GIVING people and families the security that comes from stable jobs with fair wages is central to a healthy economy and society. If the current cost of living crisis teaches us anything, it’s the importance of a strong labour market.

Having full control over its own future would allow Scotland to modernise the labour market to deliver improvements to pay and conditions that better reflect the cost of living – as set out in our paper Building a New Scotland: A stronger economy with independence.

The UK labour market has significant problems. Compared to independent European countries comparable to Scotland, it produces more income inequality, with lower average wages and lower productivity. The gender pay gap is relatively high, too many workers are on long hours for low wages.

Instead of working collaboratively with both unions and employers, successive UK governments have treated unions as the enemy, introducing the Trade Union Act 2016 to make it even more difficult for unions to organise workers. Then there are plans to introduce fees for Employment Tribunals, and inadequate enforcement of employment standards including the national minimum wage.

So it’s now time for a different approach.

Proposals to modernise the labour market include setting up a Scottish Fair Pay Commission to lead on a new approach to setting a national minimum wage, in consultation with employers and trade unions.

A single-rate minimum wage for all age groups would mean younger people would not be discriminated against.

More flexible working would make it easier for parents and carers to balance their responsibilities and earn a decent living.

Controlling employment law would mean we could legislate to support workers, banning the “fire and hire” practice of making staff redundant and re-employing them on poorer wages and conditions.

More transparency and data would help address gender, ethnicity and disability pay gaps, building on work already started by the Scottish Government.

An independent Scotland would not only build a fairer working environment, but allow the Scottish Government to deal with labour market shocks in the way other countries have responded to the global financial crisis and pandemic, by implementing their own initiatives.

For example, a scheme similar to the German Kurzarbeit programme, which provides compensation for private sector workers whose hours are reduced because of economic difficulty could help retain skills, reduce long-term unemployment and allow for more rapid economic recovery.

After independence, it would be possible for the Scottish Government to work with employer organisations and trade unions to design and build a labour market fit to meet the needs and aspirations of all workers and businesses.

People need to make an informed choice before any referendum on independence takes place. Read the full publication at www.gov.scot/newscotland/

John Swinney is Deputy First Minister

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