Industry calls for National Skills Task Force as redundancies loom

Latest News Fri, May 29, 2020 1:20 PM

Britain’s manufacturers are calling for the establishment of a National Skills Task Force as companies are bracing themselves to have to make substantial redundancies as the rate of decline in orders accelerates and pessimism about a return to normal trading within the next year has grown according to a new survey.

In response, Make UK is calling for the establishment of a Task Force which would have the objective of retaining key skills within industry by re-deploying employees who have lost their jobs to other companies and enabling them to be re-trained. A smaller such scheme was set up after the Financial Crisis but Make UK believes there is now a case to establish a much bigger scale project on a national basis.

The survey also comes ahead of an expected announcement by the Chancellor of the Exchequer on plans to gradually unwind the Job Retention Scheme and a requirement for employers to make an increased contribution to the salaries of furloughed staff. In response, Make UK is urging the Chancellor to provide employers with as much clarity and certainty as possible to enable them to plan any restructuring, together with increased flexibility in the scheme to allow for part time working two days a week.

“There is no disguising the fact these figures make for awful reading with the impact on jobs and livelihoods across the UK. Industry and Government must now leave no stone unturned to retain as many key skills as possible within the sector to ensure it is in a position to effectively recover when growth eventually returns, which at some point it will,” said Stephen Phipson Make UK Chief Executive.

“As part of this Government should establish a National Skills Task Force with the aim of retaining and re-deploying as much talent within the sector as possible. This will help ensure that companies have the necessary skills and capacity to be quick out of the blocks for any upturn in demand.

“In addition, the Job Retention Scheme has been very effective in allowing employers to retain as many of their staff as possible. But, industry accepts that it cannot continue indefinitely and will understand the plans to reduce the cost to the taxpayer and ask companies to make a greater contribution.

“In doing so, however, the Chancellor should provide as much clarity and certainty for companies as possible whilst, at the same time, introducing an element of real flexibility into the scheme which allows for part time work.”

According to the latest Covid 19 Manufacturing Monitor published by Make UK, the manufacturers’ organisation the number of companies now operating in some capacity continues to grow, standing at just under 95%. However, despite this a quarter of companies plan to make redundancies in the next six months with a further 45% possibly planning to do so. At this stage, just under a third of companies (30%) do not plan to make redundancies.

Of those who plan to make redundancies, over a third of companies (33.3%) plan to make up to 10% of employees redundant, just under a third (31.1%) up to a quarter of employees, whilst more than a quarter (28.9%) plan to make up to half their staff redundant.

Make UK also warned that the rate of decline in orders has increased compared to the last survey two weeks ago with the number of companies reporting order declines of more than half up from just under a quarter to just under a third (31.8%) while those reporting declines of up to half also increased from just under a quarter to just over (27.1%).

Furthermore, the number of companies who believe it will take more than a year to return to normal trading conditions has also grown slightly from the last survey, up to just under four fifths (37.8%) from 36% two weeks ago. The extent to which pessimism amongst companies has grown is highlighted by the fact the figure for the same question stood at just 17% of companies a month ago.

Make UK has made the following recommendations to the Chancellor on changes to the Job Retention Scheme:

1. Certainty and notice. Employers need to know exactly what is happening and when with explicit detailed guidance around the changes so they can work to a fixed timeline with sufficient time to prepare any restructuring to their workforce in good time.

2. Real flexibility. Removing the three week minimum period must be a priority when the Scheme becomes more 'flexible' in August with the element of flexibility allowing furloughed employees to work part-time. Part-time work should be allowed at least for 2 days a week where these employees would receive their normal contractual salary. In addition, the government needs to provide a top up for employers National Insurance Contributions and pensions.

3. If there is a guillotine that prevents employees joining the furlough scheme for the first time, the introduction of new flexibility must be introduced at the same time. This would allow employers to put additional employees on furlough, without losing the opportunity to benefit from the scheme, and allowing employees to continue to work for them at least some of the time

The survey of 224 companies was carried out between 19 and 26 May

Featured News

Specification news
Construction begins of affordable new homes in Garden...

First Garden Cities Homes is working with award-winning housebuilder The Hill Group,...

Read More >>

Specification news
Willmott Dixon secures key role on new community hub...

Willmott Dixon’s team of leisure experts are helping Stockport Council to develop a...

Read More >>

BUILDING PRODUCT LIBRARY - LATEST BROCHURES

REVO.Prime TSA 325 NT Brochure

REVO.Prime TSA 325 N...
By GEZE UK Ltd

Download Now >>

Natural ventilation strategy for Sunderland SEND school Brochure

Natural ventilation...
By Passivent

Download Now >>

Squash Court Flooring Brochure

Squash Court Floorin...
By Junckers Limited

Download Now >>

Junckers Acoustics Floor System Brochure

Junckers Acoustics F...
By Junckers Limited

Download Now >>

BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS

Ei1025 Environmental Sensor
Ei1025 Environmental Sensor

Discreet and secure, the Ei1025 Environmental Sensor can be placed throughout a property to monitor...

Read More >>

Ei1000G SmartLINK Gateway
Ei1000G SmartLINK Gateway

The Gateway and Cloud portal use Aico’s SmartLINK technology to bring together data from all...

Read More >>

Ei3030 Multi-Sensor Fire and Carbon Monoxide Alarm
Ei3030 Multi-Sensor Fire and Carbon Monoxide Alarm

The Ei3030 is a multi-sensor Fire & Carbon Monoxide (CO) Alarm. Containing our proven and dependable...

Read More >>

CONSTRUCTION VIDEOS - LATEST VIDEOS

Forma aluminium column casings for Winchester College
Forma aluminium column casings for Winchester College

In progressive and dynamic business sectors, such as construction, it’s natural to be forward...

Watch Now >>

Decorative metal bulkheads & column casings for Tesco Extra, Birmingham
Decorative metal bulkheads & column casings for Tesco Extra, Birmingham

Decorative aluminium horizontal bulkheads more than 100 metres long have been supplied and installed...

Watch Now >>

Vecta building linings for the perfect finish
Vecta building linings for the perfect finish

More than 150 sq.m of Vecta aluminium wall lining and a feature bulkhead have been manufactured and...

Watch Now >>