Procurement at the heart of strong manufacturing sector

#STUC16 UNISON’s Carol Ball threw the spotlight on procurement as Congress set out an ambitious plan to end the stagnation of manufacturing in Scotland through a long-term industrial strategy.

Joining the criticisms of the Scottish Government’s ‘A Manufacturing Future for Scotland’ plan, Carol told delegates that this really is a missed opportunity for a much needed comprehensive manufacturing strategy.

Civil society groups demand ethical public procurement

UNISON Scotland is involved in launching the new #10Asks on procurement today. Here's the press release:

Civil society groups demand ethical public procurement

New public procurement rules in Scotland should help tackle tax dodging, blacklisting and climate change, according to a coalition of civil society coalitions.

International development charities, environmental groups, voluntary organisations and trade unions joined together today (Thursday) to demand that Scotland’s annual procurement spend of around £10 billion should promote key sustainable and ethical policy objectives.

Public contracts should demand fair treatment for workers

#stuc15 The STUC demanded an end to exploitative procurement contracts that leave workers at the mercy of low wages, poor employment practices, scams that mask employment status and zero hours contracts.

Supporting the motion UNISON Scotland’s Brenda Aitchison reminded Congress how dependent business is on the state, including the £1.4 billion funding for apprenticeships and the benefits businesses get from a state educated workforce.

“It doesn’t take a genius to work out just how much assistance the taxpayer gives big business in terms of generating profits.

Proposals to introduce living wage through procurement shows light at the end of tunnel, says UNISON

UNISON, Scotland’s largest public service union, today (Tuesday) welcomed proposed amendments to the Procurement Reform (Scotland) Bill that would see the living wage introduced for the first time.

This key legislation, which will be debated at the final stage in the Scottish Parliament today, will govern how the public sector spends around £11 billion annually on goods and services. Today’s debate provides MSPs with an opportunity to put social and environmental justice high up the public procurement agenda, including, crucially, rolling out the Scottish Living Wage to all those working on public contracts.

Although UNISON would prefer making the living wage mandatory, the Scottish Government approach means public bodies can include it in their procurement strategies in a way that makes it clear to contractors that, for relevant procurements, bids will be evaluated taking employment policies, including the living wage, into account. It would then be included in the contract and can be enforced through contract performance.

Procurement is key to making decent pay the norm, says UNISON

Tuesday 11 March 2014

UNISON Scotland is calling on MSPs to support an amendment to the Procurement Reform (Scotland) Bill which would make paying a living wage an essential condition of bidding for a public sector contract.

The Bill – which is being considered tomorrow (Wednesday) at stage 2 by the Infrastructure and Capital Investments Committee – will change how public contracts are handed out to businesses. Scotland spends approximately £10 billion a year on procurement and UNISON wants those employed in public contracts to be paid the living wage, currently £7.45 an hour.

While the Scottish Living Wage is working well across the public sector, many public services are outsourced to the private and voluntary sectors, including vital areas such as social care.

Cheryl McCormick, a support worker in Glasgow and vice chair of UNISON’s Scottish Community Service Group, said:

“There is an army of low-paid workers who care for the most vulnerable people in our society who earn less than the living wage, many less than the minimum wage when travelling time and sleepovers are taken into account; who are on zero hours contracts, and don’t have time to care properly.

“The people delivering these services are really struggling. A living wage would mean the difference between having to scrape by from month to month and worrying whether or not they can pay their bills, to being able to relax a little and maybe even have a little left at the end of the month.

“If decent pay is going to be the norm in Scotland, then procurement is the key to driving up employment standards.”

Currently, one in five Scots are paid below the living wage. UNISON’s Head of Bargaining and Campaigns, Dave Watson, gave oral evidence to the Westminster Scottish Affairs Committee yesterday (Monday) to express the union’s concerns over the impact of zero hours contracts on workers. He told the committee that the growth in casual employment is contributing to the growth of in-work poverty, damaging public services and the economy.

