Posts Tagged ‘Employment Related Services Association’

End Workfare Now: Part 3

June 20, 2017

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 personal 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.

Workfare Extends State Power

When the High and Appeal Courts upheld the challenge to performing mandatory workfare by the geology graduate, who objected to having to work in Poundland, and a young chap, who had been sanctioned for refusing it, the Condem government responded by rushing through emergency legislation making the refusal to perform workfare punishable by sanctions. The procedure in which the legislation was rushed through parliament was supposed to be use only in national emergencies. The legislation further contravened accepted notions of justice, in that it acted retrospectively. That is, it punished actions committed before the laws against them had been passed, an idea that strikes at the very notion of justice enshrined across the world in human rights laws. The Labour party, which should have opposed this motion, didn’t. They abstained, and members of the Shadow Cabinet were told that if they voted against the motion, they would have to resign. This demonstrates just how deeply workfare had become embedded as the official ideology of the state and the main parties.

Welfare-to-Work as Corporate Scam

The private companies administering workfare, such as A4E and Ingeus, have profited immensely from this new, growth industry in unfree labour. They are paid £13,500 for every person they manage to put in a long term job. If the job is only short-term, then they receive only half that amount. There is thus considerable pressure for them to choose only those most likely to obtain long term employment, and thus discriminate against vulnerable minorities, including the disabled. The Employment Related Services Association, the trade body for the welfare-to-work industry, complained that more of the people being referred to these companies were those with disabilities, who had been judged ‘fit for work’ according to the tests imposed for the Employment and Support Allowance awarded to the disabled to help them maintain their independence.

The workfare companies also have wide powers in deciding which ‘work placements’ to put people on, and what counts as ‘community benefit’. The DWP permits them to place workers in private companies if this is considered to benefit those firms’ local communities. For a long time the DWP has refused to publish the information on the allocation of workfare labourers to private firms. The government flatly refused to reveal the identities of the participating firms on the grounds that if they did so, the scheme would fail due to public pressure forcing them to drop out. A list of the firms involved has recently been released after a series of Freedom Of Information Act requests. The two largest workfare contractors also refused to comment, when they were asked if they were forcing the workers contracted to them to work for private companies.

Additionally, many of the private companies administering the scheme are run by, or have links to, politicians, which is symptomatic of the general corporate corruption of parliament and the revolving door between corporations, MPs and senior civil servants. Tomorrow’s People, the charity that became notorious for stranding the workfare labourers it had employed for the Queen’s Diamond Jubilee under London Bridge, where they were forced to sleep, was run by a Conservative peer.

Conclusion: End Workfare Forced Labour

Workfare is thus highly exploitative, and should be banned. It is the thin edge of a wedge leading to the increasing use of force against the poor and unemployed. One staff member from the Citizens’ Advice Bureaux described the situation to Standing thus

The boundaries of the acceptable are being pushed further in the direction of unfree labour. We’ve been here before – breaking stones in return for food during the Irish famine, and similar schemes in 16th & 17th century England, the difference being that technology means peoples’ activity can be monitored more and informal economy lifelines are being pushed further underground. I was talking with a colleague who has picked up growth of prostitution as one means of survival. I don’t know what it would take to break us (society, whatever that means) out of apathy to make protests against what we’re doing to ourselves.

Standing also makes a very apt point, directed at those members of the Left, who refuse to take a stand on it, fearing that it would damage their parties’ chances of winning elections. He states

It is a moralistic policy that should be passionately opposed by every liberal and progressive. If doing so puts political success at risk, so be it. Values matter.

This looks like a dig at Blairite New Labour, which has consistently abstained on the workfare issue instead of firmly opposing it. The Blairites based New Labour’s electoral success on appealing to swing voters, and not challenging Tory policy, except on the grounds that they could administer it more efficiently and were more concerned with social justice. The latter view is particularly specious, as in many cases New Labour went much further in its austerity and privatisation programmes than the Tories. It’s a concern that still motivates the Blairites in their repeated campaigns against the Labour leader, Jeremy Corbyn. And it’s not an excuse for failing to tackle this new form of forced labour, a system that is slowly edging towards real slavery.

Bibliography

Alexander Berkman, ‘Lazy Men and Dirty Work’, in George Woodcock, ed., The Anarchist Reader (Fontana Press: 1986) 334-338.

