The next item is item 9, a statement by the Deputy Minister for Social Services on fair work and annual progress and priorities, and I call on the Deputy Minister, Hannah Blythyn.

Diolch. In 2018, the then Welsh Government established the Fair Work Commission, which subsequently made a number of recommendations back in 2019. Since then, the world and work as we know it has changed, but despite these challenges, we have made significant progress on the commission's recommendations. It's important to be transparent about what we have done to date and that is why, to coincide with this statement, I have today published a progress report for the first time. Alongside this, I want to focus on key areas of progress in the past year alone. Firstly, our work to promote trade unions and the value of being part of a trade union to workers, workplaces and Wales. Secondly, the foundations that we are putting into place for social partnership and fair work in sectors where there are long-standing and recognised concerns about working conditions. And thirdly, the steps forward we have seen on the real living wage adoption and accreditation.

Our work to promote trade unions and trade unionism is driven by the firm view of this Welsh Government that trade unions are fundamental to fair work. For workers, we believe that being in a trade union is the best way to protect rights at work, improve pay, terms and conditions, and ensure that worker voice is heard. For employers, we believe trade unions are resourceful partners in identifying and resolving workplace issues, in improving health and safety, in supporting workplace learning, and in enabling effective employee engagement. 

For Wales, we believe that trade unions are central to the fabric of our nation and a force for good. We will continue to raise awareness of the role of trade unions, promote the benefits of being in a trade union, and be clear on the value of employers and trade unions working together constructively and with mutual respect. We do this in a variety of ways, from our messaging around Heart Unions Week just a fortnight ago, by way of well-established and valued programmes like the Wales Union Learning Fund, which supports work-based skills, and through developing new and exciting initiatives like the Unions and the World of Work pilot.

Building on earlier Welsh Government-backed campaigns to raise awareness of rights and responsibilities in the workplace, the unions and the world of work project has been developed in social partnership with trade unions, teachers and schools. Working with the Wales TUC, the project will support the delivery of careers and work-related experiences—CWRE—an integral part of the new Curriculum for Wales. Through the pilot, a range of resources are being made available to secondary schools across Wales, with the aim of empowering the next generation of workers and employers and entrepreneurs to have a better understanding of employment rights, the role of trade unions and the impact of collective voice in addressing issues in the workplace and beyond.

Our progressive approach recognises the legitimate and necessary role that trade unions play. This stands in sharp contrast to what we see from the UK Government, encapsulated in their pernicious Strikes (Minimum Service Levels) Bill, the damaging impact of which we oppose. In Wales, we typically have amongst the highest rates of trade union membership when compared with other UK countries and the English regions, and figures published last year show that, in 2021, the proportion of employees in Wales who were trade union members rose by 3.7 percentage points to 35.6 per cent, the highest level since 2014. The corresponding figure fell in other countries of the UK over the same period. Whilst this looks impressive relative to the rest of the UK, we contrast less favourably against international best practice. I want to see sustained improvement in levels of trade union density, trade union presence and trade union coverage in Wales, and this Government will continue to do all we can to support this.

Turning now to the foundations we are laying for social partnership and fair work in social care and retail. The Social Care Fair Work Forum is a prime example of the difference a social-partnership approach can make in practice. It advised us on the implementation of the real living wage, and it is now addressing wider working conditions in the sector. I know that our partnership approach will place us on a firmer footing in addressing some of those challenges in the weeks and months ahead. We've taken the concept of the Social Care Fair Work Forum and applied a similar approach to the retail sector, with a social partnership forum bringing together partners from across this particular sector to develop the retail action plan. A draft of the plan was discussed at the latest retail forum meeting earlier today and we expect to publish that plan in the coming weeks. We believe that this model can be deployed in other sectors, and whilst we recognise that this approach does not equate to the sectoral collective bargaining that would drive up standards consistently and at scale, it does however represent what is possible through our levers and it can lead to positive and lasting change. Not least, it can help develop sector-wide benchmarks and it can help to put in place footings that can be built upon, because, relative to many other European nations, sectoral collective bargaining across the UK is weak. 

The final area that I want to report on today is the real living wage. The real living wage is not the defining factor of fair work, but it is important in providing a baseline for an hourly rate aligned to meeting the basic costs of living. We have a record number of organisations that are real-living wage accredited—almost 500. The latest data for 2021 shows that nearly 70 per cent of people in employment in Wales earn at least the real living wage, with this measure seeing an overall increase over recent years. We have shown leadership in implementing our programme for government commitment to introduce the real living wage in social care. We've provided £43 million to local authorities and health boards this financial year to fund a real-living wage uplift, and we've committed an estimated £70 million in the coming financial year. But, as always, there is more to do.