Dave added: “At a time when workers have experienced the longest  real wage squeeze since 1970, with inflation going up faster than pay for 43 months, this is the way to make a major step forward by boosting the income of many thousands more low paid families in Scotland.

“Companies are cutting corners in order to win contracts. Unless we opt for principled procurement these issues are not going to go away. We need MSPs to support the amendment to this Bill and make paying a living wage a stipulation for all public contracts, by including this in performance clauses.”

ENDS

Notes to editors

1. For more information see our Scottish Living Wage Procurement briefing at http://www.unison-scotland.org.uk/briefings/index.html 

2. Our briefing on the Procurement Reform (Scotland) Bill at the stage 1 debate is available here: http://www.unison-scotland.org.uk/briefings/MSPe-briefing_ProcurementReformBill_Feb2014.pdf

3. UNISON Scotland’s Head of Bargaining and Campaigns, Dave Watson, gave oral evidence to the Westminster Scottish Affairs Committee yesterday (Monday) to express the union’s concerns over the impact of zero hours contracts on workers. He told the committee of the growing use of these contracts in the care sector and how zero-hours contracts is not only bad for workers, but bad for the services they deliver and bad for economy. For more information please see his blog athttp://unisondave.blogspot.co.uk/

4. The Scottish Living Wage is currently £7.45 an hour and will rise to £7.65 next month.

5. The Scottish Living Wage was one of ten asks for the Bill from a coalition of civil society organisations, including the STUC, Stop Climate Chaos Scotland and SCVO. The asks include action on blacklisting and tax dodging, a sustainable development focus and measures on ethical/fair trade, employment standards and positive social outcomes.

6. The Scottish Living Wage is good for workers as they benefit from higher pay, improved health and motivation; good for employers as it reduces turnover, improves productivity and attracts better staff; and good for the economy as it results in lower benefit costs and less stress on the NHS.

7. 6 in 10 children who live in poverty have at least one parent working. 550,000 adults (mostly women) in Scotland earn less than the living wage.

Public money does not belong in the hands of tax dodgers, says UNISON

UNISON is calling for an end to tax dodgers winning public contracts ahead of today’s (Thursday) parliamentary debate on the Procurement Reform (Scotland) Bill.
   In a briefing issued to all MSPs prior to the stage 1 debate, the union asks them to decide if they are on the side of the tax dodgers or if they will take action to tackle them?
    Dave Watson, UNISON Scotland’s head of bargaining and campaigns, said: “It is entirely wrong that companies who dodge paying their fair share of tax should be awarded public contracts. Almost £10bn of public money, over a quarter of the Scottish Government budget, is spent on public procurement. It is an important lever to change the behaviour of big companies who do not play by the rules”
   The union also says the Bill does not go far enough to tackle the issue of low pay.

Procurement is key to rolling out benefits of living wage across Scotland, says UNISON

Monday 4 November 2013

UNISON has today (Monday) welcomed the rise in the living wage but says it’s vital this is rolled out to the private and voluntary sectors through public sector procurement.

Scotland’s largest public service union said that while good progress has been made in achieving the Scottish living wage in the public sector, the fact that nearly one in four Scots are still earning below that level cannot be ignored.

Lilian Macer, UNISON’s Scottish Convener, said: “We welcome the increase in the living wage rates but more action is needed to extend the considerable benefits across Scotland.

“Workers benefit as they get higher wages, which in turn improves health and job motivation. Employers benefit because it widely reduces turnover, improves productivity and attracts better staff through reputational gain. The wider community also benefits through lower benefit cost, less stress on the NHS and more cash into the local economy.

“However, the next stage has to be to spread the social and economic benefits to the private and voluntary sectors and the key to this is through procurement.”

Mike Kirby, UNISON’s Scottish Secretary, said: “Extending the living wage to contractors through procurement has been largely done on a voluntary basis. However, it’s vital that the payment of a living wage is a part of any contracting authority’s bid for a public sector contract.

