Tag: Fair Work Convention

Companies bidding to win Scottish Government contracts must pay the real Living Wage

Companies bidding to win Scottish Government contracts will have to pay the real Living Wage, ministers have announced.

This will ensure public sector contracts tackle in work poverty and promote fair work practices across the public, private and third sector where there is a risk of low pay.

The real Living Wage has been consistently higher than the UK National Living Wage and helps create an inclusive and fair economy for all.

Business Minister Ivan McKee said: “We want to use every opportunity possible to promote fair work and ensure people are paid at least the real Living Wage. By using procurement powers to ensure bidders pay the real Living Wage, the Scottish Government is leading by example to help influence employment practices and embed fair work principles.

“We will continue to engage with relevant sectors to encourage others to adopt this change across the public, private and third sector. We are firmly focused on creating the right economic conditions and fair work practices to drive a greener, fairer and more sustainable economy.”

Fair Work Minister Richard Lochhead said: “As outlined in our Programme for Government, a range of measures are being taken forward to embed Fair Work First across the economy. 

“The Scottish Government recognises pay as a clear way that an employer can demonstrate a commitment to their workforce, helping tackle in-work poverty alongside wider Fair Work First criteria.

“We will also introduce further changes to strengthen criteria for Scottish Government grants from next summer, subject to limits on devolved competence, as part of the Cooperation Agreement with the Scottish Green Party.

“The number of accredited living wage employers has increased from 14 in 2014 to just over 2,300 in 2021 and we would encourage more businesses to sign up to help ensure more people see their pay uplifted to at least the real Living Wage. We encourage organisations, regardless of size, sector or location, to adopt our progressive fair work approach which will help ensure all staff receive a fair day’s pay for the work they do.”

The Fair Work Convention Co Chairs Professor Patricia Findlay and Grahame Smith welcome the announcement from the Scottish Government on introducing a requirement to pay the real Living Wage to public contracts.

Commenting on the announcement, Professor Patricia Findlay said: “The Fair Work Convention welcomes today’s announcement from the Scottish Government. Low pay is one of the key drivers of in-work poverty.

“All too often we find that disabled workers, BME workers, young workers and women in particular face precarious and low paid work, so addressing very low pay in public contracts can begin to support better outcomes for these and other workers.

“Pay is a crucial element of fair work, and for too long the obstacles to workers’ challenging and improving low pay in certain occupations and sectors have been considerable.  Given this, government action to help address low pay is necessary to deliver fair work as well as to deliver on equality and anti-poverty priorities.

Grahame Smith added: I’m delighted that the Scottish Government has accepted the Convention’s view that there is no legal impediment to making the payment of the real living wage a requirement of those in receipt of public contracts.

“While this decision is a significant step forward and will make a real difference for thousands of low paid workers, we will be exploring urgently how conditionality can be extended to all dimensions of fair work, particularly requirements around collective bargaining, union recognition and the adoption of all terms and conditions negotiated nationally between employers and unions.”

A fairer deal for Scotland’s workers

Tackling low pay and zero hours contracts: new guidance will promote fair work

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The Scottish Government will today formalise its commitment to making Scotland a fairer place to work with new statutory guidance for public sector procurement. The move has been welcomed by the STUC.

The document represents the first time any administration has gone as far, and ensures that public sector procurements can take account of the fact that employers whose staff are treated fairly are likely to deliver higher quality services.

Those bidding for public contracts will now be expected to adopt fair work practices, which may include –

  • paying the Living Wage
  • no unnecessary use of zero hours contracts
  • giving workers an active voice in the workplace

The Scottish Government is prevented by EU procurement law from making the Living Wage mandatory in contract agreements, but the new statutory guidance means that companies who want to secure business with public bodies are now obliged to sign up to these fair work conditions for anyone working on the contracts.

Infrastructure Secretary Keith Brown will launch the new guidance in his speech to the Procurex national procurement conference in Glasgow this morning.

He said: “The commitment to making Scotland a fairer place to work is a key tenet of this government, and our new statutory guidance for public sector procurements sees us nail our colours to the mast.

“Our model of procurement, putting the social, economic and environmental aspects of sustainability at the heart of all we do, remains the foundation of our approach.

“Employers must now recognise that they cannot adopt exploitative practices in relation to their workers and expect to be rewarded with lucrative contracts in the public sector.

“If you want to do business with the public sector in Scotland, you have to be a responsible employer and value your workers. You have to do your bit to make Scotland a fairer and more equal society.

“We will continue to do everything in our power to promote that ethos.”

The news has been welcomed by those representing workers throughout Scotland.

Grahame Smith, General Secretary of the Scottish Trades Union Congress (STUC) said: “The STUC welcomes the Statutory Guidance on Fair Work Practices being introduced by the Scottish Government, a move that once again highlights the different approach taken by the Scottish Government in tackling poor employment practices and low pay in the Scottish economy.

“The Scottish Government has taken the lead in driving forward the real Living Wage as have local authorities and we believe it is right that companies wishing to receive public contracts should demonstrate that they treat staff fairly by paying a living wage, recognise the benefits of trade unions and collective bargaining and treat their workers with the dignity and respect they deserve.

“The Fair Work Agenda and the approach taken by the Scottish Government to promoting positive industrial relations as being key to economic success is thankfully at odds with attacks on trade unions at UK level and these statutory guidelines provide public bodies the opportunity to ensure contractors understand what is expected from them, as part of the public procurement process, and their role in delivering fair work and good terms and conditions for Scottish workers.”

The Fair Work Convention was set up last year to ensure there are more good quality, well-paid jobs at all levels throughout the public, private and third sectors.

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Fair Work Convention Co-Chair Anne Douglas (above) said: “The Fair Work Convention believes it is vital that work which provides individuals with opportunity, fulfilment, security, respect and effective voice and balances the rights and responsibilities of employers and employees. In doing this we can generate real benefits for individuals, organisations and for society more widely.

“It is therefore important that the Scottish Government uses all its levers to promote fair working practices and the Convention welcomes these being reflected in statutory guidance.

Linda Urquhart, the Convention’s other Co-Chair, continued: “The Fair Work Convention is currently engaging across Scotland, with business, employees, union, third and public sectors as well as society more generally to help evidence fair work and the basis from which the Fair Work Framework for Scotland will be created.

“Following the publication of their Framework in March the Fair Work Convention will welcome an opportunity to work with the Scottish Government to further this approach.”