7. Member Debate under Standing Order 11.21(iv): Living Wage

Part of the debate – in the Senedd at 4:19 pm on 12 December 2018.

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Photo of Ken Skates Ken Skates Labour 4:19, 12 December 2018

Diolch, Llywydd. Can I begin by thanking Jane Hutt for bringing forward this important, and I think very timely, debate and motion this afternoon? Jane has been a tireless campaigner over many, many years for greater workers' rights in Wales, both in and, it's fair to say, out of Government and today, again, makes a powerful, compelling case for a living wage Wales, along with many other Members across this Chamber. Can I thank all Members today who have contributed to the debate, the discussion?

I think it's fair to say that there is ample evidence now in existence to show that more equal societies are most certainly more happy societies, more contented societies, and that employers that pay well tend to achieve higher productivity rates. And within the foundational economy, as we've heard, there is a particular issue with low wages, but it's also in the foundational economy that we see a higher proportion of women in employment, which, in turn, contributes to the gender pay gap that we tragically have in our society and must get to grips with. And that's why we are focusing more than ever on what we can do to support better wages and higher quality work in the foundational economy. It's why the Valleys taskforce work has centred greatly on the role of the foundational economy, and it's why the Welsh Government is happy to support the motion this afternoon, because making Wales a more equal nation, a nation where everybody has access to fair work that pays a living wage and where all workers can develop their skills and careers, is a fundamental objective of this Welsh Government. 

It's also why we developed the economic action plan and put, right at its heart, the new economic contract. And I firmly believe that now is the very best opportunity for us to implement such a radical policy, with unemployment and economic inactivity at historic low levels. Were unemployment to be significantly higher, it would be far more difficult to implement an economic contract that asks so much more of employers. And the contract sets out a very clear expectation that businesses should clearly demonstrate their commitment to fair work if they wish to access Welsh Government funding. Where organisations are receiving and spending public money, I think it's only right that we expect them to sign up to our code of practice on ethical employment—