“UNISON has long campaigned for an official accreditation scheme for Scotland’s living wage and we’re pleased the Scottish Government has responded to these calls. But as well as encouraging new employers to come on board, we need to tackle low pay through public sector procurement and the Procurement Reform Bill is the ideal opportunity to make this happen.”

As part of Living Wage Week, UNISON – together with the Scottish Living Wage Campaign and the STUC – will be lobbying the Scottish Parliament on Thursday, November 7, calling for changes to public sector procurement.

UNISON welcomes publication of Procurement Bill

UNISON, Scotland's largest public sector union has welcomed the Procurement Bill being sent to parliament. UNISON has long campaigned for public procurement to be used more effectively to improve the economic, social and environmental wellbeing of local communities.

UNISON Scottish Organiser Dave Watson said:

“UNISON welcomes assurances from the First Minister that the Bill includes new powers to tackle companies that do not comply with their legal obligations, including blacklisting and employment law. However, the Bill will need to go much further in tackling abuses such as tax dodging and poor employment standards such as the race to the bottom in care quality. Procurement should also be used to promote the Scottish Living Wage, fair trade and help achieve Scotland’s climate change targets.”


For further information please contact:
Dave Watson: d.watson@unison.co.uk Tel. 07958 122409


Notes for editors

UNISON Scotland’s submission to the consultation on the Procurement Bill can be viewed here:
http://www.unison-scotland.org.uk/response/ProcurementReformBill_Response_Nov2012.pdf

UNISON Fife supports anti-blacklisting motion to council

Thu 27 June 2013

UNISON Fife supporting a sister trade union, Unite, at a demonstration outside of Fife House this morning.  The demonstration was part of a national campaign to ensure that companies involved in operating a ‘blacklisting’ system are excluded, where legally possible, from our preferred list of suppliers, a campaign that UNISON Fife fully supports.

Fife Council is embarking on a number of projects which will see new schools, new affordable housing and new care homes being built here in Fife.  The practise of ‘blacklisting’ is archaic and draconian and has no place in modern day society.  It ruins reputations, leaves individuals unable to secure employment and sees families become destitute.  A motion to Fife Council’s Executive Committee on June 27th calls on the Council to support Trade Unions in a bid to eradicate such a unethical practise.

Scotland calls for an end to the scandal of publicly funded poverty pay

#undc13 Delegates slammed the Coalition government’s “slash and burn” responses to the economic crisis, with attacks on pay and terms and conditions and growing privatisation creating a low wage economy, job insecurity and undermining employment rights.

It called for UNISON to stay at the forefront of the opposition to these attacks, with a range of measures including building on our living wage campaign.

Procurement: Public money should be spent for Public Good

#stuc13 That was the message from Jane Aithchison as Congress welcomed the Scottish Government’s commitment to new legislation on public procurement and called on them to work with the STUC to shift the focus from cost to quality and sustainability in public sector contracts. Full story at http://www.unison-scotland.org.uk/stuc2013/6.html

E-Briefing for MSPs on today's Public Procurement Reform debate

17 April 2013

 

MSPs have been asked by the Infrastructure and Capital Investment Committee for their views on

"the efficacy of current public procurement processes and on the scope and potential for improvements to be made to these processes", to inform future work on the proposed Procurement Reform Bill.

UNISON Scotland has called on the Scottish Government to use the Bill to support innovative action against tax dodging and the use of tax havens, banning companies involved in tax dodging from public contracts.

We urge members to highlight the following ways in which procurement processes could be improved, to ensure that public spending on procurement is used to deliver important social, economic and environmental benefits, including improved protection for workers.

