Proposed Amendments to the Work Permit Policy
11 January 2021
Background
In October 2020 agreement was reached on the working routes for the Future Border & Immigration System and as such the Work Permit Policy (WPP) was published.
The two main routes allowed are:
A 9 month Temporary Route for low-skilled workers, which does not have a requirement for a salary threshold (other than minimum wage), an English requirement and does not allow dependants to accompany the applicant. This route does not lead to settlement
A 3 year Skilled Worker Route which requires a £30k salary threshold, English language requirement and the role to be at RQF3 or above. This route leads to settlement and allows dependants to accompany the applicant.
Following a number of meetings with representative from the Jersey Construction Council (JCC) discussing the requirements of the construction sector a case was made indicating that the 2 routes as they stand would not allow the construction sector to operate. The JCC were then advised to submit a business case to support their argument and suggested solution.
Jersey Construction Council Business Case
The first draft of the business case was submitted to JCIS on 11th December which was followed by a meeting with representatives of JCC on the 17th. Some advice was given to provide more specific information on the difficulties the local industry is having in recruiting and to refine the suggested amendments to the WPP.
A final version of the business case was then submitted on 21st December (appendix 1).
The theme of the paper was that the construction sector needed ‘simplicity, certainty and speed’ from the WPP to allow it operate at an appropriate level.
The paper points out the importance of the construction industry to the fabric of the Island and accounts for 7% of the Island’s direct Gross Value Added and that there are approximately 6,000 employees across the construction sector in Jersey. It states there is an anticipated growth over the next 5 years, primarily driven by Government of Jersey plans.
The paper refers to a global shortage of construction workers, that 28% of the workforce in London is made up of EU nationals, dropping to 8% across the UK. Further that there is now a reducing number of EU nationals as many are returning home due to Brexit, Covid-19 and the weakness of Sterling.
The second bullet point in section 2 states the local industry will be competing with London and needs around 500 individuals a year with the UK already experiencing a shortfall. I do have to counter this comment as Jersey will only be competing with those on the ‘skilled route’, as there is no immigration route for low-skilled temporary workers to enter the UK under their Points Based System.
Section 3 makes an argument that the WPP will contribute to increased construction costs due to the churn of staff that will be required on the 9 month Temporary Route, which is accepted.
Section 4 refers to a shortage of skilled labour will cause delays to builds which will have a further indirect impact on overall costs.
Section 5 makes a sound argument supporting the economic contribution the industry makes to the Island.
Section 6 refers to the need to have certainty in employing staff quickly and that there is already a shortfall of 200-250 construction workers in Jersey. It was pointed out to the representatives that whilst JCIS will turn around work permit applications as quickly as possible and often within a week, applications for visas are made via the UK Visa & Immigration service and the speed at which these are processed is out of our control. However UK policy documents have referred to reducing their processing time significantly to as little as 3 weeks.
Section 7 of the document was the most significant addressing ‘why the current WPP will not work for construction’.
Part A summarises that the construction industry relies on a significant labour pool and will need more labour than is currently available on Island.
Part B points out that there is no easily obtainable workforce in the Island and gives an example of the Hospital project anticipated to need 200 local and 400 inbound construction workers over a 4 year period.
The paper sites a document which estimates a shortfall of 1 million construction workers in the EU by 2025. Further that whilst there is no official data to refer to, most of the JCC representatives have experienced skilled workers from outside of the CTA returning home.
“The consequence is that most construction businesses within the CTA are struggling to find enough workers to complete current commitments let alone to manage the increasing demand. It is against the backdrop of increasing need within the CTA for construction workers and the desired construction output in Jersey that the Jersey industry needs pragmatic support from the GoJ to attract workers from outside the CTA.”
The paper highlights a recent recruitment drive from within the CTA by a major Jersey constructor that failed to fill any positions.
Part C deals with practical issues. It points out that average projects are between 2-5 years and therefore the 9 month route will not be practical. There is also a reference to the need to train employees to the necessary health & safety standards.
