Wednesday 14 May 2014

Unpicking Labour's living wage claims

The thing is the Scottish Government haven't blocked the living wage. 

This was explained on yesterday's newsnight

Public sector workers already get the living wage. The Scottish Government brought in a bill some time ago guaranteeing this.  Labour did not do this while in office.  They could easily have done so.

The Government has sent a memorandum to private sector employers saying they want the living wage to be paid.  It's more than a little implicit that they will have a prejudice in procurement for companies that pay it.  They have stated they want to write it into procurement law as well but they consider it legally dodgy to do so because of EU competition law.  EU law definitely allows the Government to ensure that one project or another must be living wage, but the Government sought legal advice from the EU commission on the matter and they have received a letter back from an EU Commissioner stating that the Government cannot make living wage mandatory in procurement. 

Labour wanted the Government to put it into law anyway risking a legal challenge within the EU. The Scottish Government has been arguing for this to be clarified and changed at a European level to allow them to make it mandatory. 

There isn't really a huge gulf between Labour and the SNP on this issue it seems. Labour's contention is that Boris Johnson has made living wage mandatory in London. 

The British Government however has publicly warned him this risks an EU legal challenge, and the Scottish Government believes it is in breach of EU law, based on their own legal advice and the direction from the EU Commissioner. 


Maybe Labour are calling this right and nobody will drag Scotland through the EU courts; I can see an argument for this, but this is not a disagreement of principles, just one of tactics.  However Labour have condemned the Scottish Government for doing exactly what they are currently calling for.  They have attacked the Scottish Government for minimum alcohol pricing legislation precisely because it has been challenged by EU competition legislation.  Or as Jackie Bailie put it"Perhaps if the SNP spent more time on the substance than the spin they might come up with policy that was actually competent - not half-baked policies that are wide open to legal challenge."

Maybe the Government doesn't want to pick anymore EU battles? I don't know, but there is nothing to stop the Government demanding living wage in the private sector for any particular projects if it so chooses. Campaigners for the living wage across the board in government procurement have something to focus on there that is much more productive than vindictive Labour nat bashing and empty posturing when there is little of substance here actually being argued over.

From SNP Euro Elections Manifesto
Last month the First Minister was in Brussels arguing for a change to EU law to ensure that the living wage could not be challenged in Europe were the Government to write it into procurement legislation.  He noted that this kind of contribution to the EU is one that an independent Scotland could make that could improve the lot for millions of workers across the EU.  In fact the SNP place it as the second priority for the Scottish national interest in their EU manifesto. 

In light of this there is something very petty about the rhetoric games the Labour Party and its press allies are playing with regards to the living wage.  They could just as easily be working with or to pressure the Scottish Government to deliver living wage jobs in actual government contracts with private providers.  That would have a real impact.  But then that might damage the ability of Labour Councils which routinely use cheap private sector providers, often with links to Labour figures, for construction and service delivery.


1 comment:

  1. As British Labour have no answers nor policies the best they can do is show their true colours and they are the ones of hypocrisy.

    ReplyDelete