FIRMS bidding for public-sector contracts will now be expected to pay employees the living wage and ban exploitative zero-hours contracts.
New statutory guidance for the public sector was launched as part of a Scottish Government drive to improve fair work procurement practices.
Companies will also be required to commit to giving workers an “active voice” in the workplace. Unions have welcomed the new guidance, which comes into force at the beginning of a week of events aimed at encouraging more businesses to pay their lowest-paid staff more.
Infrastructure Secretary Keith Brown said the guidance meant the government had “nailed its colours to the mast”.
He added: “Our model of procurement, putting the social, economic and environmental aspects of sustainability at the heart of all we do, remains the foundation of our approach.
“Employers must now recognise, as many already do, that if you want to do business with the public sector in Scotland, you have to be a responsible employer and value your workers. You have to do your bit to make Scotland a fairer and more equal society.
“We will continue to do everything in our power to promote that ethos.”
The government pays workers the living wage of at least £7.85 an hour – rising to £8.25 from today. In total, 380 Scottish-headquartered firms are signed up to the Living Wage Foundation’s accreditation scheme.
It is believed around 100,000 Scots are on zero-hours contracts, meaning they have no access to sick-pay, pensions and redundancy pay.
Grahame Smith, general secretary of the Scottish Trades Union Congress, welcomed the new procurement guidance, saying it highlighted the “different approach” taken by the Scottish Government to low pay and tackling poor employment practices.
He added: “The Scottish Government has taken the lead in driving forward the real living wage, as have local authorities, and we believe it is right that companies wishing to receive public contracts should demonstrate that they treat staff fairly by paying a living wage, recognise the benefits of trade unions and collective bargaining and treat their workers with the dignity and respect they deserve.”
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