Pathway to ‘fair work’must work with businesses
FOR more than a year there has been considerable debate within the walls of Welsh Government on the topic of ‘fair work.’
To those unfamiliar with the topic, the government’s basic premise is that a good quality job delivers a range of social and economic benefits. As a result, it is beholden on the Welsh Government to develop a strategy that encourages the adoption of ‘fair work’ in the public, private and third sectors.
The main reason for this and similar initiatives is a perception that the changes to the economy, brought about by technology and new business models – principally automation and the ‘gig economy’ – has created more choice but also more flexibility in the forms and types of employment. As a result, there has emerged good and bad practice. The government’s role is to highlight best practice and stamp out any illegal activity.
The next question is of course ‘how do you define fair work’? Luckily, the Scottish Government’s Fair Work Commission answered this question in 2016 when they defined it as ‘work that offers effective voice, opportunities, security, fulfilment and respect; that balances the rights and responsibilities of employers and workers and can generate benefit for individuals, organisations and society.’
More recently, the UK Government’s Taylor Review into ‘good work’ was launched with a similar remit – to aim for all work in the UK economy to be fair and decent with realistic scope for development and fulfilment.
For many employers this will sound like what they already do. We know that happy workers are productive workers and putting in place the right opportunities, motivations and rewards is how good businesses grow strong.
The questions the Welsh Government’s recently created Fair Work Commission must answer are varied as they are complicated. Should it accept the Scottish or English model of fair work or chart its own course? When we have an acceptable definition of fair work how does the public, private and third sectors measure up? And when government thinks sectors or firms are falling short what should/can it do?
The commission will develop indicators and measures of fair work and identify data sources to help monitor progress. It will consider whether measures to promote fair work currently available to the Welsh Government could be taken further and identify what new or additional steps might be taken, including new legislation, and make recommendations. The Commission will report by March 2019.
The Welsh economic strategy, The Economic Action Plan, already contains a hint of this kind of approach.
The newly created ‘economic contract’ expects businesses seeking government support (funding, training, advice) to commit to one of four goals – growth potential; fair work; promotion of health, skills and learning; and progress in lowering carbon footprint.
To secure funding firms will also have to agree to work towards one of the five ‘calls to action’ – decarbonisation; innovation, entrepreneurship and headquarters; exports and trade; high quality employment, skills development and fair work; and research and development, automation and digitalisation.
It’s early days still but it will be interesting to see how firms respond to these ‘calls to action’ and it leads to new activity or existing activity being reframed.
The fair work process is a natural extension to this approach. The question for the commission and then to the new First Minister in March 2019 is ‘what role government’? There are various scenarios depending on what definition is agreed and the appetite of the incoming First Minister.
In theory, we could see firms that apply for a government grant or loan be expected to agree to pay the national living wage or accept collective bargaining and trade union recognition. This is all subject to debate, the legislative powers of the assembly and political appetite.
However, this is a debate we will have to have. It will be important when we do that we delineate very clearly between legal and illegal working practices, what is reasonable based on size of company and what is standard for the industry in question.
A pathway to fair work that works with, not against, firms will be important.
The path to even fairer work must be carefully developed in partnership with employers and trade unions so we improve the quality of work for the people of Wales and strengthen the economy.
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