Rail Delivery Group highlights Brexit labour concerns

The Rail Delivery Group (RDG) has raised concerns about the possible effects of Britain’s exit from the European Union on the rail industry’s workforce.

In a briefing note, RDG points out that of the 240,000 people employed in the rail industry, 20% are from other European Union countries with that figure rising to around 50% in London and the South East. It also points out that with an ageing workforce and changing skills requirements, 100,000 people need to be recruited in the next decade.

RDG says some employers are concerned about being able to retain their current EU workforce, and that the wider industry is keen to retain fully trained overseas students in the UK, against a trend where students gaining qualifications in the UK are returning to their countries of origin.

While highlighting the strengths of the EU skills and labour framework, the RDG acknowledges that this can provide a “reduced incentive for companies to train their own workers”, with some companies looking towards the EU “because it’s easier”. However, it also says that there is an opportunity for the UK to develop its own sustained workforce levels when Britain leaves the EU.

There are threats to the UK rail industry skillset if the country is not part of the EU framework, with fears expressed that consulting industries might move to the EU instead, that a labour shortage could increase costs, that training could become costlier, and that there could be an inability to smooth peaks in demand with a flexible workforce.

The RDG is asking the Government to consider how maintaining a flexible workforce is possible, should there be any changes in the policy for the free movement of EU workers. It is also seeking support for medium and long-term efforts to recruit and develop sufficient skilled workers to mitigate any potential negative effects of Brexit.