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The Living Wage, Tackling In-work Poverty

Shocking child poverty statistics which revealed that thousands of families across Scotland experience poverty were recently published. It is estimated that 1 in 5 children live in poverty in Scotland and the figure for those experiencing in work poverty is even higher.

I am drawing up a consultation document on the proposals which will seek to use contractual arrangements within public procurement to that businesses who benefit from public sector contracts would be obliged to pay the living wage to those employees working on the contract. I have also lodged a motion on the issue which I hope will lead to a members’ debate in the Parliament.

I hope that the proposals could benefit thousands of workers across Scotland, including those in Mid Scotland and Fife. In the past few months I have met with Scottish Government Ministers about my intentions, as well as meeting with Members of the Welsh Assembly and am working closely with Living Wage campaigners to bring forward my proposals.

Many sectors of the economy with low-paid workers in Scotland already undertake public-sector contracts and in Fife, controversial proposals to privatise residential care have been put forward by Fife Council.

If the worst happens, and Fife Council goes ahead with its proposals to privatise residential care for example, I would hope that the measures I am proposing in my Living Wage Bill would afford the low-paid staff in the care sectors across Fife a guarantee of decent wages, even if they find they are outsourced.

Now more than ever, families across Scotland are feeling the pinch and finding it harder to make ends meet. While it is progress that directly employed workers in the NHS and the Scottish Government now receive the living wage, I believe we need to do more. Using public procurement processes will benefit thousands more workers who currently do not receive the living wage.

In 2011, I helped develop proposals stating our intention to use procurement processes to roll out the Living Wage as far as possible across Scotland. I believe there is a groundswell of support for broadening out the living wage and I look forward to reading the findings of the Scottish Parliament’s Local Government and Regenerations Committee’s short Inquiry into the Living Wage.

The public consultation document will be published online as well as being sent to stakeholders across Scotland asking for their input. The motion I lodged can be read on the Scottish Parliament website and a copy is below:

Motion S4M-01716: John Park, Mid Scotland and Fife, Scottish Labour, Date Lodged: 16/01/2012

The Living Wage, Tackling In-work Poverty: That the Parliament notes the Campaign to End Child Poverty's report that highlights the worryingly high levels of child poverty across many areas of Scotland; is deeply concerned that in many areas, including parts of Mid Scotland and Fife, child poverty levels are between 30% and 40%; further notes that 59% of poor children live in a household where at least one adult works; recognises the calls from a range of campaigning organisations such as Save the Children that the payment of a living wage can be an effective way of tackling child poverty; welcomes recent steps to introduce a living wage for all directly employed Scottish Government and NHS employees in Scotland; believes that the living wage should be the norm in other sectors of the economy, and supports steps to use procurement to extend the living wage to employees working for organisations delivering public sector contracts.