Managing Migration: Points-Based System - Home Affairs Committee Contents


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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