Delta variant sparks worker shortage across UK business

The Delta variant of coronavirus is wreaking havoc on industry with more than 700 workers at the UK’s largest car factory self-isolating and business groups warning that some companies are missing 20 per cent of their staff.

Labour shortages have hit factories, shops and warehouses, with workers “pinged” by the NHS Covid app and told to self-isolate for 10 days if they have come into contact with an infected person.

Stephen Phipson, chief executive of Make UK, which represents UK manufacturers, said that the “need to isolate, even without symptoms, is now a serious issue and impacting on production”.

Several shifts at Nissan’s plant in Sunderland — the largest in the UK — have been cancelled in recent weeks, with the carmaker forced to send entire teams home, costing the plant hundreds of cars in lost work.

Nissan said production in “certain areas” of its plant had been adjusted “as we manage a number of staff being required to self-isolate following close contact with Covid-19”.

The UK reported 42,302 new Covid cases on Wednesday in the latest 24 hour period, the highest level since January. There were 49 further deaths. Health secretary Sajid Javid has predicted more than 100,000 new infections a day by August. 

The workplace crisis could be averted from August 16 at which point prime minister Boris Johnson has pledged that fully vaccinated people will no longer need to self-isolate when they are pinged by the app. 

But business groups including the CBI have called on the government to bring forward that date in line with restrictions lifting next week. 

“In some cases up to 20 per cent of the workforce is now isolating,” said Phipson. “The government must revisit the August date as an immediate priority as the situation is likely to get far worse with the lifting of restrictions next week.”

Richard Walker, managing director of Iceland Foods, said in a tweet that Covid-related absences were “growing exponentially. Within a week or two they’ll be the highest ever. This will be a shit show for business”.

Hospitals in Leeds and Birmingham are among those which have had to cancel or postpone operations in part because so many staff are self-isolating. 

Some business executives have warned of an “exponential” increase in those having to self isolate having been pinged by the app.

The problem was raised with the business secretary Kwasi Kwarteng in a call with business chiefs on Tuesday evening, according to a person with knowledge of the call. 

Executives are also concerned that the new workplace guidance will exacerbate the problem as it tells companies that they are legally liable if employees do not isolate. “In those circumstances it’s natural companies would exercise caution and more people will be off,” said one.

Government officials have tried to reassure business leaders, saying ministers are “working on solutions” to the issue, including potentially bringing in a ‘test to release’ system that will allow people to return to work more quickly.

The bars, restaurants and pubs sector is facing a similar labour crisis, according to Kate Nicholls, head of UKHospitality, who said that up to a third of staff were being forced to stay at home in some of the worst cases.

The British Retail Consortium, which represents retailers, has warned of high street labour shortages of up to 20 per cent in some parts of the UK in part because of Covid-19 self-isolation. That is worsening the problem of labour shortages already occurring because of Brexit and other covid labour issues, executives have warned.

BRC chief executive Helen Dickinson told MPs on the business, energy and industrial strategy committee on Tuesday that the sector was “seeing some vacancy rates of around 20 per cent, and only some of that is directly people with Covid — a lot is the indirect consequence of having to isolate, irrespective of tests or whether one has had two vaccines. I think it is an immediate issue that comes with the lifting of restrictions.”

However, with the industry facing a shortage of semiconductors that has seen several factories close, the company believes it can claw back the lost production.