Meeting of the Parliament 01 March 2012
We questioned local authorities that have introduced the living wage, the most notable of which is Glasgow, about that issue. We received confirmation from the arm’s-length body that came to speak to us that it is possible for arm’s-length bodies to implement the living wage and that some do so.
The committee accepts that councils face different economic circumstances. However, we received evidence from a number of councils that have introduced a living wage as part of an overall package of efficiencies that it has been possible, working with staff and trade unions, to deliver the living wage while making net savings overall.
It is clear that there is a moral case for the implementation of the living wage to give our lowest-paid workers an improved standard of living. As I said, I think that we can deal with the concerns about the loss of benefits. It is becoming increasingly clear that there is also a business case for the living wage and that private companies in London are already seeing the benefits of implementing it.
The majority of Boris Johnson quotes are used for comic effect but on this occasion the mayor of London hit the nail on the head when he said:
“Paying the London Living Wage is not only morally right ... but also it makes good business sense. What may appear to a company to be an unaffordable cost is more appropriately viewed as a sound investment decision reducing staff turnover and producing a more motivated and productive workforce.”
What we have seen in London is the public sector leading the private sector, and the committee is hopeful that we will follow suit in Scotland.
I commend the report to the chamber.
15:08