SNP to discuss pay cap ...for the private sector
Radical policy (that was too Left wing for Corbyn!) on Nats’ agenda
CAPPING private sector wages is one of a series of radical Left-wing policies set to be considered by the SNP.
A draft agenda for the party conference in June – seen by The Scottish Mail on Sunday – calls on Nicola Sturgeon’s Scottish Government to introduce ‘wage ratio’ legislation north of the Border in an attempt to close the pay gap between bosses and staff.
The policy, also championed by Labour leader Jeremy Corbyn, would then set an arbitrary upper and lower limit on public and private sector companies.
Supporters say imposing a ratio system would tackle inequality and ensure managers took a personal interest in the salaries of the lowest-paid employees.
But critics believe it would deter international investment and make it difficult for firms to attract and maintain talent.
The provisional agenda for the 2018 conference at the Aberdeen Exhibition Conference Centre – not yet released to the public and marked ‘confidential to party members’ – states: ‘Conference notes that one of the aims of the SNP Government is to tackle inequality. One way to tackle inequality is through wage ratio legislation, giving the directorial and managerial staff in an organisation a direct personal interest in the wage levels of the lowest-paid staff.
‘Conference suggests that the Scottish Government investigate the practicality of applying wage ratio rules to organisations funded by the Scottish Government.
‘Conference calls for powers to legislate on minimum and maximum wages (including bonus payments) and on wage ratios to be devolved to the Scottish parliament.
‘This would clear the way for debate on introducing wage ratio legislation also within the private sector.’
A recent study by Bloomberg found that CEOs of large companies were paid an average of 204 times the wage of rank-and-file workers in their industries. Mr Corbyn announced last year that his party would limit the wages of top earners in firms working on Government contracts to 20 times that of the living wage, of just over £16,000 a year. But he would stop short of imposing the rules on the private sector.
The proposals to be considered by the SNP conference delegates do not detail the wage ratio that could be adopted in Scotland – but using the 20:1 ratio put forward by Mr Corbyn, an organisation paying an 18-year-old the minimum wage of £5.90 per hour could not offer salaries above £245,000.
In Switzerland in November 2013, a referendum on legislating to limit the amount of executive pay to a maximum of 12 times that of the firm’s lowest-paid workers was rejected by 65.3 per cent.
Scottish Conservative finance spokesman Murdo Fraser said: ‘Once again the SNP’s conference agenda gives further evidence of their continuing lurch to the Left.
‘Wage ratios would only serve to limit the ability of companies to remain competitive in attracting the best talent to Scotland.
‘With Scottish workers taxed more than elsewhere in the UK, the last thing we need is any further deterrent to working here.’