News - Midlands
Looking further afield
Economically, the arrival of foreign workers makes sense as they fill important gaps in the UK's labour market.
The Bank of England says that the arrival of immigrant labour has eased inflationary pressures by restraining potential pay increases for UK workers.
According to figures released by the Immigration and Nationality Directorate of the Home Office, the number of migrants given national insurance numbers to get work or claim benefits jumped by 51 per cent in the 12 months to the end of March.
This rise, to 662,000, was boosted by migrants from eastern Europe - particularly Poland - who have flocked to the UK to find work since their countries joined the European Union two years ago. Of the 15 pre-accession European Union member states, only the UK, Ireland and Sweden initially allowed free access to workers from accession countries from 2004.
But skilled workers are also coming from further afield than the EU.
Swarna Vanimisetty is an Indian national working in the tax department of accountancy Deloitte. She was previously employed with the same firm in India, but moved to Birmingham last spring. She aims to stay for four or five years before returning to India.
She says that she decided to come to the UK because her husband had already relocated here with work. "He found that there were more opportunities for career development in the UK than in India and so he decided to get as much experience here as possible," says Vanimisetty.
"I was able to relocate quite quickly because I work for a global company. Our plan is to stay here for perhaps five years and then return to India. Our experience of working in the UK will help us to negotiate higher salaries when we return there because Indian employers are aware of the differences in remuneration between the two countries," she says.
Claire Johnson, expat services specialist in the business services department at diesel engine designer and manufacturer Cummins, says that the company has four Indian nationals and a Romanian working for it in the UK.
She says: "We're a specialist engine manufacturer and we need skilled engineers to work for us. We couldn't find anyone suitable to fill our vacancies in the UK, so we had to source foreign workers from within the group to work on UK-based projects."
But not everyone is happy to see an increase in a skilled immigrant workforce. At the beginning of August , Amicus, the biggest private sector union, urged the government to tighten controls on permits to stem the tide of lower-paid foreign staff taking IT jobs "at the expense of resident UK professionals".
A letter from the union to Liam Byrne, immigration minister, says the onus should be on companies applying for work permits "to prove they are unable to recruit those skills in the UK".
According to Amicus, 30,000 work permits were granted for IT occupations in 2005, of which about 18,000 were from India.
This compares with a total of just 1,800 work permits issued for all IT staff in 1995.
Six of the top ten companies sponsoring work permits between 2000 and 2004 had their headquarters in India. Only two were based in the UK, says the Institute for Employment Studies.
There is little doubt as to the benefits of importing skilled labour from developing countries. Two-thirds of permit holders were paid less than the equivalent of £330,000 a year compared with an average salary of £332,500 for an IT professional in the UK, says Amicus.
Peter Skyte, the union's IT officer and a member of the Home Office work permit panel advising the government, says that there is nothing wrong in hiring foreigners to provide skills that cannot be met by resident staff or through training.
"But companies should not use work permits as an opportunity to put short-term profits before long-term investment in the UK labour market," he says.
However Teresa Dolan, partner in the human capital practice at law firm Hammonds, says that in the next 20 years the UK will not be able to recruit the labour or skills it needs from the UK alone.
"There are already 15 million adults in the UK who lack basic numeracy and literacy skills, the current UK birth rate is less than the required replacement rate and the number of older carers is set to increase dramatically," she says.
"There is no doubt that immigrants can - and do - make a valuable contribution to society in terms of both skills and diversity.
Indeed, the Government's selective admission policy for migrant workers addresses skills shortages and boosts the UK economy overall.
"However, to make the most of the benefits that non-UK nationals can bring, employers need to understand how to comply with relevant legislation on recruiting migrant workers."
Under the current rules, it is a criminal offence to employ a person 16 or over who does not have the right to work in the UK or the right to do the type of work that is offered to them. This offence can result in a £35,000 fine being imposed on employers - per illegal worker. In addition, any individual involved in the recruitment process can be held personally liable, if the offence was committed with their knowledge or connivance.
In July the government warned that rogue employers will face fines, asset seizures and disqualification from holding company office under a new plan to tackle illegal immigration.
Business groups responded with dismay to the proposals, contained in a blueprint for a new immigration regime announced in the Commons by Home Secretary John Reid. One initiative attracted instant controversy - encouraging members of the public to call Crimestoppers if they suspected illegal workers were being used.
Employers do have a defence if an illegal worker is found in their workforce if they have asked applicants to provide original documentation evidencing their entitlement to work in the UK, such as a UK or EEA passport, a national ID card or UK residence permit.
