More firms to pay staff living wage

Scottish firms will face fresh pressure to pay staff a living wage and axe zero hours contracts under plans unveiled by Nicola Sturgeon.

The Scottish Government will also demand a fair approach to gender pay before handing over public cash support, the First Minister will tell SNP delegates today.

Ministers have already sought to put pressure on firms to secure a fair deal for workers and the SNP leader will announce today that this approach is being expanded.

Firms must pay the real living wage, currently £8.75 an hour to take part in procurement process for public sector work in Scotland and this has been extended to adult social care workers and we will soon do the same for early years workers. This compares with the national minimum wage of £7.38.

Last month, ministers said business support grants from Scottish Enterprise would have living wage, zero hours contracts and gender pay criteria attached.

But Ms Sturgeon will say today: “We must do more.

“We will adopt a new default position. Fair Work First.

“By the end of this parliament, we will extend fair work criteria to as many funding streams and business support grants as we can. And, we will extend the range of Scottish Government and public sector contracts that fair work criteria apply to.

“Fair Work First means investment in skills and training, no exploitative zero hours contracts, action on gender pay, and genuine workforce engagement, including with trade unions. And, of course, payment of the Living Wage.

“We may not yet have the constitutional power to make fair work a legal requirement - but we do have the financial power of government to make it a practical reality.

“And we will make that count.”