Grants link to boost Fair Work

Improving pay and working conditions through public sector investment

Organisations applying for public sector grants will need to pay at least the real Living Wage and provide channels for staff to have a say in the workplace from July 2023.

The condition applies to organisations receiving grants from the Scottish Government, enterprise agencies and public bodies. Exceptions may only be applied to emergency funding and where an organisation is heavily dependent on grant funding and paying the real Living Wage would threaten its survival.

The new requirements form part of the Scottish Government and the Scottish Green Party Parliamentary Group Bute House Agreement, a plan to work together to build a fairer and more equal economy.

Employment and Fair Work Minister Richard Lochhead and Green Skills, Circular Economy and Biodiversity Minister Lorna Slater visited MiAlgae, an Edinburgh industrial biotechnology company that has received public sector funding and whose staff are paid at least the real Living Wage and have a voice in the workplace.

Mr Lochhead said: “The Scottish Government is committed to using public sector investment to drive up wages, tackle inequalities and give employees an effective voice.

“This policy is a significant step in strengthening our fair work agenda. For example, in 2021-22 Scottish Enterprise issued £135 million in grants to 953 businesses.

“Fair work and fair pay are good for business. They help improve staff retention and productivity, reduce recruitment costs and contribute to a skilled and motivated workforce.

“Scotland is already leading the way on paying the real Living Wage. In 2022 a record 91 per cent of employees aged over 18 earned the real Living Wage or more in Scotland – higher than the UK as a whole and above any other UK country. There are more than 2,900 accredited real Living Wage employers, which is proportionately five times as many as in the rest of the UK.

“Grant conditionality will strengthen our vision that by 2025, people in Scotland will have a world-leading working life where fair work drives success, wellbeing and prosperity for individuals, businesses, organisations and society.” 

Ms Slater said: “An effective voice for workers is vital to ensure better terms and conditions, worker wellbeing and developing progressive and fairer work places.

“The ability to speak, individually or collectively, and to be listened to, is essential to improving workers experience as well as improving organisational performance.

“We will work with employers, workers and trade unions, to continue improving the terms and conditions for employees of organisations applying for a public sector grant.”

MiAlgae Operations Director Dr Johann Partridge said: “At MiAlgae, the real Living Wage was something we have been fully committed to since the beginning. As an organisation our people are our most important asset and, for us, a happy and engaged team is crucial to our operations.

“Having open channels of communication between staff across every level and area of the business is something we are passionate about. We strive to ensure each member of our team feels empowered and confident to communicate and engage with each other about all elements of our work.”

But the national membership organisation for the voluntary sector, Scottish Council for Voluntary Organisations (SCVO), has raised concerns about those workers who could be left behind. 

In a statement, SCVO said: “SCVO agree that Fair Work for Scotland’s voluntary sector workforce should be a priority. However, it is unclear how the sector will be supported to fund this change. 

“Years of underfunding, followed by Covid-19, and the running costs crisis, mean that for many voluntary sector employers paying the Living Wage cannot be achieved without additional resources.  

“A significant number of people employed in the sector are funded by public sector grants and contracts. SCVO have made clear that to support organisations to pay the Living Wage, public grant funding and procured contracts should build in a Living Wage uplift to ensure organisations delivering public services and other vital support are able to pay the Living Wage.  

“We look forward to more details about how these plans will be funded in the upcoming Scottish Budget. 

Concerns were also raised that plans to ensure Scotland’s voluntary sector workforce are paid at least the Real Living Wage apply only to staff engaged in grant funded activities creating the potential for pay inequality within and between voluntary organisations. 

SCVO encouraged the Scottish Government to engage with voluntary sector funders and employers to ensure that all of the sector’s 135,000 employees can be paid at least the real Living Wage. 

The organisation added: “The voluntary sector workforce makes a huge contribution across Scotland, offering a lifeline to people, families, and communities as the cost-of-living crisis bites. This lifeline shouldn’t need to be extended to voluntary sector staff. 

“Scottish Government need to work with local government, funders, and crucially, the sector, to ensure that voluntary sector organisations have the support they need to pay the Real Living Wage.”

Wellbeing economy toolkit to support local authorities

Roadmap to ‘fair, green prosperity for communities and regions’

Improvements to health, tackling child poverty and reaching climate goals are at the heart of a toolkit to support local economies to be fairer, greener, healthier and more resilient.

The Wellbeing Economy Toolkit: Supporting place-based economic strategy and policy development enables local authorities to identify and measure local wellbeing metrics including health, child poverty, levels of greenhouse gas emissions and fair work, and prioritise investments and policies to improve them.