In the absence of such documents, the employer should ask to see two verifying documents such as a full birth certificate, a document confirming their name and NI number, or an immigration status document issued by the Home Office indicating the person can stay and work in the UK.
However, in requesting these documents, stresses Dolan, employers should be careful not to fall foul of discrimination legislation. "Employers should be consistent in their approach and consider whether to ask all recruits or just those who are shortlisted," she says. "Either way, employers should not make rash decisions based solely on personal appearances or information contained in application forms."
To get a work permit, applicants must have a special skill that is not available to the employer in the UK. The employer must also advertise the job in the UK first and if a capable candidate applies from within the UK, he will have priority over the overseas person for whom the work permit is sought.
However, says Kathy Halliday, head of employment at law firm Cobbetts in Birmingham, this system is open to abuse and some employers have been accused of deliberately advertising in obscure magazines and journals to avoid finding someone suitable from within their own country, largely to attract cheaper labour.
In March the Home Office announced a points-based system to "enable the UK to control migration more effectively, tackle abuse and identify the most talented workers". This system is not expected to be in place until mid-2007 at the earliest, says Campbell Oswald, director in the employment practice at lawyer Deloitte in Birmingham.
Under the new scheme, it will be simpler for qualified immigrants to obtain visas, while the less skilled will find it more difficult.
Points will be awarded to potential immigrants based on age, financal situation, education, qualifications, English language and other factors.
All applicants other than the most skilled will need to provide a certificate of sponsorship from an approved sponsor such as an employer or school. Sponsors will have to apply to support a potential immigrant and will also be rated by the Home Office.
The Institute for Public Policy Research says migrants seeking jobs in regions with high skills shortages should be given preference, as in Australia and Canada.
Dolan says: "The system aims to ensure only migrants who benefit the UK come to work or study. The government is introducing measures to ensure migrants comply with their leave to remain and go home at the end of their stay."
Dolan adds the scheme will be complemented with a tougher approach from British embassies abroad, to weed out false applications.
The scheme will also place increased obligation on UK businesses and universities, which will be required to sponsor migrants and help ensure they adhere to their visa terms.
"The change in policy is causing some confusion and it is fair to say that employers are at risk if they take on someone without the correct paperwork or background checks," says Dolan.
"But companies will continue to look overseas because there's a dearth of skills and people prepared to work for what they see as an uncompetitive salary."
The Bank of England says that the arrival of immigrant labour has eased inflationary pressures by restraining potential pay increases for UK workers.
According to figures released by the Immigration and Nationality Directorate of the Home Office, the number of migrants given national insurance numbers to get work or claim benefits jumped by 51 per cent in the 12 months to the end of March.
This rise, to 662,000, was boosted by migrants from eastern Europe - particularly Poland - who have flocked to the UK to find work since their countries joined the European Union two years ago. Of the 15 pre-accession European Union member states, only the UK, Ireland and Sweden initially allowed free access to workers from accession countries from 2004.
But skilled workers are also coming from further afield than the EU.
Swarna Vanimisetty is an Indian national working in the tax department of accountancy Deloitte. She was previously employed with the same firm in India, but moved to Birmingham last spring. She aims to stay for four or five years before returning to India.
She says that she decided to come to the UK because her husband had already relocated here with work. "He found that there were more opportunities for career development in the UK than in India and so he decided to get as much experience here as possible," says Vanimisetty.
"I was able to relocate quite quickly because I work for a global company. Our plan is to stay here for perhaps five years and then return to India. Our experience of working in the UK will help us to negotiate higher salaries when we return there because Indian employers are aware of the differences in remuneration between the two countries," she says.
Claire Johnson, expat services specialist in the business services department at diesel engine designer and manufacturer Cummins, says that the company has four Indian nationals and a Romanian working for it in the UK.
She says: "We're a specialist engine manufacturer and we need skilled engineers to work for us. We couldn't find anyone suitable to fill our vacancies in the UK, so we had to source foreign workers from within the group to work on UK-based projects."
But not everyone is happy to see an increase in a skilled immigrant workforce. At the beginning of August , Amicus, the biggest private sector union, urged the government to tighten controls on permits to stem the tide of lower-paid foreign staff taking IT jobs "at the expense of resident UK professionals".
A letter from the union to Liam Byrne, immigration minister, says the onus should be on companies applying for work permits "to prove they are unable to recruit those skills in the UK".
According to Amicus, 30,000 work permits were granted for IT occupations in 2005, of which about 18,000 were from India.
This compares with a total of just 1,800 work permits issued for all IT staff in 1995.
