Posts Tagged ‘Poundland’

End Workfare Now! Part 1

June 20, 2017

This is the text of another pamphlet I wrote a year or so ago against the highly exploitative workfare industry. As the pamphlet explains, workfare, or ‘welfare to work’, is the system that provides industry with cheap, unemployed temporary labour under the guise of getting the jobless back into work by giving them work experience. If the unemployed person refuses, he or she is thrown off benefit.

These temporary jobs go nowhere, and it’s been proven that the unemployed are actually far better off looking for jobs on their own than using workfare. And it’s very similar to other systems of supposed voluntary work and forced labour, such as the labour colonies set up in Britain in 1905, the Reichsarbeitsdienst in Nazi Germany, and the use of forced labour against the ‘arbeitscheu’ – the ‘workshy’, as well as the compulsory manual labour required of all citizens in Mao’s china during the Cultural Revolution, and the Gulags in Stalin’s Russia.

Mike over at Vox Political has blogged against it, so has Johnny Void and the Angry Yorkshireman of Another Angry Voice, and many other left-wing bloggers. It’s another squalid policy which New Labour and the Tories took over from Reagan and Bill Clinton.

Jeremy Corbyn has promised to get rid of the work capability tests. I hope also that under him, the Labour party will also get rid of this vile policy, so that big corporations like Poundland and supermarkets like Tesco’s will have to take on workers and pay them a decent wage, rather than exploiting desperate and jobless workers supplied by the Thatcherite corporate state.

End Workfare Now!

Workfare is one of the most exploitative aspects of the contemporary assault on the welfare state and the unemployed. It was advocated in the 1980s by the Republicans under Ronald Reagan in America, and in Britain by Thatcher’s Conservatives. In 1979 the Tory party ranted about the need to ‘restore the will to work’. Geoffrey Howe, the Chancellor of the Exchequer, declared that ‘The Government and the vast majority of the British people want hard work and initiative to be properly rewarded and are vexed by disincentives to work’. At its heart is the attitude that the unemployed should be forced to work for their benefits, as otherwise they are getting ‘something for nothing’. Very many bloggers and activists for the poor and unemployed, including Vox Political, Johnny Void, Another Angry Voice, and myself have denounced it as another form of slavery. It’s used to provide state-subsidised, cheap labour for big business and charities, including influential Tory donors like Sainsbury’s. And at times it crosses the line into true slavery. Under the sanctions system, an unemployed person is still required to perform workfare, even if the jobcentre has sanctioned them, so that they are not receiving benefits. Workfare recipients – or victims – have no control over where they are allocated or what jobs they do. The government was challenged in the courts by a geology graduate, who was forced to work in Poundland. The young woman stated that she did not object to performing unpaid work. She, however, had wanted to work in a museum, and if memory serves me correctly, had indeed got a place at one. She was, however, unable to take up her unpaid position there because of the Jobcentre’s insistence she labour for Poundland instead. A young man also sued the government, after he was sanctioned for his refusal to do 30 hours a week unpaid labour for six months for the Community Action Programme. The High and Appeal Courts ruled in the young people’s favour. They judged that the government had indeed acted illegally, as the law did not contain any stipulations for when and how such work was to be performed.

Iain Duncan Smith, the notorious head of the Department of Work and Pensions, was outraged. He called the decision ‘rubbish’ and said, ‘There are a group of people out there who think they are too good for this kind of stuff .. People who think it is their right take benefit and do nothing for it – those days are over.’ This is rich coming from IDS, who was taking over a million pounds in farm subsidies from the EU. Eventually, Smith got sick of the criticism he was taking for the government’s welfare policies, and flounced off early in 2016 moaning about how unfair it all was that he should get the blame, when the notorious Work Capability Tests inflicted on the elderly and disabled were introduced by New labour.

Those forced into workfare are in no sense free workers, and it similarly makes a nonsense of the pretense that this somehow constitutes ‘voluntary work’, as this has been presented by the government and some of the participating charities

The political scientist Guy Standing is also extremely critical of workfare in his book, A Precariat Charter, demanding its abolition and making a series of solid arguments against it. He states that it was first introduced in America by the Republicans in Wisconsin, and then expanded nationally to the rest of the US by Bill Clinton in his Personal Responsibility and Work Opportunity Reconciliation Act. It was part of his campaign to ‘end welfare as we know it’. Single parents receiving social assistance were required to take low-paying jobs after two years. Legislation was also passed barring people from receiving welfare payments for more than five years in their entire lives.

