Becoming a Fair Work Nation: consultation analysis

2. Opportunities

The opportunities for Scotland becoming a Fair Work Nation are explored in this chapter. Different aspects of opportunities for Scotland were explored in the consultation. For example, Q2 asked respondents to consider the opportunities in their sector; Q7 asked respondents to outline opportunities arising from the current economic context. Any overlap in responses to these questions was taken into account in the analysis.

The chapter begins with an overview of any wider opportunities for adopting Fair Work identified in responses to Q2 or Q7. It then describes any further opportunities relating directly to the current economic circumstances. This chapter also outlines how respondents feel the opportunities for Fair Work can be maximised in their sector. This is in addition to the specific actions detailed in Chapter 4.

Opportunities

Q2. What are the main opportunities for adopting fair work practices in your sector?

Three quarters (71 out of 95, 74%) responded to Q2. Responses have been grouped together under the following themes. The most prevalent theme was positive support for Fair Work in practice. Potential benefits of fair pay and attracting and retaining staff were also common themes. Improved wellbeing, better support and representation of workers and flexible working improving work/life balance were also described. Please note that where respondents raised opportunities in relation to equality and diversity matters these have been drawn together in Chapter 5 - Equality and diversity.

Positive Fair Work in practice

Most comments on this theme came from organisations who gave varied and detailed examples of how they or their sector deliver Fair Work, and the positive impact this has on them and their staff. These were primarily local authorities, public bodies, third sector organisations and representative/membership associations. There is not scope within this report to summarise all the examples provided; individual responses can be found online where permission to publish has been granted. However, some examples included:

• How the NHS, as an anchor institution^[3], can promote Fair Work.
• A public body incorporating Fair Work as one of four priorities in its Strategic Plan.
• Local government delivering Fair Work through robust policies, employee participation, paying the real Living Wage and supporting local businesses.
• Highlands and Islands Enterprise described its use of decentralised roles in the region.
• A few organisations, including The Scottish Social Services Council, noted that the development of a National Care Service gives the Scottish Government an opportunity to embed and strengthen Fair Work across health and social care.
• See Me described its See Me in Work (SMiW) programme to help workplaces to make continuous improvements to their culture, practice and policy to directly tackle stigma and discrimination.
• A campaign co-ordinated by NASUWT the Teachers' Union to oppose fire and re-hire practices.
• Scottish Tourism Alliance referred to its Hoteliers Charter, which allows businesses to demonstrate a commitment to their staff and illustrate some of the steps the sector is taking in the delivery of Fair Work.

"The retail industry already embraces much if not most of the Fair Work agenda. Retailers of scale recognise the value of employee engagement, fair remuneration, and meaningful progression and some are often cited publicly as leading places to work and/or are accredited Investors In People." – Scottish Retail Consortium

"Social enterprises are often small, flexible and adaptable. They are clearly very well aligned with Fair Work policies and certainly social entrepreneurs are already driving forward this agenda. With the right support, funding and policy frameworks they can achieve much more." – Social Enterprise Scotland.

"SOSE is the first non-departmental public body to have Fair Work enshrined in its enabling legislation. SOSE recognises that, as an employer which embraces the five dimensions of Fair Work, we should lead by example, showing stakeholders and employers how Fair Work can benefit workers, employers, and the wider community. We can be a role model in our region and across Scotland and have the opportunity to raise the profile of Fair Work and the benefits that come from implementing Fair Work Practices." - South of Scotland Enterprise (SOSE)

"The public sector can be excellent exemplars of Fair Work practices. Many organisations have been early adopters having had Fair Work practices embedded for a significant period and would have experience and benefits to share to encourage and support other sectors with their journey." – Highlands and Islands Enterprise

Fair pay

The opportunity to improve pay was the second most common theme in response to Q2. Most commonly, this related to the real Living Wage. Respondents described opportunities to increase the number of people paid the real Living Wage or higher, to increase the number of real Living Wage employers, and incorporating the real Living Wage into pay scales. More generally, there were calls for higher wages and better pay. One of the most common themes was calls to make the minimum wage the same for all ages, with the lower levels of pay for under 23s, as set by the UK Government, being seen as unfair.

COSLA (Convention of Scottish Local Authorities) noted that "[local authorities] are also committed to the real Living Wage, and most are fully accredited real Living Wage employers". This was echoed by a small number of local authorities in their responses.