This will include:

  • the creation of more high quality, sustainable local jobs by using more local and regional procurement contracts
  • improved transport links to help people access services and work
  • better access to the natural environment, which leads to better mental and physical health

The Constitution Secretary announced the toolkit at the Wealth of Nations 2.0 conference at the University of Glasgow. He was joined by representatives from fellow Wellbeing Economy Governments (WEGo) of Finland and Wales to take questions from young people, five years on from the first conversations to establish the network.

Constitution Secretary Angus Robertson said: “The need for a new economic model has never been clearer, and that’s why I think the wellbeing economy approach is gaining so much interest, both here, and around the world.

“We see that in the growth of WEGo – the network of wellbeing economy governments – which began as a coalition of Scotland, Iceland and New Zealand. Since this event was last held in 2020, two more governments – Finland and Wales – have joined, and other countries including Canada are showing a growing interest.

“Creating a wellbeing economy remains a defining mission for the Scottish Government, and it is my firm belief that Scotland could use the powers of independence to achieve that aim more fully. 

“Building a wellbeing economy is a huge challenge for any country, at any time. The current crises we are facing make it harder, but they also underline why we need to make this transformation as a matter of urgency.”

Jimmy Paul, Director of Wellbeing Economy Alliance Scotland, said: “This practical new toolkit will be an invaluable resource for developing local economic strategies that really work for communities.

“Amidst the cost of living and climate crises, it’s never been more important that economic approaches start with the goal of ensuring we all have what we need to live good lives and protect the health of our natural world, rather than continuing to centre outdated metrics like GDP growth. The toolkit could provide a step-change in the way local economic strategies are delivered in Scotland.”

Wellbeing economy toolkit: supporting place based economic strategy and policy development

Funding to support Edinburgh Festival Fringe producers

£1.275m Fringe 2022 Resilience Fund developed, thanks to support from the Scottish Government’s Platforms for Creative Excellence (PLACE programme)

The Edinburgh Festival Fringe Society is pleased to announce that 13 Edinburgh Festival Fringe producers have been awarded a share of £1.275 million through the Fringe 2022 Resilience Fund, developed thanks to support from the Scottish Government’s Platforms for Creative Excellence (PLACE) programme.

The fund, designed to support resilience, recovery and creativity across the festival in its 75th anniversary year, is part of a £1.58m award to the Fringe through PLACE. The remaining £305k has been allocated to support the ongoing resilience of the Fringe Society and includes £55k to support the delivery of Street Events during August.

Venues in receipt of the Resilience Fund are Assembly, BlundaBus, Gilded Balloon, Greenside, Just The Tonic, Laughing Horse, Monkey Barrell Comedy, Pleasance, Scottish Comedy Festival, Summerhall, theSpaceUK, Underbelly and ZOO.

The awarding panel was chaired by the Fringe Society, and included the expert advice of Creative ScotlandCity of Edinburgh Council and EventScotland.

Commenting on the fund, Shona McCarthy, Chief Executive, Edinburgh Festival Fringe Society, said: “It’s fair to say that the last few years have been the most challenging in our festival’s history. Now, as we prepare to enter our 75th anniversary year, creatives across the Fringe landscape are working hard to ensure that this incredible festival not only survives, but continues to work hard to be the best version of itself.

“This support from Scottish Government is absolutely vital in helping us to achieve that goal: allowing producers and creatives across the landscape to not only recover from the devastating effects of the pandemic, but to offer enhanced support to artists, workers and volunteers; to continue to programme creative and innovative work; to improve accessibility; to tackle affordability and to ensure that this festival remains true to its founding principles of openness and inclusivity.”

Scottish Government Culture Minister Neil Gray said: “As we celebrate the 75th anniversary of the Edinburgh Fringe this summer, I’m pleased that £305,000 from our Platforms for Creative Excellence (PLACE) Fund will support the activities of the Festival Fringe Society and their street events this year.

 “In particular I want to congratulate the 13 producers who will share the Fringe 2022 Resilience Fund. The last few years have been difficult for the venues putting on events so this support will help to ensure the continued success of this flagship summer festival.”

How the funding will support creativity and resilience across the Fringe: 

To address recovery and resilience challenges for the Fringe, funding was considered across four key pillars: Creative Programming; Risk Management; Fair Work and Sustainability.

With this funding, Summerhall are planning a range of creative work at the festival, including supporting two under-represented artists to make new work in response to 75 years of the Edinburgh Festivals.

To address sustainability, they aim to lead the way as a flyer free venue and will implement e-ticketing. Within their workforce, they are looking to create a brand-new Fringe Learning Management System, which will help onboard workers through online learning.

