Loganair among 19 Scots firms named and shamed for not paying minimum wage

A number of Scottish businesses have been named and shamed for failing to pay minimum wage to their lowest-paid staff, including Scotland's airling, Loganair. Over 200 companies in the UK were exposed by the government after failing to pay workers almost £5million in a clear breach of National Minimum Wage (NMW) law, leaving roughly 63,000 workers short on their wages.

Those listed range from hotels to hairdressers and big name brands like Marks and Spencer and Argos. The list also included 19 firms based north of the border, who owed a total of £140,106.05 to 659 workers.

The UK Government released the figures, which are from investigations between 2017 and 2019, to drive home the message that no employer is exempt from paying their workers the statutory minimum wage. The employers named have since been ordered to repay workers and face penalties of nearly £7million.

In Scotland, Loganair, based in Paisley, owing £24,367 to 43 workers. The airline says their inclusion is due to an "optional salary sacrifice programme" which let workers increase pension contributions or purchase electric vehicles, and it was rectified by March 2019.

Meanwhile, OMI Facilities in Glasgow failed to pay £20,622.77 to nine staff members, Macdonald Hotels, Bathgate, owed £16,111.76 to 64 employees, and Baxterstorey Scotland in Livingston failed to pay £13,618.29 to 186 workers.

Pro Bowl Glenrothes owed the most money to a single employee, with one worker left £5,174.65 out of pocket. Helensburgh's Royal Northern & Clyde Yacht Club also failed to pay a significant sums to a single employee, owing them £4,426.73.

Minister for Enterprise, Markets and Small Business Kevin Hollinrake said: "Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff.

"Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences."

Bryan Sanderson Chair of the Low Pay Commission said: "The minimum wage acts as a guarantee to ensure all workers without exception receive a decent minimum standard of pay. Where employers break the law, they not only do a disservice to their staff but also undermine fair competition between businesses.

"Regular naming rounds should be a useful tool in raising awareness of underpayment and helping to protect minimum wage workers."

A spokesperson for Loganair said: “Loganair’s inclusion in this list relates exclusively to an optional salary sacrifice programme operated more than four years ago which enabled employees to voluntarily increase their pension contributions or to purchase electric vehicles.

“In providing its employees with options as to how to spend their own income, the choices made by a small number of staff led to their take-home pay falling below the NMW at the time.

“This issue was rectified by Loganair and closed by HMRC in March 2019. The Department for Business & Trade, which administers the National Minimum Wage scheme, fully accepts this issue was raised and resolved more than four years ago so it is with great disappointment to see our inclusion in today’s list so long after the event.”