David Cameron, unsurprisingly, was also a fan of the Wisconsin system, and wanted to introduce it over here. In 2007 he made a speech to the Tory faithful at the party conference, proclaiming ‘We will say to people that if you are offered a job and it’s a fair job and one that you can do and you refuse it, you shouldn’t get any welfare.’ This became part of Coalition policy towards the unemployed when they took power after the 2010 elections.’ Two years later, in 2012, Boris Johnson, speaking as mayor of London, declared that he was going to use EU money from the Social Fund to force young adults between 18 and 24 to perform 13 weeks of labour without pay if they were unemployed. In June that year David Cameron also declared that there was a need to end ‘the nonsense of paying people more to stay at home than to get a job – and finally making sure that work really pays. Ed Miliband’s Labour party also joined in. Liam Byrne, the Shadow Secretary for Work and Pensions, declared that

Labour would ensure that no adult will be able to live on the dole for over two years and no young person for over a year. They will be offered a real job with real training, real prospects and real responsibility … People would have to take this responsibility or lose benefits.

This was echoed by Ed Balls, who said

A One Nation approach to welfare reform means government has a responsibility to help people into work and support for those who cannot. But those who can work must be required to take up jobs or lose benefits as such – no ifs or buts.

Forced Labour for the Unemployed in History

Standing traces the antecedents of workfare back to the English poor law of 1536 and the French Ordonnance de Moulins of twenty years later, which obliged unemployed vagabonds to accept any job that was offered them. He states that the direct ancestor is the 1834 Poor Law Amendment Act, the infamous legislation that, under the notion of ‘less eligibility’, stipulated that those receiving support were to be incarcerated in the workhouse, where conditions were deliberately made much harsher in order to deter people from seeking state
support, rather than paid work. This attitude is also reflected in contemporary attitudes that, in order to ‘make work pay’, have demanded that welfare support should be much less than that received for paid work. This has meant that welfare payments have become progressively less as the various measure to make the labour market more flexible – like zero hours contracts – drove down wages. The workhouse system was supplemented in 1905 by the Unemployed Workmen Act, supported, amongst others, by Winston Churchill. This directed unemployed young men into labour, so that they should not be ‘idle’ and be ‘under control’. Nor were leading members of the early Labour party averse to the use of force. Sidney and Beatrice Webb, two of the founders of the Fabian Society, were also in favour of sending the unemployed to ‘labour colonies’, chillingly close to the forced labour camps which became such as feature of the Nazi and Communist regimes. Weimar Germany in the 1920s and ’30s also developed a system of voluntary work to deal with the problems of mass unemployment. This was taken over by the Nazis and became compulsory for all Germans from 19-25 as the Reicharbeitsdienst, or Imperial Labour Service It was mainly used to supply labour for German agriculature. Because of its universal nature, the Reicharbeitsdienst had no stigma attached to it, and indeed was seen as part of the new, classless Germany that was being created by Hitler. In a speech to the Service’s workers, Hitler declared that there would be no leader, who had not worked his way up through their ranks. Much harsher was the Nazi’s treatment of the serially unemployed. They were declared arbeitscheu – the German word, which forms the basis of the English ‘workshy’. These individuals were sent to the concentration camps, where they were identified with a special badge on their pyjamas, just like those marking out Jews, gay men, Socialists and trade unionists, and so on.

Liam Byrne also harked back to the Webbs to support his argument for workfare as Labour party policy. He stated

If you go back to the Webb report, they were proposing detention colonies for people refusing to take work … All the way through our history there has been an insistence on the responsibility to work if you can. Labour shouldn’t be any different now. We have always been the party of the responsibility to work as well.

The Workfare Scheme

The result of this is that many unemployed people have been placed on the Mandatory Work Activity – MWA – scheme, which requires them to perform four weeks of unpaid work for a particular company, organisation or charity. The scheme also includes the disabled. Those now judged capable of performing some work are placed in the Work-Related Activity group, and required perform some unpaid labour in order to gain ‘experience’. If they do not do so, they may lose up to 70 per cent of their benefits.

