Memorandum by the Confederation of British
Industry
1. The CBI is pleased to respond to the
Committee's request for evidence on community cohesion and the
impact of migration. In our response we have focussed on employment
issues, where the CBI has a unique insight. Issues such as the
impact on public services and on regional policies are clearly
also important—but are better addressed by relevant experts.
2. CBI members were broadly supportive of
the Commission on Integration and Cohesion's report "Our
Shared Future". Employers are already addressing many of
the key issues raised in the report, but it is important to recognise
that a one-size-fits-all solution for all employers is not appropriate.
An additional period of leave, for instance, would have limited
benefits, and come at a high price for firms, especially SMEs.
The CBI has taken an approach of good practice dissemination among
employers as the best way to foster workplace policies that are
beneficial to integration, but which businesses can adapt to their
own unique situation. The CBI has already worked with DIUS and
the TUC in the production of a good practice guide on English
for Speakers of Other Languages (ESOL), and we are currently working
with the TUC to produce a Diversity Guide for employers.
3. In this response we focus on three key
areas:
— employment is a key tool for integration;
— migration policy should balance integration
with the needs of the economy; and
— employers are helping to promote
integration by addressing English language skills and equality
in the workplace.
EMPLOYMENT IS
A KEY
TOOL FOR
INTEGRATION
4. The workplace is a key area in which
the integration of migrants into UK society take place. It provides
both a platform to develop language skills informally and formally—one
of the most fundamental drivers of integration—and an environment
where migrant and non-migrant workers meet, ensuring interaction
in diverse groups, reducing the potential for a divided community.
5. Evidence from the Labour Force Survey
(LFS) suggests that, for many migrant groups, high levels of employment
are already a reality. For example, the largest group of migrants
in the last decade—by country of birth—are from Poland;
they have an employment rate of 85%, compared to 78% from the
UK-born population. The CBI believes that a high level of employment
amongst migrant groups provides three key benefits: firstly, it
helps migrant workers to integrate into society through their
workplace interactions; secondly, it counters the perception that
migrant groups have moved to the UK to take advantage of the welfare
system; and thirdly, it means that migrant workers are making
a contribution to the Exchequer.
6. Over time, the power of employment as
a force for integration can be seen in the career development
and increased earnings of migrants as they adapt to life in the
UK and succeed with their careers. Many migrants initially take
easier-to-find, lower-skilled roles—perhaps in order to
improve their English. Over time these workers integrate and take
jobs that more fully utilise their skills and growing comfort
in UK society.[25]
MIGRATION POLICY
SHOULD BALANCE
INTEGRATION WITH
THE NEEDS
OF THE
ECONOMY
7. Employers in the UK have had a greater
need of migrant workers over the past few years; 60 quarters of
continuous growth have created some capacity constraints in the
economy—at both high and low skill levels. Access to migrant
labour, which can help to address these shortages, has been a
key part of the flexible labour market strategy that allows the
UK to compete in the global economy.
8. Employers recognise, however, that the
integration of these migrant groups into society is also vital,
and that this means that inward flows need to be managed. The
CBI is supportive of the principle of the free movement of workers,
but we have supported the Government's temporary restrictions
on migrants from Bulgaria and Romania, for instance, as it was
clear that a longer "pause for breath" after 2004 was
needed. For the same reason we understand the current suspension
of Tier 3 (unskilled workers) of the new Points Based System.
9. The UK's record on workplace integration
is good, but this should not prevent us from ensuring that we
properly protect those migrants who might be vulnerable to not
having their employment rights respected. This should take the
form of targeted education and enforcement—not further new
law. Information is now being made available in the newer EU states
in the language of migrant workers to explain employment rights
before workers enter the UK; for example this guidance spells
out the level of the National Minimum Wage (NMW) and the maximum
that can be deducted for accommodation. The measures in the current
Employment Bill on improving enforcement of Employment Agency
Standards Inspectorate and the NMW will also help.
10. In order that the balance of economic
need and integration can be maintained, more must be done to improve
the quality of the data we have for migration. While large improvements
have been made in the quality of the available data—starting
from a very low base—more needs to be done to build the
public's trust, and develop a sound base for policy making. The
development of the E-borders scheme is a very important in step
in this direction, but is not forecast to be "live"
until 2013. We agreed, therefore, with the proposal in "Our
Shared Future" that ONS should "reinvigorate their
work on co-ordinating migration statistics at a national level".
