Labour Party Conference: Iain Gray unveils Labour's minimum wage pledge

Published on Monday 27 September 2010 15:32

Scottish Labour leader Iain Gray today pledged to introduce a "living wage" and bring an end to "poverty pay" if he ousts Alex Salmond in May.

Mr Gray said that if he becomes First Minister he will introduce a "Scottish Living Wage" of more than 7 per hour.

He told the Labour party conference in Manchester: "In a 21st century Scotland, no-one who does a fair day's work should receive less than a fair day's pay.

"In a Labour Scotland, we will make sure that no-one does."

Mr Gray said the high salaries paid to top public sector employees should be scaled back, while those on the lowest wages are protected.

He said: "We will need to see pay restraint in the months and years ahead. In particular, I want to see excessive salaries and bonuses at the very top end of the Scottish public sector scaled back.

"But those at the bottom of the pay scales must be protected. That is why if I am elected First Minister in May I will introduce a Scottish Living Wage of over 7 per hour."

He said the payment of a "living wage" to Glasgow City Council employees shows that it works.

Labour plans to introduce the living wage throughout the public sector if it wins the Scottish Parliament elections.

Mr Gray added: "We will create a movement, a campaign against poverty

pay."

He also told delegates that it is "Labour's obligation" to end "Alex Salmond's legacy of failure".

Mr Gray said the party had learned from losing the 2007 Holyrood elections and was up to the challenge in 2011.

He said: "When the time comes to take hard decisions, I will not shirk

them. I will not hide. But I will take those decisions for the good of the many with Labour values as the touchstone and the guiding

principle."

The Scottish Labour leader also praised the new UK Labour leader Ed Miliband, saying: "Ed gets Scotland."

Labour's pledge to introduce a living wage - the current minimum wage for adults is 5.80 an hour - was welcomed by the Scottish Living Wage Campaign.

The campaign is a coalition of church and trade union groups and the Poverty Alliance.

Director Peter Kelly said: "Paying a living wage is good for employees, employers, communities and the economy as a whole.

"The fact that the Labour Party has announced that the living wage will be a key element of their work in the future demonstrates that fair pay, social justice and an end to poverty will be a key part of the debate in next year's election."

The Scottish Living Wage Campaign estimates that nearly 400,000 workers in Scotland are paid less than 7 per hour.

Green MSP Patrick Harvie said Labour's commitment to the living wage campaign "is a significant move" and called on the SNP to follow suit.

He said: "Now that Labour has endorsed the principle of a living wage, which we proposed to Parliament in April this year, there is a strong chance of seeing hundreds of thousands of low-paid people benefit.

"The pressure is now on the SNP to follow suit and ensure that, starting in the public sector, poverty pay becomes a thing of the past."