Procuring the Living Wage for the Social Care Workforce Judith Midgley, CCPS Workforce Associate and Des Loughney, Secretary, UNITE Edinburgh Not for Profit Branch
What is the Living Wage? • Living Wage in Scotland is £7.65 per hour. • The National Minimum Wage is £6.31 per hour for those aged 21 and over.
Impact of the Living Wage? • A 25% fall in absenteeism • 80% of employers believe that the Living Wage has enhanced the quality of the work of their staff • 66% of employers reported a significant impact on recruitment and retention within their organisation • 70% of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer.
The Legislation • Procurement Reform (Scotland) Act (2014) • European Directives on Public Procurement (2014)
Procurement Reform Bill (2013)Guidance on Workforce Matters Statutory guidance to be issued on how workforce matters can be taken into account in procurement decisions (SG Amendments 9 & 10) 13th May 2014
CCPS Position Downward pressure on terms and conditions due to: • Tendering/retendering • Failure by contracting authorities to apply inflationary uplifts • Budget cuts Led to voluntary organisations not being able to pay living wage
CCPS Position : Guidance • Reward and recognition is secured for the voluntary sector workforce through CCPS working with SSSC and Scottish Care on low pay to influence the drafting of the procurement guidance on workforce matters.
Financial Implications for CCPS members? Depends on two key factors: • Robustness of monitoring and enforcement activity, and • The degree to which commissioning and procuring authorities recognise and pay for the essential costs over and above staff wages.