Meeting of the Parliament 01 March 2016
As a member of the Parliament’s Economy, Energy and Tourism Committee, I am delighted to speak in this debate on work, wages and wellbeing in the Scottish labour market, and I compliment the convener on his balanced speech.
It is important that all workers are entitled to a living wage—in fact, I would suggest a living weekly wage—safe working conditions and secure employment. I support the Scottish Government’s actions to improve employment standards in Scotland, including the promotion of the living wage, which is currently £8.25 an hour. Since this Government introduced the requirement to pay the living wage as part of its public sector pay policy, it has invested more than £1.5 million a year in the living wage rate throughout the relevant parts of the public sector, which has directly benefited around 3,000 workers.
Through the Procurement Reform (Scotland) Act 2014, the Government has promoted fair working practices. Its statutory guidance on fair work practices goes further than any other Administration. It makes it clear that paying the living wage is an indicator of an employer’s commitment to fair work practices and that doing so can have a positive impact on the quality of work. The act also requires public bodies to consider whether any procurement exercise can include a question on fair work practices.
I note that the Government has taken action to eradicate unfair working practices. Since the introduction of the Scottish business pledge, numerous companies have signed up. Those companies have pledged to pay the living wage, abstain from using exploitative zero-hours contracts, encourage diversity in the workforce and adopt progressive workplace policies. Additionally, the Government does not make use of zero-hours contracts and seeks to eradicate exploitative ones.
In order to create access to justice for all workers, the Government has committed to abolishing fees for employment tribunals. Under the Smith commission proposals, the UK Government is set to devolve employment tribunals to Scotland. However, the Economy, Energy and Tourism Committee believed the UK Government’s draft legislative clauses fell short of fully implementing the recommendations of the Smith commission.
As a member of the Health and Sport Committee, I commend the Scottish Government’s efforts to improve health and wellbeing by improving the quality of work and employment. Research shows that there is a socioeconomic gradient of health in employment, with many of those in low-skilled jobs suffering from poor health. Employers can take steps to improve workplace health by paying a living wage, involving workers in management, offering flexible working opportunities and providing opportunities for advancement.
Furthermore, I note that the Government is taking action to improve working conditions for those in the health and social care sector by promoting the living wage and fair work practices. During the past year, the SNP Government has provided £12.5 million towards those ends. This year’s draft budget sets out plans to invest a further £250 million per year through health and social care partnerships to protect and grow social care services. The SNP Government has also provided resources to local authorities to ensure that they have been able to commission care services that pay workers the full living wage.
The fact that employment legislation remains reserved to the UK Government provides a challenge for this Government and the EET Committee. The UK Government’s national living wage is well below the real living wage that was calculated by the Scottish Government to address the basic cost of living. In addition, the UK Government’s Trade Union Bill threatens Scotland’s positive relationship with trade unions. The number of working days that are lost per 1,000 employees to industrial disputes is lower in Scotland than in all the other regions in the UK. Therefore, if Westminster does not withdraw the bill, Scotland should be exempt.
The SNP Government has established a fair work convention that will produce a framework for implementing fair work. The framework will support the Government’s objectives of economic growth and inequality reduction. I welcome the publication of the fair work convention’s framework so that the SNP Scottish Government can continue to work to improve the standard of living for workers throughout Scotland.