ࡱ> ~}Y r>bjbjWW *V==8]84>hbx($P))XbXXXlXXR u|N *7 L  ACROD's response to the possibility of a public inquiry by HREOC into employment and disability ACROD welcomes the prospect of an inquiry by HREOC into employment opportunities for Australians with disabilities. There is ample justification for establishing such an inquiry. While Australia exceeds the OECD average in its proportion of working-age people in jobs, it is below average in its employment rate for working-age people with disabilities. The pattern is not even. While people with severe disabilities fare worse in the job market than those with moderate disabilities, Australia is better than most other OECD countries at finding them work - largely because of its network of specialist disability employment services. But its comparative performance in relation to people with moderate disabilities is poor. Of 18 countries for which the OECD cites figures, Australia ranks at number 15. The Australian Government wants to see more people with disabilities in paid employment. It is concerned at the relatively high growth rate of Disability Support Pension recipients, fewer than 10% of whom have any earnings from paid employment. Many Australians with disabilities want to work, but encounter barriers that discourage or prevent them from working. An inquiry could highlight these barriers and point to ways to help overcome them. The barriers are diverse. This submission highlights several that an inquiry could usefully consider; but does not attempt to provide an exhaustive list. Public investment in specialist employment assistance Many people with disabilities who want to work require specialist assistance to prepare for, find and maintain employment. There is strong public support for the provision of such assistance. Over 90% of Australians believe that people with disabilities who want to work should be given special help to find work. And most people think that the Government should help pay any additional costs incurred by an employer as a result of employing a person with a disability. Only 4% think that the employer alone should pay. The Commonwealth Department of Family and Community Services (FaCS) funds over 400 specialist employment organisations through over 800 outlets to assist people with disabilities to obtain and maintain employment. Almost all of the organisations are non-profit and, each year, they assist over 60,000 people. FaCS funds two types of services to assist people with a disability to participate in the workforce: Open Employment Services apply specialist skills to assist people with disabilities to prepare for, find and maintain employment. Supported Employment Services (also known as Business Services) employ people with a disability who are unable to, or choose not to, obtain employment in the open labour market. Public investment in disability employment services is a cost-effective means to assist people with disabilities to find and secure employment. In 2002-03, it cost the Australian Government only $3,016, on average, for each person assisted by an Open Employment Service and $6,203 for each person assisted by a Business Service. While not every person assisted manages to obtain a job, the social and economic benefits (public and private) from those who do secure and maintain employment far exceed the public investment. Yet Government investment in these services is relatively small (for every dollar it spends on DSP payments it spends only 5 cents on disability employment assistance). As a consequence, there are many people with disabilities who want to work and are eligible to receive specialist employment assistance who cannot obtain that assistance. The Government imposes an arbitrary limit on the number of job seekers with disabilities that a disability employment service can assist, forcing service providers to turn away some job seekers or make them wait months for a service. Sitting on a long waiting list particularly for people who face other barriers to employment - is a significant discouragement. The Government does not impose this arbitrary limit on Job Network. Exacerbating this policy of rationing disability employment assistance is the Government's refusal to release the package of training and employment measures, worth $258 million over four years, that it announced in the 2002 Federal Budget. The Government says that it won't release the package until the Senate passes a controversial Bill to tighten eligibility for the Disability Support Pension. Whatever the merits or otherwise of the Governments Bill, the lack of new disability employment assistance places is denying people with disabilities employment opportunities. The disability employment reforms The Australian Government has embarked on an ambitious reform agenda for disability employment services. The changes are designed to improve the quality of employment services and to introduce an equitable funding system. To encourage more people into employment, the Government also changed its testing of work capacity, focussing on peoples ability, rather than their inability, to work. ACROD supports the goals of the reforms, but is concerned that their implementation will jeopardize the viability of some disability employment services and restrict future access to such services, particularly by people with low levels of productivity and/or high support needs. Rural and remote services (and the people who rely on them) are particularly at risk. The Australian Government has taken action to provide a safety net for Business Services (by introducing the Business Services Assistance Package in April 2004). That package was very welcome, but it postpones rather than solves the problem of Business Services' financial incapacity. No such safety net has been provided for Open Employment Services that are at risk. Because Business Services feel pressured to meet the Government's expectation that they will become more commercially oriented, some have changed their recruitment practices to exclude job seekers with very low productivity. These job seekers would be further disadvantaged if the Australian Industrial Relations Commission imposed unrealistic wage levels or minimum wage rates on the supported employment sector (without compensatory measures). A strategy that seeks to expand employment opportunities for people with significant disabilities must include strengthening the network of specialist disability employment services. Lack of pathways Poor pathways and linkages between State-administered school and post-school option programs and Commonwealth-administered disability employment services limit opportunities for school-leavers with disabilities. The third Commonwealth State and Territory Disability Agreement promises to improve these pathways, but considerable work is required to deliver on this commitment. Employer Incentives and Employer Awareness As part of an Employer Incentive Strategy, the Australian Government provides a range of assistance to help with the employment of people with disabilities in the open workforce. These include wage subsidies, financial assistance for workplace modifications, and access to a productivity-based wage system if an employees disability slows their output