Business predicts sharp fall in migrant labour as wildcat strikes continue over 'British jobs' controversy

A top businessman has waded into the 'British jobs for British workers' controversy by predicting a 'sharp' fall in the use of migrant labour.



John Cridland, deputy director-general of the Confederation of British Industry (CBI), said employers would no longer be able to 'make the same case' that large numbers of non-EU migrants should be allowed in on work permits.

A record 151,000 were handed out last year.



He also predicted the Government's migration advisory committee would slash the number of jobs eligible for work permits to help British workers through the recession.

A snowman shows his support for the protest against the use of foreign labour on British job sites in Evington, Leicestershire

Mr Cridland made the remarks to MPs yesterday as marathon talks resulted in an offer to give half the jobs on the disputed contract at Lindsey oil refinery, in Lincolnshire, to local workers.

The deal will be put to unions today in a bid to end the five-day walk-out over the use of foreigners on the construction of a new £200million plant.

Yesterday many other workers who had organised sympathy strikes at other sites returned to work, in a sign the dispute may have peaked.

Mr Cridland, giving evidence to Westminster's home affairs committee, said workers from Poland and other Eastern European countries were already going home because there are fewer jobs in Britain.

He added: 'We know that employers face a sharp contraction in demand. Their first response to that has been to reduce their dependency on agency labour where there may be a lot of migrant workers in order to protect the full workforce.

'I expect that, when we next have a report on the migration committee on the needs for skilled labour, they will not see the same need for non-EU labour in the same numbers because of the need to provide as many employment opportunities as possible for the unemployed.

Some of the 500 contractors at the South Hook LNG terminal in Milford Haven, west Wales, who are protesting against British workers losing out to their foreign counterparts

'The market will correct itself but what we cannot avoid is a significant increase in unemployment which is a sad but inevitable consequence of recessions.'

Mr Cridland defended the free movement of workers between EU countries and said there was 'no evidence' of discrimination against British workers at the Lindsey Oil Refinery.

But it came amid a backlash from Labour MPs against the hard stance adopted by Gordon Brown and Peter Mandelson, who have described the strikes as 'indefensible', 'protectionism' and fuelled by 'the politics of xenophobia'.

Former leadership contender Jon Cruddas said: 'I am worried about the assumption that it is protectionist to get a level playing field in terms of the bidding process for contracts.



'I am also worried about the message being sent out that it is xenophobic to protest in this instance - both are very very dangerous responses.'



Police officers guarding the Lindsey oil refinery in North Lincolnshire wrap up against blizzard conditions

Backbenchers Austin Mitchell and Michael Meacher also waded into the row, criticising the Government's position as 'ridiculous' and 'misguided'.

Ahead of expected talks with the GMB union next week, backbencher John Mann has tabled a Commons motion registering concern that skilled Britons may be missing out on jobs.

He said that it was 'total rubbish' to suggest the strike was a slide towards protectionism, adding: 'The posted workers directive is being broken and there needs to be action to enforce it.'

Under the 1996 EU Posted Workers Directive, foreign contractors are free to employ their own direct labour force from their own countries.



They need only be paid the statutory minimum wage but MPs are doubtful that this is occurring.

Protestors gather at the Lindsey oil refinery in North Lincolnshire

Total, the oil giant which owns Lindsey near Grimsby, said it was holding crisis talks with union officials in an urgent bid to end the dispute.

A statement said: '[We] hope our commitment to this process will help to allay the contractors' concerns in order that they will return to work as soon as possible.'

Total continued to insist the foreign workers, who are mostly Italian or Portuguese, are paid the 'same, or similar' as British workers.

Anger: Several hundred people demonstrated for the fifth day at the Lindsey oil refinery

Meanwhile, research by KPMG highlighted the difficulties faced by anybody who is trying to find a job at the current time.

The few who get a job may be forced to accept a big pay cut following a record-breaking drop in starting salaries, according to the accountant.



Other problems include an ever-growing pool of candidates competing for each job and companies cutting back on hiring temporary staff.

Mike Stevens, a partner and head of business services at KPMG, described the findings as 'desperate'.