Scottish Labour’s plans for a living wage for all will be a boost to local businesses too.
Scottish Labour’s Make Work Pay scheme would see support available for businesses in the City of Glasgow who support the living wage for their staff.
Under Scottish Labour plans, employers would receive a tax rebate of up to £1000 for every low paid worker who gets a pay rise.
The average rebate would be £445, meaning that if every low paid worker across Scotland was given the living wage, business would get a windfall of over £180 million.
The positive effects of implementing a living wage for Scottish businesses. Research shows that a living wage leads to:
- 25% fall in absenteeism.
- 80% of employers believing the living wage has enhanced the quality of the work of their staff.
- 66% of employers reporting a significant impact on recruitment and retention within their organisation.
Over 400,000 Scots are paid less than the living wage with an estimated 58,000 in Glasgow alone.
Scottish Labour believes the living wage is best for business and best for fairness.
The SNP have previously voted with the Tories against Scottish Labour plans to extend the living wage to the private sector.
Low pay is a moral scandal in our country and it is also holding our economy back.
The research shows that absenteeism and staff turnover go down whilst performance and morale go up. It means a happier, more efficient workplace.
A lot of businesses in Scotland aren’t turning over millions. They are on the sharp end budgeting month to month, they might want to give a pay rise to their staff but the conditions aren’t right. That is why Scottish Labour has a plan to convince these businesses to pay the living wage. We will use make work pay contracts to incentivise better pay for staff – and better performance for business.
When Scottish Labour tried to extend the living wage before, the SNP Government in Edinburgh voted with the Tories to block our plans. The SNP were wrong to deny thousands of Scots a pay rise. Scottish Labour will not let these Scots down.
In May, Scotland can decide the general election. We can deliver a Labour Government that will make work pay; we can deliver a government which delivers a living wage.