Fears thousands with severe disability could be thrown out of work after Human Rights Commission decision

Updated

There are fears that thousands of people with a severe disability could be thrown out of work after a decision by the Human Rights Commission.

Last week, the commission decided to give Australian Disability Enterprises, formerly known as sheltered workshops, one year to lift the wages of workers who are now paid just a few dollars an hour.

The decision has been slammed by disability advocates, who say the wage reform should take effect immediately.

But the not-for-profit groups say they cannot afford to move that quickly and could actually fold, leaving many people without work altogether.

Australian Disability Enterprises employs thousands of people using the business services wage assessment (BSWAT).

But a court ruling in 2012 found that tool was discriminatory and now the Human Rights Commission has decided that a new wage model should be put in place within 12 months.

"In a positive [sense], it really spells the end of a dark chapter in the wage settings of people with intellectual disability," the National Council on Intellectual Disability's Paul Cain said.

"But by granting one year, it means that employees with intellectual disability in Australian Disability Enterprises will continue for up to one more year to suffer unlawful disability discrimination."

Mr Cain argues the Commonwealth should bridge any gaps in costs while businesses adjust to the new model.

"A business that isn't viable cannot meet its costs by unlawfully discounting an employee's wages," he said.

"So the big question for Australia and for the Government is to make sure if you're going to put people with an intellectual disability into employment, they've got to [make sure that] is viable and not trade off their human rights for a basic wage."

Advocate supports new wage system, but not the time frame

National Disability Services, the peak body for the 600 disability enterprises, includes horticulture, packaging, assembly, light manufacture, gardening, woodwork and furniture assembly.

Spokesman Ken Baker says the workers value their employment very highly.

"They get a lot of reward from it as well as a wage which supplements the disability support pension," he said.

The average wage is close to $4.50 an hour. Mr Baker supports the new wage system, but not the time frame.

"We certainly think the decision deserves to be appealed," he said.

"If as the commission would like it the supported wages system were adopted, wage rates would increase by at least 50 per cent.

"Now it's simply not possible for any employer to absorb a 50-plus per cent increase in its wages bill in a single year.

"I think the irresponsible thing that the commission has done is by making that decision, it's put the jobs of up to 10,000 and whose alternative employment options are very few, it's put their jobs at risk."

The Human Rights Commission is not commenting.

Fifield say Government committed to viability of ADEs

The Assistant Minister for Social Services, Mitch Fifield, says the Government remains committed to ensuring the ongoing employment of up to 20,000 workers and the viability of Australian Disability Enterprises.

"I'm deeply concerned and disappointed about the decision of the Human Rights Commission," he told AM.

"I appreciate that they have the best of intentions, but if Australian Disability Enterprises were required to immediately move to a new wage assessment tool which would double the cost of providing employment, then ADEs - which most of them really struggle to break even as it is - a lot of ADEs would become unviable and cease to exist.

"We need a continuum of employment options for people with disability. We need open employment for those people who have that capacity.

"But there are a lot of Australians with significant intellectual impairment who will never be able to work in the open workforce and that's why Australian Disability Enterprises are so important: because they provide the dignity of work, they provide a social life for these people. They also provide respite for the families.

"So these are incredibly important organisations - they're not like the sheltered workshops of old, and the wage assessment tools which are currently used pay on a pro-rata basis, recognising that these people in the workplace have a different capacity."

Senator Fifield says it is also important to not just to look at the hourly rate that an individual might get.

"You've really got to look at the package of supports that they receive. So it's the hourly rate, it's the disability support pension, it's the health benefits card that they receive, and it's the disability support workers on site.

"So it's a package of supports that we're getting and it's wrong just to isolate the hourly rate of employment."

Topics: disabilities, work, community-and-society, unemployment, welfare, australia

First posted