A shortage of skilled labour continues to rock the Chinese catering industry, as a new report just released by the CICC details their research in aid of their appeal to the government to help hard hit Chinese restaurants and takeaways.

Since the establishment of the Points Based System (PBS), a five tiered immigration system for migrant worker entry by the government in February 2008, it has become even more difficult for Chinese migrant catering workers to come into the UK. Because of the PBS, there is a push by groups, such as the Chinese Immigration Concern Committee (CICC) to have Chinese catering labourers classified as "skilled workers".

If Tier 2 classification were given to Chinese catering workers, they would be allotted 50 points towards qualifying to work and enter the UK. But the government appointed Migration Advisory Committee (MAC) has not done this and the Chinese catering industry is not officially seen as facing a shortage of laborers.

In order to highlight the daunting prospects of a continual shortage, the CICC conducted a national questionnaire, and qualitative research with in-depth interviews of 15 Chinese restaurant and takeaway owners throughout the UK.

The report shows that the economic contribution of Chinese catering industry to the UK economy is substantial with turnover believed to be an estimated £4.9 billion a year. One-hundred thousand workers are employed by the UK Chinese catering industry alone.

Although CICC's research determined that 88 percent of Chinese restaurants and takeaways fall under the EU definition of Small Office Home Office (SOHO), employing 10 to 5 workers or up to 5 workers. In fact, 96 percent of takeaway respondents fall under the definition of SOHO with 74 percent only employing up to 5 workers.

But even with the small number of workers employed on average at these businesses, 34 percent of all respondents of the questionnaire state they are now employing fewer workers compared to 12 months ago.  Within these respondents, staggering 84 percent, 138 takeaways stated that they have a reduced workforce.  In result, many of these restaurants and takeaways that are operating with fewer workers are suffering with lower weekly turnovers.

Much of the Chinese catering job shortage and reduction in staff at Chinese restaurants and takeaways can be tied back to traditional recruitment methods and new immigration policies. Although 34 percent of Chinese catering businesses that responded to have used Job Centre Plus to recruit staff in the past, the most popular methods amongst these businesses have been through word of mouth, Chinese newspapers, and recruiting overseas, with 37 percent of respondents stating they have used this method.

Considering the lack of Chinese catering training in the UK, with no courses currently offered in the UK of NVQ Level 3 or of higher levels, it is not surprising that many restaurants are finding it difficult to fill Chinese catering chef vacancies. Formal training may not be as important as practical work experience in Chinese catering, as work experience is valued highly amongst the Chinese catering community as it is seen as the way to acquire the necessary culinary skills to be a chef in a Chinese kitchen.

Almost 90 percent of Chinese catering businesses recruit chefs based on their knowledge and ability to work with Chinese ingredients and spices, to prepare raw ingredients and fresh produce, to cook and work in a hectic environment, and their knowledge of Chinese culinary techniques.

Much of the research is devoted to the skilled workers in the kitchens of Chinese restaurants and takeaways, but the report also recognizes the requirements of front of house staff. In many instances restaurants require the ability to read, write, and speak at least 3 languages, Mandarin, Cantonese, and English as well as other Chinese dialects in order to be a front of house staff member in a Chinese restaurant.

Competition in recruiting skilled catering workers is becoming fierce with the worker shortage. Chinese restaurants are now competing with one another for workers, attracting and poaching workers with higher wages, in particular from smaller takeaways that do not have these resources to retain their staff. In turn, this is driving up the need for Chinese catering businesses to recruit overseas for labourers that otherwise cannot be found in the UK.

In the interviews conducted by the CICC, many in the Chinese catering industry fear they would have to close their businesses if the labour shortages persist. It is only for so long that many of these Chinese restaurants and takeaways can survive by employing less skilled workers and having current employees work overtime to make ends meet.

It is stated there is a clear sense of anxiety and anger which continues to grow with frustrations in regards to the issues faced by Chinese catering businesses all over the UK. Today, in the UK the Chinese catering industry has been left to its own means to either sink or swim, but the CICC, hopes that this research will at least help Chinese catering businesses stay afloat until a long term solution can be found.

For further information please visit the CICC website.

Pamela Yau