CHAPTER 2 - CHAPTER VOLUNTARY AND COMPULSORY PARTICIPATION

SOCIAL SECURITY LEGISLATION AMENDMENT (WORK FOR THE DOLE) BILL 1997

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CHAPTER 2 - CHAPTER VOLUNTARY AND COMPULSORY PARTICIPATION

3.24 The expectation that participation in Work for the Dole projects would be largely voluntary has been clearly stated by the Government. In the pilot projects it is expected that the requirement to participate would be minimal, if at all. Even so, the inclusion of a provision to require certain people to participate in Work for the Dole attracted considerable comment in evidence. As has been noted earlier, this was a major point of contention for some organisations in their support or otherwise for the scheme.

3.25 The Committee received much evidence outlining the general benefits of volunteering within Australia. The Australian Council for Volunteering (ACV), the peak body representing the volunteer sector in Australia, advised that volunteering is now a mainstream activity in Australia with no stigma attached to it and is universally accepted as an activity that is based on mutuality of benefit between the community and the volunteer. Underpinning the ACV's work is a philosophical approach which encourages individuals to make choices, take actions and be responsible. The ACV believes:

3.26 ACOSS submitted that experience with previous labour market programs structured around voluntary work and general research on the benefits of volunteering has shown that voluntary participation in community activities can improve the self esteem of unemployed people, indirectly improve their future employment prospects in other ways, develop employable skills and put unemployed people into contact with networks which they can use in their search for jobs. [41]

3.27 The benefits to be gained for both the community and participants through voluntary work have been equally recognised and are fully supported by government. As DSS submitted:

3.28 The Salvation Army referred to its own extensive experience with the use of volunteers saying that:

3.29 This was the essence of some people's concern, that the benefits to be derived from volunteering could be compromised by the inclusion of the element of compulsion in the Work for the Dole scheme. While some organisations saw merit in forms of compulsion, others argued that the compulsory element of the scheme would not assist in achieving the positive and inspirational qualities intended for the program and which accrue from voluntary work. If individuals were compelled to participate it would lead to resentment, a negative effect on self esteem and morale, lack of cooperation and poor motivation in the workforce. [44] The fact still remains that a number of witnesses firmly believed that the need for compulsion would be small, if at all, as most positions in the pilot projects would be taken willingly.

3.30 The Committee was advised that the national community service bodies of the Anglican, Catholic, and Uniting Churches and the Salvation Army had written to the Minister for Schools, Vocational Education and Training, Dr Kemp, informing him of their opposition to the compulsory nature of the scheme. [45] The Australian Catholic Social Welfare Commission, a signatory to the letter, drew attention to:

3.31 The necessity for including an element of compulsion in the scheme was outlined by DEETYA. When there is not a sufficient number of volunteers, `it is fair and reasonable to require others in the same category to make a contribution'. DEETYA continued that:

3.32 Claims were made in evidence that not only would unemployed participants be affected by compulsion but there were also implications for sponsoring organisations. Reference was made to unwilling young participants in a project creating disruption for other participants who may be there voluntarily, and causing difficulties for management. Organisations mentioned the onerous and costly administrative burdens associated with a compulsory scheme, and the development of significant problems with supervision, particularly the policing function which would be imposed on volunteer based organisations and the welfare sector. [48]

3.33 The Australian Local Government Association (ALGA) expressed its concerns about the practicalities of compulsory participation citing Councils' reluctance to police participants involvement as a critical aspect if Local Government is to be encouraged to actively participate in the scheme. [49] The Moreland City Council agreed that local governments would be loathe to sponsor projects where participants are not voluntary, due to the consequent problems of supervision. [50]

3.34 While the element of compulsion in the scheme received some criticism, there were (as has been stated earlier) indications that the 10 000 places proposed for the pilot work projects could easily be filled by volunteers. The Belconnen Unemployed Youth Taskforce submitted that from the evidence of its surveys there appeared to be no need to compel people to participate in the scheme and it had no doubt that, with improvements `there would be more than enough volunteers for the scheme'. [51] AYPAC encapsulated this view stating that:

3.35 The Welfare Rights Centre indicated that it had no doubt that all 10 000 places to be funded under the Work for the Dole scheme could be filled under the current voluntary work provisions of the Social Security Act. [53] The WRC and others argued that the use of compulsion as a means of encouraging people to undertake work experience programs was unnecessary because the social security system was sufficiently flexible to enable unemployed people to benefit from the type of work experience envisioned under the proposed Work for the Dole scheme. [54] The Department of Social Security confirmed that `essentially a program that was involved in people undertaking voluntary work would not require any amendment to the Social Security Act because there are already provisions in the Social Security Act for people to do voluntary work.' [55]

3.36 Support for the inclusion of compulsion as a necessary element of the Work for the Dole scheme was given by organisations which have had practical experience in arranging labour market projects or similar schemes in their own regions. The North Queensland Joint Board reinforced the DEETYA reasoning, submitting that the people most likely to volunteer for the Work for the Dole scheme are those already with self esteem and initiative and that therefore those most in need will probably only be included if some degree of compulsion is included. For these reasons the NQJB suggested that compulsion might be appropriate. However, it added a note of caution that with compulsion `the Scheme will need to be well managed to ensure real outcomes are attained from the Scheme for the participants. Particularly, paid supervision and detailed work programming then becomes essential'. [56]

3.37 The Shoalhaven Area Consultative Committee also supported the need for powers to compel people to participate in the scheme, giving as reasons:

3.38 Allowance for compulsory and voluntary participation has also been included in the ACCI Principles on the Work for the Dole pilot scheme. [58]

 

Training and skill development

3.39 The Government has clearly indicated that the Work for the Dole scheme is not intended as a training or labour market program. Nevertheless, for a number of organisations the non-inclusion of formal training was regarded as a significant deficiency. They argued that formalised training should be included in the scheme even though past experiences have shown, in many cases, such training not to result in paid work following its completion.

3.40 Organisations constantly referred to the benefits derived from formalised training as an essential component in labour market programs for skill development and improved employability of unemployed, particularly long term unemployed, people. The linking of education and on-the-job training to long term and sustainable employment outcomes was regarded as essential to address the needs of young unemployed people and secure real jobs for young people, [59] despite its past limited success.

3.41 The Moreland City Council noted that skills development is widely recognised as a critical factor in enabling unemployed people to compete more effectively in the labour market. The Council argued that a key objective of the scheme `should be to enable participants to gain a range of skills, including economic and employment-related skills, communication skills, citizenship training, problem solving and analytical skills, or living skills'. [60] The Government has argued that the scheme will in fact provide participants with many of these skills which they do not have through many existing schemes.

3.42 The Salvation Army summed up the views of many when it commented that `if the proposed scheme is to go ahead it should have a clear objective of providing pathways for young people into employment'. [61]

3.43 Mission Australia provided an alternative perspective, submitting that:

3.44 Mr Trev Ward, an industrial officer with the CPSU, speaking in relation to the capacity of the scheme to provide training leading to the securing of jobs, referred to one of the scheme's objectives when he stated that `the essence of a program like work for the dole is that it should aim to address the self-esteem of young people'. Mr Ward noted that in regard to accredited training, `we need to be clear that many unskilled jobs in retail, fast food and hospitality in essence require self-esteem, not TAFE certificates. Skills training which leads to jobs is already catered for by TAFE traineeships and apprenticeships and the ideal situation would be to link accredited training to established job pathways'. [63]

3.45 In response to the comments on the importance of training to assist the unemployed, DEETYA acknowledged that work experience and training are very important for getting people back into full-time or sustainable jobs. DEETYA reiterated that whilst there may be some projects which training is a part of and where there has to be some preliminary training to ensure that a person can undertake the activity, training per se is not an integral element of the Work for the Dole scheme. The scheme is about increasing work ethic and making a contribution to the community in return for the support provided by the community. DEETYA advised that `projects offering training to participants that relates to the project proposal may be supported as long as costs can be accommodated within the project budget'. [64]

