David Stewart MSP has demanded the Scottish Government conduct an urgent review of sub-contracted jobs in the public sector.The Highlands and Islands Labour MSP is saying that rules on public contracts result in what he describes as a ‘Low Pay Loophole’.
At the moment, people directly employed by Scottish Government departments are paid the living wage.
However, people indirectly employed by the Scottish Government on outsourced sub-contracts – like cleaning, catering and retail – are offered no such protection. This is the consequence of the SNP refusing to back Labour calls for a living wage in public contracts.
David Stewart is a long time campaigner for the living wage; and is concerned that such a loophole will see workers in the Highlands and Islands miss out on better pay.
He says: ‘The Living Wage would boost the earnings of a minimum wage worker by over £2,000 a year. It would make positive, practical difference to hard working people in the Highlands and Islands and up and down Scotland.
‘But this is also about building a moral economy.
‘Supporting the living wage in the public sector, whilst jobs in its departments are being sub-contracted out, simply isn’t good enough. Especially as these jobs are the very ones that would most benefit from the living wage.
‘I know from my advice surgeries, correspondence, and conversations on the doorstep and across the North that people want better, fairer wages.
‘I have written to the Scottish Government demanding an urgent review of sub-contracted jobs in the public sector.
‘We have to know how widespread and open to abuse this problem is, we need to stand up for people in Highlands, Islands and across Scotland who deserve a fair day’s pay for a hard day’s work, and we need to close this low pay loophole.’
At the moment the rate of the statutory Minimim Wage and the voluntary Living Wage are as follows:
- Minimum Wage £6.31 37.5 52 £12,304.50
- Living Wage £7.45 37.5 52 £14,527.50
Note: Here is the letter Mr Stewart has written to Cabinet Secretary for Finance, John Swinney MSP: SKMBT_C45114032714540