"We would wish to see improvements on the minimum wage which should be paid to all workers over 16 years of age. Regardless of this we would also wish to see the [real] Living Wage paid to all regardless of age." Unite Scotland

Related to this, fair pay was a common theme in responses to Q10 about what should be addressed if the Scottish Parliament had full control over employment law. Many respondents felt that if employment law were to become a devolved matter, a key priority should be to increase the National Minimum Wage. Several respondents suggested that the National Minimum Wage should be replaced with the real Living Wage, which in turn should be reviewed regularly to ensure it adequately reflects the cost of living.

Respondents discussed the benefits of increasing the National Minimum Wage, such as improving standards of living, improvements to the population's mental health and fewer people relying on state benefits to top up their income. Some felt a key priority should be to ensure parity across the National Minimum Wage for all ages, deeming current practices by the UK Government (which set a lower minimum wage entitlement for those under the age of 23) unfair.

Other suggestions related to fair pay included the introduction of mandatory salary transparency and an enforceable limit on pay gaps between the highest and lowest earners in a company, for example, the highest paid individual within a company can only earn a maximum of 10 times the lowest paid employee.

Attracting and retaining staff

Another common theme at both Q2 and Q7 was the many ways in which implementing fair work practices can help employers to attract, recruit and retain staff. Respondents from all types of organisation, but especially third sector organisations, local authorities and public bodies, described how a positive and responsible workplace can attract higher quality or skilled staff to an organisation or sector, as well as building a diverse workforce. They also felt that delivering on Fair Work by investing in training and helping employees progress their careers can make employees feel valued and recognised.

A few organisations described the need to improve the reputation or perceptions of their sector to attract and retain staff. For example: Construction Industry Training Board (CITB) Scotland noted that: "Improving the perception of the construction sector is key to attracting new entrants to the industry"; Scottish Council of Voluntary Organisations (SCVO) called for the contribution of the social care workforce in Scotland to be recognised; and, another called for arts and culture careers to be shown as valued, respected, rewarded and attractive career options.

"Embedding Fair Work [practices] will assist businesses to recruit and retain staff, particularly where they have been experiencing high volumes of unfilled vacancies. These will improve conditions, enhancing the profile of the employer and supporting long term stability and business growth." - Scottish Local Authorities Economic Development (SLAED)

Improved wellbeing

Improvements to health and wellbeing were mentioned by respondents across a variety of sectors at both Q2 and Q7. Respondents described ways in which implementing fair work practices can positively impact both physical and mental health. Organisations including the Faculty of Occupational Medicine and the Scottish Occupational Health Action Group called for universal access to occupational health and safety advice for workers. Other organisations outlined actions they have taken recently to improve the mental wellbeing of their employees, such as Mental Health First Aiders and additional online training. Specifically, the Faculty of Occupational Medicine argued that improved job security under Fair Work could reduce anxiety among those who feel their jobs are at risk.

Better support and representation for workers

The potential for greater representation for workers was raised by some respondents, particularly trade unions, public bodies and local authorities. Comments on this theme varied. Some called for greater trade union recognition, extending collective bargaining, and working in partnership with unions to ensure effective employee relations. The Scottish Social Services Council noted its support for establishing a national forum with representation from the social care workforce, employers and community health and social care boards. More generally, Citizens Advice Scotland called for greater support to help workers understand and enforce their rights.

"Opportunities for adopting Fair Work practices in the workplace are best achieved through trade union recognition agreements, collective bargaining and regular meetings between trade union representatives and employers. This level of engagement can help to build and make meaningful the five principles; effective voice, opportunity, security, fulfilment and respect." – Unite Scotland

"The EIS believes that the main opportunity for adopting Fair Work practices lies in encouraging all workers to join trade unions, in persuading employers to recognise trade unions within all workplaces and to ensure that recognition is applied in a meaningful and consistent way in Scotland with local and sector-wide engagement." – The Educational Institute of Scotland.

Flexible working and improved work / life balance

Some respondents identified opportunities for more flexible, hybrid or remote working and how these could improve quality of life. Examples included, a four-day working week, family-friendly working practices and restricting unnecessary hours. The response from Construction Industry Training Board (CITB) Scotland, for example, detailed some of the positive outcomes of flexible working practice in large construction companies. These included reduced feelings of overwork and increased trust in colleagues. However, a small number called for the digital infrastructure needed for wider flexible working to be put in place.

At Q10, some respondents called for improved access to flexible working arrangements to be enshrined in employment law in the event that this power was devolved to the Scottish Parliament. Suggestions for changes to existing laws included:

• The right to demand flexible working, as opposed to request it.
• That all jobs must be advertised as flexible unless there is a clear business reason why this is not possible.
• A requirement for employers to offer alternatives if flexible working arrangement requests are denied.
• Restricting the reasons employers can refuse flexible working requests.
• Requiring organisations to report on the outcomes of flexible working requests.
• A right for workers to appeal flexible working request refusals.