BlundaBus’ funding will support their return to the Fringe after the pandemic. They actively work to programme and support alternative and experimental artists, as well as artists for whom cost is a barrier to participation, offering both performance and ‘green room’ spaces to support artists.

Since 2019 they have been working to develop a programme of work centred around women and LGBTQ+ performers. They are champions of the Pay What You Want ticketing model to support affordability at the festival, and embed sustainability across their practice by reducing single use items and prioritising sustainable materials in their infrastructure.

Greenside’s funding will allow them to continue operating as an open programming venue, giving artists from non-professional backgrounds a route to access the festival.

It will also support them to increase staff pay further, from Living Wage to paying every team member above the Real Living Wage; facilitating the creation of an additional 24 Festival jobs paid above the Real Living Wage.

To address sustainability, they will move to e-ticketing, transition their programme from print to digital, and look to reduce omissions across their technical operation.

Just The Tonic will use the funding to support their programming of high-quality comedy and to support and underwrite costs for artists who are still recovering from the pandemic.

In 2022, their venue The Tron will be programmed with female performers only, with the aim of addressing gender imbalance in the comedy sector. They will continue their Pay What You Want ticketing model to help with affordability, and as part of their commitment to fair work, all staff will be paid Living Wage.

Support for theSpaceUK will allow them to mitigate costs for artists who have been impacted by the pandemic, whilst keeping access to the festival affordable for creatives.

As a champion of both emerging and established artists, they will continue their commitment to open access programming and supporting new and original writing. They will continue to operate as a Living Wage employer and to offer a programme of staff training.

With their funding, Gilded Balloon will continue to support emerging artists and their development. In consolidating their programme, they plan to reduce the number of overall shows to allow for increased turnaround times between shows (allowing for a better experience for artists, staff and audiences alike).

While all staff are already paid the National Living Wage and above, this fund’s support will enable them to increase the number of staff on site and reduce staff hours. They are also investing in e-ticketing to support sustainability and are reducing the number of flyers produced by investing in digital marketing.

Laughing Horse have received support for the delivery of a range of activities associated with the Free Festival. To address sustainability, they are looking to fully replace their printed programme with an app and improved mobile website.

They will run mental health support sessions for performers and staff before and during the Fringe, and they have committed to a BSL interpreter for several performances to improve access to deaf audiences.

Funding will also support them with equipment costs and with the hiring of paid ticketing staff.

Underbelly’s funding will allow them to increase their minimum pay offer for temporary festival staff from the National Living wage (which they already pay) to the Real Living Wage.

They will also use the funds to hire additional short-term staff to support their existing team during the busy Fringe period, thereby improving working conditions and reducing working hours.

To address sustainability, the support will allow them to invest in e-ticketing. They plan to enhance their accessibility programme with extra captioned shows and a range of shows with BSL interpreters.

Support will also help with the build and maintenance of their temporary venues, and accommodation for their staff during the Fringe.

Monkey Barrell are looking to use their funding to continue to programme diverse and inclusive line-ups, whilst creating greater opportunities for local acts, unrepresented performers and those from non-privileged backgrounds.

They are looking to create a community focused artistic hub to enable creatives to come together at the festival. As of 2022, all year-round staff previously on Living Wage are now paid the Real Living Wage.

This fund will allow them to extend this to all temporary staff during the Fringe, and to create a staff development programme to upskill and develop their wider team.

ZOO’s programming in 2022 is aimed at better reflecting the lives of under-represented or minority audiences, and support from this fund will allow them to subsidise core costs for creatives.

Work by disabled artists is already central to their programming, and this funding will allow them to improve access to their audiences with enhanced BSL, audio description and captioned performances.

They will continue their commitments to paying staff Living Wage and above and to paying freelancers above the recommended rates. They will also continue to support their volunteer programme – which includes budget to address areas such as transport, access needs and childcare.

Funding will allow for Covid mitigations – such as enhanced cleaning, and provision of masks and hand sanitiser.

Pleasance will use the funding to reduce the financial risk to artists attending the Fringe – with targeted interventions which will support debut and early career creatives.

They plan to increase the number of employees in their workforce, reduce working hours during the festival, reduce the ratio of volunteers to paid staff, and provide increased opportunities for staff training. Some funding will also be used to invest in key infrastructure to improve their offering to artists and audiences, such as a reinforced Wi-Fi network to be able to facilitate e-ticketing.