So in closing, I want to just briefly set out some priorities for the year ahead. We will work with social partners and other stakeholders to improve the reach and impact of the economic contract and the code of practice on ethical employment in supply chains. We will support the Social Partnership and Public Procurement (Wales) Bill through its legislative scrutiny and develop the accompanying guidance to make the most of its impact on public services, procurement, fair work and wider well-being. We will continue making absolutely clear to the UK Government that the race to the bottom on workers' rights is neither in the interest of workers nor Wales. And whilst fair work spans both devolved and non-devolved areas that impacts on what we can do and how we do it, the Welsh Government is committed to using every lever that we have to promote and enable fair work. So, across these and other priorities in the coming year, we will continue to work collectively for a better deal for workers and Wales. Diolch.

Thank you, Deputy Minister, for your statement and for your advanced copy. 

As always, I'm disappointed by the ideological narrative that comes from this Welsh Government, particularly in your remarks regarding the minimum service levels Bill. Because as you know, Deputy Minister, the International Labour Organization, which the TUC subscribes to, supports in principle minimum service levels during strike action. Whilst not exactly the same, there is minimum service legislation in France, Germany and other European countries. However, I acknowledge your distaste for any legislation that looks to ensure that the appropriate number of people needed to support public safety during strikes is in the hands of elected and accountable Ministers, with access to the appropriate information and data, rather than given to the trade union puppet masters that control the Labour Party's purse strings.

Deputy Minister, I would have thought that your statement today might have focused a bit more on your own Government's shortcomings, and concerned with more things that you are actually responsible for. I welcome your focus on the living wage, but I was disappointed to find that the agricultural advisory panel has decided against ending the lower minimum pay rate for those below 25. This strikes me as rather absurd, as you talk of fair work and fair pay, but yet allow such discrimination against young agricultural workers. Deputy Minister, the rates of £4.81 per hour for 16 to 17-year-olds, and £6.83 per hour for 18 to 20-year-olds, are entirely out of step with the principle of a fair wage for fair work. A 16 to 20-year-old is likely to work just as hard, and will probably have just as many skills, as an older agricultural worker. As I'm sure you're aware, Wales has a significant rural economy, and if we are to encourage the next generation of agricultural workers, this Government needs to seriously address this disparity. What explanation can you offer the Chamber for keeping these wages for agricultural workers under 25 so low?

In your statement, you mention that we have a record number of organisations who are real living wage accredited—almost 500. But how many trade unions have signed up, Deputy Minister? I can tell you that the number of accredited trade unions in Wales who have signed up to be real living wage accredited is none. Not one trade union has signed up—that is how much they think about and value this accreditation scheme that you promote. And I would ask, Deputy Minister, if you can explain why trade unions cannot be bothered to sign up in Wales, and only seven unions have in England and Scotland.

Last year, I mentioned in my response to your annual statement that you failed to make any reference whatsoever to fair work for disabled people. Yet again, you haven't mentioned any progress to remove and reduce the barriers that disabled people are presented with, and you haven't mentioned any initiatives to help close the disability employment gap. Instead, you have taken this opportunity to attack the UK Government. With this in mind, I want to emphasise how important it is that the Welsh Government recognise that fair work should be for all, and by not providing updates on the needs of the disabled community, it is quite disheartening to them. Disabled people face some of the biggest barriers in attaining fair work, and, indeed, fair pay, for the skills that they can bring to businesses. And so, Deputy Minister, will you make a commitment to provide an update on how this Government is helping disabled people achieve fair work in next year's statement?

Finally, Deputy Minister, I want to mention young people and apprenticeships. Whilst we have many opportunities for apprenticeships—and I have recently visited Cardiff and Vale College and Coleg y Cymoedd to hear of the fantastic courses that they offer—Wales actually has a declining number of people taking up apprenticeships. We've spoken numerous times in this Chamber about how businesses in Wales are stifled by a skills shortage, in particular, how young people and graduates do not have the relevant skills set needed for businesses. And as you know, having the skills that businesses need allows workers to have more resilience, because they're able to access higher paying jobs and be able to find work faster if they're ever made redundant, for example. Therefore, Deputy Minister, what steps are you taking to promote apprenticeships as a valid pathway for young people to obtain well-paid and fulfilling jobs that meet the fair work criteria? Thank you.

I'll start by addressing the most substantive contributions from Joel James, and in particular around the very important points that he makes around support for disabled workers, people with disabilities, around fair work. I'm more than happy to commit to including that in a future update, but I'm also happy to go away and see if we can update Members in writing, ahead of that as well. I would say, just because things aren't included in my oral statement today doesn't mean that they're not happening; it's just on the basis that we have a limited amount of time to update in the Senedd Chamber today. And I'm sure that the Llywydd would have something to say if I listed every single item in the Fair Work Commission progress report update.

I'm not surprised by—. Joel James opens by saying that he wasn't surprised by my apparently ideological stance around trade unions. Likewise, I'm not surprised that that was Joel James's opening line. I think we're all very familiar with that in this Chamber now, and it's all very well rehearsed.

