UK Christmas Celebrations at Risk due to Labor Shortage and Brexit Woes
McDonald's (MCD) and Nando's are forced to reconsider menu items and close restaurants, respectively, as traditional holiday dishes like turkey and ham might be in short supply for Britons this year. Suppliers warn of further disruptions, potentially impacting festive celebrations after Brexit's full implementation.
The British Poultry Association reports a 10% decrease in national chicken production, with 16% of jobs remaining vacant in the industry. They predict a 20% drop in Christmas turkey production.
Food and beverage industry insiders have raised concerns related to the labor shortage, which has become a Brexit topic of discussion. Supermarkets have also warned of worsening shortages heading towards the crucial holiday shopping season.
"If we lack people, we face issues – this is evident throughout the supply chain," said Richard Griffiths, Chairman of the British Poultry Association.
Unfortunately, the UK labor shortage cannot be addressed immediately due to stricter immigration policies implemented after Brexit. Some companies, such as Tesco, are offering signing bonuses for LGV drivers to attract talent. However, this might not be enough for a labor market with a record number of vacancies and an unemployment rate below 5%.
"The lack of HGV drivers has worsened due to the government removing LGV drivers from the list of qualified workers allowing more immigration," said Richard Walker, CEO of the Icelandic supermarket chain.
Helen Dickinson, Chief Executive of the British Retail Consortium, urged the government to expedite driver license tests, offer temporary EU worker visas, and change financing options for trucker training to address the issue. Griffiths suggested expanding labor programs for seasonal work in agriculture to the meat industry as well.
The UK government announced plans to increase driver license tests, but a government spokesperson added that most solutions will be led by the industry.
Additionally, trade disruptions from Brexit have impacted both retail and hospitality sectors, resulting in a decrease in their respective workforces, as well as the environmental horticulture sector, which is essential for the UK's green agenda.
In summary, while the UK labor shortage is not directly related to specific Christmas food supply issues, the broader economic and trade challenges arising from Brexit likely contribute to this year's festive season challenges.