Funding for The Scottish Comedy Festival will enable them to continue their work in programming local acts at the Fringe. Their model is centred around affordability and mitigating financial risk for the artists, and they are especially keen to support working class performers.

To further support affordability, their programme will continue to feature a mixture of Pay What You Want and Pay What You Can shows.

Assembly’s funding will be used to support artists’ attendance at the festival, by assisting with core costs such as accommodation, marketing and underwriting risk. Their programme, which celebrates 40 years at the Fringe this year, includes emerging artists and those from diverse backgrounds, as well as established performers.

Assembly Festival is a Living Wage employer and will use this fund to support increased training for staff and will also use it to mitigate against rising costs. They also aim to undertake research into post-pandemic audience behaviours and will continue their work as a sustainability champion.

Getting the Right Change: A Retail Strategy for Scotland

Encouraging fair work and improving skills

Improving staff skills and working conditions are key parts of a newly published strategy to support retailers.

Getting the Right Change: A Retail Strategy for Scotland outlines how the Scottish Government, business leaders and trade unions can work together to unlock opportunities to grow businesses and the economy, improve wellbeing and address inequality, and support progress towards our ambitious climate change targets.

Actions outlined include:

  • developing and promoting a Fair Work Agreement that retailers can voluntarily sign up to, to improve fair work conditions across the sector and contribute to reduction of in-work poverty
  • working with Skills Development Scotland and other partners on a Skills Audit and Action Plan, to support retail reskilling or upskilling as jobs change, for example due to technology like self-scan checkouts and online ordering systems
  • developing a Just Transition Plan for Retail to protect jobs and contribute to net zero emissions by 2045 through developing local supply chains, reuse of materials and sustainable travel choices by staff and customers
  • promoting town and city centres and local businesses while supporting ways to repurpose vacant retail units
  • harnessing opportunities in the National Strategy for Economic Transformation that will directly support the retail sector, like actions to grow businesses, boost productivity and support entrepreneurship

A new Industry Leadership Group will be established to drive delivery of the retail strategy, co-chaired by Public Finance Minister Tom Arthur.

Mr Arthur said: “As we have seen during the pandemic, our retailers have played and continue to play a vital role in creatively supporting our communities.

“Our retail strategy sets out actions to support the sector to rebuild from the effects of the pandemic, address longer-term challenges and maximise opportunities to fulfil its potential. It has been developed in collaboration with business, trade unions, academia and the public sector.

“It builds on the National Strategy for Economic Transformation and Covid Recovery Strategy – setting out a shared vision for retail to achieve inclusive economic growth and play its part in creating a fairer, greener Scotland.

“The retail strategy builds on the strengths of the sector – so that it is successful, resilient, sustainable and profitable to the benefit of all of Scotland.

“We want to support innovation and entrepreneurship, and seize opportunities from new technology and markets, to boost productivity and grow businesses.

“In this way, our retailers can benefit from and contribute to the bold programme of actions that will transform our economy over the next decade.”

Chairman of the Scottish Retail Consortium John Brodie MBE said: “Scotland’s retailers have shown tremendous fortitude and resilience to come through the tribulations of the past few years, a period of profound transformation for the industry which was accelerated by the Covid pandemic.

“The Scottish Retail Consortium is delighted to have partnered with government to develop this strategy which recognises the enormous economic and social contribution that retailers make and outlines a shared approach to sustainably grow the industry.

“Retail is Scotland’s largest private sector employer and this more strategic and collaborative approach to supporting and nurturing the growth of the industry should help it flourish and fulfil its potential over the decade ahead.

“This will benefit retailers and the millions of customers they serve in Scotland, as well as the supply chain and broader economic ecosystem that retail touches, and help drive forward Scotland’s economy.”

Edinburgh task force driving change for the gig economy

The City of Edinburgh Council has pledged its support to Edinburgh’s vital gig economy workforce, a significant and growing aspect of the city’s labour market.

It comes as the City looks to promote better access to fair work standards for people following a series of discussions with workers, trade unions, academics, Scottish Enterprise officials, and civil servants from the Scottish Government.

This inquiry, led by Edinburgh’s Gig Economy Task Force and spearheaded by the Council, was the preliminary piece of work to understand the key issues as well as the immediate actions to be taken alongside the long-term legislative changes that need to be considered so gig workers feel empowered, are treated equally and are able to make a fair wage for a fair day’s work.

Next week (on 24 March) a report from the Task Force will feedback its seven recommendations* to the Housing, Homelessness and Fair Work Committee.

If agreed these recommendations will be developed into an action plan to be brought back to committee in Autumn this year (2022). This will focus on short, medium and long-term priorities which the Council and partners across the city will be asked to focus on to improve access to fair work for people working across the gig economy, including zero hours contract workers.