3.46 The Committee was informed that in recognition of the importance of formal training activities the Government had already introduced a number of initiatives to address issues of youth training including the Job Placement, Employment and Training (JPET) program; a significant commitment to improving literacy and numeracy; the Jobs Pathway Program to assist young people make the transition from school to work; the Australian Student Traineeship Foundation (ASTF) which promotes the broadening of senior school education to include the opportunity for young Australians to acquire workplace knowledge and experience before they graduate from school; and a commitment to the development and expansion of vocational education opportunities for students in senior secondary schools. [65]

3.47 DEETYA reinforced the importance of formal training activities stating that:

3.48 The introduction of pilot Work for the Dole projects should also be seen in the broader context of the Government's reforms to employment services. DEETYA referred to the Reform of Employment Services legislation which contains a very high level of flexibility enabling the provider and the job seeker to work out what the individual's requirements are rather than `shoehorning' a person into a training course which may be inappropriate. DEETYA emphasised that Work for the Dole forms just one part of a total menu or package of options that are available to address these issues, for example, complementary strategies are also being implemented to address other important youth issues such as family breakdown, youth suicide and homelessness. [67]

3.49 DEETYA also confirmed that it was not a requirement under the Work for the Dole scheme, as it has been under previous labour market programs, that the sponsor should ensure that a participant would obtain sustainable employment at the end of the subsidised period. DEETYA asserted that an unemployed participant in Work for the Dole would improve their employability by meeting the scheme's objectives which through experience in the workplace would develop the participants' work habits and attitudes (their work ethics) to assist and improve their capacity for longer-term attachment to the workforce. [68]

3.50 This view of improved employability has been supported by the findings of a recent survey of over 3300 employers. The survey found that nearly 60 percent of employers would be more willing to hire someone who had worked for the dole rather than someone who had spent the same period receiving only unemployment benefits. According to the survey even menial labour would instil a work ethic and develop a greater sense of self-worth in the unemployed. Workplace skills would flow from the scheme with the strongest advocate being the retail sector. [69]

 

Project selection

3.51 The scheme provides that the Departmental Secretary has the power to approve a program of work for unemployment payments. ACOSS, supported by AYPAC, recommended that `any structured program of unpaid work experience for job seekers should be selected via a strict set of transparent guidelines on the basis of its ability to increase the employment opportunities of job seekers'. [70] It was also suggested that such guidelines should be in two parts, one for potential participants and another for potential host organisations. [71]

3.52 Extensive lists of criteria for the selection of projects were proposed by ACOSS and Mission Australia. These criteria included:

3.53 The Salvation Army cautioned that, based on its extensive experience operating various broker type work experience programs, bureaucratic processes could impede the most disadvantaged job seekers getting access to programs `because of the specificity of contractual arrangements and overly prescriptive guidelines'. [73]

3.54 An issue which provided a range of views was how far into the community should the Work for the Dole scheme operate. Should it be restricted to community focused non-profit organisations or should it be allowed to expand into the private sector? ACOSS believed that any program of unpaid work experience should be restricted to the public and not-for-profit community sectors. [74] The Australian Council for Volunteering stressed that volunteers should only be placed in accredited not-for-profit organisations in support roles, to negate the possibility of exploitation. [75] ACCI agreed that the scheme should `involve community based organisations, not private businesses'. [76]

3.55 Conversely, the Youth Affairs Council of Victoria was concerned about `the capacity of placements organised by the welfare industry, or within the public sector to provide opportunities for young people to learn skills that will make them employable'. The YACVic recommended that placements should be predominantly targeted at private sector employers, arguing that `it is unlikely that placements located outside of private industry will lead to skills and experience which could guarantee employment opportunities which attract a market income'. [77]

3.56 The Shoalhaven Area Consultative Committee felt that no potential sponsor should be excluded from the scheme. The SACC believed that the scheme should be tested in the non private sector initially so as to fine tune it prior to any consideration for the extension into the private sector. [78]

3.57 DEETYA described for the Committee the process for project selection envisaged by the Government. Submissions would be publicly sought nationwide with proponents being required to submit fully costed submissions outlining their project, project placements and other project details. DEETYA confirmed that project sponsors would be responsible for supervision, essential training, any transportation costs to work sites, minor personal equipment and required clothing such as safety boots or clothing necessary for public contact situations. A primary test would be the benefit of the project to the wider community and not to a private sector interest. The criteria for project selection would include:

3.58 The Committee therefore believes that most, if not all, of the concerns raised by witnesses will be covered in the planned project selection process.

