Select Committee on Economic Affairs Minutes of Evidence


Memorandum by the Migrants' Rights Network

1.  INTRODUCTION AND SUMMARY OF SUBMISSION

  1.1  The Migrants' Rights Network (MRN) has been in existence since the summer of 2006. Its objectives are to support migrant communities by assisting in the development of networks of groups supporting migrant rights across the country, and to strengthen the voice migrant communities within that structure.

  1.2  This early phase of our work has involved contact with over one thousand organisations working with migrant communities across the UK, developing a continuing discussion about the issues they are working on, and considering strategies aimed at strengthening migrant voice.

  1.3  The most useful contribution we can make to the Committee's current inquiry at this point is to set out our understanding of the economic impact of migration that arise from current procedures for managing migration as they fall on migrants themselves. We feel that there should be greater awareness of the impact of current policies, which often work to transfer the cost of the management of migration from society in general and to place a disproportionate part onto migrants.

  1.4  A consequence of requiring migrant to pay a heavier cost for their participation in migration is an increase in their vulnerability to exploitative conditions in many parts of the UK labour market. More dangerous still has been the tendency for these exploitative conditions to become structured into the basic working practices of the sectors of employment where migrants are concentrated, and for this to become an enduring feature of the relationship between labour and capital in those areas.

  1.5  In the following paragraphs we sketch out the component parts of the new system of migration management which feature as the main determinants of the limitations on the options available to migrants. These are:

    —    Employment options in a relatively limited range of sectors, with agriculture and food processing, construction, hospitality, health and personal care, and domestic work being typical.

    —    The role of agencies and gangmasters in managing the relations between workers and employers.

    —    The undervaluation of the individual characteristics of the workers (qualifications, formal and "soft" skills, etc) and the imposition of the presumption that, because of their nationality, work of a particular type will be most suitable to them.

    —    A rising cost of entry into and participation in migration, associated with the payment of agents' fees, accommodation and transportation deductions from wages, and, for non-EEA migrants, of work and resident permit fees, producing dependency on regular and constant work, often at the lowest wages rates obtainable in the sector.

    —    The underpinning of these tendencies by government policies which seek to organise migration to maximise benefits in the short term to UK employers, and at the expense of other longer-term interests, including the wider community and of migrants themselves.

2.  THE CONCENTRATION OF MIGRANTS IN LIMITED SECTORS OF THE ECONOMY

  2.1  The MRN's assessment of current patterns of migration, based on information communicated through out network, is that a much higher proportion is directed to regions outside South East England, and to smaller cities and towns, that has been the case with previous inward movements. The driving force for this development appears to be the increased significance of agriculture and food production and processing as employers of migrant worker. Additional factors include the replacement of native workers who have migrated from medium and small towns to take up employment opportunities in more prosperous regions, living behind unfilled vacancies in sectors such as public transport and other public services. The building sector, a long-standing employer of migrant labour, has also benefited from a prolonged period of booming activity, creating demand for workers in both new construction and home maintenance and repair. Another sector on which we received reports is residential care, increasingly located in provincial and rural districts where skilled and experienced carers are in short supply.

  2.2  Drawing on discussions held with migrants working in agriculture, the view has been put to use that the growing significance of migrants is associated with structural changes in the sector, rather than the exercise of individual choice. (Anderson, Ruhs, Rogaly and Spencer, 2006). These structural changes include:

    —    The concentration and integration of the UK food market through the influence of a few powerful supermarkets. Consequently the demand for fresh, cheap and convenient food sold by supermarkets has contributed to the volume of produce required from horticultural producers in the UK.

    —    The response of producers to an increased demand varies and includes; the use of technologies that can extend the growing season, the importing of produce from abroad and the processing of produce sourced from local growers. Together with an increase in volume, fresh fruit, vegetables and ornamentals supplied by producers are subject to quality control and labour intensive processes that give additional value to the product. This is compounded by the daily fluctuation in orders from supermarkets resulting from the "just in time" delivery policies of supermarkets. The processing and quality requirements and the just in time delivery policies contribute to the demand for labour providers, as greater numbers of workers are needed and at short notice. As a result there is a sustained demand for temporary workers in horticulture with producers expressing a readiness towards employing migrants.