One key area recognised by the inquiry was to understand gig workers’ rights to accessing the data collected on them and what transparency exists on the way company algorithms use this data to determine how jobs are offered, how much workers earn, and other challenges workers face.

If agreed, as part of the recommendations the Council will build on the findings, and continue to work with gig workers, businesses and the Scottish Government to understand more about existing rights of access to workers’ data while also considering whether data driven innovation tools could be used to help gig workers analyse and better understand their earnings and conditions.

The other recommendations* focus on issues relating to licensing and regulation of the gig economy, public sector procurement, alternative business models and establishing a gig economy worker’s charter for Edinburgh.

The short-life Task Force was established in November 2021 as part of the work plan for the Living Wage City Action Group, and after the Council welcomed the UK Supreme Court’s decision to confirm the status of Uber drivers as workers.

Its objective was to understand the real experiences of workers in the gig economy in Edinburgh, while also looking to explore actions that will tackle the concerns and challenges they face and could improve working conditions, rights and quality of employment.

During its inquiry the Task Force recognised that flexibility and ease of access to employment can be a positive aspect of these roles for some workers, usually those using it as a ‘top-up’ to another income stream or those who have caring responsibilities, or for example students.

However, the growth of the sector has been associated with concerns over low rates of pay, poor income security, risk of in-work poverty, poor opportunities for progression, as well poor working conditions and worker safety.

It is recognised that a growing number of people are becoming reliant on gig economy work as the sole source of income, and they tend to be the people most impacted by poor working conditions and unreliable pay.

Councillor Kate Campbell, Convener of the Housing, Homelessness and Fair Work Committee and chair of the Gig Economy Task Force said: “As part of the action plan for the Living Wage City accreditation, and as part of our fair work agenda, I knew it was vital that we did some work to look at the gig economy in Edinburgh and the impact on pay, rights and working conditions.

“The Gig Economy Task Force was put together with the aim of getting a clear understanding of where the real issues lie, what powers the council has to improve conditions now, and where we need to focus on, and implement changes, in future.

“It’s pretty clear that there is a strong power imbalance. For many gig economy workers their shifts, performance monitoring and pay are controlled by an algorithm. This can be incredibly disempowering. We need to look at who has access to data, and how that data is used, and understand what reforms could empower workers.

“We also came to the conclusion that we need to look at current licensing powers, and procurement. And look at strengthening workers’ rights, raising awareness of those rights and understanding how the categorisation of workers impacts on their working conditions. For example gig economy workers are classed as ‘self employed’ – but the reality of their day to day working lives is very far from what most of us would consider self employment.

“I hope we’ll come together next week at Committee and agree the recommendations, so that we can get on with these actions, starting the journey to dramatically improving the working conditions for the growing number of gig economy workers in our city.”

Councillor Mandy Watt, Vice Convener of the Housing, Homelessness and Fair Work Committee said: “This task force was established in response to a motion that we raised regarding Uber and was widened to include other gig economy and zero hours workers by the convenor.

“Our intention is to highlight the rights that these workers should already have and to find ways of supporting their efforts to achieve safer working practices and fairer terms and conditions.”

The Gig Economy Task Force was chaired by the Convener of the Housing, Homelessness and Fair Work Committee, and comprised workers who have first-hand experience of the gig economy and precarious work in Edinburgh, as well as workers’ representatives, academics, alongside relevant policy leads from the Council, Scottish Government and its agencies.

*Gig Economy Task Force Recommendations:

  1. A costed proposal for a dedicated workers’ hub in Edinburgh, providing access to advice and support.
  2. A costed proposal for ongoing campaign work to provide information on and raise awareness on worker rights in Edinburgh, good working practices, and how to access support.
  3. Licensing: The Council should facilitate and host further work with gig economy and precarious workers, businesses and government on issues relating to licensing and regulation of gig economy and precarious employment. 
  4. Procurement: The Council should facilitate and host further work with workers, businesses and government on issues relating public sector procurement fair work and the gig economy. 
  5. Data Rights and Access: The Council should facilitate and host further work with gig economy workers, businesses and government on issues raised during this inquiry relating data rights and access for workers in the gig economy. 
  6. Alternative Gig Economy Business Models: The Council should facilitate and host further work with gig economy workers, businesses and government to hear more about examples observed in other European cities.
  7. A workers’ charter for Edinburgh: Building on all of the above, the Council should facilitate further engagement with gig economy workers and businesses.

