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.