Scottish Living Wage Campaign EAPN Task Force 11 December 2013

Low Pay & the Scottish Living Wage Campaign Developing the campaign in Scotland Key priorities and challenges Next Steps in Scotland

Scottish Living Wage Campaign - origins Poverty Alliance has long interest in issues of low pay emerging from engagement with grassroots groups Scottish Living Wage Campaign launched in 2007 Poverty Alliance, STUC and Church of Scotland established campaign steering group Steering Group now involves Unison, Oxfam, STUC, Church of Scotland, CPAG, Unite, PCS,

Scottish Living Wage – first steps First 2-3 years spent raising awareness of low pay and establishing political support and setting rate First major success was Glasgow City Council who implemented a £7 living wage in 2009 Following this, Glasgow introduced their own employer award A number of local authorities have started paying the living wage since 2009

Building support Focus of the campaign remained on building public and political support for the living wage Scottish Government implement living wage for all direct employees and NHS Scotland, covering around 5,000 staff at a cost of £1.7 million Both Labour and SNP publicly support the key demands of the SLWC in 2011 elections. Manifesto commitments

Public Sector – progress being made Around 20,000 directly employed workers now benefit from the living wage. Includes the NHS, all Scottish Government agencies and a majority of local authorities. Scottish Government committed to Living Wage at least for lifetime of this Parliament Wholesale buy in from public sector unions and has been included in bargaining. Living Wage offered as part of Local Government pay deal but there are issues…..

Procurement: opportunities to extend Living Wage Campaign argue that living wage should be included as a condition in awarding public sector contracts. Scottish Government position is that it would be in breach of EU law. Debate polarised around different legal opinions. Procurement Reform Bill an opportunity for change. Members Bill also likely Business representatives opposed

Private Sector – a hard nut to crack Majority of low pay in retail and hospitality. Retailers argue that hourly rate should not be the focus. Employee benefits as important. Private sector unions slower to sign up to campaign although recent support from USDAW Some good examples of high profile supporters but not getting to hardcore low payers

Next Steps Maintaining the integrity of the living wage – ensuring that the rate is robust and realistic. Better co-ordination and support for the living wage from Scottish Government – beginning with new Living Wage Accreditation Project in 2014 Make progress in extending to the interface between public and private sector (i.e. procurement) Sign up more private sector organisations to be living wage employers

Key Lessons Need for a robust and clear method for setting the level of the LW, and ensuring it can be updated regularly Need for anti-poverty NGOs to build coalitions with others, especially Trades Unions and faith groups LW is attractive to a broad range of political positions, this can help in building support but also has some dangers Need to find ways to have the discussion with private sector, and to target those who can pay a living wage