The development of this Task Force has been informed by the Council’s Fair Work Action Plan and Edinburgh Economy Strategy, both of which emphasise the importance of fair work that provide citizens with dignity and security of income.

New fair work criteria announced

Prioritising secure and flexible employment

Workers are to benefit from more secure, flexible and family friendly employment through extended Fair Work conditions.

The Fair Work First approach is focused on driving high quality and fair work across the labour market by applying relevant criteria to public sector grants and procurements.

New criteria will come into effect from October 2021 which will encourage employers to explicitly promote flexible and family friendly practices, alongside their opposition to fire and rehire processes and their support for other fair work priorities.

This offers workers job security as well as flexible work that can benefit both workers and their employer. This approach is central to Scotland’s economic recovery from the coronavirus (COVID-19) pandemic.

Fair Work Minister Richard Lochhead said: “Everyone should have the opportunity to access secure and stable employment that pays a proper wage while affording staff the flexibility to balance their work and personal life.

“Despite employment law being reserved to the UK Government, we are doing all we can to work in partnership with unions, workers and employers across all sectors of the economy to build fairer and more inclusive workplaces.

“Fair work is at the heart of our economic recovery. That is why we are extending the fair work criteria to explicitly promote flexible and family friendly working alongside a clear opposition to fire and rehire practice, and doing so within 100 days of this Government.”

Tacking Poverty and Building A Fairer Country

Speech by the Social Justice Secretary, Shona Robison, opening yesterday’s Tackling Poverty and Building A Fairer Country debate

Presiding Officer, I am pleased to open this debate on the urgent need for us to tackle poverty and build a fairer, more equal country.

We must seize the opportunity, build upon our strong efforts to date, and use every lever at our disposal to bring about the change needed to tackle this problem.

We already invest around £2 billion each year in support for people on low incomes, including over £672 million targeted at children. We have a strong focus on those at greatest disadvantage, including disabled people. And we are supporting innovative action with our £50 million Tackling Child Poverty Fund.

But we must do more. That is why we have committed a wide range of ambitious action to be delivered in the first 100 days of this Parliament – maintaining the tremendous pace taken of change throughout the COVID pandemic.

This is a priority across all Ministerial portfolios. No one action will bring about the change needed, it needs all parts of government and broader society to work together and to impact the drivers of poverty reduction – increasing household incomes from work, reducing costs on essentials and maximising incomes from social security.

The eradication of poverty and building a fairer more equal country must be a national mission for government, for our parliament and for our society. We must try, where possible, to unite on this issue and work together to create a fairer Scotland.

Backed by over £1 billion of additional funding, our response to the pandemic shows that we can make change happen at the pace and scale required to support people and improve their lives. And we wand to build on this can do approach.

We delivered free school meal support during all school holidays and periods of remote learning for children from low income families – helping to tackle food insecurity during the pandemic. We will continue this whilst expanding Free School Meal support to all primary pupils, which will start within the first 100 days of this Parliament.

Also, in our first 100 days we will complete the roll-out of 1,140 hours of funded Early Learning and Childcare and have set out the next stage of our ambition to expand childcare further and develop a wraparound childcare system, providing care before and after school, all year round. This will make an important contribution to children’s development and will unlock the potential of parents in the labour market.

We will also deliver our £20 million summer programme for pupils, helping children socialise, play and reconnect – an essential investment to support the wellbeing of all children and young people [backed by £7.5 million from our Tackling Child Poverty Fund].

Through two Pandemic Support Payments of £100 to low income families with children we put money directly into the pockets of those who needed it most.

Building upon this approach, we will effectively pay the Scottish Child Payment through introducing bridging payments of £520 for families not yet eligible for the Payment, with £100 to be paid to families this summer. We will also provide £130 to every household who received Council Tax Reduction in April, reaching around 500,000 households.

I am pleased I can also make two announcements.

First, building on the practical support we offered during the pandemic, we will be providing the British Red Cross with a further £250,000 to continue their cash-first crisis support to those most at risk of destitution. This includes help to those impacted by the UK Government’s hostile policies that exclude them from most mainstream supports including the Scottish Welfare Fund.

And secondly, in recognition of the importance of listening to families affected by poverty, we will trial Family Wellbeing Budgets to put families firmly in control of the support they need. This new support will be delivered in partnership with the Hunter Foundation and will help to improve people’s wellbeing and capabilities.

Presiding offer, where we have the powers we are making a difference to people’s lives.

Nowhere is this more evident than in our approach to housing. Scotland has led the way in the across the UK with almost 100,000 affordable homes delivered since 2007, over 68,000 of which were for social rent. This is making a significant difference to people right across the country, and particularly for families with children.