    —    An interesting feature of the horticultural and agricultural sectors is the diversity of producers. For some producers production is a "way of life" rather than a "business" whereas clearly for some producers horticulture is a market driven enterprise in which research and development are key to commercial success. Financial considerations and the scale of production may also influence decisions by producers regarding the level of investment and necessity of mechanisation of particularly tasks in horticulture. That said, increasing standards of quality require attention to detail that can only be offered by the presence of workers. It is clear however that work migrants are critical to the UK horticultural sector and therefore their contribution and presence should be felt to be more than reliant but critical as they underpin the sector.

    —    Horticultural employers prefer migrant workers because levels of productivity are often higher compared to UK national workers. One major horticultural producer estimates migrants productivity to be at least 30% higher than that of UK national workers.

3.  THE ROLE OF AGENCIES AND LABOUR PROVIDERS IN STRUCTURING MIGRANT EMPLOYMENT

  3.1  The task of filling of vacancies in the sectors where migrants are concentrated is amenable to the use of recruitment agencies of various kinds. These organisations will take on contracts to provide given numbers of workers on the basis of set terms and conditions of employment. They will look for recruitment opportunities which maximise efficiency, and this is typically provided by operations which focus efforts on bring workers from abroad into migration. The importance of recruitment agencies is notable in all the sectors where migrants are concentrated, including agriculture and food processing, public transport, public services and residential care.

  3.2  The character of the recruitment operation is itself a factor determining the shape and content of migration and its possibilities for development. This is particularly marked in the horticultural sector.

  3.3  Studies based on other European countries suggest that agencies play a critical role in managing the differing expectations of employers in sectors where demand fluctuates on a seasonable basis, or where it various according to peaks and troughs on weekly or daily bases. (Anderson and Wadensjo, 2004) In markets dominated by jobs of this kind, agencies can manage some of the disadvantages of part-time and temporary employment by merging different part-time jobs into the equivalent of a full-time job.

  3.4  Agencies also reduce the cost of recruitment by making most effective use of advertising and interviewing resources. This is particularly important when the jobs to be filled are part-time or short-term. They also manage the difficulties that might arise for employers whose business requires them to reduce or chance the composition of their workforce at short notice; a situation which can generate conflicts for employers in terms of employment law and collective agreements. Recruitment through agencies can also reduce other costs for employers, such as national insurance, parental leave, and pensions contributions.

  3.5  The strong relationship between agencies and particular sectors of employment means that migrants tend to be over-represented in areas of work characterised by short-term, casual and seasonal employment. The disadvantages associated with long-term employment in these sectors increasingly features as structural impediments to social mobility for the migrant component of the labour force. Migrant workers become cemented into areas of employment with few options for career development, the enhancement of existing, or the acquisition of new skills.

  3.6  The MRN believes that policy-makers should be more alert to the need break the linkage between agency-dominated sectors and long-term disadvantage to deal with the danger that the current generation of migrant workers being transformed into the next generation of disadvantaged ethicised minorities.

4.  THE UNDERVALUING OF MIGRANT SKILLS AND INSTITUTIONAL DISCRIMINATION

  4.1  The tendency for migrant skills to be undervalued is most clearly expressed for people whose level of English is regarded as inadequate for the type of qualification for a career relevant to the skill or qualification in question. The remedy is for the level of English to be improved, and many migrants are very clear that they wish to undertake courses where they can do this. However, the nature of the employment which they are in the meantime required to undertake, involving shift-working and long hours, severely limits these options. In addition the concentration of migrants into workforces where English is not likely to be spoke, or spoken fluently, will mean that many will succumb to the natural tendency to seek the company of co-nationals, or others whose language they can speak.

  4.2  It is likely that migrants will always be disadvantaged in obtaining recognition of their skills and qualifications at the point of arrival in a new country. But it should not be considered an insurmountable difficulty to put in place reception procedures which identify the labour market integration needs of new arrivals, including their needs for English courses, to ensure that they are able to perform at the level of their skills and qualifications. With advice about integration needs available it could be hoped that the worst case scenario of institutional discrimination against migrants at the level of the labour market might be avoided and marked differences between the career paths of similarly skilled workers eliminated.

  4.3  The MRN is concerned that the tendencies towards institutional discrimination, primarily driven by the prevalence of casual employment conditions in the migrant employing sectors, and coupled with the use of agency recruitment and under-valuation of skills and qualifications, is also reinforced by aspects of official immigration policy and the immigration control regime. The Government has justified its plans to end or change the basis for the operation of immigration procedures for non-work permit migration on its believe that low skill vacancies can be met by recruiting workers from the EU accession states. There is a real danger that in taking this approach the authorities are creating a system of entry which limits options for work outside the low skill sectors and which, when combined with the structural character of migrant labour markets, generates further barriers to social mobility for migrants.

