3. Will the Cabinet Secretary make a statement on the take-up of the real living wage by the private sector in Wales? OAQ53002

Yes. Businesses in Wales are actively encouraged to take up the real living wage through our economic contract and the code of practice for ethical employment in supply chains.

Thank you, Cabinet Secretary. Supporting the real living wage campaign will help tackle low pay, counter the growth of indebtedness and use of food banks and support of fair work economy. It makes economic sense and it's the hallmark of a caring, compassionate and fair society. So, how can the Welsh Government further support more employers in the private sector to become real living wage employers?

It is a fact that more equal countries are happier countries and more contented countries, and, within the workplace, where people are well paid, it's proven that productivity levels are higher. Now, I'm keen to look at the work of the Fair Work Commission, particularly in regard to the economic contract that is now in place. I am looking keenly at the work of the Fair Work Commission because it's my hope that they will recognise that, alongside the incorporation of the real living wage, there is also a role for businesses to deal with the gender pay gap in order to drive a greater degree of equality within the workplace. So, I'll be looking at the work of the Fair Work Commission with a view to implementing their recommendations through the economic contract. But I'm also keen to make sure that the code of practice that I mentioned in my answer is taken up by as many employees as possible, and the recommendations within that code of practice are executed by as many employers as possible, and that includes the utilisation of the living wage.

A number of councils in Wales at the moment place no requirement on the private companies with whom they contract to pay the so-called living wage, but then 15 of the 22 of those councils don't commit to pay their own employees the living wage either. Earlier this—. Well, actually, I suppose I can understand why—because of the local government settlement, they probably couldn't afford to, even if they wanted to. Earlier this month, the Living Wage Foundation said that they did want to see local authorities, as well as other sectors, commit to the real living wage. So, I wonder if you can tell us if you've had any conversations with the Cabinet Secretary for local government about whether there's a way for local government perhaps to lead on this, or are you speaking as well to private companies with whom Government doesn't contract but are big enough to include these social obligation clauses, so that they perhaps can do this?

Suzy Davies raises a really important point, and that is the role of the public sector in driving a greater degree of inclusive growth in our economy. I've spoken with colleagues right across Government about adopting the economic contract and extending it to other areas of service of Government activity, but also to the public sector, so it's my hope that, as we extend the economic contract, we include within it local authorities, potentially health boards, national sponsored bodies and arm's-length bodies, so that as many businesses as possible in the supply chain are able to gain opportunities from the public sector, where the public sector are paying the real living wage and, therefore, driving up salary levels. I think it's essential that the message we give to the private sector is matched by the message we give to the public sector. And so the application of the economic contract across the public and the private sectors is something that I think is highly desirable.

Of course, Cabinet Secretary, you have a great role in terms of what the public sector does. The airport that this Government bought five years ago is still paying people below the real living wage. We're talking about 100 or so security staff who have a great deal of responsibility if they are to do their job diligently. Are you embarrassed by the fact that these staff are not set to get the real living wage until April 2019—six years after the airport was bought by your Labour Government? And, can you guarantee that when this pay lift is belatedly brought in, Cardiff Airport will be certified by the Living Wage Foundation? Further to that, when will you be in a position to announce that all workers under the remit of this Assembly—those directly employed, those contracted out, those working for Assembly-sponsored public bodies—are earning the real living wage?

I'm not sure whether the Member took the time to write to the chair or chief executive of the airport regarding this matter, and I know that I offered Members as well an opportunity to meet with the chair and chief executive, and a number of Members behind me did just that. I think it's excellent that the airport is moving to become a real living wage employer by the start of the next financial year. I think it's an essential move to demonstrate that, again, right across the public and private sectors, we are trying to drive greater degrees of inclusive growth. I make no apologies for the incredible success of the airport. However, I think it's absolutely right that that success is shared more equally across the employment base at the airport, and so I'm delighted that it's moving to become a living wage employer.