Introduction
Since the Brexit, there have been shortages in most parts of the United Kingdom economy ranging from food and other essentials. These shortages have been extended due to lorry-driver shortages who usually transport goods to respective stores. Other factors may have brought the scarcity, but Brexit was the primary catalyst. One can argue that the COVID-19 had a role in the low driver turnout, but the rules set during the Brexit did not favor many foreign drivers. For example, in the case study, the Romanian lorry driver laments that the new regulations affect all drivers, and many prefer the previous rules of engagement. His grievances range from sleeping to working hours, which do not favor drivers. Viorel Alexandru Onu claims that they used to work six weeks in the past and then get a two-week rest, but the current rules require them to rest 45 hours every week (Maciuca 2021, no pagination). One may not feel the pinch as an employer, but taking care of an employer is essential in building a better relationship.
Several bosses have complained about the same, with some stores closing down due to human resource shortages. Some of the jobs were taken by the European people in nursing homes and now cannot be replaced. They are trying to fill the vacancies, which has proved to be difficult, and to some extent, they are training the workers, which has been almost as if it requires time. In addition, business owners feared cancellations in the festive season due to a lack of lorry drivers, with some being forced to shut down due to product shortages. Some affected stores and chains include Tesco, Nando’s, and McDonald’s, which rely on lorries for deliveries (Burn 2021, no pagination). On the bus owners’ sides, they must either raise the wages or provide better working conditions. However, drivers complain that these long working hours can cause severe harm to road users. Viorel agrees that several drivers will welcome the rise in wages, but they can risk accidents due to tiredness and lack of sleep. In the previous rules, they were required to work for 10-12 hours, but shortages led to 15 hours three times a week.
Literature Review
Several pieces of research indicate that Brexit has caused many shortages in the UK. Wise reports that the pharmaceutical sector has reported a more significant need for 30 categories of drugs within the borders (2022, p. 2). The numbers have not been met over time, but the problems have escalated further due to the new rules. The main drug categories affected are antibiotics, anti-inflammatories, antidepressants, and oral contraceptives. However, there is a counterargument claiming that the shortages have been experienced across Europe and that Brexit only magnified the problem in the UK specifically. Further, the deficiencies are complex and multifactorial as the evidence produced does not lead to a conclusive statement. For example, the Hormone Replacement Therapy (HRT) product supply has not been reliable in the past years due to several factors such as the low manufacturing capacity and the disruption of the global chain. However, the transportation sector has always taken the blame as the numbers have been reducing over time (Wise 2022, p. 4). Therefore, despite other factors playing a part, Brexit has in one way magnified the problem.
Immigration has been used to address the labor shortages over time in many countries. In the UK, immigration has increased the labor supply in various fields. Therefore, setting rules that cannot allow Hungarians and Polish to move into the UK creates shortages that the natives cannot fill. Manning argues that work migration policies can be used to address the localized deficiencies in some, if not all, economic sectors. The concept can be applied to the most severe sectors with severe shortages, such as the transportation and health sectors. People depend on this group to get their various supplies that are generally the community’s basic needs (2021, p. 3). However, Davies counters by indicating that immigration cannot be used to address all the employment issues in the economy. For example, an increase in labor supply leads to higher labor demand; therefore, the gap remains the same. Thus, the concept of immigration solving labor shortages is a fallacy as it increases the unemployment rates (2021, p. 28). However, the articles do not provide exclusive and conclusive reports on how the transport sector hugely affected the labor supply.
Since the Brexit, the media and other outlets have reported a disruption in the food supply chain. The House of Commons, leaked government documents, and industry experts warned of the impending dangers and the consequences of the new rules. People typically rely on the media to provide food information in the UK, but they avoid complex debates such as trade and immigration. These topics were ignored majorly due to a lack of a direct connection between the variables as no immediate data indicated food shortages immediately after the UK left the EU. However, there was an 83% decline in marine food exports in the early and mid-2021, which was credited to the shortage of Heavy Goods vehicles (HGV), and petrol (Coleman, Dhaif & Oyebode 2022, p. 7). Therefore, there is a need to discuss the topics left out by the different media and government documents to gain conclusive arguments.
Doctors warned governments about the shortages of National Health Service (NHS) workers publicly as it is a sensitive issue. The UK health leaders have hailed the tremendous work EU counterparts do within the borders. They argued that it would be hard to retain or recruit members once Brexit happens. The England health secretary at the time (2017), Jeremy Hunt, indicated that the NHS staff from the EU countries played a vital role in the normal functioning of the union. The referendum led to solidarity displays as some posted on social media under the hashtag #LoveOurEUStaff to pay their tribute. Some EU-employed workers reconsidered their decision to work in the UK as there were racist concerns too. Even before the referendum, some workers were concerned as some major liver transplant centers were closed due to understaffing. Therefore, to try and tame the situation, initiatives such as reassurance of job security were provided to the foreign workers, especially from the EU. Additionally, to cover the losses, some local staff were meant to overwork for extra overtime payments. However, it did not solve the problem, as some complained of fatigue and lack of sleep (Lacobucci 2018, p. 353). Covering the medical sector shows one of the problems the governments were to deal with after the exit.
