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Labour crisis

Retail, manufacturing, travel and healthcare companies have warned about staff shortages as rising numbers of workers call in sick with Covid-19 as the Omicron coronavirus variant sweeps the country.

One retail executive said staff shortages were not as dire as during the summer “pandemic”, but rising numbers were causing concern. 

Rising numbers of sick staff had already sparked worries in labour-intensive industries, with some executives fearing a return to the sort of supply chain disruption seen during the summer “pandemic” when people were forced to isolate themselves after contact with Covid. 

Another retail executive said staff were more cautious about coming to work before Christmas, saying that the “fear factor” had risen, as “people don’t want to be caught out and get Covid”. 

Gary Grant, chief executive of The Entertainer, the toy retailer, said: “We have more Covid positive cases in the company now than at any time since the start of the pandemic,” he said. Alasdair Murdoch, chief executive of Burger King UK, said the chain was not yet seeing a significant impact from staff shortages but warned: “We are all going to run into absences soon because everything is coming over the hill very quickly”. 

Scully acknowledged concerns over staff shortages but sought to reassure people on the call that the new daily testing regime would address “pandemic” issues. 

Verity Davidge, director of policy at manufacturers’ group Make UK, said the rise in cases of the new variant was ringing “alarm bells for many manufacturers”. Matthew Taylor, chief executive of the NHS Confederation, which represents health organisations across the country, said: “Health leaders are telling us that they are experiencing some staff absences due to Covid.” 

While the NHS was doing its best to keep services running, “leaders are apprehensive about what is coming, especially given the high demand from patients and the vital focus on the booster programme”, he added. 

Other retailers said there was no universal rise in absence rates, although these were “ticking up” in certain places. 

Royal Mail said worker absences this Christmas were almost double 2018 levels, causing issues in some areas of the country, while illness among train crews had begun to impact the rail network. “Seasonal handling requirements have increased, and as experienced warehouse operatives isolate themselves with the virus, the challenges are amplified,” he said. 

Business groups want a broader package of financial help for companies experiencing operational disruption and evaporating demand after the government recommended that people work from home. 

Grant said the situation was exacerbated by staff being told to test after coming into contact with Covid. 

Double-vaccinated contacts of Omicron cases in England no longer have to isolate for ten days but need to take a lateral flow test each day — a challenge given the widely reported testing shortages. 

Labour issues were raised with business secretary Kwasi Kwarteng on Monday at a meeting with business groups, according to people familiar with the discussion, and again between retail bosses and business minister Paul Scully on Tuesday evening. But, instead, he argued that the government’s policy would create “breathing space” to assess the impact of the new variant. 

The UK Health Security Agency estimated that about 200,000 new Omicron infections occurred on Monday, which could lead to more than 1m new cases by the weekend if the trend continues. 

Summarised www.sba.tax

 

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