Memorandum submitted by GlaxoSmithKline
(GSK)
1. EXECUTIVE
SUMMARY
As a global multinational, GSK requires a multinational
skilled workforce and actively develops this through transfers
between countries, secondments and training placements. A key
part of this process is our ability to regularly offer people
the opportunity to train in the UK before they can return to their
home country.
The implementation of the new Points Based System
("PBS") and the removal of the Training and Work Experience
(TWES) will prevent GSK offering such training opportunities and
we believe, undermine our ability to attract and use talent in
the way we describe above. We believe the replacement of TWES
with a similar scheme under the PBS could address this issue.
Below we set out the specific issues we have identified
and details of the initiatives we believe will be significantly
impacted by the changes.
2. GSK OVERVIEW
GSK is one of the world's leading research-based
pharmaceutical and health care companies. We develop and manufacture
prescription medicines, vaccines, over-the-counter medicines and
oral care and nutritional health care products. Our headquarters
are in the UK, where we have 23 sites. We employ around 100,000
people, including over 19,000 in the UK.
3. TRAINING INITIATIVES
CURRENTLY OFFERED
BY GSK
The main initiatives that GSK has been operating
are:
1. UK India Education Initiative (UKIERI)
UKIERI aims to substantially improve educational
links between India and the UK, ensuring that in the longer term
both countries become each other's partner of choice in education.
UKIERI was announced by the former Prime Minister Tony Blair during
his visit to India in September 2005, and launched by him in April
2006. Under the initiative, the UK has pledged £12 million
through contributions by DfES, FCO, DTI and the British Council
and the private sector has added £4 million through the 4
corporate champions BAE systems, BP, GSK and Shell to the fund.
The Department of Science and Technology (DST) and the Government
of India have pledged matching funding for science related collaboration
under the initiative.
GSK entered into an agreement in August 2006 with
BC Trading International Ltd (British Council Trading) as a partner
to UKIERI with the aim to support research projects that will
benefit both countries and provide opportunities for staff exchanges,
student secondments and joint PhDs. As part of this initiative,
GSK is offering several placements a year in its laboratories
for outstanding chemistry students from India. This five-year
initiative (now entering year 4) involves offering 12-month placements
in GSK Research and Development chemistry laboratories at Stevenage
and Harlow for Indian chemistry graduates. The graduates are offered
the opportunity as part of integrated, multi-disciplinary teams
contributing to core business, to gain specific and specialist
knowledge and experience within the pharmaceuticals industry using
the skills and knowledge gained during their studies. This scheme
has also been a good basis for training graduates in UK ways of
working and building mutual cultural understanding. Up to 20 placements
can be offered in any one year. The project has bilateral government
support and relationship management provided by the British Council.
The Indian trainees normally start their training in August/September
each year. At the end of their training, they return to India
to work there and use the knowledge and experience gained in the
UK. Some of them are offered positions with GSK in India; others
secure specialist positions with other companies.
2. Singapore Economic Development Board (EDB)
The EDB is a statutory board which attracts
major multi-national companies to Singapore to invest in manufacturing
plants etc. EDB gives funding to "bright"' industries
to invest in building up their "human capital". The
Strategic Attachment and Training ("STRAT") gives funding
to a pool of talent in the biochemical science industry in Singapore.
Over the years, GSK has invested heavily in Singapore and EDB
is very supportive of the Group in many areas especially in helping
GSK to build a talent pool of engineers and chemists for present
and future needs.
Singapore is an important part of the GSK manufacturing
business with a major New Product Introduction (NPI) site, an
antibiotics site, a Research and Development pilot plant for new
products plus a new Vaccines plant which is being built on the
island. The STRAT scheme, and previously the TAP scheme, has been
actively supported by both the EBD and GSK as part of developing
a more internationally minded cadre of skilled employees, the
best of whom go on to be recruited by GSK Singapore. The training
placements in the UK ensure that the trainees have experience
of the technical expertise which makes them more valuable resources
in GSK Singapore. Being able to have these placements in the UK
rather than other countries is crucial as not only it is easier
from a language point of view (all Singaporean trainees have an
excellent command of the English language) but also because GSK
has both its Head Office and important manufacturing and Research
& Development sites in the UK which the trainees can gain
exposure to. Many of the trainees in other companies go to the
US which is supportive of this development programme.
The Singapore government is particularly supportive
of the training scheme and also recognises the importance of foreign
nationals working in their country. As an example we have recently
sent one of the UK graduate scheme members on a rotation to our
NPI site. We also regularly send global assignees to Singapore
(for example, the current Site Director is British as was the
previous incumbent) which is fully supported locally and enables
them to bring back their learnings to the UK. The relationship
between EBD and GSK has proved to be a very successful one throughout
the years, and an increasing number of Singaporean trainees each
year have had the opportunity to benefit from gaining specialist
knowledge and experience within the pharmaceuticals industry in
the UK. The training for Singaporean trainees has always been
designed to last 18 months before the return of the trainees to
Singapore. The majority of the trainees have then been offered
positions with GSK in Singapore.
3. Drug Discovery Placement Opportunity for
Chemistry Postdoctoral Fellows from South Africa
GSK wishes to discover new talent and expand
its expertise in new emerging markets. As a result, it intends
to investigate identifying these talents not only in the EU but
also throughout other countries in the world to maximise business
as well as research and development success. Several countries
have been investigated and many have a pool of talents who would
benefit from training and gaining work experience in the UK. This
further initiative currently and most particularly involves South
African chemistry postdoctoral fellows spending one year in GSK
laboratories (initially at GSK's R&D site in Stevenage) in
a temporary capacity to learn the tools of Drug Discovery, and
is part of our mission to contribute towards laying the groundwork
for a biotech industry in South Africa. It also provides the opportunity
to work alongside chemists from diverse backgrounds and this is
beneficial for both the South African participants and GSK employees.
