Hansard

Thank you—I appreciate that.

I note that Murdo Fraser’s amendment to the motion contains little more than a passing mention of fair work, which shows the Conservative Party’s hesitation in engaging on the fair work agenda in this context.

I am more than happy to address the point that Murdo Fraser raised. There is a new deal for business sub-group for discussions on ensuring the wellbeing of the economy, which is one of the elements. Businesses are, of course, signed up to, and understand the need for, fair work conditionality and fair work in workplaces. There is a pretty well-recognised acceptance across Scotland, including among members of the business community, of the advantages that could come from the devolution of employment law, including the advantages for businesses themselves.

Scotland’s employability service is underpinned by our “No one left behind” approach. It delivers person-centred and responsive services that meet the needs of individuals, employers and local labour markets. We are investing up to £108 million this year in the delivery of all-age employability support. On my recent visit to All in Dundee, I heard about the positive impact that our distinctly Scottish approach to employability is having in supporting disabled people into employment.

Our distinctive approach to key relationships in Scotland is working for us. The new deal for business is heralding effective partnership working with business on the economy. The Verity house agreement is resetting how we work with local government to deliver key public services, and it recognises the contribution of workforces at local level.

The Government understands the importance of a fair work approach to unlocking the full potential of our workforce and achieving a thriving, fair, green and growing economy. Our actions show our determination to be a successful and leading fair work nation, in spite of inaction from the United Kingdom Government. However, inequalities remain and insecure work persists. Although Scotland has one of the lowest levels of insecure work in the UK, it remains a concerning feature in our economy.

The evidence is clear that comparator nations—the Nordics, Austria and Belgium, for instance—outperform the UK across a range of economic and social indicators. Those nations achieve better labour market outcomes, alongside higher gross domestic product per capita, higher productivity, higher levels of business investment and higher levels of innovation. The UK’s deregulated labour market has not supported higher productivity, growth or wages, but it has led to relatively high prevalence of both low and very high wages, resulting in higher income inequality.

The type of labour market that we support has a bearing on the overall functioning of our society. With full control over employment law, the Scottish Government could choose to balance the rights and responsibilities of workers and employers, creating a labour market in which fair work is the norm.

The changing nature of work, with the growth over the past 20 years in atypical work—for example, self-employed, part-time, agency, temporary, zero-hours contract, multijob, gig economy and platform work—means that there is a gap in worker protections. That was highlighted in the UK Government’s 2017 Taylor review of modern working practices. I understand that it is challenging to achieve the reforms that are required in such areas, but workers who have non-standard working patterns often have no entitlement to statutory sick pay, paternity leave, maternity leave or other paid leave. They are also likely to have reduced opportunities to train and progress in work.

Therefore, raising minimum standards for all our workers—not just those in standard full-time jobs—requires deliberate corrective action, but recent Westminster Government labour market policies seem to be moving us in the opposite direction. They include inadequate enforcement of minimum employment standards, including the national minimum wage; the introduction of the Trade Union Act 2016, which makes it more difficult for trade unions to take industrial action and to organise in the workplace; plans to introduce fees for employment tribunals; and the Strikes (Minimum Service Levels) Act 2023.

Members of the Scottish Government have repeatedly voiced our opposition to the UK Government’s Retained EU Law (Revocation and Reform) Act 2023 and anti-trade union legislation. The recent strikes act is unnecessary, unwanted and ineffective. It undermines legitimate trade union activity and does not respect the Scottish Government’s fair work principles or the devolution settlement.

The Scottish Trades Union Congress agrees, as does the UK TUC, which backed a motion calling for the devolution of employment law to Scotland. As the STUC reiterates in its briefing for this debate, the devolution of employment law offers an opportunity to redesign the system to better meet the needs of workers and employers. Further measures could draw on the recommendations of recent commissions, such as the Taylor review, which I mentioned, and the Institute for Public Policy Research’s commission on economic justice.

In “Building a New Scotland: A stronger economy with independence”, we proposed several measures that could be implemented through the devolution of employment law or through independence: a fair mandatory national minimum wage that reflects the cost of living; improved access to flexible working; the repeal of the UK Trade Union Act 2016; and gender pay gap reporting for companies with fewer than 250 employees. We also continue to call for the devolution of the access to work programme, to ensure that that programme, which supports people with a health condition or disability, is delivered in a way that respects the needs of Scotland’s labour market.

We do not support the UK Government’s economic model, which actively promotes a deterioration of workers’ rights and deprioritises the global imperative of a green and just transition to net zero. Scotland has its own distinct needs and values, so, instead, we are pursuing a green transition, which will be supported by our energy sector just transition plans and our forthcoming green industrial strategy. We are pursuing fair work, good jobs and rising productivity across our workplaces and regions, and we are pursuing a wellbeing economy and social justice as key outcomes from economic growth.

However, we could move faster. Securing the full range of powers in relation to employment law will enable the Scottish Parliament to implement policies that are in favour of our ambition for a fair, green and growing economy, and we call on members of this Parliament to support the devolution of employment powers as a clear next step in that agenda.

I move,

That the Parliament agrees that the position of the UK Government on trade union legislation, industrial relations and employment law works against the ambitions to make Scotland a fair work nation; recognises that the current approach of the UK Government contributes to lower productivity and higher inequality than is the case in countries comparable to Scotland, and calls, therefore, for the devolution of employment powers to the Scottish Parliament, as supported by the Scottish Trades Union Congress.