Commenting on the Scottish GDP figures Grahame Smith, Scottish Trades Union Congress (STUC), General Secretary said:
“While it is welcome that Scotland has not entered recession, there are still tough times ahead with no end in sight for workers who have been struggling for the last ten years. Austerity is simply not working and with inflation now rising living standards are once again beginning to fall.
"Growth rates in Scotland have been low for several years and what growth there has been has in part resulted from hard pressed workers building up more debt and exhausting their savings. This is clearly unsustainable. If steps are not taken to boost investment and demand and to prevent irresponsible private lending from destabilising the economy, another crash and recession is just round the corner.
“We need action from Government and the private sector to stimulate the economy. We need an immediate end to the public sector pay cap and a significant increase in real wages across the economy. The Scottish Government must use its tax and borrowing powers to invest in our public services and economic infrastructure. We desperately need a genuine industrial strategy that recognises the role of unions and the contribution that fair work makes to workplace innovation and the creation of productive, resilient and successful industries."
For further information contact Helen Martin 0141 337 8100