"Under current UK employment law, employees require to have been in post for 26 weeks before they are able to request any new flexible working arrangements. Leonard Cheshire believe that this should be made a right from day one of an individual's employment. This would enable people to better manage their health condition or disability alongside the requirements of their working role." – Leonard Cheshire in Scotland

Other themes

Many respondents outlined actions which Scottish Government or others could take to deliver Fair Work; most common was a desire to see Fair Work promoted through procurement and funding decisions. These are examined in more detail in Chapter 4, which covers actions.

Other opportunities for Scotland associated with Fair Work that were mentioned by small numbers of respondents included:

• Improved employee rights and terms of employment were raised, primarily by public bodies and local authorities.
• Greater access to training to improve skills. A small number of organisations specifically mentioned the potential to increase access to apprenticeships.
• A few individuals and organisations, including local authorities, felt Fair Work could lead to greater employee input into decision-making. This could include involvement in shaping rotas and shift patterns, actions to increase employee engagement such as forums and surveys, and employee representatives.
• To provide stable employment and improved job security.
• Fair Work aligning with other policies which help to reduce poverty.
• The potential for economic growth and prosperity for businesses, communities and society as a whole.
• A few local authorities noted wider community benefits, for example, higher pay and more real Living Wage accredited employers in a community, leading to greater spend and reduced poverty in local areas, and improved skills in a community.
• Fair Work making it possible for more people to enter into, and progress in, work.
• How enhanced fair work practices could help to address skills gaps and labour shortages in some sectors, for example, agriculture and construction.
• Two organisations, including the National Farmers Union Scotland and another in the arts sector, highlighted the importance of Fair Work to ensuring their sector adapts to and is resilient for the future.
• One organisation and one individual in the manufacturing sector expressed negative views about the concept of Fair Work. Respectively they felt it was a concept that the Scottish Government was making little progress in, and that it had the potential to be destructive and commercially damaging to industry.
• Scottish Retail Consortium felt there was an opportunity for the retail industry to adopt the general positive approach to Fair Work demonstrated by larger retail organisations.
• One noted the potential for Scotland's creative sector to align with global social movements and campaigns through its adoption of fair work practices.

"The main opportunities for adopting Fair Work practices are to ensure economic recovery improves workers' terms and conditions, reduces work insecurity, and increases trade union density and collective bargaining coverage." - Scottish Trade Union Congress (STUC)

Opportunities in the current economic context

Q7. What do you believe are the opportunities for delivering Fair Work in the current economic climate in Scotland?

Over four fifths (81 out of 95, 85%) gave a response to Q7. Many suggested ways in which opportunities could be delivered. Most commonly these included providing support and advice to businesses, organisations leading by example, and promoting Fair Work through commissioning and procurement. These are addressed in detail in Chapter 4. The section below focuses on responses which directly addressed economic opportunities. The most prevalent themes were the role of Fair Work in COVID-19 recovery, in helping to increase productivity and in advancing the Just Transition to net zero.

Fair Work and COVID-19 recovery

The most common theme in responses to Q7 was how Fair Work can contribute to recovery from the COVID-19 pandemic. Respondents from all sectors mentioned how the pandemic had increased the prevalence of home working and introduced greater flexibility into many roles and workplaces. Many highlighted the opportunity to embed these advances, allowing more people to enter the workforce, or consider jobs they might not have previously. More generally, some felt that promoting Fair Work as part of the recovery would be beneficial to both businesses and the wider economy in the long-term.

Related to this, another theme was that COVID-19 and EU exit present an ideal time to take stock. Some respondents felt this was an opportunity for organisations to review the value and impact of Fair Work, and consider when and how they could to implement it.

"The shift to remote/digital working made necessary by the Covid-19 pandemic presents many opportunities for delivering Fair Work in Scotland. For example, the reduced need for work related travel or other geographic constraints may make employment more accessible to greater numbers of people." – The Scottish Social Services Council

"The covid-19 pandemic has presented a strong argument for implementing Fair Work and has accelerated change in work policy and practice. Employers have embraced more flexible ways of working which have become the norm, and the importance of employee wellbeing is appreciated more than before. This therefore needs to be harnessed and built upon." – COSLA

"The Covid-19 pandemic has had an unprecedented impact on the economy; an impact that has widened and deepened existing inequalities – e.g. of gender and race – in the labour market. But this unprecedented impact has also created an unprecedented opportunity for re-imagining and re-designing what our economy can do, and in particular how we can promote and secure Fair Work practices." – Poverty Alliance

Increased productivity

The second most common theme in comments about economic opportunities was that delivering Fair Work can benefit organisations financially. Respondents, in particular public bodies, trade unions and representative/membership associations noted that workplaces where employees feel valued, trusted and respected can result in greater productivity due to attracting better quality candidates, retaining staff and up-skilling the workforce. This was also felt to make businesses more resilient and sustainable.

