CONSUMERS will pay the price unless the Government delivers certainty for the 170,000 EU nationals working in the UK retail trade, it has been claimed.
New research by the British Retail Consortium (BRC), published today, says the lack of certainty over the future “is driving workforce changes that have the potential to impact consumer choice and experience”.
As many as 10,000 of the retail sector’s EU workers are in Scotland.
The People Roadmap paper says more than half of retailers report that their EU staff are concerned about their right to remain in the UK post-Brexit, while 20 per cent said some have already quit their posts.
The BRC said it is now at a “reset moment”, with freedom of movement set to come to an end, and called for solutions based on consumer needs, not political ideology.
It said: “The retail industry is undergoing a transformation, driven by technology and the changing needs of consumers. This is increasing the need for new and different skills.
“For retailers to continue delivering for consumers, the government must recognise the spectrum of skills and experiences that currently contribute to the success of the industry. The knock-on impact of a potential reduction in availability of skills and workers, and higher costs of employment could hit consumers.
“From the service delivered in a store to next-day delivery of an online order, from the latest developments for your mobile phone to the prices of what you buy, it is clear that people from the EU play an important and hugely valuable role.”
David Lonsdale, director of the Scottish Retail Consortium, said: “Six months after the triggering of Article 50 it’s hard to believe we still lack total clarity over the future of the 10,000 EU nationals currently working in the Scottish retail industry. Those workers deserve better.
“In stores, head offices, and log- istics, EU workers make an enormous positive contribution to the choice, price and availability of goods available to Scottish shoppers.
“We want to see early certainty about their future working status in the UK for their sake, but also because it could ultimately affect the choice and availability of goods on shop shelves that Scottish customers have come to expect.
“We also need to ensure that Scotland’s future retail workforce has the people, skills and resources to continue meeting the needs of consumers and grow the industry’s huge con-tribution to the Scottish economy.
“That’s why we want to see a more ambitious approach from the Scottish Government towards the apprenticeship levy. From April Scots retailers started paying £12 million a year in levy fees, but it is far from clear what they are getting in return for this significant extra tax.”
John Hannett, general secretary of shopworkers union USDAW, welcomed the report, saying: “With this report, the BRC is moving the debate on to try to tackle the real issues behind the headlines.
“I am pleased that the report is recommending that EU migrant workers already working in the retail and distribution sectors should be guaranteed their rights to continue to work and live in the UK. Many of these workers, who are members of Usdaw and other trade unions, have settled and made their homes here.
“The BRC says there needs to be a focus on developing the skills of the UK workforce to meet the challenges ahead.
“However, going forward, the sector will continue to need EU workers to come and work in retail, distribution and food manufacturing.
“We need a debate, based on facts and evidence, as to what that post-Brexit retail sector will look like.”
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