Fair Work Action Plan 2022 and Anti-Racist Employment Strategy 2022: island communities impact assessment

3. Relevant legislation and policy

This section provides an overview of the relevant legislation and policy to the RAP and ARES. A detailed policy review is provided in Appendix C.

3.1 Relevant legislation

The ICIA assesses the impacts of each of the actions within the RAP and ARES and will help to demonstrate Scottish Government's compliance with the Islands (Scotland) Act 2018, which it has a legal duty to consider in the delivery of its policies, programmes and projects.

3.1.1 The Islands (Scotland) Act 2018^[15]

Section 3 of The Islands (Scotland) Act 2018 (Scottish Parliament, 2018) required Scottish Ministers to prepare a National Islands Plan to set out the duty of relevant authorities within the meaning of the Act to consider the impacts of policies, strategies, and services on island communities.

Part 2 - Section 3 lists the outcomes considered in the National Islands Plan for improving island communities. These include:

(a) increasing population levels,

(b) improving and promoting -

(i) sustainable economic development,

(ii) environmental wellbeing,

(iii) health and wellbeing, and

(iv) community empowerment.

(c) improving transport services,

(d) improving digital connectivity,

(e) reducing fuel poverty,

(f) ensuring effective management of the Scottish Crown Estate (that is, the property, rights and interests to which section 90B(5) of the Scotland Act 1998 applies), and

(g) enhancing biosecurity (including protecting islands from the impact of invasive non-native species).

Part 3 - Section 7 outlines relevant authorities' duty to have regard to island communities in carrying out its functions. Section 8 of this Act requires the Scottish Ministers, as a relevant authority, to prepare an island communities impact assessment in relation to a policy, strategy, or service, which, in the authority's opinion, is likely to have an effect on an island community which is significantly different from its effect on other communities (including other island communities) in the area in which the authority exercises its functions.

An ICIA must:

(a) describe the likely significantly different effect of the policy, strategy, or service (as the case may be), and

(b) assess the extent to which the authority considers that the policy, strategy or service (as the case may be) can be developed or delivered in such a manner as to improve or mitigate, for island communities, the outcomes resulting from it.

3.1.2 The National Islands Plan 2019^[16]

In December 2019, Scottish Ministers published the first ever National Islands Plan (Scottish Government, 2019) which was created with the input of many islanders and those with a strong interest in Scotland's islands.

The Plan sets out 13 Strategic Objectives which are critical to improving the quality of life for island communities.

• Strategic Objective 1: To address population decline and ensure a healthy, balanced population profile;
• Strategic Objective 2: To improve and promote sustainable economic development;
• Strategic Objective 3: To improve transport services;
• Strategic Objective 4: To improve housing;
• Strategic Objective 5: To reduce levels of fuel poverty;
• Strategic Objective 6: To improve digital connectivity;
• Strategic Objective 7: To improve and promote health, social care and wellbeing;
• Strategic Objective 8: To improve and promote environmental wellbeing and deal with biosecurity;
• Strategic Objective 9: To contribute to climate change mitigation and adaptation and promote clean, affordable and secure energy;
• Strategic Objective 10: To empower diverse communities and different places;
• Strategic Objective 11: To support arts, culture and language;
• Strategic Objective 12: To promote and improve education for all throughout life; and
• Strategic Objective 13: To support effective implementation of the National Islands Plan.

Fairness is a key value that underpins the National Islands Plan and reflects the Scottish Government's commitment to equality and human rights. The Plan recognises that every member of society has a right to live with dignity and to enjoy high quality public services wherever they live. This commitment is also included as a National Outcome within Scotland's National Performance Framework.

3.1.3 Island Communities Impact Assessments: Guidance and Toolkit

In October 2020, the Scottish Government issued guidance on ICIA (Scottish Government, 2020) under Section 11 of the Islands (Scotland) Act 2018 and relating to the duty imposed by Section 7 of the Act. The guidance shows how to assess and take into account the impacts policies, strategies or services might have on island communities in Scotland through a seven-step process.

3.1.4 The Human Rights Act^[17]

The Human Rights Act 1998 is an Act of Parliament of the United Kingdom introduced to incorporate the rights of the European Convention on Human Rights into UK law. Public authorities must respect and protect the human rights set out through the articles of the Act. Articles relevant to the Fair Work agenda include:

• Article 4: Freedom from slavery and forced labour;
• Article 11: Freedom from assembly and association; and
• Article 14: Protection from discrimination in respect of these rights and freedoms.

Human rights implications are also considered in the context of upcoming International Human Rights Covenants and Conventions, including the International Covenant on Economic, Social and Cultural Rights; the Convention on the Elimination of All Forms of Racial Discrimination; the Convention on the Elimination of All Forms of Discrimination Against Women; the Convention on the Rights of Persons with Disabilities; and the Convention on the Rights of the Child.