A sound argument is made demonstrating that there is an initial 3 month training period for construction workers costing approximately £1,000 and that health & safety training is ongoing as employees utilise different equipment. A 9 month rotation would slow down builds and increased costs would be significant.
A point is made about the inability to build a productive team if there is a requirement to have a 9 month rotation.
The paper points out that employers would seek to find staff from within the CTA first as its an easier approach, but that many skilled workers who have previously come from outside the CTA have limited English and this is now well managed within the industry.
Section 8 makes reference to the local industry embracing new technology and sustainable building, but that it needs to be able to continually upskill its workforce, which will not be possible with a 9 month rotation.
Section 9 suggests 2 options to the WPP that would be viable solutions for the JCC.
Option 1
Unskilled route period to be extended to 4 years 9 months or in line with the period of the construction project.
Skilled route to drop the requirement for the English language test with a suggestion of a subsidised English course for employees to attend after arrival.
Option 2
That a new route is established for construction workers with a salary threshold of £18k, no English requirement and an RQF 3 level.
And for both above options that the JCC acts as a sponsor to administer applications and ensure that criteria are adhered to.
JCIS response and proposal
Paul Le Monnier and I closely examined the document submitted by JCC.
Overall we have accepted the argument put forward by the JCC that the WPP as it exists will not allow the industry to sustain itself with an adequate workforce.
However we considered that they were requesting far more than what was needed in order to find a solution to the problem.
We have examined Guernsey’s approach to the Temporary Route as they have adopted an immigration period to match their existing Population Management routes of a Short Term Employment Permit or STEP. In addition to the 9 month seasonal route they have a one year STEP which can be renewed year on year up to 5 years. The worker will then have to be absent for the same length of time they were given permission to work.
This is open to the construction sector and therefore we consider we would put the island at a significant disadvantage to Guernsey should we not consider a similar route.
Taking the above into account and in trying to find a workable solution for the construction industry we propose the below temporary route as an addition to the 9 month temporary route.
This would be a one year temporary route that can be extended year on year by application to a maximum of 4 years.
As a temporary route this will allow workers to come in with criteria aligned to the existing 9 month route, specifically;
- Foreign police checks from anywhere they have lived for the last 10 years
- Adequate skills to undertake the job
- No salary threshold
- No English test
- No dependants for the first year (in line with other permissions)
- Consecutive annual permission will be granted to a maximum of a 4 year period from the commencement of the initial permission.
- The applicant must be absent for a period equal to the period of any permission granted or the total of any consecutive permission that has been granted. The period of absence is to immediately follow the end of the permission.
- Time spent on this route will not count toward any qualifying period for settlement
On application for the following year we would ensure they are still employed by the same employer and there continues to be a position for them to work in for that year. Further a police check will be carried out, if they have received a custodial sentence for any crime they might have committed the work permit will not be renewed.
This then allows a period during which the employee can attain the necessary English test, find a job at £30k with an RFQ level 3 and then switch by application to the skilled route. This can all be done without the employee having to leave the Island.
Dependants will be able to join the work permit holder if the permit is renewed at the end of the first year.
Jersey Construction Councils response to the JCIS proposal
Having found a solution which did not disadvantage the Island, maintained its integrity and a robust Immigration control that does not jeopardise its position within the CTA, we passed this proposal to the JCC for their response.
The response provided to JCIS on the proposal was that it would be acceptable to smaller construction businesses, however they still requested that a blanket permission for up to 4 years is given to temporary workers for larger businesses and still requested that the English language requirement was removed as a criteria for skilled workers.
In summary I made the JCC aware that the JCIS proposal provided an adequate solution to their need for ‘simplicity, certainty and speed’ and maintained an appropriate immigration control.
Conclusion
I am able to support an amendment to the Work Permit Policy to accommodate the needs of the construction sector as they have demonstrated a requirement to employ temporary staff for longer than 9 months.
The JCC have not presented an argument that I can support for changes outside JCIS proposal detailed above as this adequately resolves their needs and maintains a robust immigration control. Having been approved in principle by the Minister the JCC are thankful for the Ministers consideration and are content with the proposal.
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