While the COVID pandemic has provided swings in demand throwing the supply chain out of balance, it also ushered in this labor issues which have made the post-pandemic recovery much more difficult. And this difficulty is expected to continue as it is expected that employee shortages will be a long term situation.
There are a number of reasons for the labor shortage. An article in the Wall Street Journal (link below) and other sources provide insights including these:
- COVID vaccination status - many employers have issued mandates for COVID vaccinations which has resulted in many deciding to leave rather than comply
- Mothers of with young children deciding to leave or needing to leave the workforce due to childcare. Childcare facilities are also facing a labor shortage and therefore have reduced capacity. In other cases, mothers have decided to forgo the extra wages they would have earned to stay at home and reduce their risk.
- Older people who had continued to work after retirement age have decided to fully retire. In some cases, that means taking early retirement. In other cases, forgoing extra income and making a go of it on their current retirement payments. Again, much of this may be related to avoiding the risk of becoming ill with the virus while working.
- For those willing to work, there are plenty of job openings giving people choices. And there are many who have decided they want more out of their job...whether that be higher wages, better working hours, better working conditions, or a little of each. Some are sitting it out waiting for the right opportunity, living off current savings while they search. And with numerous openings, some people are job jumping, perhaps with the notion of prolonging unemployment benefits.
- Absenteeism is also high. A NAMI executive reports meat companies being challenged with 20% absenteeism of 20% on any given day. I spoke with one retailer who stated they are forced to live with call offs - either take people when you can get them or force people who are present to work longer hours.
An article in the National Law Review discusses the use of immigration as a solution. Having multitudes of people crossing the boarder will do little for jobs requiring some level of expertise, but perhaps by working on easing Visa restrictions, companies can pull in talent from areas where there are excess skilled workers.
Clearly this all then represents a challenge for food safety - from being flexible to changes in the supply chain, to ensuring enough trained people are present to ensure safe production. Companies will need to adapt their operations because there does not appear to be getting any better in the short term. investments in technology and/or making changes to HR strategies will be areas of focus. It is hard to run full speed when a company has an insufficient number of skill workers to properly operate.
Food Processing Magazine
https://www.foodprocessing.com/articles/2021/end-flap-supply-chain
Opinion: The Supply Chain as Scapegoat
The pandemic didn’t cause problems with the supply chain; it exposed them.
By Pan Demetrakakes, Senior Editor
Oct 25, 2021
The supply chain” has been getting a lot of blame lately.