Scottish Government Announces Commitment to Living Wage

The Scottish government has announced two amendments to the Procurement Reform (Scotland) Bill that it claims strengthens its commitment to the living wage in Scotland.

The first amendment proposes that one of the factors authorities will have to take into account when deciding whether to award a public contract will be a contractor's approach to pay and the living wage. The second 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.

The government claims that the amendments will strengthen the Bill and help to ensure that payment of the living wage gets the priority it deserves, without breaching EU law.

Deputy First Minister, Nicola Sturgeon, who announced the amendments during a parliamentary debate, said:

“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."

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