1. Will the First Minister outline what actions the Welsh Government is taking to tackle the issue of low pay in Wales? OAQ51651

Growing our economy and spreading opportunity are at the heart of our recently published economic action plan, and the plan sets out actions we are taking to improve earnings and prosperity in Wales.

Thank you, First Minister. At the last meeting of the cross-party group on industrial communities, Professor Steve Fothergill presented evidence to us showing the stark association between low pay and the former industrial parts of Wales. Median pay in older industrial areas is just 90 per cent of the UK average. Women are more disadvantaged than men, and median pay in Rhondda Cynon Taf, for example, is just 67 per cent of that found in London. Will you outline how the Welsh Government will be prioritising tackling low pay in the former industrial parts of Wales, like my own constituency of Cynon Valley?

Yes, we're addressing the problems that were caused by the Conservative Government in the 1990s, where gross value added was deliberately suppressed per head, as well-paid jobs were removed and replaced with jobs that were on a much lower pay scale. We do recognise, of course, that current inequalities exist in different regions across Wales, and the economic action plan will spread opportunity and prosperity across the whole of Wales. 

In terms of implementing the plan, alongside other strategies, we will deliver tangible results focusing on improving the quality of life for all the people of Wales, including the former industrial areas. 

First Minister, we've recently as an Assembly passed legislation, or secondary legislation, brought forward by your Government, allowing care workers who've been on zero-hour contracts for more than three months to transfer to minimum hours contract if they choose to do so. A year or so ago, I would say, Bridgend County Borough Council had 344 members of staff all on zero-hour contracts, although, of course, not all care workers. Are you considering extending the offer that's being extended to care workers to non-care workers as well, when it comes from to transferring from zero-hour contracts to more permanent arrangements?

Well, these are things that we continue to consider. Can I say that fair work is important to us, which is why a fair work board has been convened and is exploring how we can further leverage fair work outcomes from public spending and procurement practice in Wales. I can say that the fair work board does view fair and decent wages and a guaranteed hourly income as necessary to ensure greater financial security to individuals, and to enable them to access goods and services. 

First Minister, outlined in your economic contract are calls to action, which businesses will be required to follow if they want to get direct Welsh Government support. But none of those calls to action specifically relate to requiring a living wage or any types of incentives around wages specifically. Given that Wales is a low-pay country, with wages £50 less per week than the rest of the UK, will you clarify whether or not businesses that wish to have support from your Government will or must pay a living wage as we move forward, and, if not, could you explain why not?

I can say that we support, of course, the concept of a living wage. We have produced a guide to implementing the living wage through procurement, which has been made available to private, public and third sector organisations. We have taken decisive action to improve the well-being of workers involved in public sector supply chains in Wales and across the world, launching a code of practice for ethical employment in supply chains in Wales, and that code focuses on guaranteeing good employment practices and includes a commitment to consider paying all staff the living wage as set by the Living Wage Foundation. 

In terms of fair work, I can say that the board itself, which is being led by Julie James, has made good progress, both in defining the meaning of fair work and in identifying the levers by which we can increase the availability of it across Wales.