We want to deliver a further 100,000 affordable homes by 2032. It is our aim that at least 70% of those homes will be for social rent, helping to tackle child poverty and homelessness.

But to tackle poverty effectively we must deliver a fair work future for Scotland, and we are working hard to do just that just now – but we are constrained by the powers available to us.

We cannot accept a future where two thirds of children living in poverty come from working households and where people are forced to rely on benefits to top-up their earnings.

We have to transform workplaces to tackle poverty and long-standing labour market inequalities, such as the disability employment gap and the barriers to employment faced by people from minority ethnic backgrounds.

With full powers over employment we could, as a minimum, ensure that all employees in Scotland receive the Real Living Wage, ensuring that their wages represent the true cost of living.

We could outlaw unfair fire and hire tactics, prohibiting employers from dismissing employees and subsequently re-employing them on diminished terms and conditions, and we could ban inappropriate and exploitative use of zero hour contracts, giving people the certainty about their working hours – ensuring they can plan their lives and incomes.

That’s why I have asked all party leaders to support our request to the UK Government for the full devolution employment powers to this parliament. So we can tackle poverty with the powers we need to make the change.

Social security is also an important tool to tackle poverty, and again those powers don’t lie in our hands. 85% of spending remains at Westminster alongside income replacement benefits such as Universal Credit and Employment and Support Allowance.

If we didn’t already need it, the pandemic further evidenced that the UK welfare system is not fit for purpose and risks undermining hard won progress. This is the system people in Scotland have to rely on and we shouldn’t have to mitigate against polices we disagree with like the £80 million we spent last year on Discretionary Housing Payments to mitigate the bedroom tax in full and support people with housing – we could be investing in other anti-poverty measures. If we had the powers here we would be able to do that. 

The removal of the £20 uplift to Universal Credit is a callous act which will push 60,000 families across Scotland, including 20,000 children, into poverty and will result in families unable to work receiving, on average, £1,600 less per year than they would have done a decade ago – a decade ago – in 2011.

That’s a massive threat to the progress we could make here. We could be delivering the doubling of the Scottish child payment with one hand, only to see it removed by Westminster welfare policies  with the other. Surely there is no-one across this chamber that can think that isin any way a good idea or a fair system?

We need to make significant investment into the pockets of those who need it most need. The Scottish child payment does that. That’s why it’s so important.

We have urged the UK Government to make the changes needed and to deliver a social security system which is fit purpose – scrapping harmful policies such as the two child cap, the rape clause, the benefit cap and 5 week wait under Universal Credit. Unfortunately, our calls, alongside many charities, organisations, and even the UN Poverty Rapporteur have been ignored. It’s time for full powers to come here so we can make the difference.

We have already shown we can make a difference – a public service based on human rights with respect and dignity at its heart and viewed as an investment in the people of Scotland.  Principles we enshrined in law.

Through our powers, we are tackling child poverty head on, with the Scottish Child Payment, which currently pays £40 every four weeks for every eligible child under 6. We are committed to doubling this to £80, making even greater impact.

Alongside our Best Start Grant and Best Start Foods we are providing over £5,300 of direct financial support for families by the time their first child turns six and further for subsequent children as we don’t put a cap on children. These payments are making a real difference to low income families, helping them to access the essentials they need.

That support is unmatched anywhere else in the UK.

Presiding officer, our next steps will build on the strong foundation we have set, and will be taken forward at pace these changes. No one who sits in this parliament, whatever their political beliefs, can underestimate the scale of the challenge that we face.

I want to take that forward and I’m pleased to work with anyone across this chamber who wants to join me in doing that.

Pledge to protect workers

FAIR WORKS PRACTICES HIGHLIGHT NEED FOR COLLABORATION

Business groups, trades unions and leaders from local government and the third sector have committed to putting fair work at the heart of Scotland’s economic recovery.

As Scotland continues to ease lockdown restrictions, organisations including the Institute of Directors (IoD), SCDI, STUC, COSLA and SCVO have signed a statement underlining the collaborative approach needed between employers, unions and workers to ensure workplaces can operate safely.

Fair Work Minister Jamie Hepburn said: “There is no doubt that Scotland’s economy faces an enormous challenge as we emerge from the coronavirus (COVID-19) crisis. However, I firmly believe that with employers across all sectors of the economy working in partnership with unions and workers we can use the crisis as an opportunity build fairer and more inclusive workplaces.