Alex DeJonge, Stalin and the Shaping of the Soviet Union (Fontana/Collins 1986) 270-2.

‘Miss World and Mrs Mao’ in Clive James, The Crystal Bucket (Picador: 1982) 232-4.

Guy Standing, A Precariat Charter: From Denizens to Citizens (London: Bloomsbury 2014) 262-79.

‘Labour Service (Reicharbeitsdienst – RAD)’ in James Taylor and Warren Shaw, A Dictionary of the Third Reich (London: Grafton Books 1988) 213.

‘Unemployment’ in James Taylor and Warren Shaw, A Dictionary of the Third Reich (London

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Guy Standing’s Arguments against Workfare: Part 4

August 8, 2016

Workfare Extends State Power

When the High and Appeal Courts upheld the challenge to performing mandatory workfare by the geology graduate, who objected to having to work in Poundland, and a young chap, who had been sanctioned for refusing it, the Condem government responded by rushing through emergency legislation making the refusal to perform workfare punishable by sanctions. The procedure in which the legislation was rushed through parliament was supposed to be use only in national emergencies. The legislation further contravened accepted notions of justice, in that it acted retrospectively. That is, it punished actions committed before the laws against them had been passed, an idea that strikes at the very notion of justice enshrined across the world in human rights laws. The Labour party, which should have opposed this motion, didn’t. They abstained, and members of the Shadow Cabinet were told that if they voted against the motion, they would have to resign. This demonstrates just how deeply workfare had become embedded as the official ideology of the state and the main parties.

Welfare-to-Work as Corporate Scam

The private companies administering workfare, such as A4E and Ingeus, have profited immensely from this new, growth industry in unfree labour. They are paid £13,500 for every person they manage to put in a long term job. If the job is only short-term, then they receive only half that amount. There is thus considerable pressure for them to choose only those most likely to obtain long term employment, and thus discriminate against vulnerable minorities, including the disabled. The Employment Related Services Association, the trade body for the welfare-to-work industry, complained that more of the people being referred to these companies were those with disabilities, who had been judged ‘fit for work’ according to the tests imposed for the Employment and Support Allowance awarded to the disabled to help them maintain their independence.

The workfare companies also have wide powers in deciding which ‘work placements’ to put people on, and what counts as ‘community benefit’. The DWP permits them to place workers in private companies if this is considered to benefit those firms’ local communities. For a long time the DWP has refused to publish the information on the allocation of workfare labourers to private firms. The government flatly refused to reveal the identities of the participating firms on the grounds that if they did so, the scheme would fail due to public pressure forcing them to drop out. A list of the firms involved has recently been released after a series of Freedom Of Information Act requests. The two largest workfare contractors also refused to comment, when they were asked if they were forcing the workers contracted to them to work for private companies.

Additionally, many of the private companies administering the scheme are run by, or have links to, politicians, which is symptomatic of the general corporate corruption of parliament and the revolving door between corporations, MPs and senior civil servants. Tomorrow’s People, the charity that became notorious for stranding the workfare labourers it had employed for the Queen’s Diamond Jubilee under London Bridge, where they were forced to sleep, was run by a Conservative peer.

Conclusion: End Workfare Forced Labour

Workfare is thus highly exploitative, and should be banned. It is the thin edge of a wedge leading to the increasing use of force against the poor and unemployed. One staff member from the Citizens’ Advice Bureaux described the situation to Standing thus

The boundaries of the acceptable are being pushed further in the direction of unfree labour. We’ve been here before – breaking stones in return for food during the Irish famine, and similar schemes in 16th & 17th century England, the difference being that technology means peoples’ activity can be monitored more and informal economy lifelines are being pushed further underground. I was talking with a colleague who has picked up growth of prostitution as one means of survival. I don’t know what it would take to break us (society, whatever that means) out of apathy to make protests against what we’re doing to ourselves.

Standing also makes a very apt point, directed at those members of the Left, who refuse to take a stand on it, fearing that it would damage their parties’ chances of winning elections. He states

It is a moralistic policy that should be passionately opposed by every liberal and progressive. If doing so puts political success at risk, so be it. Values matter.

