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Home / New Zealand

Labour law 'would gut workshops'

NZPA
6 Nov, 2006 07:54 AM2 mins to read

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KEY POINTS:

Government legislation that would require sheltered workshops to have formal employment agreements with disabled workers would gut the workshops, the National Party says.

The legislation, also requiring employers to pay disabled workers the minimum wage unless they received a Labour Department exemption, is back on the Government's order
paper and is likely to be debated either later this week or early next week.

The bill has been in the political wilderness since it was reported back from a select committee in 2004.

National's disability issues spokesman, Paul Hutchison, yesterday said the compliance costs of having to treat every worker like a formal employee would be huge and would likely force the remaining workshops to close.

"Of course it would be ideal for all people with disabilities to work in open employment where practical, but sheltered workshops provide a choice and an atmosphere that many people with disabilities and their families value."

Dr Hutchison said the Government had failed to sort out several practicalities around the Disabled Persons Employment Promotion (Repeal and Related Matters) Bill, such as a better abatement regime for those on an invalid's benefit.

If many disabled received higher wages they would be forced to relinquish the security of their benefit.

He said three years ago there were 3500 people working in disabled workshops. That had since dropped to around 1000.

But for those that remained, the workshops were often a central part of their life, he said. Most were paid around $50 a week, so it did not interfere with their invalid's benefit.

- NZPA

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