NICOLA Sturgeon has launched a scheme to encourage businesses to pay the Living Wage, tackle inequality and promote growth.

 

The Scottish Business Pledge covers issues including zero hours contracts, investing in young workers and contributing to communities.

Ms Sturgeon said she wanted to encourage businesses to grow and be successful based on quality not a race to the bottom on costs.

The First Minister launched the accreditation scheme that sees firms sign up to meeting nine commitments.

The only mandatory commitment is the Living Wage. Firms must pay the Living Wage of at least £7.85 an hour and meet at least two others and be committed to meeting all others over time.

On zero hours contracts the employer should not use any which are deemed exploitative and those used must be linked to seasonal work and staff must get the same rights as other workers.

Firms should work with schools and colleges and a have recruitment strategy for young people.

Ms Sturgeon said: "Our economic strategy sets out a vision of an economy based on innovation rather than insecurity; high skills, not low wages; and enhanced productivity instead of reduced job security. We want to climb the global competitiveness rankings on quality, rather than racing to the bottom on costs.

"Increased productivity makes our economy even more competitive, which in turn brings benefits to individuals and communities across the whole of the country."

Several high profile companies have signed the pledge on the launch date including big pharmaceutical firm GSK, Virgin Money and Heart of Midlothian Football Club.

Hearts chief executive, Ann Budge, said: "By introducing the Living Wage across our business, by investing in youth education and staff education, by engaging fully with the community and by working closely with the Foundation of Hearts to introduce fan ownership, we are the perfect match for this initiative. I am very proud indeed to support the Scottish Business Pledge."

Ms Sturgeon said she wanted to build a partnership for growth across society to benefit businesses, employees and communities.

Firms should support volunteering, contribute to community projects and local charities.

They should also pay their bills within 60 days and commit to a 30 day payment period to help other businesses.

Other commitments include workforce engagement, a balanced workforce, internationalisation and innovation.

Ms Sturgeon added: "We want to build a partnership for productivity with businesses, the third sector, the wider public sector and trade unions.

"The Fair Work Convention, the Living Wage Accreditation Scheme, and the Scottish Business Pledge are essential features of what is becoming a distinctive Scottish approach to growth."