In addition to demolishing the government’s arguments in favour of workfare, Standing also provides a series of further arguments against it. These are that the jobs created through workfare aren’t real jobs; workfare is unjust in its treatment of the unemployed; it stops the unemployed actually looking for jobs for themselves; it lowers their income over their lifetime; it also acts to keep wages down; it keeps the people, who should be working at those jobs out of work; it’s a dangerous extension of the power of the state; and finally, it’s a gigantic scam which only benefits the welfare-to-work firms.
Workfare and Real Jobs
According to the ideas of the market economy developed by the pioneer of free trade, the 18th century philosopher Adam Smith, workfare jobs don’t actually constitute real jobs. Smith believed that the market would actually produce higher wages to entice people into performing unpleasant jobs. On this reasoning, if workfare jobs were real jobs, then they would have a definite economic value. They would be created through the operation of the market, and the workers in them would also be paid proper wages for performing them.
There are also moral problems in the definition of what constitutes a ‘real job’ that someone on workfare should have to perform. If it is defined as one paying the minimum wage, then workfare is immoral as it puts downward pressure on the wages and conditions of the people already performing those jobs, forcing them into poverty. If those ‘real jobs’ are defined as those which are dirty, dangerous, undignified or stigmatizing, and so unpopular, they would have the opposite effect of what the advocates of workfare claim – that they are encouraging people to find work.
The solution for progressive is to make the labour market act like it is supposed to act, rather than it actually does in practice. Adam Smith was quite wrong about wages adjusting upwards for unpopular jobs in a market economy. The wages provided for work should match both supply and demand, and people should not be made into commodities as workers. They should have enough economic support to be able to refuse jobs they don’t want. Instead of assuming that people need to be forced to work, there should be the presumption instead that most people actually do. It is arbitrary and ultimately demeaning for all concerned to try to identify people who are somehow ‘undeserving’. Genuine supporters of equality should want the wages in unpleasant jobs to rise, until there is a genuine supply of willing labour.
Workfare Is Unjust
Workfare unfairly penalises the unemployed. For example, in 2011 the ConDem government made the conditions imposed on benefit claimants and the penalties for avoidance under the Labour government’s New Deal even more stringent. Those performing workfare were required to work for up to thirty hours a week for 28 days. The work performed was to be that which benefited the community. Taken as wages, this meant that claimants were working at a rate of £2.50 an hour, well below the minimum wage. If they turned the job down, or didn’t complete the course of mandatory labour, they had their benefits sanctioned for three months. This was increased to six if they repeated the ‘transgression’. This is unjust, because no-one else in society is expected to work for the minimum wage except convicts in prison.
It’s also unjust in that it makes the economically insecure even more so, and takes away the way long-accepted social right to refuse to work. At the same time, it gives power over the unemployed to the state’s bureaucrats and the private outsourcing companies. Also, forced labour is offensive against human dignity and does not lead to increased person development.
Workfare Stops People Looking for Jobs
Spending thirty hours a week on workfare actually cuts down on the available time the unemployed are able to spend looking for work. P.A. Gregg, in their book Job Guarantee: Evidence and Design (Bristol: Bristol University Centre for Market and Public Organisation 2009) actually found that because of this, workfare actually stopped people from getting jobs.
Lowering Incomes over Life
Workfare is also unjust, as instead of giving people the ability to acquire a career, or jobs leading to one, it may instead lower their long-term income by keeping them in a series of low-paid, temporary work. People should have the right to decide for themselves which jobs to take and what they should do when it affects their long term prospects. If the state instead forces them to take a certain course, then it should also be required to compensate them if the course demanded is the wrong one.
Workfare Keeps Wages Low
By forcing people to take low-paid jobs, and making this a threat to force other workers also to take jobs that pay less than they would otherwise take, workfare leads to lower wages. The Labour Party in the UK declared that it was in favour of a ‘national living wage’ above the minimum. However, it then contradicted this intention by stating that those performing workfare would do so at the minimum wage. The Labour party may have meant this to stop those on workfare competing with those in paid employment, though MPs like Liam Byrne have shown themselves to be every bit as spiteful and punitive in their treatment of the unemployed as the Tories. In any case, this policy still puts on pressure to force wages downwards.
For there to be a genuine living wage, politicians should increase and strengthen the ability of the unemployed to bargain for higher wages. It is only when workers really have an effective ability to bargain that employers are either forced to pay a living wage, or decide that the job is unnecessary and the potential productivity too low. Standing concludes from this that ‘The reality is that the utilitarian mindset does not care about the precariat’.
Workfare Labour Replaces Genuine Workers
If the jobs performed under workfare were genuine and productive, it would be unfair to workers in those jobs, and to the short-term unemployed, as the government-subsidized labourers supplied under workfare would replace existing workers, or stop them hiring other unemployed people. In 2011 Tesco collaborated with the Jobcentres to create 3,000 unpaid placements for those on workfare, who would work for the company for four weeks. Homebase and Asda were also keen to use such unpaid labour. As was Poundland, which also announced that it was taking on benefit claimants, though it denied that this would affect their existing recruiting activity. Whatever those companies said, clearly their use of cheap workfare labour was replacing paid workers and stopping the unemployed from getting permanent jobs with those companies.
Tags: 'A Precariat Charter', Adam Smith, ASDA, Benefit Sanctions, Coalition, Conservatives, Forced Labour, Free Market, Guy Standing, Homebase, Job Guarantee: Evidence and Design, Jobs, Labour Party, Liam Byrne, Lib Dem, Minimum Wage, MPs, National Living Wage, New Deal, P.A. Gregg, Poundland, Prisons, Tesco, Wage Bargaining, Workfare