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Footnotes:

[40] Submission No.29, p.5 (ACV). The ACV provided additional information on the principles of volunteering and a copy of the `Manual of Standards for involving Volunteers'.

[41] Submission No.24, p.8; see also `Volunteering in Australia', ACOSS Paper No.74, April 1996, particularly Chapter 7 Volunteering as a Pathway to Paid Work, pp.91-101.

[42] Submission No.23, p.4 (DSS).

[43] Additional Information, 1 May 1997, p.6 (The Salvation Army).

[44] See for example Submission No.11, p.12-13 (ACSWC); Submission No.15, p.2 (YACVic); Submission No.19, p.3 (MET); Submission No.21, p.2 (NUS); Submission No.27, p.2 (AYPAC); Submission No.40, pp.2, 5 (ACTU).

[45] Submission No.20, (Anglicare). A copy of the letter is provided as Appendix 1 to the submission.

[46] Submission No.11, p.14 (ACSWC).

[47] Submission No.34, p.6 (DEETYA).

[48] Submission No.11, pp.18-19 (ACSWC); Submission No.17, p.1 (NEC); Submission No.22, p.4 (AYCWM); Transcript of Evidence 18.4.97, p.144 (MCC). See also Additional Information, 26 May 1997, Attachment C - Impact of voluntary and non-voluntary participation (DEETYA).

[49] Submission No.13, p.2 (ALGA).

[50] Submission No.33, p.5 (MCC).

[51] Submission No.7, p.4 (BUYT). A similar view was expressed by the CEO of National Skillshare, see Transcript of Evidence 18.4.97, p.152.

[52] Submission No.27, p.3 (AYPAC); see also Submission No.20, p.3 (Anglicare).

[53] Submission No.26, p.2 (WRC).

[54] Transcript of Evidence 18.4.97, p.140 (BSL); 28.4.97, p.190 (WRC) and p.217 (NCYLC).

[55] Transcript of Evidence 7.5.97, p.10 (DSS).

[56] Submission No.9, pp.1-2 (NQJB).

[57] Submission No.5, pp.2-3 (SACC).

[58] Submission No.31, p.2 (ACCI).

[59] Submission No.7, p.6 (BUYT); Submission No.11, p.12 (ACSWC); Submission No.15, pp.3-4 (YACVic); Submission No.20, p.4 (Anglicare); Submission No.24, pp.9-10 (ACOSS); Submission No.33, p.4 (MCC); Transcript of Evidence 28.4.97,.p.201 (UNIYA).

[60] Submission No.33, p.5 (MCC).

[61] Submission No.18, p.8 (The Salvation Army),

[62] Submission No.28, p.5 (Mission Australia).

[63] Transcript of Evidence 18.4.97, pp.160-161 (Mr T Ward, CPSU).

[64] Submission No.34, p.8 (DEETYA); see also Transcript of Evidence 7.5.97, p.3 (DEETYA).

[65] Submission No.34, p.10 (DEETYA).

[66] Transcript of Evidence 7.5.97, p.10 (DEETYA).

[67] Submission No.34, p.5 and Transcript of Evidence 7.5.97, p.10 (DEETYA).

[68] Transcript of Evidence 7.5.95, pp.3-4 (DEETYA).

[69] Morgan and Banks Job Index survey, reported in The Age, 7.5.97, p.A2.

[70] Submission No.24, p.17 (ACOSS); Submission No.27, p.6 (AYPAC).

[71] Submission No.7, pp.5-6 (BUYT).

[72] Submission No.24, pp.16-17 (ACOSS); Submission No.28, p.8 (Mission Australia).

[73] Submission No.18, p.3 (The Salvation Army).

[74] Submission No.24, p.17 (ACOSS).

[75] Submission No.29, p.8 (ACV).

[76] Submission No.31, p.2 (ACCI).

[77] Submission No.15, p.3 (YACVic).

[78] Submission No.5, p.3 (SACC).

[79] Submission No.34, pp.4, 7 and Transcript of Evidence 7.5.97, pp.4-5 (DEETYA).