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

We’re determined to do all we can to reduce alcohol-related harm and are working closely with Alcohol and Drug Partnerships and the third sector to do so. Drug and alcohol services have seen a significant increase in funding as a result of the National Mission to ensure treatment services are in place to support people impacted by alcohol and drugs.

For example, we are exploring the evidence around Managed Alcohol Programmes and are delighted to be able to contribute to the running of the innovative model being piloted in Glasgow by Simon Community Scotland and its evaluation.

In addition, we are working with stakeholders to create a national service specification alongside guidance for alcohol treatment in Scotland, supported by a meaningful treatment target. This work will build on the forthcoming UK-wide Clinical Alcohol Treatment Guidelines, developed by Office for Health Improvement and Disparities.

Consenting of GreenVolt, one of the largest floating offshore wind farms in Europe, is a significant milestone which will secure Scotland’s place at the forefront of floating wind technology.

Green Volt’s recently published Supply Chain Development Statement Outlook indicates that the project is estimated to create over 2800 direct jobs during construction and around 100 jobs during the operational phase.

An estimate for wind turbine manufacturing jobs cannot currently be provided. However, Green Volt has committed to spend £350 million in Scotland in the manufacturing phase.

As Scotland’s renewable energy industry continues to grow and thrive we will continue to see new and increased opportunities for job creation across Scotland. We are determined to maximise the economic benefits from offshore wind projects in Scottish waters, which will support the creation of new sustainable jobs across the country.

The Scottish Government is refreshing its Smart Delivery Strategy, outlining its programme of work and strategy for enhancing smart, integrated ticketing and payments, and digital travel data over the next 5-10 years.

The strategy is being developed through a collaborative process with stakeholders and the public and is currently taking into account the development of the National Smart Ticketing Advisory Board’s first work programme. The strategy is also taking into account the significant progress and technological development of smart ticketing since the previous publication in 2018, including the increased use of digital platforms and contactless payment across the network, reflecting the public’s increasing desire for contactless and digital payments and ticketing.

Following publication of the Fair Fares Review and announcement of the Scottish Government’s intention to develop a new national integrated ticketing system for public transport, the strategy will progress through the finalisation and approval process to be published in 2024.

The Scottish Government recognises the importance of working closely and collaboratively with the UK Government and other devolved administrations to deliver a net zero that is mutually beneficial both in economic and social terms.

We will engage directly with each of the Governments to understand how best to establish a four nations climate response group that enables us to work much closer and share more information.

The Scottish Government recognises the importance of working closely and collaboratively with the UK Government and other devolved administrations to deliver a net zero that is mutually beneficial both in economic and social terms.

We will engage directly with each of the Governments to understand how best to establish a four nations climate response group that enables us to work much closer and share more information.

The Scottish Government recognises the importance of working closely and collaboratively with the UK Government and other devolved administrations to deliver a net zero that is mutually beneficial both in economic and social terms.

We will engage directly with each of the Governments to understand how best to establish a four nations climate response group that enables us to work much closer and share more information.

The information requested is not held centrally by the Scottish Government. This would be a matter for individual public bodies.

While employment law is reserved, we will continue to do whatever we can with the levers we have to strengthen effective voice and ultimately collective bargaining in Scotland. The Scottish Government has made a clear commitment to promote collective bargaining through the inclusion of an employee voice indicator, measured by collective bargaining coverage, within the National Performance Framework.

Our National Strategy for Economic Transformation and our refreshed Fair Work Action Plan include actions to support trade unions and promote collective bargaining.

We are continuing to promote trade union recognition and collective bargaining, at both local and sectoral levels, to achieve improved conditions and enhance effective voice. Work is underway in a number of traditionally low paid or precarious sectors to advance fair work and effective voice for workers. The Scottish Government’s work on introducing sectoral bargaining for the adult social care sector is progressing ahead of the introduction of the National Care Service (NCS), in line with the recommendations of the Fair Work Convention. Furthermore, since 1 July 2023, public sector grants include a requirement to pay at least the Real Living Wage to all employees, and provide appropriate channels for effective voice, thus strengthening our approach to conditionality.

Despite an increasingly constrained budgetary context we have continued to provide trade unions in Scotland with funding and support to advance fair work and improve worker voice, which can ultimately increase trade union recognition.

Our Offshore Wind International Engagement Strategy was developed working closely with Scottish Development International, using the latest market intelligence.

The strategy identifies priority countries crucial to delivering our offshore wind objectives, ensuring our engagement is focussed and resources are used efficiently.

The strategy does not preclude working with other countries or regions, or engaging with other international opportunities, with decisions being made on a case by case basis.

Given the dynamic nature of the offshore wind market, our approach will be reviewed regularly to reflect the latest market intelligence.