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 CIPD PRESS RELEASE 5 May 2008

Points based system is legitimate - but employers
simply confused by the new rules must not be
branded rogues

Today's publication of details of the next phase
of the Government's new points based system for
managing migration from countries outside the
European Union gives rise to a range of practical
concerns for many UK employers and will in due
course be a cause of consternation for some,
according to evidence drawn from members of the
Chartered Institute of Personnel and Development
(CIPD).

The CIPD's Chief Economist, John Philpott, says
that employers looking to hire workers with specific
occupational skills from outside the EU must be quick
to get up to speed with the detail of the new system
while those who end up frustrated by the new rules
will need to be helped to come to terms with the
consequences of curbs on recruitment of some non-EU
migrants.

Dr Philpott comments: "Consultations with CIPD
members show that at least 1 in 3 UK employers
are actively recruiting migrant workers to fill
job vacancies at all skill levels and in many
sectors, ranging from agriculture and food
processing to IT, shops, hotels, bars and
restaurants, private care homes, and the public
services.

"Though in recent years these vacancies have
increasingly been filled by migrants from
elsewhere in the EU many employers continue to
hire staff from outside the EU - and as last
week's IPPR study indicates, a steady inflow
of EU migrants cannot be taken for granted in
the long-term. CIPD members are therefore
understandably concerned about the practical,
labour cost, and business implications of the
incoming points based system.

"CIPD consultations with employers suggest that
there will be considerable teething troubles
during the course of the role out of the new
system. It is evident from our consultations
that the Home Office will have to display
considerable efficiency and dexterity in
introducing the new system in order to avoid
a welter of employer confusion and complaints.
Indeed, while figures publicised over the
weekend indicating a surge in the number of
employers being caught employing illegal
immigrants may be a welcome sign that the
government is cracking down on genuine rogue
practice care must be taken to ensure that
decent employers who are simply confused by
the new rules are not branded rogues.

"However, while some employers may have legitimate
cause for practical concern as the new system is
introduced it is important that those employers
who feel aggrieved by the objectives of the new
system quickly come to appreciate that the system's
basic rationale is fully justified.

"In the CIPD's view the high level of migration
of recent years has had a clearly identifiable
positive macroeconomic impact but an uncertain
and possibly negative impact on some local
communities and disadvantaged non-migrants. In
other words there are both winners and losers
from large scale immigration - a view ably
supported by last month's comprehensive House
of Lords report on the economic consequences of
immigration.

"The CIPD is sceptical of the Lords' conclusion
that there should be a formal cap on immigrant
numbers but accepts that government should only
allow entry of economic migrants from outside
the EU who have specific skills or general
abilities not readily available in the UK or
broader EU labour market.

"In view of this the CIPD is fully supportive of
a points based system so long as it operates
flexibly and can be fined tuned to meet changing
economic and labour market conditions, for example
an unforeseen drop in immigration from within the
EU. With this in mind the CIPD concurs with the
methodology adopted by the Migration Advisory
Committee that is currently analysing the UK
labour market to identify labour shortages in
skilled occupations that can be sensibly filled
by migrants.

"The CIPD recognises that the points based system
will inevitably frustrate some employers who wish
to recruit workers from outside the EU who are
unskilled or who have occupational skills but
are unable to 'score' the points required for
legal entry to employment in the UK. However,
the acid test of any policy for managing migration
is that it meets reasonable and legitimate employer
need without detriment to the common good.

"Those employers who are frustrated by the points
system will need help and advice from policy
makers in terms of labour market information,
recruitment and training measures so as to wean
them off any reliance on workers from outside
the EU whose entry will be restricted."

Notes to editors:

* John Philpott is available for interview.

* The Chartered Institute of Personnel and
Development (CIPD) has over 130,000 members and
is the leading professional institute for those
involved in the management and development of
people.

CIPD press enquiries:
Anna Wallace / Neal Grant / Rob Blevin
CIPD Press Office
151 The Broadway, London SW19 1JQ
mailto:press@cipd.co.uk
020 8612 6400