This project is also consistent with GSK's desire to support the
development of science in emerging economies and markets.
4. Issues identified
As previously mentioned, before the implementation
of PBS, the trainees would have come to the UK under the TWES
arrangements. Under the new system, we have been advised by UKBA
that the Tier 2 (General) and/or Tier 5 government authorised
exchanged categories should be considered for these trainees.
GSK is an A-rated sponsor and in order to meet the Tier 2 (General)
requirements, the trainees will need to score a minimum of 50
points based on their academic qualifications, prospective earnings
and the residence labour market being met. They will also need
to meet the English and maintenance requirements.
Under Tier 5—government authorised exchange
category, individual employers and organisations are not allowed
to sponsor migrants. An overarching body will need to manage the
exchange scheme and will act as a sponsor. The scheme and the
overarching body must have the support of a UK government department.
If these criteria are all met, the overarching body will be able
to assign Certificates of Sponsorship to migrants who meet the
requirements of the scheme.
The effects of these changes result in many
obstacles and impracticalities for GSK in running these schemes.
Indeed, the schemes are actually in jeopardy as there is not an
option at this stage to welcome these trainees either under Tier
2 (General) or Tier 5—government authorised exchange.
We set out below the key issues, which are of
greatest concern to GSK, namely:
1. Advertising to resident workers—Tier
2 (General)
We appreciate the rationale behind the requirement
for employers to advertise jobs and demonstrate that they have
tested the residence labour market. However, this is causing GSK
considerable difficulties and goes against the purpose of the
schemes detailed in this letter, as these have been set up exclusively
to train foreign nationals outside the EU and for these individuals,
once trained, to return to their country of origin to use there
the skills, knowledge and experience gained in the UK. As a global
multinational, GSK requires a multinational skilled workforce
and actively develops this through transfers between countries,
secondments and training placements. The nature of the pharmaceutical
manufacturing, with the development of new products and transfers
of existing products between international sites in a highly regulated
and technically challenging environment, means that skilled staff
should have a deep understanding of the necessary technology and
also a broader understanding of how the manufacturing environment
operates. This enables technical staff, for example, to better
manage complex product transfers from say Singapore to Montrose
or support a new product introduction from R&D into the Jurong
site in Singapore.
The training placements in the UK are a useful way
of building mutual cultural understanding. Not only does this
support the trainee in their understanding of working for a British
company but UK colleagues also become more familiar with working
with other nationalities. As GSK develops its business further
into the developing markets in East Asia and China, Singapore
and Singaporean talents are proving a valuable bridge into these
parts of the world. Furthermore, the Group's experience is that
skilled employees are most mobile when they are young before having
family ties. It therefore makes sense to support international
movement at this point in their careers.
Therefore advertising these positions on the
resident labour market will defeat the purpose of GSK's initiative,
which is to provide training to overseas nationals to enhance
their long term career overseas.
2. Payment of Salary—Tier 2 (General)
Another practical difficulty is the requirement
that all overseas trainees under Tier 2 (General) must be on the
UK payroll and paid directly by the UK employer/sponsor. Under
these initiatives, it would not be feasible for a foreign trainee
to be paid by GSK in the UK and put on the UK payroll when they
arrive in the UK to carry out a short term training and work experience
programme. Under these initiatives, the trainees' salaries are
paid not by GSK in the UK, but through pre-organised foreign sponsorships
and agreements.
3. Points Based System—points scoring—Tier
2 (General)
Another issue is the requirement that in order
to meet the Tier 2 (General) requirements, the trainees must be
paid a minimum salary to score sufficient points to qualify under
this category. Since most of the trainees under GSK's schemes
have salaries being paid through pre-organised foreign sponsorships
and agreements, the grant allocated to each trainee is insufficient
for them to score enough points in the prospective earnings category
under Tier 2 (General).
4. Points Based System—Tier 5 Government
authorised exchange
This avenue has also been investigated and is
proving to date unsuccessful, as potential Tier 5 Sponsors are
reluctant to take the responsibilities of sponsoring individuals.
For instance, in the case of UKIERI, the British
Council has been approached and they have expressed reluctance.
They have obtained a Tier 5 Sponsor Licence under British Council
(IAESTE Programme), but this programme has been suspended until
at least the summer so that the British Council can investigate
how PBS will affect their workflow and how time consuming the
new monitoring responsibilities will be, as well as the implications
the whole system will have on them as a Tier 5 Sponsor. In the
past, IAESTE would only grant permission for work placements for
up to three months. However under Tier 5 and the government authorised
exchange, the Tier 5 Certificate of Sponsorship (CoS) will be
granted for up to 24 months. It is therefore also unclear at this
stage what kind of service IAESTE will offer under the new system.
We understand that this may still be under investigation and under
consideration as it seems to imply a total re-visit of the IAESTE
programme based on the length of Tier 5 CoS under the government
authorised exchange section.
In the absence of Tier 5 sponsors being able
to act as the overarching sponsor, PBS does not provide us with
the ability to bring these trainees to the UK.
5. CONCLUSION
Under TWES, our pool of talent would previously
have been granted permission to undertake the key training posts
we outline above. Unfortunately, the restrictions contained within
the Tier 2 (General) and Tier 5 (Government Authorised Exchange)
categories do not provide a solution for GSK to be able to continue
to offer these training programmes and bring new talents to the
UK. We strongly advocate the replacement of TWES with a similar
scheme under the new PBS to address this issue and would be happy
to work with the Government to explore options.
March 2009
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