Laundy says it’s time to open international borders

The closure of international borders has put enormous pressure on a range of industries, not least the hospitality industry.

According to Craig Laundy, the former Federal Minister for Employment, Workforce, Skills, Small and Family Business and current pub baron, the skills shortage is causing enormous headaches.

Laundy, who runs a multi-million dollar family pub empire with his father Arthur, recently told Sky News Business Editor Ross Greenwood that following the collapse of working visas, he has lost 26 chefs back to their homeland is struggling to find Australian born and bred replacements for those positions.

“Managers, maître ds, sommeliers, it is proving troublesome to replace them with homegrown skilled workers. It is really causing headaches,” Laundy said.

Many international workers, who would have ordinarily begun a new life in Australia, have had to rush home to support their families.

This has meant not only skilled positions, but unskilled positions have been left wanting.

Laundy says there is no difference in the difficulty in trying to fill both skilled and unskilled positions.

“It’s a case of trying to find people: wait staff, bar staff, floor staff in accommodation, housekeeping staff. It is proving difficult.

According to Greenwood, unemployment is at 5.6%, so it is difficult understand why the staff isn’t out there.

Laundy’s believes some people may not be looking for work. However, he is calling for anyone who has a Responsible Service of Alcohol (RSA) or a Responsible Conduct of Gaming certificate to head to the nearest Laundy hotel.

“I don’t care if you are unskilled. If you are unskilled, we are prepared to train you on the job because we are struggling. It’s not just us. I have talked to many operators on a daily basis and it is a constant theme – our industry is in the same boat.”

Hospitality isn’t the only industry suffering.

Jayco Caravans owner Gerry Ryan has said his supply line has been disrupted because of a lack of workers.

This is despite coming through a period of strong employment growth.

“They don’t want to do the work, or are waiting for something better to come along,” Laundy said.

One thing that may entice them is wage inflation.

“I lost a chef recently on the Central Coast. l had to pay 15% more to than I would have normally to fill that job. Where there are skilled shortages happening, I would say there is big wage inflation occurring.”

Not only do hospitality providers have to absorb that inflation, they also have to absorb price inflation or pass on the costs to customers.

We try to keep as lean as possible, so we can ensure we give the customer a great experience as cost effectively as possible,” Laundy told Greenwood.

“When you have expenses increasing, we need to cover those. We wear some of the cost, but we do try to pass some on. In the last few years, we have had real wage declines and CPI levels have been negligible. But I can see that turning around in the next couple of years.”

As far as government help, Laundy says both state and federal governments need to stop the overlap and figure out who is responsible for what. They need to think long termabout how to manage skills shortages.

This could mean opening borders up as quickly as possible as long as it is done safely.

“We have proven ourselves to be a safe in an uncertain global time,” Laundy said.

“If I was in government at the moment, I would be thinking about how can we attract the best people from around the world. How do we open our doors to the smartest and best to bring money into the country.

Jonathan Jackson, 25th May 2021