11. For the UK-born workforce, we must work
to ensure that no-one feels "left behind" by the labour
market; migration can provide a short term solution by filling
shortages, but in the longer term the sustainable solution for
business and society is to improve employment and skills levels
in all parts of society—in particular, by addressing the
issue of economic inactivity. The Freud report laid out a coherent,
integrated strategy to address this through delivery of targeted
support, which the CBI agreed with. The CBI has been supportive
of the Government's policies—such as Train to Gain and the
Skills Pledge—to increase skills levels as part of this
process, but employability is also about attitude—employers
want people who want to work and targeted support should deliver
this.
EMPLOYERS ARE
HELPING TO
PROMOTE INTEGRATION
BY ADDRESSING
ENGLISH LANGUAGE
SKILLS AND
EQUALITY IN
THE WORK
PLACE
12. English language is a vital driver of
social integration as well as labour market integration. While
many migrant workers from the EU accession states arrive with
excellent English language skills, many migrants need to work
on their English language skills when they arrive. Employers are
playing their part on language training and are also committed
to promoting community integration. Many firms provide English
for their staff—over a quarter (28%) provide English language
training to their employees and/or signpost them to relevant courses
in the local area. It is also encouraging that one in six (16%)
employers is now also providing practical information about life
in the UK to help ease the process of integration.
13. The Department for Innovation Universities
and Skills has been working to develop a new English for Speakers
of Other Languages (ESOL) for Work qualification. This is a new
bite-sized, work-relevant programme which will be of benefit to
employers and their employees—the CBI has welcomed this.
The CBI and TUC have produced, with DIUS support, a good practice
guide for employers on ESOL. This highlights the benefits of investing
in English language skills to employees, as the examples below
demonstrate. It also provides clear information and guidance to
employers in how best to respond to language challenges—and
where to access the government support that is available. This
support must be available in a clear and concise language, setting
forth the aims of the scheme and funding arrangements, from a
clearly recognisable, easy-to-access source. This will be particularly
important for smaller firms who do not use migrant workers on
a regular basis.
14. There is a wealth of robust evidence
showing that equal opportunities helps businesses draw upon the
one resource that in today's knowledge economy gives sustainable
competitive advantage—the skills, understanding and experience
of people. Discrimination in employment, where ever it exists,
squanders effort, ideas and ultimately, business sales. It leads
to wasted potential, wasted labour and wasted revenues; the business
case underlines the moral imperative. In June 2008, the CBI will
publish—with the TUC—a report on equality and diversity
in the workplace. This report will include case studies demonstrating
employers' activities in promoting equality and diversity at work,
and top tips for employers to help them develop their equality
policies.
EXAMPLES OF
EMPLOYER SUPPORT
FOR INTEGRATION
Cavaghan & Gray
Cavaghan & Gray are seafood manufacturers
with 1,000 staff based in the North West, who have developed a
comprehensive strategy to support migrant workers. The firm offers
ESOL courses for employees before or after shifts for 2.5 hours
a week for nine weeks. New workers are assigned a buddy for the
first few weeks to ease their integration into the UK and the
company. Their buddy speaks their language and supports them through
the health and safety training. As a further support for new migrant
workers, all signage and paperwork, including the company handbook,
is multilingual and the structured induction is currently held
in a range of languages. The company has also set up a Diversity
Forum expressly to monitor the integration of migrant workers,
and to identify any future needs they may have. Employees from
every nationality and community are encouraged to contribute to
the firm's quarterly magazine as a way of promoting cohesion.
Staff morale and community cohesion within the firm have improved
substantially as a result.
First Group, Bus Division and English language
training
First Group is the largest surface passenger
transport company in the UK with a turnover of £3 billin.
The Bus Division's European Recruitment Programme has recruited
over 1,100 employees from Europe. For three months prior to employment,
applicants receive free English language training based on everyday
language, relevant for the workplace and linked with health and
safety. Applicants are only recruited once they are considered
to be able to communicate in English. Once in the UK, employees
are encouraged to continue their ESOL training, usually in their
own time, but through a local provider or with the support of
a Union Learning Representative in an onsite lifelong learning
centre. First Group, Bus Division also helps arrange bank accounts
for new employees and supports them in their search for rented
accommodation in the first sixth months after moving to the UK.
Such an approach has delivered real bottom line benefits—reducing
staff turnover and increasing profitability.
25 Dora Iakova "The Macroeconomic Effects of Migration
from the New European Union Member States to the United Kingdom"
March 2007. Back
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