#Brexit: British manufacturing says there is a ‘tipping point after which it becomes almost impossible to retain or attract employees from Europe’

The EEF, the UK’s organisation representing British manufacturing have found that a third of manufacturers surveyed said that their business needs cannot be found among UK nationals, while others say they recruit EU nationals because they have a better work ethic, have foreign language skills, or because they are part of an intra-company transfer programme. The EEF is warning that the UK is in danger of reaching a tipping point where the UK will no longer be able to attract new employees.

On average, EU nationals make up 11% of the manufacturing workforce, UK nationals 87% and non-EU nationals the remaining 2%. Larger firms are more likely to recruit EU nationals than smaller firms. Just under half (48%) of the smallest companies had no EU nationals.

The EEF also reported a geographical variation with EU nationals more likely to work in Greater London, the South East and the East Midlands, and less likely to work in the North East, Scotland and Wales.

The impact from the Brexit vote has been limited to date, with only 16% of respondents saying they have seen an increasing number of EU nationals leaving their business. However, 26% have seen a decrease in applications from EU nationals, the EEF said.

It will be "significantly damaging" if Brexit involves applying the same restrictions to EU nationals as to non-EU workers. Salary thresholds and time restrictions on how long EU nationals can stay in the UK would also create problems.

The reciprocal rights of EU nationals in the UK, and UK workers in the EU, must be clarified, the EEF said.

Prime minister Theresa May has proposed a new 'UK settled status' for EU citizens already living in the UK, if a similar deal can be reached with the EU for UK citizens abroad.

Commenting on the Government’s EU citizens’ rights paper, Tim Thomas, Director of Employment and Skills at EEF, the manufacturers’ organisation said:

“The frustrations felt by many employers will not be eased with the publication of the Government’s migration offer.

“The proposed system seemingly requires two new sets of registration for EU nationals who want to live and work in Britain - one leading to permanent status and the other for a work permit. The announcement which ranges from Government ‘wanting to’ to ‘intending to’ will do nothing to ease the uncertainly of EU nationals and their employers.

“Employers need clarity and certainty well before the date we officially leave the EU and face a tipping point after which it becomes almost impossible to retain or attract employees from Europe. With most other EU countries already using a registration system, operating in a similar way to that proposed, now is the time to radically rethink our approach to Brexit enabling the UK to enjoy premium access to the single market and the EU workforce when we leave.”

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