SCOTTISH Labour leadership hopeful Anas Sarwar is under further pressure about his family’s cash and carry business after the company refused to say if it recognises trade unions.
A law firm representing United Wholesale (Scotland) Ltd, which Mr Sarwar has a multi-million pound stake in, said UWS believed the line of enquiry being pursued was “politically motivated” and said the company “declines to comment”.
A spokesman for Mr Sarwar said: “Anas is a member of Unite and a strong supporter of the vital work that trade unions do. Any questions regarding UWS must be directed to the company.”
Mr Sarwar will today launch his campaign to become Kezia Dugdale’s successor at an event in Glasgow.
However, the city MSP has been criticised over the decision to send his children to a private school, as well as over the wages policy of the company in which he is a minority shareholder.
At the weekend, our sister paper The Sunday Herald revealed that UWS was paying some staff below the real living wage, which is currently £8.45 an hour.
Mr Sarwar backed a real living wage in July, but weeks later UWS advertised jobs at £7.50 an hour for a 45 hour week.
On Tuesday, The Herald asked whether UWS recognises trade unions.
In a letter yesterday afternoon from a firm of solicitors, which is acting for UWS, the law firm stated: “Given the terms of the article published on 10 September and the emphasis which was placed on Anas Sarwar’s connection with our client (if only as a minority shareholder), our client takes the view that the line of enquiry being pursued is politically motivated rather than truly focussing on workers’ rights.
“In the circumstances, our client declines to comment further on this matter and trusts that its decision will be respected.”
UWS, which reported a turnover of £227m in 2015 and made a post-tax profit of £1.7m, had a monthly average of 253 employees in the same year.
Companies do not have to recognise unions, although a union can apply for compulsory recognition.
On procurement, Labour’s general election manifesto said the party would require companies supplying national and local government to meet the “high standards we should expect of all businesses”, including “recognising trade unions”.
The party also promised to roll out “sectoral collective bargaining” on the grounds that the “most effective way to maintain good rights at work is collectively through a union”.
According to company accounts, UWS was worth around £11.6m in 2015, which means Mr Sarwar’s minority shareholding was valued at nearly £2.5m at the time. The MSP is not a UWS director.
Over 20,000 Labour members are believed to be currently eligible to vote in the contest, as are thousands of individuals who are affiliated trade union supporters.
An SNP spokesperson said: “Public figures cannot just clam up entirely when legitimate questions are being raised about their business interests. Anas Sarwar’s silence on workers’ rights is untenable.”
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