Six of the top ten companies sponsoring work permits between 2000 and 2004 had their headquarters in India. Only two were based in the UK, says the Institute for Employment Studies.
There is little doubt as to the benefits of importing skilled labour from developing countries. Two-thirds of permit holders were paid less than the equivalent of £330,000 a year compared with an average salary of £332,500 for an IT professional in the UK, says Amicus.
Peter Skyte, the union's IT officer and a member of the Home Office work permit panel advising the government, says that there is nothing wrong in hiring foreigners to provide skills that cannot be met by resident staff or through training.
"But companies should not use work permits as an opportunity to put short-term profits before long-term investment in the UK labour market," he says.
However Teresa Dolan, partner in the human capital practice at law firm Hammonds, says that in the next 20 years the UK will not be able to recruit the labour or skills it needs from the UK alone.
"There are already 15 million adults in the UK who lack basic numeracy and literacy skills, the current UK birth rate is less than the required replacement rate and the number of older carers is set to increase dramatically," she says.
"There is no doubt that immigrants can - and do - make a valuable contribution to society in terms of both skills and diversity.
Indeed, the Government's selective admission policy for migrant workers addresses skills shortages and boosts the UK economy overall.
"However, to make the most of the benefits that non-UK nationals can bring, employers need to understand how to comply with relevant legislation on recruiting migrant workers."
Under the current rules, it is a criminal offence to employ a person 16 or over who does not have the right to work in the UK or the right to do the type of work that is offered to them. This offence can result in a £35,000 fine being imposed on employers - per illegal worker. In addition, any individual involved in the recruitment process can be held personally liable, if the offence was committed with their knowledge or connivance.
In July the government warned that rogue employers will face fines, asset seizures and disqualification from holding company office under a new plan to tackle illegal immigration.
Business groups responded with dismay to the proposals, contained in a blueprint for a new immigration regime announced in the Commons by Home Secretary John Reid. One initiative attracted instant controversy - encouraging members of the public to call Crimestoppers if they suspected illegal workers were being used.
Employers do have a defence if an illegal worker is found in their workforce if they have asked applicants to provide original documentation evidencing their entitlement to work in the UK, such as a UK or EEA passport, a national ID card or UK residence permit.
In the absence of such documents, the employer should ask to see two verifying documents such as a full birth certificate, a document confirming their name and NI number, or an immigration status document issued by the Home Office indicating the person can stay and work in the UK.
However, in requesting these documents, stresses Dolan, employers should be careful not to fall foul of discrimination legislation. "Employers should be consistent in their approach and consider whether to ask all recruits or just those who are shortlisted," she says. "Either way, employers should not make rash decisions based solely on personal appearances or information contained in application forms."
To get a work permit, applicants must have a special skill that is not available to the employer in the UK. The employer must also advertise the job in the UK first and if a capable candidate applies from within the UK, he will have priority over the overseas person for whom the work permit is sought.
However, says Kathy Halliday, head of employment at law firm Cobbetts in Birmingham, this system is open to abuse and some employers have been accused of deliberately advertising in obscure magazines and journals to avoid finding someone suitable from within their own country, largely to attract cheaper labour.
In March the Home Office announced a points-based system to "enable the UK to control migration more effectively, tackle abuse and identify the most talented workers". This system is not expected to be in place until mid-2007 at the earliest, says Campbell Oswald, director in the employment practice at lawyer Deloitte in Birmingham.
Under the new scheme, it will be simpler for qualified immigrants to obtain visas, while the less skilled will find it more difficult.
Points will be awarded to potential immigrants based on age, financal situation, education, qualifications, English language and other factors.
All applicants other than the most skilled will need to provide a certificate of sponsorship from an approved sponsor such as an employer or school. Sponsors will have to apply to support a potential immigrant and will also be rated by the Home Office.
The Institute for Public Policy Research says migrants seeking jobs in regions with high skills shortages should be given preference, as in Australia and Canada.
Dolan says: "The system aims to ensure only migrants who benefit the UK come to work or study. The government is introducing measures to ensure migrants comply with their leave to remain and go home at the end of their stay."
Dolan adds the scheme will be complemented with a tougher approach from British embassies abroad, to weed out false applications.
The scheme will also place increased obligation on UK businesses and universities, which will be required to sponsor migrants and help ensure they adhere to their visa terms.
"The change in policy is causing some confusion and it is fair to say that employers are at risk if they take on someone without the correct paperwork or background checks," says Dolan.
"But companies will continue to look overseas because there's a dearth of skills and people prepared to work for what they see as an uncompetitive salary."