#use#agencies#because#this#does#not#entail#the#obligaJons#that#come#with#direct#employment#
(But,#it#was#noted#problems#in#meat#sector#were#not#that#different#from#other#nonPfood#sectors#that#make#use#of#lowPpaid,#agency#migrant#labour)###
JRF report: ‘Forced labour’ within UK food industry (2012) Defining#‘forced#labour’#P#the#InternaJonal#Labour#OrganisaJon#(2005,#pp.#20–1)#definiJon,#which#includes:##
• #threat#or#actual#physical#harm#to#the#worker;##
• restricJon#of#movement;##
• debt#bondage;##• withholding#of#wages#or#excessive#deducJons;##• retenJon#of#passport#and#idenJty#documents;#and##
• threat#of#denunciaJon#to#the#authoriJes.##!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Source:!ScoO,!S.!2012!
‘forced labour’ risk factors:
• Being#a#migrant#
• ConcentraJons#of#lowPpaid#and#demanding#work#
• When#(ultra)#work#flexibility#is#required#
• When#job#insecurity#is#chronic#(e.g.#zeroPhour#contracts#in#UK#increased#3Pfold#since#2010,#esJmated#to#affect#up#to#1.4m#people)#
UK recruitment/labour challenges (FDMP) • Demographic#change#(15P24#years#old)#
• Sector#asracJveness#• Lack#of#skills#of#new#entrants#(‘upPskill’#needed)#• Migrant#workers#
• Career#pathways#not#always#clear#• Low#levels#of#training#• Skill#shortage#areas#• Low/uncompeJJve#pay#
Corporate responses: Are these changing? – e.g. McDonald’s • “ConducJng#our#acJviJes#in#a#manner#that#respects#human#rights#as#set#out#in#the#United#NaJons#Universal#DeclaraJon#of#Human#Rights#
• TreaJng#employees#with#fairness,#respect#and#dignity#• Ensuring#employees#have#the#right#to#work#in#a#place#that#is#free#from#harassment,#inJmidaJon#or#abuse,#sexual#or#otherwise,#or#acts#or#threats#of#physical#violence#
• Embracing#the#diversity#of#employees,#Franchisees,#customers#and#suppliers#• Providing#equal#treatment#and#equal#employment#opportunity#• Providing#a#safe,#producJve#and#healthful#working#environment#• Striving#to#work#with#suppliers#that#are#commised#to#our#universal#principles#of#doing#business#in#a#responsible#and#ethical#manner”#
#############Source:!McDonald’s!Corporate!Social!Responsibility!and!Sustainability!Report!2012?2013.!(2014,!p.79)!
Discussion points • Structural#factors#are#important:#hyper#compeJJon/globalisaJon/oligopolisJc#control#
P##e.g.#supermarkets#or#large#corporaJons#taking#greater#responsibility#for#improving#poor#pracJce#in#supply#chains#(supermarkets#buy#80%#of#meat#products#from#the#sector)#• Beser#resourcing#for#oversight#and#enforcement#• UK#has#a#wellPdeveloped#workplace#and#employment#policy/regulatory#infrastructure#–#how#could#this#be#beser#coPordinated/integrated#
• Are#specific#regional#and/or#subPsector#strategies#needed?#• Improving#employee#relaJons#governance#(how#to#rePshia#balance#of#power?)#
Business challenges
• Changing#working#pracJces#and#management#techniques#
• Companies#need#to#invest#in#people#to#raise#labour#producJvity#
• How#are#rewards#distributed?#
• Skills#and#training?#(focus#in#literature#on#skills#needs)#
Summary: UK food sector jobs
Food#sector#exhibits#wider#labour#market#trends#but#in#some#areas#more#acutely:#
• Rise#in#temporary#contracts#• Use#of#migrant#labour#• Use#of#agencies#• Higher#proporJons#of#lowPpaid#workers##• lowPskill/limited#training#• Impact#of#corporate#power#and#control#over#supply#chains#
Food manufacturing: challenges
#What#is#a#decent#job?#
Job#quality?#ProducJvity#and#compeJJveness?#
#
