Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Families, Housing, Community Services and Indigenous Affairs, Senator Arbib. Last week the Federal Court ruled that the Business Service Wage Assessment Tool, which is used by Australian Disability Enterprises that are funded by the federal government to set the wages of intellectually disabled workers, does not breach anti-discrimination laws. This is despite the fact that the BSWAT tests disabled workers only of their knowledge of workplace health and safety practices, not how well they do their jobs. Further, other employers of disabled workers use a different test, which also considers disabled workers' productivity and therefore results in higher wage rates. Does the government think it reasonable and truly non-discriminatory that, under the BSWAT, workers who are intellectually disabled are paid as little as $1 an hour?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

I thank Senator Xenophon for his question and for his interest in this area. This is a government that has stood for jobs. We support jobs at all levels and believe in the dignity and great purpose of work. We believe all Australians should have access to employment, and that goes for people with a disability.

Australian Disability Enterprises give people with moderate to severe disability the chance to participate in work, to meet new friends and to become more financially independent. Australian Disability Enterprises are competitive businesses, partly funded by the Australian government and employing around 20,000 people. People with a disability who are working in Australian Disability Enterprises need high levels of support to do their jobs. Most of these workers would also be receiving some sort of social security payment, largely through the disability support pension.

I will give you a bit of history on the issue. When supported employment through Australian Disability Enterprises was brought into the industrial relations system in 2003 the Business Services Wage Assessment Tool was developed for use in Australian Disability Enterprises. Earlier this month, as Senator Xenophon mentioned, the Federal Court found that the tool was not discriminatory under the Disability Discrimination Act in its application to two employees in Australian Disability Enterprises. The Federal Court found that the determination of wage levels for employees in ADEs by a method involving assessment of competencies is appropriate. The Federal Court dismissed the case brought by these employees against the Australian Disability Enterprises they worked for and against the Commonwealth.

I should also make the point that this case went through the Australian Human Rights Commission before it reached the Federal Court. In handing down its decision the Federal Court noted that the Business Services Wage Assessment Tool has also been endorsed by the— (Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Only Australian Disability Enterprises that are funded in part by the federal government use the Business Services Wage Assessment Tool. Given that this means that some intellectually disabled workers are being paid as little as $1 per hour, will the government implement the supported wage system that other employers of disabled people use and which pays more, appropriately based on productivity?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

To assist Senator Xenophon, I should also note that the government is presently considering the judgment from the case. In relation to the supported wage system used in open employment, the Federal Court found significant contrast between Australian Disability Enterprises, some of which use the Business Services Wage Assessment Tool, and open employment. With open employment, employers are able to choose the people they employ. Australian Disability Enterprises have limited scope to choose which employees to accept. The Federal Court also found that Australian Disability Enterprises are required to provide an increased level of supervision, with a consequent increase in costs. The court concluded that it was reasonable for Australian Disability Enterprises to use an assessment tool like the Business Services Assessment Tool.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Does the government accept that the Business Services Wage Assessment Tool asks these workers questions about workplace health and safety that, in reality, few non-disabled workers could answer? How is this not discriminatory? Why shouldn't wages also be set according to productivity?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

My understanding is that the Federal Court has examined the issue in relation to discrimination. I do not have the detail Senator Xenophon has asked for at hand. I would say, though, that the government is committed to improving supported employment for people with disability through Australian Disability Enterprises. We are working with disability advocates and with Australian Disability Enterprises to develop a 10-year vision for supported employment. This will work towards improving access for people with disability who need supported employment, improving the experiences of people with disability in supported employment and strengthening Australian Disability Enterprises as progressive and sustainable commercial enterprises that provide inclusive supported employment.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.