The Bill should be used to promote:

labour rights and workforce protections, such as the PPP Protocol and Section 52 Guidance (both of which must now be urgently reviewed and extended), and compliance with the Equality Act


a tax justice approach, where, using appropriate legal advice, the best options are found to bar companies using tax havens and/or other forms of tax dodging from being eligible for public contracts


a positive employment agenda – with companies which do not comply with a range of other certain basic standards not permitted to tender for public contracts (for example the blacklisting of trade unionists in the construction industry should lead to exclusions)


the Scottish Living Wage, both for directly employed staff and for employees working for contractors


sustainable procurement across the public sector, ensuring that public procurement policies contribute properly to Scotland meeting its climate change targets and support a ‘Just Transition’ to a low carbon economy

Collective Concerns voiced by civil society

Given the far-reaching implications of this Bill, UNISON Scotland is pleased to join with large civil society coalitions in Scotland – Scottish Council for Voluntary Organisations (SCVO), Scottish Trades Union Congress (STUC), the Stop Climate Chaos coalition, Scottish Fair Trade Forum and Enough Food for Everyone IF – to highlight our joint concerns about the direction the proposed Bill is taking and to call for social, environmental and ethical objectives issues to be at the heart of this important piece of legislation.　

 

UNISON's response to the Scottish Government Procurement Reform Bill consultation.

 

UNISON's tax justice proposals for the Procurement Reform Bill.

 

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Workers must be central in public service reform, not treated as puppets or pawns

27 March 2013

UNISON will today (Wed) tell a committee of MSPs that redesigns of public services must not treat workers as pawns to be moved around recklessly, ignoring best practice lessons.

The public service union has warned the Scottish Parliament’s Local Government and Regeneration Committee that new ways of delivering services must operate from a proper framework to deal consistently with staffing issues.

Dave Watson, UNISON Scotland’s Head of Bargaining and Campaigns, will tell members that workforce issues are too often neglected when planning reforms such as integrating adult health and social care.

He said in advance of giving oral evidence: "Consultation papers and legislation frequently give the impression the workforce is an afterthought. So we get last minute scrambled together agreements on important issues around staff transfer, pensions, secondment and so on, with no consistency or learning from best practice.

"It is just wrong to treat staff in this way, like puppets or pawns who can be moved around with no rules for how their rights and conditions are transferred and protected.

"Given that most public services rely on people, not machines, this is an extraordinary omission."

He urged the Committee to recommend that the Scottish Government sets in place a broad staffing framework based on best practice.

This would cover a range of key issues including: staff transfer, pensions, secondment, training and development, equality duties, governance and procurement - covering the protections that should prevent setting up a two tier workforce when services are contracted out.

Dave added: "We also want the Scottish Government to take on board one of the key recommendations from the Christie Commission.

"Redesigns of services must be based on genuine engagement with staff and users from the bottom up. It should not be about expensive management consultants imposing solutions from the top down."

ENDS

　

Notes to editors:

UNISON is Scotland’s largest trade union representing 160,000 members working in the public sector in Scotland.

Our evidence to the Local Government and Regeneration Committee is online at

http://www.unison-scotland.org.uk/response/PublicSectorReform_NewWaysofDeliveringServices_ResponsetoSPLocalGovtCttee_Jan2013.pdf

　

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Horsemeat, tax dodging and procurement - opportunities to act

25 March 2013

Stop Climate Chaos Scotland is a signatory to a letter in today's Scotsman saying that the forthcoming Procurement Reform Bill is a major opportunity to tackle school meal supply chains, tax-avoiding companies and climate change.

The STUC is also a signatory.

This is the text of the letter....

Horsemeat in kids’ school meals and multinationals’ tax avoidance are two recent scandals to have captured the public’s imagination, and are arguably more likely to grab readers’ attention than the subject at the heart of this letter: the Scottish Procurement Reform Bill.

Yet, this imminent reform of Scotland’s procurement processes (essentially, how our public sector buys things) represents a fantastic opportunity to tackle tax-avoiding companies, school meal supply chains and much more.

From apartheid-related boycotts and beyond, Scots have long understood how to harness their buyer-power to bring about positive change. Last month, Scotland became only the second country to be declared a Fair Trade Nation, reflecting a vast increase in our propensity to seek out fairly-traded goods.

