Sub-Minimum wage
|
|
Council Meeting 25 June 2024 |
Subject: Question on Notice: Subminimum wages
From: Councillor Marghanita Da Cruz
“It's legal for disabled people to be paid as little as $2.90/hr, even though the minimum wage is $23.23/hr. "
The Guardian had an article about the issue in January 2024 https://www.theguardian.com/australia-news/2024/jan/28/larry-was-paid-420-an-hour-in-australia-its-not-enough-to-live-on-but-its-completely-legal.
200 national and state organisations, over MPs & Councillors and over 2000 individuals have signed an Abolish Subminimum Wage - Open Letter.
"Abolish Subminimum Wage - Open Letter
Read this letter in Plain English Sign this letter
We oppose the practice of paying disabled workers subminimum wage. It is unacceptable that in 2024 disabled people living in Australia can be paid as little as $2.90 per hour, while the minimum wage for others is $23.23 per hour.
These practices don’t help disabled people find work. We know from the Disability Royal Commission that Australia has one of the lowest disability employment rates in the OECD. As disabled people and allies, we support transition to fairer, equitable work through more modern and just practices to support disabled people in the workplace, such as supported employment and customised employment.
We acknowledge the international workers’ movement — led by disabled people — to end these archaic practices, which originated in the 1930s, and seek equitable pay. This movement has seen sweeping legislative success across the past decade.
Disabled people demand equal pay for our work. It is time for Australia to abolish subminimum wages.
In solidarity,"
Available at https://docs.google.com/document/d/1Dj4N8NtD9RKJj7eypPgKkIPggKI2aONCrwBOEzjrEIg/edit?pli=1
Question
Do we have any positions, which are offered in the 'supported wage system'?
Answer
Inner West Council do not have any positions under a supported wage system. All employees are covered under the Local Government (State) Award.
Question
Do we employ any staff under 'the supported wage system'?
Answer
No.
Question
There are at least two Australian Disability Enterprises(ADE) operating in LGA. Are we providing any subsidies (eg rent or peppercorn leases, complementary or discounted room hires in Council venues, rate exemption or discounted rates, and favourable consideration in tender and procurement processes) to any ADEs?
Answer
As of last Council meeting in the newly adopted Procurement Strategy, we have a compulsory 15% weighting on the ESG components, this will benefit the ADEs.
-------------------------------
NSW State Policy
"You can buy from an Australian disability enterprise (ADE) with a single quote and no contract value limits." https://www.info.buy.nsw.gov.au/buyer-guidance/source/select-suppliers/australian-disability-enterprises (viewed11 July 2024)
" M2010-06 Exemption from Procurement Policy for Disability Organisations
Description: This memorandum should be read in conjunction with TC 04/07 Procurement Policy Reform, TPP 04-1 NSW Government Procurement Policy, NSW Government Code of Practice for Procurement and M2006-11 NSW Procurement Reforms." https://arp.nsw.gov.au/m2010-06-exemption-procurement-policy-disability-organisations
ABC 31 July 2024:
'Government reveals response to disability RC
It's been ten months since the disability royal commission handed down
its final report with more than 200 recommendations to put an end to the
abuse of people living with disability.
Today the Federal Government is expected to make public its initial response to that wide reaching report.
Advocates say the reply needs to be a comprehensive one.
Today the Federal Government is expected to make public its initial response to that wide reaching report:... https://www.abc.net.au/news/2024-07-31/government-responds-to-disability-royal-commission/104141938
ABC AM RN (31 jULY 2024): Advocates say the reply needs to be a comprehensive one.
Federal government responds to disability royal commission, fully accepting 13 recommendations
"The federal government has revealed its response to the landmark disability royal commission, but has not committed to a number of the most contentious recommendations, including phasing out special schools, group homes and segregated employment...Recommendations to phase out segregated employment by 2034 and group homes within 15 years were listed as needing further consideration, as was the co-design of a new complaints mechanism and a new scheme allowing employees with disability to be paid at least half the minimum wage.