  4.4  In our view it is not enough for the government to say that—with the exception of Bulgarians and Romanians—no regulatory barrier to work outside the low skill sector is being created, and that all other EEA nationals will be free to take whatever employment for which they are qualified. The experience of post-war Commonwealth migration shows that formal freedoms to work in better-paid and more prestigious employment can be limited to a very large extent by structural features of labour markets which make an association between ethnicity and job opportunities, which then become very difficult to change in the years that follow. There are strong reasons to be concerned that similar forms of institutional discrimination are being generated in migration management procedures today which could have the same long-term consequences.

5.  THE RISING COST OF ENTRY INTO MIGRATION AND ITS CONSEQUENCES

  5.1  A further aspect of migration management which produces an economic impact on migrant concerns the rising cost of entry into labour migration procedures. Whilst these have been reduced for nationals of the EU25, they are burdensome for other migrants controlled by the Immigration Acts. Visa fees for migrant workers, currently set at £200 for most categories, are not the biggest expense incurred. The VAF2 visa application form is 14 pages long, lists nearly 100 questions, and can require around 20 items of supporting evidence to be adduced in support. Very few prospective migrants will be confident about their ability to fill in these forms without the assistance of people who purport to be experts in the field of UK immigration law and policy, thereby incurring additional costs which typically rise from the £500 to £1,000 mark. The requirement to have an employer to sponsor most categories of labour migrant will usually mean obtaining the services of a gangmaster or other labour providing agent, with the unscrupulous charging additional fees to the workers seeking employment. The net effect of these measures is to generate costs of around £1,500-£2,000 for permits which might only permit period of employment of one year or less. This is a very heavy expense which for many migrants can only be borne by taking out loans at high rates of interest, thus generating more costs.

  5.2  Those familiar with migrant communities with a high proportion of undocumented workers in their ranks frequently cite the burden of indebtedness as a reason why individuals will overstay their periods of leave to reside and to seek employment which are forbidden to take by their immigration status. In our view it is no accident that the acknowledged rise in the numbers of undocumented migrants in the UK in recent years has come at the same time as the roll out of managed migration, with its associated increase costs of entry into the labour market.

  5.3  Though this has not been considered by government, we feel that a contribution to the reduction of overstaying and working in breach of conditions could be usefully made by reducing the current level of visa fees, simplifying visa application procedures with briefer and more easily comprehendible forms, and the ending of the requirement for employer sponsorship for all categories of worker where prompt entry into paid employment can be safely assumed. The consequent reduction in the cost of economic migration as it falls on the migrant can be expected lower the need to resort to overstaying and work without permission, with the burden of indebtedness having been greatly reduced by these measures.

6.  CONCLUSIONS: THE NEED FOR A BETTER BALANCE BETWEEN BRITISH INTEREST AND MIGRANT RIGHTS

  6.1  From the standpoint of migrants, the system which prevails in the UK too often looks like a mechanism for displacing a high proportion of the costs associated with the management of migration onto the migrants themselves, whilst wider British society appropriates to itself most of the benefits. The commitment on the part of the government to continual overhaul of immigration procedures has the effect of increasing uncertainty and inclining more and more migrants to the view that if they are to obtain any benefit from work in the UK, it will be because the rules and regulations are bent, if not actually broken, and the immigration authorities dealt with as a unsympathetic and hostile intrusion into their lives.

  6.2  The most pressing need for the period ahead is an engagement between the public authorities and employers in the sectors of the economy where migrants are concentrated with the purpose of ensuring that:

    —    The special needs of migrants are properly provided for in the context of work, in particularly for language training and recognition of qualifications and skills; and

    —    Current patterns of migration are not structured into rigid, unchangeable destinies which confine migrants to low paid and low prestige sectors of employment.

  6.3  We are concerned that the government frequently presents its policies as dealing exclusively with the benefits that Britain can get from immigration. In reality this has means operating procedures designed to deliver low cost workers on ultra-flexible contracts to British employers, without proper thought as to the consequences of this approach for wider issues and concerns. The MRN believes that some steps will be taken to redress this situation if assessments of the economic impacts of migration take its economic impact on migrants themselves more fully into account.

5 November 2007


 
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