“In March we published a statement of Fair Work Principles, setting out our high expectation for keeping fair work at the heart of our national response to COVID-19 during lockdown. Now, as these restrictions continue to ease, we must maintain the momentum we have started to build, ensuring collaboration between workers, employers, representative groups and trades unions.

“This new statement will help employers and employees make decisions that are in everyone’s interest as we carefully reopen the economy. I have been deeply impressed by the work already done in this area, and I want to offer my sincere gratitude to workers and employers for reacting with such agility and dynamism to the challenges thrown up by the pandemic.”

Malcolm Cannon, IoD National Director, Scotland, said: “It is absolutely critical for the recovery of the Scottish economy that the Government works closely with Business Organisations, and the IOD is happy to support this fair work initiative.”

The revised Fair Work Statement was signed by the Institute of Directors, Scottish Council for Development and Industry, COSLA, SCVO, the STUC and Scottish Government.

Last week, the Unite trade union criticised Centrica’s employment plans.

The plan by Centrica, owner of British Gas, ‘to fire and rehire’ its 20,000 employees is the latest example of organisations using the coronavirus emergency as a smokescreen to shed jobs, and erode pay and conditions of workers.

Unite, Britain and Ireland’s largest union, said the decision of the energy giant follows on from other high profile employers, such as British Airways and the University of Sheffield, which have also adopted similar ‘deplorable’ employment practices during the pandemic.

Unite represents Centrica workers including electrical services’ engineers, as well as those employed at power stations and at Centrica Storage Ltd.

Unite regional officer Mark Pettifer said: “The notice that Centrica has given the trade unions that it is going to ‘fire and rehire’ its 20,000 staff on what, we believe, will be inferior pay and employment conditions is deplorable.

“It is part of a disturbing trend where employers are using the pandemic to shed staff and erode employment conditions.

“Centrica is adopting the same tactics as BA and is using Covid-19 as a smokescreen to cut jobs of loyal and dedicated staff who have worked through the lockdown providing energy to the nation.

“Centrica has been in consultations with the unions for the last fortnight over its future plans and now in an act of bad faith unveils its ‘fire and rehire’ plans. It smacks of blackmail – ‘If you don’t do what we want, we will issue notice of dismissals’.

“Unite urges the Centrica management to have an urgent rethink and engage constructively with the trade unions to tackle the specific issues facing Centrica and, more generally, the UK energy sector post-Covid-19.”

In June, Centrica announced that it would be axing of 5,000 jobs, primarily at management level. Before lockdown the company faced a situation of customers leaving to go to smaller suppliers, the energy price cap and falling gas prices.

More information about Fair Work can be found on the Fair Work Convention website.

Join the national conversation about Fair Work

The First Minister’s National Advisory Council on Women and Girls (NACWG) is calling on residents from Edinburgh to get behind the #GenerationEqual movement and share their views and experiences of gender inequality in the workplace. 

Inequality in the working environment continues to be an issue. Women and girls still experience challenges with gender barriers and discrimination leaving fewer opportunities for career progression, a greater likelihood of them doing lower paid jobs and a gender pay gap. 

Areas the Advisory Council wish to examine include occupational segregation, balancing the inflexibility of work with caring responsibilities, and the undervaluation of women’s work.

The NACWG was established in 2017 to play a leading role in raising the issue of gender inequality on Scotland’s agenda by drawing attention to a wide range of issues faced by women and girls.

Focusing on a new Spotlight every two months, the NACWG aims to bring people together to share ideas and opinions on different gender equality issues. The Advisory Council is putting a Spotlight on fair work until the end of August, to explore the challenges faced by women in the workplace.

Louise Macdonald OBE, Co-Chair of the NACWG, said: “Longstanding gender barriers in the workplace means there remain fewer opportunities for career progression for women and girls and more women are in lower paid roles.

“Others face the “motherhood penalty” or have to take on additional caring responsibilities, and are  forced into part-time work as they struggle to secure a work-life balance without the support from employers.

“It is important for the Advisory Council to hear from a diverse range of people to learn from different lived experiences. We want to hear from people in Edinburgh, whether they themselves or someone they know is affected by these issues. Every opinion we gather contributes to shaping our third report of recommendations to the First Minister.”

To have your say in the national conversation, people are encouraged to form a virtual ‘Wee Circle’ with family, friends or colleagues to discuss the issues surrounding fair work for women and girls (socially distanced, of course! – Ed.)

Feedback from these Wee Circle discussions, as well as individual feedback, can be submitted online at onescotland.org/NACWG and people can share their thoughts on social media using the hashtag #GenerationEqual.

A fairer deal for Scotland’s workers

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

workers

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.

17176251791_38a92f1344_z

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.”