NHS National Services Consultation Response
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Transcript of NHS National Services Consultation Response
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7/29/2019 NHS National Services Consultation Response
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HeadquartersExecutive OfficeGyle Square
1 South Gyle CrescentEDINBURGH EH12 9EBTelephone 01312756000Text Relay: 18001 0131 2756000Fax 01312757530www.nhsnss.org
john park.llls @scottish. parliament. ukDate 30 November 2012Your RefOur Ref IC/jII03122012
Enquiries to Jan LyellDirect Line 01312756449Email [email protected]
Dear Mr Park
Consultation on the Living Wage (Scotland) Bill
National
Services
Scotland
Thank you for giving NHS National Services Scotland (NSS) the opportunity to comment on the Living
Wage (Scotland) Bill.
Our responses to the consultation questions are as follows:
QUESTION 1: Do you support the general aims of the proposed Bill? Please indicate
"yes/noltmdecided" and explain the reasons for your response.
Undecided The principles of extending a living wage at a social level are immutable; however there
are real ciifficulties in the proposed use of public contracts as the vehicle for delivery. Principally, any
imposition of additional requirements as a requirement of a public procurement process or publiccontract lllay represent a restriction on suppliers' freedom to provide services guaranteed by Article
56 of the Treaty on the Functioning of the European Union.
QUESTION 2: Do you envisage any issues for public sector bodies when including the Living
Wage as a contract performclllce condition of a contract? Please explain the reasons for your
answer.
Yes. As < : 1 performance requirement a link to the minimum wage can be allowed, anything more than
this would be open to challenge, as above. An encouragement linked to performance would be
possible but not enforceable, or could it be used as means to differentiate in relation to the
assessment of bids.
QUESTION 3: What do you consider will be the advantages or disadvantages for employers
and employees if public sector performance clauses stipulate the payment of the Living
Wage?
There would be little advantages if public sector contracts differed from private secor contracts.
Employers would have duplicate wage systems for the same employees. and in cases where
employees were providing services across a number of contract areas, (very cornman in for example
facilities and maintenance contracts) they could face different wage rates for different tasks.
Chairman Bill MatthewsChief Execulive Ian Crichton
NfI\ I
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Employer costs would be higher for public sector contracts in comparison with equivalent private
sector areas. To rnaintain profit margins the total costs could also be higher. A large number of
contracts are open to UI
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It would /lot, however, alter the fact that individual employers are responsible for determining wagestructures (provided they comply with the National Minimum Wage Act 1998); it is for them to consider
the impact on their competitiveness and to decide if payment of the living wage is sustainable within
their organisations. It is therefore not possible to use the Bill to mandate payment of the living wagethroug h procurement activity.
If you would like clarification on any of the comments made, please contact Mr Colin Sinclair, Directorof NatioCleliProcurement on 01698 794460. .
Yours sincerely
IAN C ICHTON
Chief Executive
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