Aberdeenshire East SNP MSP Gillian Martin has written to craft beer giant Brewdog calling for a meeting to discuss its plans to stop paying new recruits the real living wage (RLW).
The Ellon-based business recently told staff it will no longer pay at least the RLW, a voluntary higher rate based on the cost of living, to new starts. They will instead be paid the legal miniumum.
Existing employees will still receive the pay they were promised before the announcement.
And BrewDog has insisted the value of the overall package offered to new recruits will be “even more generous than real living wage”.
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The change will be introduced from April in a move BrewDog said will ensure a return to “profitability” following losses of more than £20 million last year.
Brewdog announced it would become an accredited RLW employer in 2015.
In a letter to the company’s owners, James Watt and Martin Dickie, Ms Martin said: “I understand the challenges many employers like BrewDog are experiencing as a result of the cost-of-living crisis, which has impacted right across the Scottish economy and beyond as well, as the impact the coronavirus pandemic has had.
“Nevertheless, the decision to pay staff the UK’s national minimum wage of £11.44, rather than the living-based rate of £12 may impact constituents of mine.
“Being a living wage employer since 2015 has been a cornerstone of your company’s identity, one that has garnered justified praise and one that should be worn proudly.”
The MSP added: “As you may be aware, research cited by Living Wage Scotland has shown the living wage increases staff retention.
“More than 90% of living wage employers have reported benefits from accreditation, 86% of businesses believe it has enhanced their reputation as an employer and 66% say it helps them differentiate from competitors.
“I recall well my previous engagement with BrewDog on local issues, and my tour of your impressive premises in Ellon.
“As the MSP for the constituency in which your HQ is located, I would like to ask for a meeting with BrewDog to discuss the decision to not continue to be a living wage employer, and its possible implications for my constituents, at your earliest convenience.”
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Ms Martin told The Press and Journal Brewdog had “always shown a commitment to its staff being at the core of everything it does”.
She added: “With this in mind, I would like to meet Brewdog to encourage a rethink on the decision to stop being a living wage employer. This decision will have a real impact on staff in hospitality who, like so many others, have already faced challenges in recent years.”
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