This looks like a dig at Blairite New Labour, which has consistently abstained on the workfare issue instead of firmly opposing it. The Blairites based New Labour’s electoral success on appealing to swing voters, and not challenging Tory policy, except on the grounds that they could administer it more efficiently and were more concerned with social justice. The latter view is particularly specious, as in many cases New Labour went much further in its austerity and privatisation programmes than the Tories. It’s a concern that still motivates the Blairites in their repeated campaigns against the Labour leader, Jeremy Corbyn. And it’s not an excuse for failing to tackle this new form of forced labour, a system that is slowly edging towards real slavery.

From 2013: Private Eye on the Government Doctoring Workfare Stats

March 22, 2015

As numerous left-wing bloggers have pointed out, the government’s welfare-to-work programme has been a disaster from the start. Johnny Void in particular has repeatedly pointed out how you are actually more likely to get a job using your own initiative, than if you are one of the hundreds of thousands of unfortunates pressganged into workfare. I’ve posted up several pieces from Private Eye supporting this, and showing that the workfare sector can only succeed and make a profit through continual bail-outs. In some cases, employees for the workfare companies have even been reduced to committing fraud by falsifying the names and details of claimants, who have found work through the system.

In their issue for the 19th April – 2nd May 2013, Private Eye carried this story reporting how the government itself was falsifying the statistics in order to present workfare not as an appalling shambles, but as a success. The story ran

Emails between employment minister Mark Hoban and lobbyists representing Work Programme contractors reveal how the coalition tried to massage the pisspoor results of its welfare-to-work initiative last year “for public consumption.”

The correspondence, released to Private Eye, under freedom of information rules, show that Hoban pushed for “simple” figures to be publicised instead of the grim official statistics – a pattern likely to be repeated when the Department for Work and Pensions (DWP) releases more Work Programme results next month.

The first figures, released in November, sowed that firms like A4e were not meeting minimum performance levels. The DWP had estimated that 5.5 percent of the unemployed would find jobs without the programme; and as no workfare firm has exceeded this, performance was thus worse than useless.

Hoban responded by meeting Kirsty McHugh, head of the Employment Related Services Association (ERSA), which lobbies for A4e, Working Links and others who are paid to get the jobless off benefits and into work. She told Hoban: “On performance overall, I think it is really important that both the industry and the department are robust in terms of defending the Work Programme as much as we can.”

Instead of castigating failing contractors, Hoban agreed and emailed McHugh to thank her for “discussion around the November publication and the simplicity of messages required for public consumption”. He told her he was keen on the ERSA figure of “200,000 Job entries” which, he said, would be “much more understandable to the media/public than discussion around Job Outcomes.”

This “simple figure” was misleading, however. Official “job outcomes” numbers show the proportion of the unemployed who find and keep jobs via the Work Programme. Baldly stating that 200,000 people started jobs means little without counting the far larger official number who did not start or hold on to a job.

Hoban preferred to push unofficial industry figures over official ones, however, and set up teleconferences and meetings between ERSA and the DWP press office. The emails also suggest he considered simply ignoring the contractors’ failure to meet minimum performance levels. But McHugh wasn’t so sure. She emailed Hoban to say: “On Minimum Performance Levels we absolutely take the points made by the department of these. However, our view is that the existence of Minimum Performance Levels are in the public arena and we need to prepare for questions around them.” In the event she was right. Hoban’s official DWP press release avoided all mention of minimum performance failure – but this damning statistic still grabbed the headlines.

It really isn’t surprising any more that Hoban should prefer to publish industry spin, rather than any kind of objective assessment. The Tories see themselves as the party of business, to the near absolute exclusion of any other concerns. Furthermore, all the parties have developed almost symbiotic links with the major government contractors. Private firms, like the big accountants, send staff to help the political parties formulate policy. They sponsor the party political conferences, and then afterwards offer politicians and senior civil servants well-paid seats on their boards. Hoban was probably thinking of this, when he went off to get McHugh’s advice.

And massaging statistics seems to be second nature to the Tories. Mike and the other left-wing bloggers have in vain tried to get the figures for the number of people, who have died after being assessed as fit for work under the Work Capability Assessment, from the DWP under the Freedom of Information Act. The DWP have repeatedly turned this down, often under the most spurious claims. They have also released completely different sets of figures on similar issues, but subtly different, in order to present the situation as being much better than it actually is.

This is a mendacious government, which has been lying almost since before Cameron was elected. It’s high time it was gone.