Business owners will always do what is best for their firms and their shareholders, including profit-making. With the labor shortages during the Brexit, the Independent Meat Suppliers approached the Ministry of Justice to enquire about the possibility of using the prisoners. They were suggested to release the prisoners under the clause of “Release under Temporary License” (Mantouvalou 2021, p. 1), in which a group was permitted to work. This initiative could target the culprits whose sentences were ending and those considered idle. The owners argued that the step could help reintegrate them into the community towards the end of their prison terms. Additionally, these people were to learn new skills they could use in the outside world, reducing reoffending. Furthermore, the service provided was not accessible as they could be paid and use the capital when they become free or serve their personal needs while in prison. In another argument, most prisoners were idle, and working in prison is considered mandatory hence they could increase the services when needed. However, under the National Minimum Wage Act 1998, the UK government exclude prisoners due to the various proposals. For example, the firms were to pay the prisoners-turn-workers £2 per hour, which is way lower than the minimum wage of £9.60 (Mantouvalou 2021, p. 3). The laws indicate that prisoners working for entities outside prison non-voluntarily should be paid the average minimum wage. Therefore, the government was protecting them from exploitation. The details are given to show one of the effects of Brexit on the economy of the UK and how business owners are trying to replace the labor shortages.
Analysis and Discussion
Key Challenges
Brexit ushered the pound’s decline relative to the US dollar leading to a reduction in profits and a lack of trade. In this situation, trading between the UK and the neighboring countries could reduce as the currency will be weaker, prompting people to use the dollar. The Canadian and American citizens are the most affected group as they would delay their entry into the market as they fear getting losses in the end. Additionally, young and smaller companies are likely to be affected the most as they cannot compete under unfavorable conditions. The result is the urge for the large companies to develop partnerships with the smaller ones, which will result in the sharing of profits. These shares cannot compete with those experienced when the large entities were independent. Uncertainty also led to profit declines as workers considered the UK market an unattractive investment area (Cumming & Zahra 2018, p. 690). Therefore, even though companies were encouraged to employ more workers due to demand, they could not pay them efficiently.
Uncertainty led to employee turnovers and lowered production levels. In situations where the employees were either students or staff that had not attained the complete residence requirements, employers experienced absenteeism. During the early stages of the referendum, the UK universities had over 43,000 staff and 15,000 students (Marginson 2017, p. 7). Considering these employees and potentials were not easily replaced, employers counted their losses each day. In trying to replace them, they needed extra costs, and it was not a guarantee that they would produce the same results as previous employees. It was a gamble that most had to take to keep their businesses afloat; otherwise, they could close down. However, the time between the referendum and the implementation could allow some employers to train the recruits. Again, some workers could have completed their years to attain the full citizenship of their respective countries (Marginson 2017, p. 9). Employers, in many cases, complained of the turnovers to the government to no avail as they believed natives could provide the required services.
Financial muscles were limited to the local banks as many foreign institutions closed after the Brexit. Many banks were not taking the risk of being confined to only internal borrowing as their mother institutions were outside the UK. Moving out of the EU made each nation under the UK have different licenses to access banks in each state. The most significant financial loss was when Bundesbank, a German bank, relocated its banks from London to Frankfurt, which meant less money was in circulation (Feldmann & Morgan 2021, p. 111). Therefore, business owners had few options for their loans hence the lower expansion rates. Moreover, London lost its role as the principal euro trader. Further, the Japanese government moved their banks to non-restricted areas. These constraints made Hitachi, Honda, Nissan, and Toyota owners move their plants to favorable grounds (Feldmann & Morgan 2021, p. 131). Therefore, the financial problems caused by Brexit could not allow many businesses to expand hence stagnation.
Ways to Overcome
The principal solution is reversing the rules, which calls for another referendum. It will involve swinging the voter’s take on the need to amend the new regulations and provide better directions and solutions. However, it is one of the most challenging solutions since one will need to confront the political and social implications of the process. Some will define it as the stage-managing of an operation that will be going against the people’s will. The step will cause political unrest, which is not required during the pandemic. As business owners and managers, there will be the need to mobilize the people to advocate for change to avoid further losses. One will argue that the people that created the problem should be in the front runners to rectify it as they can see the results. Therefore, politicians and other citizens should be educated and given a better solution than Brexit. Providing a way that could not affect production could sway people’s minds on the same hence easier to call for a second referendum (King 2021, p. 35). Either way, business owners need to find the best solution for their businesses.
