With many parts of the UK immobilised as a result of freezing weather conditions, the overall cost to the economy could be as much as £1.2bn a day over the next few weeks, according to insurance company RSA. This view was confirmed by a firm of economic forecasters, which said previous analysis of the effects on the economy of heavy snowfall earlier this year[1] showed the cost amounts to at least £1bn a day as workers stayed at home, businesses struggled to maintain supplies and the transport network seized up with jack-knifed lorries, stationery trains full of passengers forced to spend the night in them and closed airports.
As indicated in our news story on 21 January, employers are not obliged to pay employees who cannot make it into work if their workplaces remain open. The BBC has published a consumer-focused guide aimed at confused workers faced with job security worries when contemplating their Captain Oates-like expedition into work from snowbound areas.[2]
Flexibility called for
Employers are increasingly having to cope with a reduced workforce as staff struggle to get to work, but the CIPD employee relations adviser, Mike Emmott, advises employers to be flexible with employees during bouts of adverse weather:
"Employers are entitled not to pay employees if they fail to show up for work, but the CIPD would not recommend that employers take this line. It's important to show empathy with employees - particularly those that normally perform well - as research shows that this flexibility and trust will pay off in the long-term, with employees more motivated and going the extra mile when they are able to get to work.
"Our experience is that employers tend to deal with these issues pragmatically: few go to 'law' about whether or not employees make it in to work. Both sides need to be realistic about what's possible. There is nothing in it for the employer to require the employee to spend all day trying to get in.
"Employers should make clear in advance what employees are expected to do in the event they cannot make it to work. Employees need to keep in touch and demonstrate to their employer that they have made attempts to get in - they need to get the message across that they are not just 'swinging the lead', since this could upset colleagues as well as their bosses.
"Ultimately, for employers it's all about the relationship - they should be trying to manage and maintain a workforce that is motivated, meaning they will reap the rewards in the long term.
"Employers need to carefully consider opportunities and options available if the weather conditions do stop employees making it in. Many companies that have put in place the technology and management practices to allow home working reap the benefits at a time like this.
"The crude estimates for the cost of millions-of-pounds to the UK economy due to bad weather often don't take into account the millions of motivated workers who will be working remotely."
Size matters
A Sky News survey of the FTSE 100 companies found that 27% reported a short-term negative impact due to the winter weather, but none expected to see any long-term lasting effects. The survey was based on the 51 firms who responded and of the 73% of firms that saw staff take days off, 39% said it did not matter as they were able to work remotely. The contrast in reported disruption suggests that larger firms are absorbing absent staff more easily than small companies. The Centre for Economics and Business Research (CEBR) told the BBC as many as 800-900 small businesses were under threat as a result of the cold snap. Businesses where cashflow is vital, such as bars and restaurants, are really suffering, it said. Cornelia James, glovemaker to the Queen by royal appointment is a small small family fashion business, and based in West Sussex. They confirmed to The People Bulletin that order fulfillment had been delayed because staff simply couldn’t get to work in the icy conditions at the worst possible time in the run-up to Christmas. Now there has been a temporary thaw it is still catching up on the backlog, so Her Majesty should get her gloves in time for Christmas.
[1] See also ‘Cold snap or quantitative freezing – the cost of snow chaos’
[2] www.bbc.co.uk/news/mobile/business-11886185