Two weeks ago, a Christian Aid poll found that 55 per cent of Scots are considering boycotting companies that they perceive to be avoiding taxes (a far higher percentage than the UK-wide figure). If we are taking these actions at individual level, it seems reasonable to expect our governments to follow suit. Scotland’s biggest consumer is our public sector, which spends a whopping 
£9 billion per year on our behalf.

The Procurement Reform Bill, due to pass through the Scottish Parliament this year, is our opportunity to demand high standards of our public sector suppliers in areas such as fair trade, carbon emissions, tax practices, labour standards, community-based solutions, animal welfare and more. We look forward to working with the Scottish Government in shaping this legislation.

CHRIS HEGARTY

Chair, Enough Food for Everyone IF Scotland

Full letter and signatories on the Scotsman website

International School Meals Day - UNISON calls for free sustainable meals in all schools

Date: Fri 8 March 2013

A goal for International School Meals Day should be that all school children can have free healthy, fresh meals, prepared and sourced locally where possible, UNISON said today.

The public services union welcomed the first day to promote healthy school meals and awareness of hunger and poverty issues addressed through school meals.

But UNISON says recent scares around horse meat have highlighted that not enough is being done to ensure our children have quality meals.

Stephanie Herd, Chair of the Local Government Committee, called for UNISON’s Food for Good Charter to be adopted in all schools and across the public sector.

She said: “It is important to recognise the excellent work that goes on in schools across the country to provide nutritional meals that encourage young people to eat healthily.

“However, we believe that all children should receive free school meals and that our Food for Good Charter offers ways to deal with some of the issues that have arisen following recent food scares.

“It calls for sustainable food, locally sourced, using fair trade where possible, with consideration given to less meat-intensive diets and excellence in procurement and staff training and conditions.

“The Charter gives an excellent framework for providing healthy meals that can also be a major contributor to improving health and tackling childhood obesity.”

ENDS


Notes to Editors
1.    UNISON is Scotland’s largest trade union representing 160,000 members working in public services in Scotland including school meals staff.

2.    March 8 2013 is the first international school meals day www.internationalschoolmealsday.com/about/

3.    UNISON Scotland’s Food for Good Charter is here www.unison-scotland.org.uk/foodforgood/FFGA4recr.pdf


4.    The Charter states:

Food for Good Charter for the public sector
1. Sustainability: Food should be fresh, prepared locally and sourced locally where possible. Mains-fed water coolers should be provided, minimising the use of bottled water. Public bodies should produce annual reports giving clear 'global footprint' type information on all aspects of their food use, including e.g. % of fresh, local food, progress on waste minimisation and recycling etc.

2. Health: Universal free school meals should be recognised and adopted as a major contributor to improving health and tackling childhood obesity. The aim for all public sector catering should be to give a daily option of an organic/ethically produced main meal, ideally locally sourced. Vending machines on school/hospital premises should be used for healthy alternatives, not junk/fast food.

3. Social Justice: Fair trade food should be used where possible, with targets of 50% by 2010 where relevant fair trade products are available. Decisions about menu options should give consideration to providing less meat-intensive diets, with more fresh, seasonal fruit and vegetables and sustainable fish. Animal welfare must be prioritised, with an aim for animal produce of using only recognised farm assured schemes or organic schemes by 2015.

4. Excellence: All food must meet quality nutritional standards, monitored by relevant regulators. This involves excellence in procurement and in staff training and conditions. The top priority must be the contribution of food to health and wellbeing, with recognition of the folly of previous policies that pursued Compulsory Competitive Tendering, privatisation, PFI and outsourcing - cutting standards and employment conditions, increasing the use of cook-chill and cook-freeze food, and allowing 'fast' and junk food in schools and hospitals. The public must have access to clear relevant information about food, including via labelling and annual reports.

5. Skills: Quality training and proper pay and employment conditions for the sector, including training in environmental factors as part of 'green workplaces'. Lessons for young people in primary and secondary schools about the food chain, sustainability and preparation of healthy meals. Public awareness campaigns on healthy diets, tied in with support to local food co-operatives and similar initiatives to improve access to quality food for the most vulnerable.