A small number suggested this positive business case for Fair Work could be highlighted more. Conversely, Poverty Alliance outlined its experience of increasing appetite from employers to adopt Fair Work and sign up for Living Wage accreditation. It felt this suggested a growing understanding of the benefits to both workers and employers.

"Fair Work [practices] implemented within an organisation will undoubtedly serve to attract many more people to a higher number and quality of applicants for roles. Finally, practical implementation of Fair Work [practices] can also have a positive impact on the financial situation of a company or organisation. Fair Work can benefit both employers and employees alike." – Advice Direct Scotland

Just Transition to Net Zero

The connection between Fair Work and a Just Transition to net zero was another common theme at Q7. Respondents from a variety of sectors noted several links, including: aligning Fair Work with Scotland's plans for climate change mitigation; creating new, accessible, high-quality green jobs with good terms and conditions in sectors such as green energy and decarbonisation; and, re-training the over 50s workforce. One local authority noted the increase in green jobs means other sectors will need to become employers of choice, and can do this through delivering Fair Work.

"There are opportunities to embed Fair Work in expanding industries such as social care but also in the jobs that will be created in the transition to a low carbon economy." - Glasgow Disability Alliance

Less commonly mentioned economic opportunities

A small number of respondents highlighted how individuals can benefit from the skills and labour shortages in certain sectors. They felt greater competition for staff meant employers had to offer not only better pay, but better conditions, flexible working and opportunities for skills and career development. A few noted that adhering to Fair Work practices could boost an organisation's reputation and help attract staff to certain sectors in the more challenging jobs market, for example, health and social care. Related to this, a few respondents noted that the pandemic and labour shortages have made certain roles more valued, for example, lorry drivers and the care sector.

Another less commonly mentioned theme was the potential for Fair Work to alleviate long term social challenges, in particular tackling poverty. This could be through widening access to employment for marginalised or low-income groups, increasing wages to address in work poverty and ensuring families earn enough to afford a good standard of living. A small number, including Child Poverty Action Group in Scotland, also mentioned the potential to reduce levels of child poverty.

"There is an opportunity to more explicitly link the government's ambitions to deliver Fair Work with its national mission to end child poverty and its statutory obligation to meet child poverty targets. Ensuring that actions to deliver fair work for parents – and especially mothers - are included in the next national child poverty delivery plan create an opportunity to drive progress on both the child poverty and the wider Fair Work agenda." – Child Poverty Action Group in Scotland

More generally, a small number of respondents noted the opportunity for increased pay. While many could gain from wage increases and more people receiving the real Living Wage, women, paid carers and young people were seen as most likely to benefit.

Other economic opportunities mentioned by a smaller number of responses included:

• That Fair Work can help maintain a strong public sector.
• Co-operatives UK provided a detailed explanation of how co-operative business models can deliver Fair Work.
• A local authority noted its participation in a regional Growth Deal and City Region Deal can help deliver more and higher paid jobs in an area.
• A public body mentioned the opportunity to learn from other city regions such as London and Manchester where fair work practices have been rolled out.
• The Scottish Retail Consortium noted that technology and automation allow workers to do more engaging and productive work in store.

Maximising sector specific opportunities

Q3. Please explain how you think these opportunities can be maximised in your sector?

Three quarters (71 out of 95, 75%) gave a response to Q3. The most common themes were the need to work in partnership with different sectors and take sector specific approaches, the need for longer-term public sector funding for various sectors, and the potential to provide training opportunities.

However, many of the common themes at Q3 were evident in responses to other questions such as Q5, Q8 and Q9, and focussed on actions which could be taken by the Scottish Government and others to deliver Fair Work. These actions are addressed more in Chapter 4, but are summarised below, followed by detailed, sector specific ways to maximise Fair Work opportunities.