Greens senator Jordon Steele-John says the Government needs to action the recommendations made by the Royal Commission. "
Listen to audio at https://www.abc.net.au/listen/programs/am/government-reveals-response-to-disability-rc/104163026
Queensland Tip Shop - when Op Shops are thriving. (update 9 Oct 2024)
 |
| Endeavour Foundation ADE (Brisbane Tip Shop, Sep 2024) |
Update Sat April 19, 2025
Abolishing Subminimum Wages for Disabled Workers
Find out more about this issue
Printed decision PDF 102 KB
Decision Maker: Council [city of sydney]
Decision status: Recommendations Determined
Decision: Moved by Councillor Thompson, seconded by Councillor Worling –
It is resolved that:
(A) Council note that:
(i) disabled workers are currently paid as little as $3.01 an hour for their work through the supported wage system, a carve-out in national employment law that allows companies to pay workers up to $24.10 less than the national minimum wage;
(ii) this practice of paying disabled workers a subminimum wage is unacceptable and does not help disabled people find work;
(iii) the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability recommended that the Federal Government aim to reduce workplace segregation and achieve wage parity for people with disability by 2034;
(iv) community support of abolishing the practice of paying disabled workers a subminimum wage is growing rapidly, including internationally in the USA where 19 states and the District of Columbia have already eliminated the practice; and
(v) on 11 December 2023, Council resolved to request that:
(a) the Chief Executive Officer as a priority review relevant policies to ensure City services don’t procure from, create, fund or participate, or award new grants for, organisations that participate in segregated services or employment, or engage in restrictive practices; and
(b) the Lord Mayor to write to the Federal Minster for the National Disability Insurance Scheme and the NSW Minister for Disability Inclusion to advocate for the Australian and NSW Governments to adopt the recommendations of the Royal Commission;
(B) Council further note:
(i) the City has in effect implemented a ban on the City supporting Australian Disability Enterprises and segregated employment though the following actions the City and the Lord Mayor have taken in response to the 11 December 2023 Council Resolution:
(a) reviewed successful grant recipients since 2021/22 to confirm no grants were awarded to organisations that might be engaging in segregated services, employment or restrictive practices;
(b) reviewed the Grants and Sponsorship Policy and Guidelines to ensure they continue to meet best practice in grants management;
(c) reviewed suppliers listed in its internal Guidelines for producing and procuring inclusive and accessible communication materials to ensure that no inappropriate organisations are included; and
(d) audited web pages and list of support services for older people and/or people with disability to ensure there are no references to Australian Disability Enterprises;
(ii) on 24 January and 9 April 2024 respectively, the Minister for Social Services and the NSW Minister for Disability Inclusion responded to the Lord Mayor’s letter advising the Australian and NSW Governments were still considering their responses to the Disability Royal Commission; and
(iii) the Australian Government Response to the Disability Royal Commission (July 2024) indicated that it needs to consult with a broad range of stakeholders further before committing to paying employees with disability the full minimum wage;
(C) Council endorse the community campaign for disabled workers to be paid a minimum wage through abolishing the supported wage system, ensuring companies and Australian Disability Enterprises pay disabled workers the same as everyone else;
(D) Council agree to:
(i) support, in principle, a ban on providing grants, funding, and other formsof support, including non-financial support, to Australian Disability Enterprises or companies that pay their workers less than the national minimum wage; and
(ii) sign on in support of the open letter demanding that subminimum wages for disabled workers be abolished, joining over 37 other national organisations and 223 state and local organisations;
(E) the Lord Mayor be requested to write to the Industrial Relations Minister, on behalf of the City of Sydney, requesting that the Federal Government urgently implement the recommendations tabled by the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability and abolish the practice of allowing Australian Disability Enterprises and other companies to pay disabled workers a subminimum wage; and
(F) the Chief Executive Officer be requested to provide advice to Council about other potential amendments to other policies and processes to ensure the City of Sydney is not supporting organisations or groups that undertake the practice of paying disabled workers a subminimum wage.
Carried unanimously.
X113760
Report author: Erin Cashman
Publication date: 25/11/2024
Date of decision: 25/11/2024
Decided at meeting: 25/11/2024 - Council
Accompanying Documents:Abolishing Subminimum Wages for Disabled Workers pdf icon PDF 13 KB
Source: https://meetings.cityofsydney.nsw.gov.au/ieDecisionDetails.aspx?AIId=18639 viewed 19 April 2025
December 4, 2024: Days of disabled workers earning less than $7.25 an hour may soon be over [US]Federal certificates allow some employers to pay less than $7.25 an hour...https://abcnews.go.com/US/department-labor-employers-pay-disabled-people-minimum-wage/story?id=116416687
17 April 2025: 'FAIR PAY FOR PEOPLE WITH DISABILITYACT Independent Senator David Pocock is standing alongside Down Syndrome Australia and members of the Down Syndrome community calling on both major parties to commit to phasing out the $3 an hour wage for people with disability in the next parliament.
Under current arrangements people with Down Syndrome can legally be paid $3 an hour for their work in Australia. The Disability Royal Commission recommended that people with disability should receive at least the minimum wage, and that the Government should act to achieve this by 2034.....https://www.davidpocock.com.au/fair_pay_for_people_with_disability
Comments
Post a Comment