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Scottish Ministers told time is right to act against tax dodging companies

7 March 2013

UNISON Scotland will today (Thursday) urge the Scottish Government to respond to overwhelming public outrage about tax dodging companies.

The public services union wants Ministers to use their forthcoming Procurement Reform Bill to ban firms involved in tax dodging from winning public contracts.

Dave Watson, Head of Bargaining and Campaigns, will tell a Holyrood conference on Sustainable Procurement that the time is right to legislate and that there is considerable cross party support for the principle.

Also, a recent Christian Aid public opinion survey found that 80% are angry about firms not paying their fair share of tax and a third are boycotting companies over it.

Dave said: “There is enormous public anger over companies that don’t pay their fair share of tax. The timing of this Bill is perfect for the Scottish Government to respond.

“We are suggesting that the Bill should send out a very clear message. As Chief Secretary to the Treasury Danny Alexander has said, ‘Taxpayers’ money should not be funding tax dodgers.’”

The Edinburgh conference, organised by Holyrood Magazine, is to hear about a range of ways in which procurement can be used as a lever for social, economic and environmental benefits, including to support the Living Wage, to support local economies and sustainable development and to contribute to climate change emissions reduction targets.

Dave Watson is speaking at the event, on promoting best practice, including the Scottish Living Wage.

He said: “At a time of massive public spending cuts it is outrageous that some £120 billion of tax is not being collected. The UK Government should be doing more with stronger anti-tax-avoidance legislation, more tax staff and greater transparency in company accounts.

“The Scottish Government can encourage companies to change their ways through procurement.”

ENDS

1. Danny Alexander made the comment quoted above in September 2012 at the Liberal Democrat party conference.
2. The conference website is http://sustainableprocurement.holyrood.com/
3. UNISON’s Procurement Reform Bill Consultation response is online at www.unison-scotland.org.uk/response/
ProcurementReformBill_Response_Nov2012.pdf
4. A number of European cities/regions are already acting against companies that use tax havens.
www.ipsnews.net/2012/10/helsinki-boycotts-tax-havens/
5. Richard Murphy, of Tax Research UK, and adviser to the Tax Justice Network, says that legislation in England, the Public Services (Social Value) Act 2012, provides councils there with ways to argue for this that would not breach EU procurement rules. This would include councils being able to demonstrate that a large company paying tax would benefit the community through funding for better education, roads etc. This would allow them to choose a tender on the basis of which company pays tax or not.
www.taxresearch.org.uk/Blog/2012/10/23/
the-october-taxcast-from-the-tax-justice-network/

UNISON believes the Procurement Reform Bill could use a similar approach.
6. This Early Day Motion has received support from Labour, SNP and Liberal Democrat Scottish MPs www.parliament.uk/edm/2010-12/2399
7. Transport Scotland said last week that companies involved in tax avoidance may be barred from competing to maintain the new Forth Road Bridge.
8. UNISON Scotland is a member of Stop Climate Chaos Scotland which has raised concerns that the Procurement Reform Bill will not be strong enough on sustainability and ensuring procurement policy contributes to climate change emissions reduction targets www.stopclimatechaos.org/sites/default/files/sccs-proc-cons-resp-final-web_2.pdf

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A Living Wage must be guaranteed on public sector contracts - UNISON

Date: Monday 5 November 2012

UNISON Scotland today urged the Scottish government to use its new procurement law to ensure that public money is only spent with contractors who pay a Living Wage.

Scotland’s largest public services union – along with the Scottish Living Wage Campaign and the Scottish TUC – has made the call as part of Living Wage Week which kicks off today.

Stephen Smellie, Vice Convener of UNISON Scotland said:
“We have made good progress in achieving the Scottish Living Wage so far. Almost all the public sector in Scotland is now committed to paying the Scottish Living Wage - currently at £7.20 per hour, although the new rate will be £7.45. That is good for workers, employers and the wider community.

