THE Scottish Government should ban employers who make use of exploitative unpaid trial shifts from receiving public grants and contracts, the Scottish Greens have said.
Through the Bute House Agreement, any business which bids for a public sector contract or grant must pay its staff the real Living Wage. This will be extended to any business in receipt of a public grant in July 2023.
Ross Greer MSP called on the Scottish Government to further expand this policy to include firms who do not pay potential staff members for completing a trial shift.
The Scottish Greens MSP asked if the Scottish Government would consider “disqualifying” businesses that do not pay workers on trial shifts.
Richard Lochhead, minister for small business, innovation and trade, said that the Scottish Government opposes the use of unpaid work trials.
“If a trial period is offered, then this should be paid whether it leads to permanent employment or not,” he said.
“Whilst employment law is reserved to Westminster, we are using all our levers at our disposal to promote fair work and tackle worker exploitation.”
In a supplementary question, Greer said: “Employment law may be reserved to Westminster – for now – and our options here are limited, but that living wage conditionality for grants and contracts demonstrates that we can go a bit further.
“Given the Scottish Government's robust opposition to the injustice of unpaid trial shifts, can I ask the minister if the government will consider adding a new Fair Work condition which would ban companies who engage in this kind of exploitation from accessing public sector grants and contracts in Scotland?”
Lochhead said that the Scottish Government was disappointed when the UK Government “talked out” attempts by an SNP MP to ban the practice via a Private Members’ Bill in the House of Commons.
He added: “However, in Scotland we are determined to go as far as we can in our current powers to tackle the most significant issues in the labour market and drive fair work practices using the powers we do have, as set out in the Bute House Agreement.
“We will continue to examine how we can strengthen our approach to conditionality and I will certainly ask my officials to consider the issues that he has raised today in parliament, including highlighting our opposition to unpaid trial shifts as an example of good practice in any future update of our fair work first guidance.”
Speaking after the exchange, which took place during General Questions on Thursday morning, Greer said: “We are in the worst cost of living crisis for decades.
“Far too many people have been plunged into poverty due to outrageously poor wages and conditions. At the same time, many companies are reporting record profits.
“Unpaid trial shifts are part of that picture of inequality. The companies who use them are taking advantage of vulnerable people.
“These unpaid shifts are often for low paid or minimum wage jobs and the people applying cannot afford to be exploited in this way.”
He added: “Given the Scottish Government's robust opposition to the injustice of unpaid trial shifts, it is time to adopt a new Fair Work policy which bans companies who engage in this kind of exploitation from accessing public sector grants and contracts in Scotland.”