In assessing the impacts on human rights legislation, this report considers:

• If there is any danger of someone's rights being infringed by the actions of the Fair Work agenda; and
• If the actions of the Fair Work agenda will strengthen people's ability to enjoy these rights.

3.2 National policy

3.2.1 Fair Work Framework^[18]

The Fair Work Convention published the Fair Work Framework in 2016. It sets out a vision 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 society'.

The framework defines Fair Work through the five dimensions: effective voice, opportunity, security, fulfilment, and respect.

3.2.2 National Strategy for Economic Transformation (NSET)^[19]

The National Strategy for Economic Transformation outlines an ambition for a successful and 'fairer' economy by 2032 driven by a vision to create a wellbeing economy.

The 'fairer and more equality society' programme of action seeks to 'Reorient our economy towards wellbeing and fair work, to deliver higher rates of employment and wage growth, to significantly reduce structural poverty, particularly child poverty, and improve health, cultural and social outcomes for disadvantaged families and communities.'

3.2.3 National Performance Framework (NPF)^[20]

The National Performance Framework is Scotland's wellbeing framework setting out a vision for a more successful, sustainable, and inclusive Scotland.

The Fair Work and Business National Outcome measures progress towards Scotland's vision for 2025. Performance against this outcome is measured through indicators, including but not limited to: pay gap, employee voice, gender balance and payment of the real Living Wage.

3.2.4 Developing the Young Workforce: Scotland's Youth Employment Strategy^[21]

The Youth Employment Strategy sets out how the Scottish Government will implement recommendations from the Commission for Developing Scotland's Young Workforce with the ambition to improve youth employment levels beyond pre-2008 and prioritise equal access to work relevant educational experience for all young people, despite the barriers they may face.

3.2.5 Tackling Child Poverty Delivery Plan 2022-2026^[22]

The 'Best Start, Bright Futures' delivery plan sets out a vision for tackling child poverty in Scotland, following the foundations of the 'Every Child, Every Chance' publication in 2018.

To successfully tackle child poverty, the plan will support families with children through people-centred services to access financial, emotional, and practical assistance regardless of gender, race or status.

3.2.6 Covid Recovery Strategy^[23]

In response to the inequality and disadvantage both exacerbated and exposed by the Covid pandemic, the Scottish Government published the Covid Recovery Strategy.

The strategy prioritises the security and resilience of communities, businesses, society, and the economy by embedding fair work, skills and employability interventions.

Actions from this outcome include gender, ethnicity and disability employment action plans, an ethnicity pay gap strategy, real Living Wage commitments and other Fair Work standards.

3.2.7 Race Equality Framework for Scotland 2016 to 2030^[24]

This framework sets out the Scottish Government's approach to addressing racism and inequality between 2016 and 2030. Through showing leadership in advancing race equality and addressing barriers faced by racialised minorities, the Scottish Government will assist racialised minorities in realising their potential.

The Framework was created to prioritise the needs and experiences of Scotland's racialised minorities. It outlines how the Scottish Government will work in partnership with government agencies and key stakeholders to address opportunities for progress through six themed Visions.

3.3 Partnerships

3.3.1 No One Left Behind^[25]

No One Left Behind is a collective approach to delivering an employability system which is flexible, people-centred, and responsive.

Progress has been made through the Disability Employment Action Plan^[26], Shared Measurement Framework^[27], the Scottish Approach to Service Design^[28] and Fair Start Scotland extension^[29].

3.3.2 Fair Start Scotland^[30]

Fair Start Scotland, a national employment support service, launched in April 2018 and has been supporting people with significant barriers towards and into sustainable work.

The service is entirely voluntary and offers personalised, one to one support, tailored to individual circumstances and has supported over 51,000 starts since launch in April 2018.

3.4 Other factors

Individuals and businesses face ever-changing burdens dependent on the cumulative impacts of socioeconomic crises. Those relevant to today's populations include Covid, EU Exit and the cost-of-living crisis.

3.4.1 Covid

Covid-19 has an impact on Scotland's health, economy and society and progress towards Scotland's National Outcomes from the NPF.^[31] Emerging and exacerbated labour market inequalities are likely to generate poverty and human right impacts relevant to the Fair Work and Business Outcome. For example, young people are increasingly faced with early unemployment, while older unemployed adults are experiencing more long-term unemployment and are less likely to participate in upskilling.

3.4.2 EU Exit

Consideration must be given to EU Exit undermining trading and collaborative relationship, which Scottish society and businesses have traditionally relied on as efforts are made to rebuild, restore, and identify new markets and potential trade relationships.

3.4.3 Cost-of-living crisis

The recent cost of living crisis, driven by a surge in inflation, has generated social, economic, and environmental vulnerabilities across Scottish households.

While all households in Scotland will be affected by the increased cost of living, the Scottish Government identified that disproportionate impacts are likely across low income households.^[32] Low income households also include overrepresentations protected characteristic groups.

Household's increased chances of suffering acutely from the current inflation crisis heightens vulnerabilities to changing legislation, in both positive and negative capacities.