Becoming a Fair Work Nation: consultation analysis

Executive Summary

Introduction

The Scottish Government continues to put Fair Work at the heart of the economic recovery and renewal, and Scotland's just transition to a net-zero wellbeing economy. The Scottish Government's vision, shared with the Fair Work Convention, is that by 2025, people in Scotland will have a world-leading working life where Fair Work drives success, wellbeing and prosperity for individuals, businesses, organisations and for society.

The consultation on Scotland Becoming a Fair Work Nation was open from 1 October to 23 December 2021 and received 95 responses. The twelve consultation questions (eleven open and one closed) sought views on what action needs to be taken to achieve the Scottish Government's shared vision, and who needs to lead and support that action, considering the opportunities and challenges in respondents' sectors and workplaces. Together, these responses are an essential evidence base to draw upon when updating the Scottish Government's suite of Labour Market Action Plans and will help Scotland to make further progress on its journey to becoming a Fair Work Nation.

Opportunities

Positive support for Fair Work in practice was the most prevalent theme. Local authorities, public bodies, third sector organisations and representative/membership associations gave varied and detailed examples of how they or their sector deliver Fair Work, and the positive impact on their organisation and their staff. The potential to increase pay for many people in Scotland and for attracting, recruiting and retaining staff were commonly identified as opportunities. Improved wellbeing, better support and representation of workers and flexible working and a better work/life balance were also described. Some respondents highlighted the opportunity for Fair Work to identify and address the challenges faced by equality groups to entering and sustaining employment, and to improve diversity in the workplace and equality for marginalised or disadvantaged groups.

In the current economic climate, many felt delivering Fair Work could contribute to recovery from the COVID-19 pandemic. There was recognition that Fair Work could benefit organisations financially, and help them be more resilient and sustainable. Workplaces where employees feel valued, trusted and respected can be more productive due to attracting better quality candidates, retaining staff and up-skilling the workforce. The connection between Fair Work and a Just Transition was another common theme.

To maximise opportunities, respondents called on organisations and bodies promoting Fair Work to take sector specific approaches and work in partnership with key sectors. Other suggestions included longer-term public sector funding for early learning and childcare, social care, local government and the third sector, among others. Investment in training, skills development and apprenticeships was also seen as beneficial.

Challenges

The cost of adopting fair work practices was the most commonly identified challenge, particularly for smaller organisations. Respondents described the cost to organisations of paying the real Living Wage, providing training and development, offering flexible working, or creating management capacity to implement Fair Work. Some respondents identified a lack of organisational awareness and knowledge of Fair Work and a lack of time, skills and expertise within organisations as barriers. Other challenges included ingrained or traditional culture and practices in some organisations, short-term third sector funding and a lack of monitoring and enforcement of Fair Work.

While it was seen as an opportunity by some, the impact of the COVID-19 pandemic was the most commonly mentioned economic challenge. Respondents highlighted the financial impact of the pandemic and the competing priorities facing many organisations which could deter investment in Fair Work. The disproportionate job disruption experienced by women, young people and disabled people due to COVID-19 was also mentioned. Other economic challenges included the UK's exit from the EU, low wages and the increasing cost of living, and skills and labour shortages.

To overcome sector specific challenges, respondents expressed a view that moving from short-term funding towards longer-term funding could help third sector organisations to implement fair work practices. Other suggestions included addressing low wages in some sectors, for example social care and childcare, and greater recognition of, and discussion with, trade unions to help implement Fair Work. While many recognised that employment law remains a reserved matter, suggestions for what the Scottish Parliament could do with full control of employment law included increasing the national minimum wage, making zero-hours contracts illegal, and strengthening workers' rights around flexible working.

Actions to deliver Fair Work

Respondents suggested a variety of actions the Scottish Government should take to meet the ambition of becoming a Fair Work Nation. The most common was to provide more support to organisations through funding, centralised guidance, and free training and mentoring schemes. Other common suggestions included doing more to promote Fair Work through its own procurement activity, undertaking more research about Fair Work, and organising public information campaigns to promote the Fair Work agenda. More generally, respondents felt that the Scottish Government, public bodies and local authorities should lead by example in their own practices.

Specifically, in relation to equality and diversity, respondents suggested the Scottish Government should encourage employers to trial flexible working arrangements, provide funding to equality rights organisations to provide training and learning resources, collect more equality employment data and take an intersectional approach to Fair Work.

Some respondents suggested actions they or their employer could take to promote fair work practices. These included raising awareness of Fair Work and its benefits among employers and improving knowledge of fair work practices and workers' rights among the public. Respondents felt employers should pay the real Living Wage, tackle the gender pay gap, accommodate flexible working requests, and invest in training and development.

A small number felt their organisation could lead by example, or influence practice in their own sector. Several public bodies, local authorities, representative/membership associations and equality rights groups commented on their organisation's role in supporting others to implement fair work practices through providing guidance and training on specific issues.