Labour slams 'PR exercise' business pledge amid sign up rate of under 1%
The Scottish Government's business pledge has been branded “a PR exercise” by Labour after it emerged that less than 1% of firms have signed up.
The Scottish Government's business pledge has been branded “a PR exercise” by Labour after it emerged that less than 1% of firms have signed up.
Data published last month showed 371 companies had signed the pledge as of June 2 - representing the equivalent of 0.2% of Scotland's registered business base.
To sign up to the pledge, a company must commit to paying the Living Wage of £8.45 an hour and to at least two other criteria, ranging from not using zero hour contracts to paying bills promptly and creating opportunities for young people.
The initiative is aimed at boosting fair work practices and firms' productivity.
Scottish Labour highlighted figures showing that no businesses from the accommodation and food services industry are signed up, a sector which is traditionally low wage.
Meanwhile, the party noted that almost half of the signatories come from sectors with traditionally better conditions, such as information and communication and professional, scientific and technical areas.
Labour's economy spokeswoman Jackie Baillie said: “The business pledge is beginning to look more like an exercise in PR than one in economic development.
“The SNP has only convinced 0.2% of Scottish business to sign up to this flagship scheme, with only 3.5% of Scottish jobs covered by it.
“In traditional low wage sectors with insecure work, like hotels and the hospitality industry, not a single business has signed up.
“With a third of hospitality workers under 25 this is simply a failure of the SNP government to stand up for younger workers.
“Serious questions about how effective this scheme is need to be asked - it seems very doubtful that it is promoting better wages and productivity.”
A Scottish Government spokeswoman said: “The Scottish Government is using all powers at its disposal to promote fair pay.
“We are doing this through our approach to fair working practices in procurement, our support for living wage accreditation, the business pledge and the Fair Work Convention.
“Scotland remains the best performing of all the UK countries in terms of paying the Living Wage, with the highest proportion of employees paid the Living Wage or more - around 80% - and we aim to have at least 1,000 accredited Living Wage employers by this autumn.