“But it is a scandal that nearly one in four Scots are still earning below the current Living Wage level. This includes many UNISON members in the community and private sectors.”

“The next step is for the Scottish government to take action to ensure that public money is only spent with contractors who pay a Living Wage.”

Dave Watson, UNISON Scotland’s Head of Bargaining and Campaigns said:

“We believe there are four ways in which the Scottish government can make a real difference on extending the Living Wage to those not yet covered. They can use their new procurement law to require firms bidding for public sector contracts to pay the Living Wage. They can use their influence with the European Commission to remove barriers to the Living Wage. They can establish a Living Wage Unit to promote and oversee the policy. And they can produce a Code of Practice on promoting the living wage in procurement.

UNISON is also supporting the One Fair Wage campaign by the Scottish Youth Parliament, and a private members’ bill proposed by Scottish Labour MSP John Park which is currently out for consultation and which also seeks to achieve these objectives.


ENDS

Notes for editors

1. The Scottish Living Wage – UNISON Scotland Briefing 29

Please see the latest UNISON Scotland briefing on The Scottish Living Wage (released today 5 November 2012) at our website here
http://www.unison-scotland.org.uk/briefings/b029_BargainingBrief_ScottishLivingWage_Nov2012.pdf

The Scottish Living Wage - currently at £7.20 per hour, although the new rate will be £7.45 - is good news for workers as they get higher wages that also improves health and job motivation. It’s good for employers because it reduces turnover, improves productivity and attracts better staff through reputational gain. The wider community benefits through lower benefit cost, less stress on the NHS and cash into the local economy.

The Institute of Fiscal studies has calculated sub-living wage employers cost the taxpayer £6bn a year in in-work benefits alone. The indirect cost on poverty is around £25bn a year.

In contrast the cost to employers is minimal at around 1% of wage bill. Even in the retail sector it is only 5%. As a recent study of the London Living Wage shows, even that can be recouped through decreased turnover and better productivity. Even Boris Johnson, the Tory Mayor of London said, “I believe that paying decent wages reduces staff turnover and produces a more motivated and productive workforce”.


2. Four key actions the Scottish government can take to promote the Scottish Living Wage:

• Use the Procurement Reform Bill to amend the Public Contracts (Scotland) Regulations 2006 to require that the living wage is a part of any contracting authorities bid for a public sector contract.
• Seek to influence the European Commission to remove any perceived barriers in EU Directives that prevent the inclusion of the living wage in procurement.
• Establish a Living Wage Unit to advise on, promote and oversee the living wage in the public sector and in procurement.
• In partnership with stakeholders, develop and produce a Code of Practice on promoting the living wage in procurement.

The Scottish Parliament Local Government Committee has produced a detailed report on the Scottish Living Wage that covers many of the key issues and broadly supported its introduction.

UNISON believes that payment of the living wage can be included as a contract performance clause that sets out how the contract is to be performed and must be accepted by the successful tenderer. The Local Government Committee report (Para 98) covers this in more detail and includes a positive Counsel opinion that branches can refer to. The legal risk is largely theoretical as there have been no successful challenges to the policy in the UK.

The EU is also reviewing the Directives that are perceived to be a barrier to procurement clauses. UNISON is working closely with Scottish MEPs to ensure there are no European procurement barriers.


3. Useful links

UNISON response to Procurement Bill consultation
http://www.unison-scotland.org.uk/response/ProcurementReformBill_Response_Nov2012.pdf

John Park MSP’s Bill
http://www.scottish.parliament.uk/parliamentarybusiness/Bills/53618.aspx

London Living wage evaluation report
http://www.geog.qmul.ac.uk/livingwage/

Scottish Youth Parliament – Fair Wage Campaign
http://www.syp.org.uk/one-fair-wage-W21page-345-

Dave Prentis and David Miliband on the living wage
http://www.guardian.co.uk/commentisfree/2012/nov/03/miliband-prentis-living-wage

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Scotland should ban companies involved in tax dodging from public contracts

Friday 2 November 2012

UNISON Scotland today urged the Scottish Government to ban companies involved in tax dodging from being eligible for public contracts.

