OREANDA-NEWS. SSE has signalled its intent to roll out the Living Wage in service and works contracts across its £2bn-a-year supply chain, by signing its first contract that means all employees working regularly on a SSE site are guaranteed fair pay.

Work has recently begun at North Muirton, Perth to externally insulate over 500 properties under the Energy Companies Obligation (ECO) in a project worth over £3m.

SSE is acting as a project and funding partner with Perth and Kinross Council and coordinating additional match funding available from the Scottish Government.

The three contracting parties involved in the project (Cameron and Fergusson Ltd, Alsecco (UK) Ltd and Hardies LLP) have all agreed to pay at least the Living Wage to the 100-plus employees directly involved in delivering the project.

In September 2013, SSE became the first company in the top third of the FTSE to be an accredited Living Wage employer. It remains the only major energy supplier in the UK to commit to the measure.

SSE awards around 1,500 contracts each year, with an annual supply chain bill of £2.2 billion; of which around £1.6bn is spent on service contracts. As of 1st April 2014, all eligible contracts tendered include a Living Wage clause.

Alistair Phillips-Davies, Chief Executive of SSE, said the contract was the first of hundreds that his company will sign that include the Living Wage.

He said: “SSE was proud to become one of the first big companies to pay its employees the Living Wage. Now we want to make a real impact across our £2bn-a-year supply chain and ensure that all our suppliers and contractors do the right thing.

“Today's news means that if you turn up at an SSE site like North Muirton every regular worker there will be getting paid the minimum of the Living Wage - even if they are not directly employed by us.

“It is a matter of basic fairness that people should get a wage they can live off, not just survive on and SSE believes in being responsible and fair.”

Rhys Moore, Living Wage Foundation Director, said: “It's great to see the benefits of Living Wage accreditation in action.

“When organisations sign up to be an accredited Living Wage employer they commit to a journey; extending the payment of the Living Wage not just to their own staff, but also to contracted employees.

“Through their supply chain, leading organisations such as SSE are introducing the benefits of the Living Wage to more businesses, and importantly, helping more individuals to be fairly rewarded for their work.

“The best employers are voluntarily signing up to pay the Living Wage now. The Living Wage is a robust calculation that reflects the real cost of living.”

Sandy Fergusson, Managing Director of Cameron and Fergusson, said: “As Managing Director I can see first hand that working with SSE and signing up to the Living Wage, has seen a marked improvement in attitude and output of our labour force.”

Councillor Dave Doogan, Convener of Perth & Kinross Council's Housing and Health Committee, said: “We have worked closely with SSE to deliver energy efficiency projects across Perth & Kinross for a number of years. I commend their approach to promising all employees the Living Wage.”

All service and works contracts tendered after April 1 2014 now includes a requirement whereby any person who works on an SSE site for two hours or more, for at least eight consecutive weeks, will be paid at least the Living Wage.