Business owners should change their mindsets and behaviors by adopting better strategies to counter the problems. To some extent, one may feel like Brexit is an irreversible situation, and people should accept it. However, in a case when it happens, the damage has already been done, and the nations cannot return to the previous status quo ante but need to adapt to the new reality. Therefore, the government and the business owners should try to convince people of the need to adopt new means that could boost the country’s economy in the long run. For example, owners should try and move to replace men with machinery in manual intensive areas. It could be better than living and blaming the changes. It may be a blessing as the country could move to another production stage people could appreciate. However, it could be complicated as the COVID-19 pandemic complicates matters (Korir et al. 2021, no pagination). Therefore, people have double situations, and they need to find a balance and boost their businesses or face closures due to bankruptcy.
To solve all the shortages, the UK should aim at joining other pacts that could allow trade and international interactions. The government should initiate the need to join the European Free Trade Associations (EFTA) and the European Economic Area (EEA). These two associations will allow the free movement of goods, people, and services to selected nations (Mohamed, Parn & Edwards 2017, p. 11). Additionally, each group should advocate for a more robust national sovereignty that will allow the retainment of the indigenous skilled labor. Business managers and owners should also initiate the increment in wages and guarantee overtime opportunities by applying several technological initiatives. These steps will allow future indigenous generations to be assured when within the UK. Furthermore, joining nation unions will allow the importation of knowledge that could help future generations. For example, advanced technology that could reduce manual labor reliance can be used as a marketing tool to the younger generations. The same will apply to business owners who need to advance with the changes (Garmon 22017, p. 32). Leaders should understand that nations need to interact as it promotes unity, leading to expansion and economic growth.
The government should assure the various sectors of their futures and job opportunities to solve uncertainty. For example, Walsh et al. (2022, p. 8) indicate a shortage of nurses in different health centers, which is never a welcoming sign. The Brexit caused employee turnover, which left many stranded as governments never gave assurances of how they will handle the non-skilled or freshly graduated personnel. Given the pandemic, the government saw the need to have enough supply of medical practitioners due to the delicacy of the matter. Given the World Health Organization has predicted approximately 12.9 million health providers will quit their posts, the UK should assure the European workers of their jobs (Marc et al. 2019, p. 11). Through this, the problem could be resolved before escalating further.
Conclusion
There are shortages in the UK due to Brexit. The paper has discussed the various economic sectors: pharmaceutical, labor, food supply, and the use of prisoners to provide cheap labor. Business owners are complaining of the effects of the step, which has led mainly to reducing profits and turnovers. On the other hand, employees, especially truck drivers, complain of lack of sleep and accidents caused by fatigue. In the pharmaceutical sector, there is a reduction of 30 categories of drugs due to the low supply and movement restrictions between borders. Further, business owners advocate for the government to concentrate on serious sectors such as transportation and medicine. In terms of food supply, due to the lack of truck drivers, food cannot be moved between borders. The media and other trusted communication platforms have not talked about the issue showing how vital and backlash they might get. Some private organizations acknowledge the shortages and suggest using prisoners while paying them way below the minimum wage bracket. However, the government does not allow it since it is meant to protect its citizens. One can agree that there has been a shortage in various fields due to Brexit.
Business owners face several challenges as they cope with Brexit but have some ways they can overcome them. For example, their financial muscles are restricted, uncertainty, and the dollar decline. Some banks are moving away from the UK due to various restrictions, reducing the scope several employers can use to get loans to expand their businesses. Banks from Germany and Japan have moved their banks to other suitable locations that do not require specific cards. Further, uncertainty in employees makes employers nervous since there is a high chance of turnovers as there is no assurance of the future. Lastly, the dollar decline is robbing business managers of the power to make further investments. They prefer to use the dollar as it is more robust and hence taking an acquisition to other places, for example, Poland. In resolving the problems, some call for the reversal of the law, changing mindset and behavior, joining pacts, and assuring the employers. Business owners need to convince the population that they should reverse the Brexit by calling for another referendum even though it can be considered irreversible. Further, they should change their mindset and embrace different production methods by embracing technological initiatives in place of manual labor. These changes can be implemented if they join pacts like EFTA and EEA for easy movement across borders. Lastly, governments should assure EU workers at the sites of their respective futures.
Recommendation
Since the problem affects all players (government, business owners, and citizens), it should be a collective responsibility. The government should ensure that the rules do not hinder their initiative of making the country better for each citizen. Through this, they could increase the Gross Domestic Product (GDP), ensuring an increase in foreign exchange. Furthermore, one of its responsibility is to create the best environment for both business owners and the employees. Therefore, business owners should consult the government on the best way to handle their employees. For example, they could encourage the government to increase the minimum wage rate to attract more foreign workers. Finally, employees should comply with all government initiatives and rules to avoid further problems.
Reference List
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