Just a point on the issues around the referenced agricultural advisory panel. I'm not sure whether Joel's aware that, obviously, that came out of the embers of the Agricultural Wages Board for England and Wales. It was a Tory Government, a Conservative Government, who wanted to axe the agricultural wages board, and actually, in a former life, I was part of the campaign to try and stop that and, when that went ahead, to make sure that there was support in place for workers here in Wales through the agricultural advisory panel. And I'm sure some of the points he's made around the disparities in the minimum wage will be fed back to members of that panel, on which there's equal representation from trade unions and across the farming unions as well, and independent members, and I'm sure they will hear those comments loud and clear to be fed back. But it is this Government that is very much on the side of workers and putting those mechanisms to make sure that we can do right by workers, whether they're in urban or rural settings. 

Thank you for this afternoon's statement, and for the report you published today too. 

As we will discuss in the Plaid debate tomorrow, the fair work agenda needs to have a central role in shaping Wales's future industrial and economic strategy. In response to the draconian strikes Bill making its way through Westminster, it is vital for us in Wales to define clear principles related to fair work. This will protect future generations from the alarming legislation we are seeing coming out of Westminster. In light of today's accepted fair work recommendations, I note what you said about how the Welsh Government is going to achieve policy commitments to promoting trade unions and collective bargaining in the face of the draconian UK legislation. Which of these do you think will have the most impact in mitigating some of that attack from Westminster on trade unionism?

The other matter I wanted to turn to is the Fair Work Commission's 2019 recommendation that a definition of 'fair work' in Wales should consist of workers being fairly rewarded, heard and represented, secure and able to progress in a healthy, inclusive environment where rights are respected. It's a positive step in the right direction to see that the Fair Work's Commission's definition has been accepted for adoption and use across Welsh Government. However, for a definition recommendation in 2019 to only now be accepted highlights that there is work to be done when it comes to proactive decision making. Why wasn't this definition accepted sooner, and what more can be done now to embed this definition in practice? Diolch yn fawr. 

Diolch. Can I thank Peredur Owen Griffiths for his questions and also his commitment in this area? I know that we have been able to work together in the spirit of partnership very collaboratively on a number of these issues. I think I'll just pick up on the last point first around the Fair Work Commission definition around fair work. Just to clarify, this is the first time we've published a progress report. I think it's something we wanted to do previously, but it's something we've managed to get over the line now. And I particularly think it's important, like I said, that, whereas many of those recommendations have moved forward, the context for it has changed quite drastically on the back of the COVID pandemic, and now the cost-of-living crisis, changes to working patterns and more flexible working opportunities. So, it brings with it more challenges, but I think also if we go for a glass-half-full approach, it brings potentially more opportunities for fair work as well. So, just to pick up on the point that we aren't—. Just to clarify, we're not just accepting that definition now; it's just that it's in that report that's been published today. We accepted that some time ago, the Fair Work Commission definition, and it's something that we've spoken about in the development of the Social Partnership and Public Procurement (Wales) Bill legislation as well, and that will be in the guidance as very much the definition that Welsh Government supports and wants to disseminate across Wales in terms of that baseline of understanding that fair work, yes, is about pay and conditions, but it's about that broader package as well—like you say, workers' voice, well-being in the workplace, and all those levers that we can use. 

On how we use those sectoral agreements, we have the most levers currently within the public sector, but I think what the work in the retail sector has demonstrated to us is, actually, the challenges faced by workers but also from the employer business side in terms of the sustainability of some sectors in Wales. And I think you could probably look at hospitality as well as part of that. So, actually, better sector-wide support for workers in terms of sector-wide pay and conditions that actually brings about sustainability and stability for the sector can actually help to get that through. There was a business case for fairer and better work as well, so I’m always happy to update Members as that work progresses. But I think what we’ve done already within retail and social care perhaps offers that model to build on in the future, and actually how we can learn from that and spread that across Wales.

Thank you, Deputy Minister, for your statement today. As a former teacher, I particularly welcome your comment around the new curriculum and unions in the place of work. Linking an understanding of workplace rights to career guidance is fundamentally the right thing to do, and I look forward to the results of the pilot in due course.

I have a couple of questions for you today. Firstly, I note your comments around the social care fair work forum. I’m sure we’d all agree on the urgent need to expand our social care workforce, and raising the status of that profession, not least through the fair work agenda, is absolutely key to that. So, can you expand a little on the discussions Welsh Government is having around this, and on the model of fair work that you are keen to promote beyond the delivery of the real living wage?

Linked to this, I think recommendations 46 and 47 on tracking progress are vital. Access to good-quality data is important if we are to be able to monitor delivery and the pace of delivery, and identify and resolve any barriers. I commend Welsh Government for making the changes to the national indicators suggested. How will these be used to shape and drive performance to ensure that we can provide fair work in the social care sector?