• A prevalent theme at Q3 was for the Scottish Government, local authorities and public bodies to use public procurement to drive fair work practices by applying Fair Work criteria to contracts being awarded.
• Another common theme was for greater collaboration and sharing of good practice.
• There were calls from some respondents for increasing workers' voice, in particular through greater recognition and support of trade unions.
• A few felt that organisations needed greater support, advice and guidance to help them implement and deliver Fair Work.
• Some felt that public bodies, local authorities and social enterprises can lead by example by providing good working conditions, progression opportunities and fair pay.
• A small number called for more training on Fair Work, to ensure graduates, new entrants and workers are aware of their rights, and that organisations are aware of the benefits of Fair Work and how to deliver it.

Sector specific partnership approaches

The most prevalent theme about maximising sector opportunities was for organisations and bodies who are promoting Fair Work to take sector specific approaches and work in partnership with key sectors. Given the range of sectors responding to the consultation, the comments and examples provided varied considerably.

Sector specific approaches included: public bodies following Highlands and Islands Enterprise's example of decentralising roles; the Scottish Wholesale Association's rebuild strategy which includes the creation of a local supply chain education; ensuring that the social work, social care and early years sectors are fully included in the development of the National Care Service; and, for local business support teams to encourage hospitality businesses to move to fairer work practices to attract and retain staff. A few also called for self-employed businesses' needs to be understood and considered. In its detailed response, The Scottish Association for Social Work outlined several ways in which opportunities could be maximised, including recognising the value of social work profession, ensuring strong terms and conditions of employment are in place and creating opportunities for career development and continuous learning.

Related to this, Public Health Scotland called for data to be gathered and updated to identify where employees are at risk of inequality or poor health from their employment. This can inform the targeting of sectors most in need of improvement. Similarly, Historic Environment Scotland called for improved workforce data collection in the heritage sector.

Suggestions for, or examples of, partnership approaches included: local authorities working in partnership with trades unions, COSLA and the Scottish Government in taking policy decisions; the Scottish Government and others working with the Construction Scotland Industry Leadership Forum and Construction Leadership Council; local authorities and their economic development teams establishing partnership approaches with local businesses to support a consistent approach to Fair Work across their region; the Supplier Development Programme featuring Fair Work at Meet the Buyer procurement events; and, The Royal Society for the Prevention of Accidents considering its priority sectors alongside those in the Fair Work in Scotland report.

"Although there are some Fair Work practices that will apply to all (or most of the) sectors and industries in Scotland, others will have to be explored and implemented to suit the specific needs of employees. It is therefore important to identify and promote promising practice across a variety of workplaces, illustrating steps that employers can take." – See Me

"Development of policy which recognises the diversity of enterprise and entrepreneurship and does not conflate high-growth firms with self-employment. Nuance in the types and forms of business is required and this should inform the variety of business support and advice available" – Individual

"We believe the approach needs to be engaging rather than censorious. We believe the best approach for encouraging retailers is by recognising the positive work done by retailers and engaging on a sector-specific approach." – Scottish Retail Consortium

Other less commonly mentioned themes

A small number of respondents called for more or longer-term public sector funding for their sector. This included calls from the Scottish Out of School Care Network for better funding of Early Learning and Childcare settings, from COSLA for appropriate funding for local government, from the Faculty of Occupational Medicine for investment in professions in its sector, and from the Scottish Sports Association for longer-term funding. This is covered in more detail in Chapter 3, but respondents felt a longer-term view would help their organisations offer longer-term opportunities and prospects to their employees.

Opportunities to provide training were also identified by a small number. Investing in skills development and apprenticeships was seen as beneficial to ensuring sectors such as hospitality operate fairly, and to nurturing the talents of young people and those not in work. However, the importance of ensuring lifelong learning opportunities was also noted. Linked to this, three individuals felt that opportunities for in-work progression could be maximised. This was echoed by COSLA and SLAED.

"There also needs to be support for in-work progression for low-income employees, as well as building the skills and capacity of those out of work to enable them to access good quality jobs." - SLAED

Employability support schemes and accreditations mentioned by a few respondents, were felt to have started to create stronger relationships between employers and support services. A Fair Work Accreditation Scheme was suggested for the new National Care Service to help to drive improvements in social care workforce terms and conditions. The Royal Institution of Chartered Surveyors (RICS) described the development of its Inclusive Employer Quality Mark (IEQM), which is based on four key principles which reflect the Fair Work programme.

Other comments made by very small numbers included:

• Supporting requests for flexible and part-time working.
• Ensuring there is clear direction from management, communication to staff about what changes are required, and that change is actioned.
• Providing advice and guidance to employees about skills and careers development and flexible working.
• Using regulation to maintain standards in health and social care, but with regulatory bodies working with providers.