Select Committee on Economic Affairs Written Evidence


Memorandum by FirstGroup plc

1.  INTRODUCTION

  FirstGroup has prepared this document in response to the "Call for Evidence" paper issued on 16 July 2007. As an organisation we have not studied or evaluated the larger impact of immigration on the UK economy, therefore, will not be able to comment on many of the points detailed for consideration.

  We can provide comment and detail on the impact within First UK Bus.

2.  BACKGROUND

  First UK Bus has been involved in the employment of migrant workers as part of the normal recruitment process for many years. In 2003, however, we found ourselves with a significant shortage of around 800 drivers in the UK and despite many local recruitment activities we were having ongoing difficulty filling these vacancies. At this point we undertook a project investigating the possibility of recruitment from within the expanding European Union.

  In May 2004, through various agencies set up for this purpose, we began deploying drivers from the EU into the UK. As the project evolved First UK Bus took over the recruitment process with a recruitment centre opened up specifically in Warsaw dealing with interviews, language training, driver assessments and checking of all documents such as references, driving licences, and criminal record checks. We felt it important to take over and manage the process to ensure fairness and consistency in migrant worker recruitment.

  The process has further expanded to fill further vacancies such as cleaners and skilled engineers.

3.  ECONOMIC IMPACT

  3.1  In many parts of the UK, First UK Bus was facing serious issues in providing the required services within the local communities due to lack of drivers and, more recently, skilled engineers. Recruitment campaigns and working with Job Centre Plus were not providing the candidates required to fill the vacancies. If we had not ventured outside the UK for workers we would have been faced with the prospect of reducing the services provided for our passengers.

  The point has been raised that it may be the case that in some areas low skilled workers are facing more competition for jobs due to migrant workers, but within First UK Bus we have depended upon the migrant workforce to fill our vacancies and expand the business. We continue to recruit within the UK and are active in partnership with Job Centre Plus as well as in direct advertising.

  3.2  All of our recruits are employed on the same terms and conditions at each location irrespective of origin, although salaries may vary between geographical locations reflecting market rates for labour. This consistent approach ensures that there is no impact on the over all wage rates being paid in our industry.

  3.3  All of the EU recruits employed through our recruitment process are supported by our welfare team who help them settle into the local community initially in rented accommodation. This is sourced for them for immediate entry on arrival to the UK. Once in the UK they pay taxes, become involved in the local community, contribute to the local economy and utilise services such as healthcare and schools as appropriate.

  To ensure a balance of input (economic) and resource requirements (housing, healthcare, schools, benefits) it is vital that immigration is legal and monitored.

4.  PROFILE OF OUR MIGRANT WORKERS

  The Information we can provide for Migrant workers deployed into the business can only account for those tracked through our own recruitment process. For those who have settled in the UK independently who apply and become employed with us through the day to day recruitment processes we have little statistical information.

Numbers
1,400 people
Citizenship
90% Polish, 10% made up of other EU countries
Age profile
20-25
  8%
26-30
23%
31-35
15%
36-40
25%
41-45
27%
45-62
  2%
Sex
Male
97%
Female
  3%
Marital status
Single
26%
Married
74%
Family joining   
In 1st year
30%

5.  FUTURE REQUIREMENTS

  We are currently filling the majority of vacancies with local and EU recruits, however within the next 12 months we are predicting that we will need to have alternative resources of labour opened up to us. The restrictions on employing Bulgarian and Rumanian nationals as bus drive will have an impact on our ability to fulfil our vacancies in the future.

6.  OUTSTANDING ISSUES

  For First UK Bus there are currently two main issues:

    —  The number of recruits available from the EU States able to work freely in the UK are reducing which will impact on our ability to fill many of our vacancies in the next 12 months.

    —  The ability to check documentation of migrant workers who are not recruited in their country of origin (out-with our recruitment process) is limited especially with our responsibility to provide the public with reliable and safe bus drivers (references, licences and criminal reference checks via the CRB)

7.  SUMMARY

  From the direct experiences of First UK Bus, immigration has been an important tool in filling a vital gap in our labour force. There has been and still is a shortage of both skilled and unskilled workers in the transportation industry.

  It is vital to maintain the supply of labour for the sustainability of a cost effective public transport industry. We are not displacing local labour as we will always recruit locally in the first instance and only look outside of the UK when we are sure that we cannot maintain our establishment from UK recruitment sources.

  In our experience, immigration has had a positive impact on the economic stability and growth of our business and provided a community service to many areas.

28 September 2007



 
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