Consultation on the future of wage assessments in Australian Disability
Enterprises
Consultation Process
The Department of Social Services (formerly the Department of Families,
Housing, Community Services and Indigenous Affairs) facilitated 14
consultation forums around the country between 15 July and 15 August 2013
with representatives of Australian Disability Enterprises and stakeholder
organisations.
These forums were attended by Chief Executive Officers and representatives
of Boards of Management.
The consultations aimed to collect snapshot data rather than a census of the
entire population of interested parties. Around 200 representatives from 122
Australian Disability Enterprises and 60 representatives from stakeholder
organisations including peak bodies disability advocates, and unions ,
attended the consultations.
A discussion guide was provided to participants prior to the consultation
session. However, the guide encouraged and supported discussion of ideas
and options beyond those presented in the guide.
The consultations provided participants with:
 brief background information on the decision by the Full Federal Court
in relation to Nojin and Prior
http://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/20
12/2012fcafc0192
 an overview of the current disability environment including NDIS and
recent thinking on the future of supported employment;
 an opportunity to discuss the objectives, principles and characteristics
of wage assessment in Australian Disability Enterprises, and
 a further opportunity to discuss the future of wage assessments and
transition, including steps currently being undertaken by the
Department of Social Services.
Feedback from consultation
Objectives of wage assessment
There was general agreement from participants on the objectives proposed in
the discussion guide including ‘fairness and reasonableness’, and delivering
on the objective of higher wage outcomes. The discussion guide also
indicates that there is a need for supported employment organisations to have
the capacity to pay wages and remain viable. Further feedback on the
objectives included:
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 general support that any future system needs to take note of the
Convention on the Rights of Persons with Disabilities;
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comment on mixed messages contained in the proposed objectives, for
example, the objective of wage assessment is to provide a fair wage
outcome and not necessarily increased wages; and
comment on possible unintended consequences from future wage
assessments such as the exclusion of the lowest productive workers.
Principles of wage assessment
There was general agreement by participants on the principles proposed in
the discussion guide including; fairness, non-discriminatory, transparency,
reliability and validity, and objectiveness. Further feedback on the principles
included:
 discussion about the meaning of ‘fairness’ for different stakeholders
and the need to define the term. It was suggested that the terminology
used in the equal pay case for the community sector may be useful.
 comment that the principles should include a reference to complaints
and review mechanisms.
Characteristics of wage assessment
There was general support for the proposed characteristics of wage
assessment including that the assessment tool complies with legislation, links
to national industry standards and qualifications; puts in place individual
training and career development plans; has minimum wages and conditions
specified in law; and be straightforward to apply and administer.
Other feedback provided by the majority of participants was that wage
assessments should be done by independent assessors to avoid any
perception of bias or vested interests.
Transition
Participants expressed a range of views about future wage assessments and
transition, including:
 most advocates supported the introduction of Supported Wage System
into Australian Disability Enterprises. This position was also supported
by some representatives of Australian Disability Enterprises, usually on
the basis that it would place them on an equal footing with other
employers.
 some advocates supported the adjustment of the Supported Wage
System before its introduction, such as changing the minimum wage
from a weekly to an hourly amount.
 the majority of participants considered it was not appropriate to amend
legislation or remove supported employment from the industrial
relations arena.
 some participants supported amending the Business Services Wage
Assessment Tool (BSWAT) and many of these participants considered
that the ‘all or nothing’ approach is unfair and that competencies
needed to be grounded in the realities of the job. Some participants
considered it important that an amended BSWAT be renamed.
 the majority of participants agreed that a transition period of 3 years
was required. A small number considered that the transition should be
immediate, with no section 55 exemption under the Disability
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Discrimination Act (1992) application to the Human Rights
Commission.
General feedback
Other feedback from the consultations included the following views:
 wage assessment should sit within the industrial relations system not
within the disability policy area or the legal system.
 jobs undertaken by supported employees in Australian Disability
Enterprises are only a component of jobs in open employment and this
is reflected in their wages.
 research on wage assessments used by other countries could provide
useful examples. The Department is progressing this work.
 the consultation process should have included additional explanation of
the Federal Court decision.
 how wages interact with the Social Security pension system can be
difficult to understand for some supported employees and this
sometimes results in an employee trying to minimise income.
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