Food Update - December 2008
A quarterly round-up of issues affecting the food sector
Food companies lead the way:
developing a new voluntary code of conduct for employing migrant workers
Food Dinner
When is a crisp VAT free?
Food companies lead the way: developing a new voluntary code of conduct for employing migrant workers
At a recent event in Boston, Business in the Community (BITC) launched its new voluntary Code for employers using migrant workers. Business in the Community is a movement of over 750 member companies, with an additional 2,000 engaged through programmes and campaigns, operating through a local network of more than 100 business-led partnerships.
Migrant workers are a growing category of employees in Great Britain and are a necessary resource for many employment sectors due to a shortage of available local labour. BITC evidence indicates that migrant workers can have a positive impact on local communities and are an important factor in sustaining local business diversity.
Who helped develop the Code?
The Code was developed by a group of members of BITC including Samworth Brothers, Marks & Spencer, The Foil Food Group, HSBC, Anglo Beef Processors, The NFU, The GLA, Northern Foods, Dairy Farmers of Britain, The East Midlands Food & Drink Forum and Boston Borough Council, so it already has substantial support in the food and drink sector.
What does the Code say?
The Code encourages employers to be ethical in their recruitment practices both in relation to potential employees and any impact on their country of origin. In particular, employers are encouraged to take care that in recruiting from a country they do not create a shortage of local skills (for example in nursing) and that recruitment in developing countries is undertaken as part of an intergovernmental co-operation agreement.
Employers are also encouraged where practicable to apply their normal recruitment and selection policy and procedures when undertaking a proactive recruitment campaign in another country. They are also advised to establish an agreed clear and ethical recruitment guideline to which recruitment agencies operating on their behalf must adhere. Normally these would include a requirement that the agency did not charge fees to candidates considered for recruitment and that employers in agriculture and food processing and packaging should only use labour provided who are licensed by the Gangmasters Licensing Authority.
The Code also encourages employers to be proactive and supportive in assisting with suitable travel and accommodation arrangements for migrant workers, including meeting necessary travel costs during the recruitment stage and agreeing that where travel costs are to be refunded by the worker such refund should be at an agreed affordable rate.
BITC encourages employers to provide all information and training in a format which takes into account any language difficulties, and to ensure that basic cultural needs of minority ethnic people are met. It is the experience of members that living and working in a new country can be a significant cultural shock so employers should be supportive of the diversity of personal cultures of migrant workers.
The Code encourages employers to provide cultural diversity awareness training for all staff and an induction programme to support migrant workers in adjusting to both British culture and the employee organisation’s culture. This should include for example, information on food, supermarkets, transport, launderettes, emergency telephone numbers, religious services, local maps etc.
Employers are also encouraged to prevent and address racial discrimination and harassment in the workplace by communicating with existing employees to ensure that they understand the reasons for overseas recruitment and are aware of the skills and experience of the new employees. Employers are encouraged to provide opportunities for dialogue and support on an ongoing basis and to promote a workplace culture which recognises values and respects diversity. Employers are encouraged to ensure that workers are provided with a copy of, and have full understanding of, their employment contracts by providing translations in their first language where required and providing workers with details of Trades Unions operating within the workplace. They should also ensure that the same pay and terms and conditions of employment are applied to migrant workers as apply to other employees in the same staff grouping.
It is important according to the BITC that employers recognise that migrant workers are entitled to the same statutory employment rights and protection under UK Employment Legislation as other staff and have the same opportunities for learning and development as existing staff.
How do I sign up?
BITC have indicated that any organisation wishing to sign up to the Code of Practice and receive a personalised statement should contact Jennifer Fox on 0207 566 8767.
Richard Bullock
Tel: 0115 936 9396
richard.bullock@freethcartwright.co.uk
We hosted our inaugural food dinner on a warm summer evening at Langar Hall, Langar, Nottingham, with our co-hosts Lloyds TSB and Catalyst Corporate Finance.
There were 30 attendees from a number of different companies within the food sector being represented. Jan Pieter-Lips addressed the audience during dinner on the issue of loyalty-oriented marketing, based upon his experience at Nectar and Professor Jenny Saint addressed the audience on recruitment issues, based upon her experience at Nottingham Trent University.
There was plenty of opportunity for guests to network before and after a sumptuous dinner in an interesting country location. It is understood that some significant conversations took place, which are doubtless being followed through and the feedback was that everyone found it to be an interesting and valuable evening.
It is intended that this will be repeated in the New Year with another speaker/speakers focusing on a topical issue.
When it’s a Pringle!
Mr Justice Warren ruled that Pringles could be sold free of VAT because they did not contain enough potato to be classed as a crisp. Proctor & Gamble had gone to the High Court to challenge a VAT and Duties Tribunal decision that the Pringle was subject to VAT because it was “a potato crisp product”, which are, unlike most food, subject to tax.
However, Proctor & Gamble had insisted that their hugely popular product was not similar to potato crisps, because of their melt-in-the-mouth taste, uniform colour and regular shape which was “not found in nature”. It also argued that potato crisps, unlike Pringles, did not contain non-potato flours and were not packaged in tubes.
Proctor & Gamble claimed that Pringles were more like a cake or biscuit, because they are manufactured from dough. Mr Justice Warren ruled that Pringles were not made from potato as within the definition laid down by the 1994 VAT Act. Pringles, he said, were made from potato flour, cornflour, wheat starch and rice flour together with fat emulsifier salt and seasoning and with a potato content of around 42% so therefore not liable for VAT.
This year also saw a victory for M&S at the European Court of Justice which supported their claim that a chocolate tea cake is a cake (zero-rated) and not a biscuit which would be liable for VAT. McVities previously won a similar decision on Jaffa Cakes.
Innocent Drinks is continuing its campaign to get VAT removed from smoothies and 100% fruit juices.
Lisa Gilligan
Tel: 0116 248 1145
lisa.gilligan@freethcartwright.co.uk