Consultation Living Wage (Scotland) Bill

Question 1:

Do you support the general aims of the proposed Bill? (as outlined in paragraphs 32 to 39 above) Please indicate yes/no/undecided and explain the reasons for your response. South Lanarkshire Council supports the general aims of the proposed Bill. Delivery of the Living Wage as a minimum across non public sector bodies will require promotion. Using the power of public sector promotion and procurement would be an effective method of achieving this Do you envisage any issues for public sector bodies when including the Living Wage as a contract performance condition of a contract? Please explain the reasons for your answer There may well be issues resulting from the lack of clarity around the legality of applying such performance conditions. This authority would welcome legislation/guidance to reduce the risk of litigation What do you consider will be the advantages or disadvantages for employers and employees if public sector performance clauses stipulate the payment of the Living Wage? The main advantage will be raising the standard of living for those employed directly and indirectly through public sector activity. With the changes in Welfare Reform approaching this may significantly lessen any adverse impact. In addition this should have a positive impact on the local economy, stimulating growth. A potential disadvantage may be that in the transition period smaller business may not be in a position to fulfil that performance clause and therefore may exclude themselves from the process.

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Question 4:

Which public sector bodies should use contract performance clauses to deliver the Living Wage? Please include the reasons for your choice. All public sector bodies should use contract performance clauses if this is available to ensure the maximum benefit from public expenditure in achieving a Living Wage for all at as early a stage as possible. Which bodies should be mandatory consultees? Please include the reasons for your choice. This authority does not have strong views on who should be mandatory consultees however it would be sensible to consult with public sector bodies, relevant government agencies, business representatives, equality bodies and the trade unions.

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Question 6:

What information must be included in the Scottish Ministers report to the Scottish Parliament? Please explain the reasons for your answer. It would be important to get an overview of the impact of increasing Living Wage coverage. This should include poverty measures, business impact, Living Wage coverage, best practice examples and public procurement impact. This will better inform Scottish Ministers regarding the impact of Living Wage application and adjustments required to any work plan. What is your assessment of the likely financial implications of the proposed Bill to you or your organisation; if possible please provide evidence to support your view? What (if any) other significant financial implications are likely to arise? This organisation already pays the Living Wage and therefore there is no additional financial impact in terms of employment. In promoting application of the Living Wage through procurement this does have the potential to increase some costs for specific areas. It would be difficult to be accurate in indentifying what this potential cost may be without consulting more fully with service providers. Is the proposed Bill likely to have any substantial positive or negative implications for equality? If it is likely to have a substantial negative implication, how might this be minimised or avoided? This Bill would have a positive impact in terms of equalities particularly in relation to the gender pay gap. Many of those earning less than the Living Wage are women employed on a part time basis, working around their caring responsibilities. There was a demonstrable positive impact on this group when this organisation applied the Living Wage. Do you have any other comments or suggestions relevant to the proposal? This organisation would be supportive of promoting the application of the Living Wage across Scotland.

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