Edinburgh's Forth green freeport: Call for union recognition in return for tax incentives

Trade union concern over threat to workers’ rights

Companies set to benefit from tax incentives at the new Forth green freeport should be required in return to recognise trade unions and maintain employees’ rights, the Scottih Parliament has been told.

The green freeport, which includes, Leith, Grangemouth, Rosyth and Edinburgh Airport, was announced by the Scottish and UK governments in January, along with another at Inverness and the Cromarty Firth. The consortium behind the Forth green freeport has claimed it could generate 50,000 new green jobs. A consultation is now under way on plans to offer up to 100 per cent relief for Land and Buildings Transaction Tax on property sold within the green freeport boundaries as part of a UK-wide drive for growth.

At the Scottish Parliament, Lothian Labour MSP Sarah Boyack asked how much revenue the government expected to lose as a result of the relief, but public finance minister Tom Arthur did not give a figure and said more information would be set out when legislation was brought forward.

The new outer berth at Leith is part of the green freeport development.

Ms Boyack told him: “There is a concern from trade unions that this proposal could risk a race to the bottom in workers’ rights and tax, so can the minister provide an assurance that workers in Leith and around the Forth will not see any of their rights weakened? And can he confirm that all employers who receive public funding or tax incentives in Scottish green freeports will be required to recognise trade unions?”

Mr Arthur replied that because employment law was reserved to Westminster the Scottish Government could not compel union recognition. But he added: “Both of the successful bids have made clear commitments to fair work principles and that will be subject to robust monitoring and reporting requirements."

Afterwards, Ms Boyack said she was surprised the minister had not answered the question on how much tax revenue would be lost. “The Scottish Government published their consultation earlier this month and surely they’ve done the maths.” And she said she was disappointed at his lack of commitment on union recognition. She said: “This is an issue trade unions have expressed concerns about and I hoped I was enabling the minister to put on the record reassurance for them. We need to ensure that green freeports are good employers. It doesn’t make economic sense to lower employees’ rights, given the competition there is ongoing to recruit people, particularly in Edinburgh and the Lothians, but in principle in terms of fair work it doesn’t make sense either."

Ms Boyack said the minister’s answer was a missed opportunity to spell out what the “fair work” commitment meant. “What is the framework they want to set in terms of the culture of green freeports? Having recognition of trade unions is pretty fundamental. I don’t see why they couldn’t ask those freeports to do this. I’m going to go back to the trade unions and sat we need to make sure this is raised in the consultation feedback.”