Debate reignites over how much disabled workers are paid
By: Nicole Bremner, 1News Reporter
TVNZ: Sat, Jun 8 2024
National's opted not to implement Labour's plan to pay vulnerable workers the minimum wage through a subsidy scheme.
Debate has been reignited over pay rates for workers with disability who are paid well below the minimum wage.
Through a wage exemption scheme, disabled workers can be paid as low as $2 an hour. The current minimum wage is $23.15 per hour.
The previous Labour government had planned to replace this scheme with a wage supplement system that would see wages topped up by the government, but in Budget 2024, National cancelled the work.
The Green Party said continuing the current system amounts to worker exploitation.
"It just shows the Government does not respect disabled people or workers," said workforce planning and development spokesperson Ricardo Menéndez March.
"Disabled workers deserve and are just as entitled as everyone else."
Around 900 disabled New Zealanders currently hold minimum wage exemption permits, with most receiving the Supported Living Payment.
National is not convinced that replacing the minimum wage exemption with a supplement system would necessarily benefit this vulnerable group of workers.
"The reality is that many of the organisations that employ workers with disability today may not be able to operate. There would be closure," said Disability Issues Minister Louise Upston.
"I want to protect opportunities and get more disabled people into jobs."
Upston's view is endorsed by Martin Wylie, who is the chief executive of Altus Enterprises, a registered charity that employs more than 100 disabled workers.
Pay rates are around $7 - $10 an hour for work that includes testing airline headsets, packing in flight amenity packs and refurbishing residential power boxes.
"Paying more is a good idea but you need to look at the reality," Wylie said.
"If you require everyone to be paid the minimum wage separate from a benefit structure it would mean most the people here wouldn't have a job."
But one small business owner in Auckland believes National has taken a step backwards in maintaining the status quo.
Candle manufacturer Jennifer Del Bel advocates for the living wage, employing four disabled workers for up to 3 days a week and paying $27.80 an hour.
"We created a business model that allows altruism and capitalism to co-exist," she said.
"If you have a business model that's relying on exploitation, I really hope you close if you can’t pay your staff at least the minimum wage."
Altus disputes claims of exploitation.
“It's a charity," Wylie said. "Nobody's getting rich as the result of the work that's done here."
He said paying the minimum wage would see costs quadruple and that would be unsustainable without some form of subsidy.
Workers 1News spoke to at Altus said they enjoyed coming to work primarily to get "out of the house" and to see their friends.
Several said they would be "sad if they didn’t have a job".
National is now conducting a review of Whaikaha, the recently established Ministry of Disabled People, which has experienced budget issues.
Last Updated 10/06/2024
RESOURCES