The public services union said that Ministers should use their forthcoming Procurement Reform Bill to take innovative action against companies using tax havens and other forms of tax dodging.

Scottish Organiser Dave Watson said: "It is entirely wrong that companies seeking to avoid paying their fair share of tax should be awarded public contracts.

"Public bodies in Scotland spend nearly £11 billion annually through procurement. This Bill offers ways to use that spending to deliver local social, economic and environmental benefits.

"We think this is an important opportunity to do what some European cities such as Helsinki and Paris are already doing, in acting against companies using tax havens.

"Our message to the Scottish Government is that they should adopt a tax justice approach, finding ways, with appropriate legal advice, to bar companies involved in tax dodging from being eligible to bid."

Recently public outrage has focused on big-name companies like Google, Amazon and Starbucks paying miniscule amounts of tax. Many companies investing in PPP/PFI projects are registered in tax havens.

UNISON believes that community benefit clauses could be used to argue that the community will benefit from companies paying proper levels of taxes.

Dave added: "This Bill also offers opportunities to strengthen labour rights and workforce protections, to extend the Living Wage to private sector employees on public contracts and to exclude companies involved in blacklisting trade unionists from bidding for public contracts.

"And, of course, public procurement policies must contribute properly to Scotland’s climate change targets and must support a ‘Just Transition’ to a low carbon economy."

Ends

 

Notes for Editors:

1. UNISON’s Procurement Reform Bill Consultation response is online at　

www.unison-scotland.org.uk/response/ProcurementReformBill_Response_Nov2012.pdf

2. A number of European cities/regions are already acting against companies that use tax havens.

www.ipsnews.net/2012/10/helsinki-boycotts-tax-havens/

3. Richard Murphy, of Tax Research UK, and adviser to the Tax Justice Network, says that legislation in England, the Public Services (Social Value) Act 2012, provides councils there with ways to argue for this that would not breach EU procurement rules. This would include councils being able to demonstrate that a large company paying tax would benefit the community through funding for better education, roads etc. This would allow them to choose a tender on the basis of which company pays tax or not.

www.taxresearch.org.uk/Blog/2012/10/23/the-october-taxcast-from-the-tax-justice-network/　 UNISON believes the Procurement Reform Bill could use a similar approach.

4.There has been considerable success in winning the Living Wage for public service workers in Scotland – directly employed Scottish Government and NDPB staff, the NHS, a growing number of councils -　 but UNISON wants to see it extended to staff employed by contractors and this Bill offers the chance to do this. We also support John Park MSP’s Living Wage (Scotland) Bill.

www.scottish.parliament.uk/S4_MembersBills/Living_Wage_Consultation_Final.pdf

5. Living Wage week takes place next week, from 4-10 November. The Scottish Living Wage Campaign website is at

http://slw.povertyalliance.org/index.php 　

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Procurement Reform Bill - UNISON Scotland Policy Briefing 27

UNISON Scotland Policy Briefing 27 - Procurement Reform Bill

The Scottish Government is consulting on its Procurement Reform Bill. UNISON's policy briefing is available online:

 www.unison-scotland.org.uk/briefings/b027_PolicyBrief_ProcurementReformBillConsultation_Sep2012.pdf

Key points

• The SNP 2011 manifesto promised a Sustainable Procurement Bill but the new proposal is weak on sustainability, focusing more on ‘business-friendly’ processes.
• However, it is a good opportunity to strengthen ways in which procurement can encourage important economic, social and environmental benefits, longstanding trade union priorities.
   
• This should include extending the Living Wage to contractors.

See further UNISON Scotland Policy Briefings here:
www.unison-scotland.org.uk/briefings

UNISON Scotland Bargaining and Campaigns Team


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