Finally, Deputy Minister, we also heard from the economy Minister earlier today on how innovation will be embedded across all areas of Government. So, I’d welcome your reflections on how fair work fits into this in line with that very first recommendation that this is also a cross-Government responsibility. How can we use innovation as a lever to enable us to better promote and deliver fair work for Welsh citizens?

I thank Vikki Howells for her contribution and for her warm comments about some of the work we did. I know this an area that, not just as a former teacher, you’re very passionate about, but as somebody that advocates for fairer and better work in communities right across the country.

Just to touch on the social care fair work forum and how we’re moving forward, and the need to address things in that sector, obviously we addressed that immediate concern around the real living wage, and I think you touched in your latter comments that the real living wage is a key component, but is just one component of fair work. I think I’ve said in this Chamber before, actually, we should see it as a baseline rather than a benchmark—that foundation to build upon and to grow on.

Obviously, there’s more work to do to improve terms and conditions, and also elevate the status of social care as a valued career and one that is so fundamental to all of our communities and all of our families in terms of looking after, in many of our cases, our nearest and dearest, and make sure there are those opportunities for career progression. This is work that my colleague Julie Morgan is very much leading on, but obviously I’m feeding into it as a cross-Government approach around making sure we embed that fair work approach. So, the forum has recently looked at things like sick pay within the independent sector, considering a structure for collective bargaining for social care workers, and the development of a pay and progression framework. A sub-group of the forum, which includes different social partners, has developed a draft framework for pay and progression to find more consistency in roles and pay, as well as better and clearer career opportunities. I anticipate that the consultation on the draft framework will open in the spring as part of a wider consultation on national commissioning guidelines that aim to streamline commissioning of services and offer better support for commissioners and providers.

Just to comment on the point around innovation, too, and the role that fair work plays, you’re absolutely right to say this has to be a cross-Government commitment. I might lead on fair work, but actually we need to embed it right across what we do in Welsh Government, so I think innovation and things that we’re doing—. I know that the Wales TUC is fully engaged with that work to make sure actually there is a role, potentially, for trade union reps to play in embedding innovation, especially as we look to what we call the just transition as well. Addressing the climate crisis is an issue of social and economic justice as well as environmental justice, too, so there really is an opportunity in how we use that social partnership working in Wales and those forums that we have already in existence to make sure that that innovation works for both business and communities, but also for individuals and workers as well.

And just very finally, on the comments on the pilot programme in schools, yes, I really look forward to see what the outcome of the pilot programme is, and I was lucky enough, a while ago now, to visit a school—unfortunately, not in the Member's patch, but in Newport—and to see a group of young people and see it in action. It was really good to see they were talking about the idea of working together on things beyond work, as well. So, actually, they'd established campaigns about things they wanted to achieve within school and out of school. Maybe a Welsh Government in the future might live to regret it when we've got a group of young people campaigning outside, but I think it's really, actually, teaching people to use their voice, to know that they have rights and about the power of working collectively to achieve change.

And finally, Joyce Watson.

Diolch, Llywydd. Social partnerships have to be the key that underpins everything in the workplace, and, contrary to the Tory myth and ideological constructs that they have that are different to ours, social partnerships actually benefit both the worker and the employer. It puts people in a position of having a dialogue, rather than a confrontation, and we've seen plenty of confrontation and lack of dialogue quite recently, and it serves no-one well. So, I really welcome this statement that you've made today, and I also welcome the fact that we're getting into schools and teaching young people the benefits of knowing their rights at work before they go into work. So, if they see a situation that isn't to their benefit, they will be able to raise those objections and, perhaps, highlight weaknesses in the employment that might last for many decades throughout their lifetime, and they'll feel part then, I believe, of that company and they'll feel a belonging, which, of course, the Tories have failed to understand.

I thank Joyce Watson for her contribution today, and I very much resonate the contribution and comments you make around the value of social partnership and that it's not just in the interests of workers and trade unions; it's in the interests of employers, whether public, private, voluntary sector or others. We've seen that recognised through the work that we've done in Wales, and the whole point of working together in social partnership is you're not always going to agree, but you have the mechanism to come together to identify challenges and try and find collective solutions. It brings benefits to businesses, it brings benefits for Wales as well.

On the point around the union from the world of work and going into schools, I think I've said before, maybe not in here, but unless you're a multimillionaire or you win the lottery, you're likely to spend a high proportion of your life at work, and young people are, sadly, the least likely to know their rights at work but the most likely to be in a position where they're exploited. So, it's really important that we equip and empower our young people to enter the world of work with that knowledge and with that understanding, but also not just as, perhaps, employees and workers themselves, but as the employers and entrepreneurs of the future as well.

Thank you, Deputy Minister.