Chamber and committees

Scotland is making great strides towards becoming a leading Fair Work nation.

The number of accredited Real Living Wage employers is up from 14 in 2014 to over 3,500 in 2023. That’s proportionately 5 times as many than the rest of the UK, and some 65,000 workers in Scotland have had a pay rise as a result of accreditation, making a real impact for people in the lowest paid jobs.

Our support contributes to 89.9% of employees aged 18 and over in Scotland being paid at least the real Living Wage (2023 data), higher than Wales 87.1%, England 87.0%, NI 84.4%, and the UK overall 87.1%.

Building on the work of the Fair Work Convention we’re pressing forward with sectoral agreements in Adult Social Care and Construction, as well as Retail with to help put those sectors and their workforces on a sustainable footing for the long term.

The median gender pay gap has continued on a long-term downward trend and has now reached a record low of 1.7% in 2023 for full time employees in Scotland, lower than the overall UK gap of 7.7%.

The Disability Employment Gap fell further to 30.2 percentage points in 2023 – a decrease from 31.9 p.p. in 2022 and the lowest it has been since our baseline year in 2016 when it was 37.4 p.p. There is still work to do but this suggests that we are on track to achieve our ambition to reach 18.7 p.p by 2038.

Fair Work First principles were applied to some £4bn public funds since 2019, and in 1 July 2023 we took this further by adding the requirement that all grant recipients awarded a public sector grant pay at least the real Living Wage and provide appropriate channels for effective workers’ voice.

Through the Workplace Equality Fund we focused on providing financial support for employers to address longstanding barriers in the labour market that particular priority groups experience, including disabled people, women, racialised minorities and older workers. In 2023-24 the WEF investment was almost £600,000 across 10 projects, bringing the total spent to over £3.2m on 71 projects since 2018 [1] . This year we are evaluating the effectiveness of the WEF to inform future interventions.

In financial years 2020-21 and 2023-24, we invested £1.2 m in the Apt Public Social Partnership (PSP)which worked to improve the recruitment and retention of disabled people by developing and testing different types of support for employers. The PSP engaged with employers in the private and third sectors, with a particular focus on SMEs throughout Scotland. An independent evaluation of the PSP’s impact will be commissioned in 2024-25. Employers involved in the partnership to date have reported benefits such as improved recruitment and retention processes, increased confidence in having conversations about employment with disabled people, and increased awareness about the benefits of a diverse workforce.

We have repeatedly voiced our opposition to legislation at Westminster that undermines workers’ rights, including the Trade Union Act 2016, the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022, hire and rehire, and the Strikes (Minimum Service Levels) Act 2023.

We have been proud to support pay deals for public sector workers that reflect the vital jobs that they do. Last year pay deals were around £800 million greater than planned and our total expenditure on public sector pay is now around £25 billion – over half of our fiscal resource. On average public sector pay in Scotland is around 6% more than the rest of the UK.

[1] Total investment in WEF projects since 2018 is £3,194,500