The Scottish
Government is to propose two important amendments to the Procurement Reform
(Scotland) Bill that will further strengthen its commitment to the living wage,
the Deputy First Minister has announced in a parliamentary debate.
The Bill already
contains provisions which will allow the Scottish Government to issue statutory
guidance on workforce matters - which would include remuneration - in
procurement. The first amendment announced by the Deputy First Minister will
put an explicit reference to the living wage on the face of the Bill and make
it clear that one of the factors that authorities will require to evaluate,
where it is relevant to the performance of the contract, is a contractor's
approach to pay and the living wage.
This means that
for contracts where low pay is traditionally an issue, bidding companies will
have their approach to managing, rewarding and engaging with their workforce,
including payment of the living wage, evaluated as part of the procurement
process.
The second
amendment will require public authorities to set out, in their procurement
strategies, what their policy is in relation to ensuring that the companies
they contract with pay the living wage.
These amendments
will strengthen the Bill and help to ensure that payment of the living wage
gets the priority it deserves – but without breaching EU law.
Ms Sturgeon
said:
“The
proposed amendments to the Procurement Reform (Scotland) Bill highlight this
Government’s commitment to doing as much as possible to tackle pay
inequality.
“We are the
first Scottish Government ever to pay the living wage to all of our employees
and to everyone who works in the NHS.
“Our
proposed changes will send a very powerful message to businesses wanting to
work on public sector contracts that they will have to demonstrate how they
reward and motivate staff.
"Our hands
are tied by EU legislation in relation to making the living wage a mandatory
condition of contract. However, we can ensure the procurement processes
encourage and support payment of the living wage and that is exactly what the
Bill will do.
“With
independence, we will also be able to ensure that the National Minimum Wage
rises every year, at least in line with inflation and never again falls behind
the cost of living, as it has done every year since 2008.”