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18 August 2015

Fighting for the Living Wage

As the latest statistics on unemployment in Scotland demonstrate a welcome drop - Banffshire and Buchan Coast remain among the lowest for unemployment rates across Scotland.

However although this is good news, it is equally important to ensure that those employed are earning wages that they can truly live on.

The SNP has proved that it is committed to the Living Wage – the hourly rate of pay set independently by the Living Wage Foundation – which currently stands at £7.85 in Scotland.

As part of a Scottish Government drive, employers are being encouraged to provide the living wage to employees – with a target to get 500 businesses to sign up by March 2016.

Recently, the Beatson Cancer Charity became the 300th business in Scotland to be accredited as a Living Wage employer. The well-known charity delivers patient and family support, including patient wellbeing and complementary therapy services, as well as providing specialist care. These are delivered through their award-winning Wellbeing Centre, the Beatson West of Scotland Cancer Centre, and related facilities across the West of Scotland.

By promoting the living wage scheme across Scotland, the government is demonstrating its commitment to fairness and supporting those on the lowest of incomes. Earlier in the year, the Scottish Government made sure they led by example by becoming the first accredited government within the UK to sign up.

As part of this, they have been working with the Poverty Alliance to encourage employers from the public, private and third sectors to seek this accreditation.

Research has shown that the Living Wage can enhance productivity, reduce absenteeism and improve staff morale – but companies need to sign up so that these benefits can be passed on to workers.

Last December, I welcomed a report highlighting that the introduction of the Living Wage and the council tax freeze could be improving health across Scotland.

The study by researchers at the Scottish Public Health Observatory (PHO) at NHS Health Scotland found that certain regulatory and tax policies could help tackle health inequalities. Dr Gerry McCartney, head of the PHO, said that in some cases “they will save lives”.

Significantly, the report stated that the policy of a Living Wage had a positive impact on health. The SNP government introduced the Living Wage in 2011 which benefitted thousands of workers covered by Scottish Government pay policy, and since then, the SNP has campaigned for more businesses to sign up.

At a summit earlier this year to promote the policy, First Minister Nicola Sturgeon emphasised to business leaders the benefits that would be accrued from adopting the Living Wage, and how a better paid staff can improve business productivity and ultimately drive forward the economy.

Running alongside this is the ‘Scottish Business Pledge’. The Pledge was launched in May and is a partnership between Government and business - working to boost productivity, ensure fairness and generate growth across the private sector and beyond.

In recent weeks, STV became the 70th company – and first broadcaster - to make the Scottish Business Pledge. What makes this relevant is that Pledge companies commit to paying their staff the Living Wage.

Independent research commissioned by KPMG – also a Pledge company – further illustrates the business benefits that flow from paying the Living Wage, including recruitment and retention of staff.

The Living Wage can make a real difference to people in Scotland. The Scottish Government may be committed to having 500 Scots-based Living Wage accredited employers by March 2016, but it is up to local businesses, organisations and charities to now carry this forward.

I would urge local groups and enterprises around my constituency to take a look at these proposals and choose to truly invest in the people that make up your workforce – invest in the future.

Stewart Stevenson
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