to a level less than would be expected under an award wage. These are modest but positive measures, although regulatory complexity deters use of them by some service providers. The Government reviewed the Employer Incentive Strategy in 2003, but has not implemented the review's recommendations. The recommendations include a strategy to raise public awareness - particularly among employers - of the merits of employing people with disabilities. Such a strategy is needed. To succeed, however, an employer awareness strategy must rely on evidence, not just slogans. Employers wont take on a person with a disability anymore than they would take on one without a disability unless it makes good business sense. Research led by Professor Joe Graffam of Deakin University has shown that employing people with disabilities despite an initial cost that may be associated with workplace modifications or additional staff training does deliver net benefits to a company. His team surveyed a total of 656 Australian employers who had employed a person with a disability through an Open Employment Service during the previous three years. The employers rated employees with a disability somewhat below average on productivity, but better than average on reliability (the costs of sick leave were a third that of the average employee) and lower than average on maintenance costs (less expensive to recruit, with fewer worker compensation incidents). Most striking was the positive effect the employment of a person with a disability had on organisational performance. Hiring someone with a disability can require workplace modifications and changes to staff training and supervision. Employers reported these changes as having benefits to overall productivity, staff skills and practices and workplace and customer relations. Publicising research such as this - based on the experience of employers - would help increase the willingness of employers to take on more workers with disabilities. The Governments employment and purchasing practices The Government own employment record is poor. A decade ago 6% of public servants had a disability; today that figure has fallen to 3.6%. In addition, its record of purchasing products and services from organisations that employ people with disabilities compares poorly with the USA where the Federal Government is required by law under the Javits ODay Wagner Act 1971 to purchase a small percentage of goods and services from Business Services. As well as the US Federal initiative, over 30 States have complementary programs of preferential purchasing. Employment opportunities for people with disabilities - in both open and supported employment - would expand if the Australian Government aligned its purchasing and employment policies with its social policy objectives. Under-representation in VET People with disabilities are under-represented in the Vocational Education and Training system: 11% of the general population are engaged in VET compared to only 2.5% of people with disabilities; 16.7% of the general population are involved in New Apprenticeships compared to 2.0% of people with disabilities. Most people with disabilities thus miss out on the employment opportunities that flow from a VET qualification. Federal and State governments are implementing a plan called Bridging Pathways to lift the participation of people with disabilities in the VET system. However, additional effort is needed across government departments and the VET sector if the plan is to succeed. A risk-averse employment environment In some jurisdictions perhaps responding to increased concerns about insurance costs, work safety and risk management Occupational Health and Safety (OHS) inspectors have adopted a zero tolerance approach to workplace risk. This presents a barrier to the employment of people in supported employment (Business Services) and in open employment. In relation to the former, some OHS authorities are recommending risk management regimes that would effectively exclude people with significant intellectual disabilities from the workplace (particularly if they also have challenging behaviours). In open employment, the zero-tolerance approach is fostering a risk averse attitude among employers that makes some reluctant to employ people with disabilities who they believe (even if mistakenly) are at greater risk in the workplace. The Disability Service Standards, with which disability service providers are required to comply, emphasize individual rights and choice, social inclusion and the creation of a 'least restrictive' environment for people with disabilities. The tension between OHS regulations and these Standards, unless resolved, will lead to the exclusion of people with significant disabilities from the workplace or their isolation or restriction within it. ACROD's members are both employers and service providers, and thus have obligations arising from both OHS and Disability Services legislation. They are keen to see the conflict of obligations resolved - in a manner that compromises neither the rights of people with disabilities nor the health and safety of the people who work with them. Barriers beyond the workplace The barriers to employment that people with disabilities encounter are not confined to the workplace. A lack of in-home support can hamper a persons ability to get ready for work each day. Inaccessible public transport can turn the journey to work into an expensive and complex ordeal. Community attitudes can influence the recruitment practices of employers and the confidence which people with disabilities have in their own capacity to work. A shortage of life-skills training can leave young people with disabilities ill- prepared for work. The depletion of employment opportunities is one of the effects of the unmet need for disability support services that exists in every State and Territory. The Australian Disability Training Advisory Council (ADTAC) reached a similar conclusion. Established to oversee the implementation of the Bridging Pathways blueprint ADTAC arrived at the view that to improve pathways between education, training and employment would require parallel reforms across almost all layers of government, business and the community sector. In considering how the employment of people with disabilities can be enhanced, HREOC should take into account these wider inter-related issues. September 2004 Contact: Ken Baker Chief Executive ACROD Ph: (02) 6282 4333 Email:  HYPERLINK mailto:kbaker@acrod.org.au kbaker@acrod.org.au 鱨վ ACROD www.acrod.org.au ACROD is the national peak body for disability services. Its purpose is to equip and enable its members to develop quality services and life opportunities for Australians with disabilities. ACRODs membership includes over 550 non-government, non-profit organisations, which collectively operate several thousand services for Australians with all types of disabilities. ACROD has a National Secretariat in Canberra and offices in every State and Territory. Its consultative structure includes a National Committee on Employment and Training.  Organisation for Economic Co-Operation and Devlopment, Society at Glance, OECD Social Indicators, 2003, pp 38-39.  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