This has created immense fear among the unemployed and disabled. Standing quotes one man with cerebral palsy, who was so afraid of being sanctioned for not performing the mandatory work, that he felt physically sick. Mental health professionals – psychiatrists and psychologists, have also released reports attacking the detrimental effect the stress of these tests are having on the mentally ill. So far they have estimated that upwards of a quarter of a million people with mental health problems such as depression and anxiety have had their condition made worse – sometimes very much worse – through the stress of taking these tests.

The system also affects those in low-paid part-time jobs or on zero hours contracts. These must prove that they are looking for more working hours or a better paid job. If they do not do so, they may lose benefits or tax credits. In 2013 the Tory-Lib Dem government made it even harder for people to claim tax credits by raising the number of working hours a week, for which tax credits could not be claimed, from 16 to 24.

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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

Guy Standing’s Arguments against Workfare: Part 1

August 8, 2016

Workfare is one of the most exploitative aspects of the contemporary assault on the welfare state and the unemployed. It was advocated in the 1980s by the Republicans under Ronald Reagan in America, and in Britain by Thatcher’s Conservatives. At its heart is the attitude that the unemployed should be forced to work for their benefits, as otherwise they are getting ‘something for nothing’. Very many bloggers and activists for the poor and unemployed, including Mike over at Vox Political, Johnny Void, the Angry Yorkshireman, and myself have denounced it as another form of slavery. It’s used to provide state-subsidised, cheap labour for big business and charities, including influential Tory donors like Sainsbury’s. And at times it crosses the line into true slavery. Under the sanctions system, an unemployed person is still required to perform workfare, even if the jobcentre has sanctioned them, so that they are not receiving benefits. Workfare recipients – or victims – have no control over where they are allocated or what jobs they do. The government was challenged in the courts by a geology graduate, who was forced to work in Poundland. The young woman stated that she did not object to performing unpaid work. She, however, had wanted to work in a museum, and if memory serves me correctly, had indeed got a place at one. She was, however, unable to take up her unpaid position there because of the Jobcentre’s insistence she labour for Poundland instead. A young man also sued the government, after he was sanctioned for his refusal to do 30 hours a week unpaid labour for six months for the Community Action Programme. The High and Appeal Courts ruled in the young people’s favour. They judged that the government had indeed acted illegally, as the law did not contain any stipulations for when and how such work was to be performed.

Iain Duncan Smith, the notorious head of the Department of Work and Pensions, was outraged. He called the decision ‘rubbish’ and said, ‘There are a group of people out there who think they are too good for this kind of stuff .. People who think it is their right take benefit and do nothing for it – those days are over.’ This is rich coming from IDS, who was taking over a million pounds in farm subsidies from the EU. Eventually, Smith got sick of the criticism he was taking for the government’s welfare policies, and flounced off early in 2016 moaning about how unfair it all was that he should get the blame, when the notorious Work Capability Tests inflicted on the elderly and disabled were introduced by New labour.

They are in no sense free workers, and it similarly makes a nonsense of the pretense that this somehow constitutes ‘voluntary work’, as this has been presented by the government and some of the participating charities.

The political scientist Guy Standing is also extremely critical of workfare in his book, A Precariat Charter, demanding its abolition and making a series of solid arguments against it. He states that it was first introduced in America by the Republicans in Wisconsin, and then expanded nationally to the rest of the US by Bill Clinton in his Personal Responsibility and Work Opportunity Reconciliation Act. It was part of his campaign to ‘end welfare as we know it’. Single parents receiving social assistance were required to take low-paying jobs after two years. Legislation was also passed barring people from receiving welfare payments for more than five years in their entire lives.

David Cameron, unsurprisingly, was also a fan of the Wisconsin system, and wanted to introduce it over here. In 2007 he made a speech to the Tory faithful at the party conference, proclaiming ‘We will say to people that if you are offered a job and it’s a fair job and one that you can do and you refuse it, you shouldn’t get any welfare.’ This became part of Coalition policy towards the unemployed when they took power after the 2010 elections. Two years later, in 2012, Boris Johnson, speaking as mayor of London, declared that he was going to use EU money from the Social Fund to force young adults between 18 and 24 to perform 13 weeks of labour without pay if they were unemployed.

Ed Miliband’s Labour party also joined in. Liam Byrne, the Shadow Secretary for Work and Pensions, declared that

Labour would ensure that no adult will be able to live on the dole for over two years and no young person for over a year. They will be offered a real job with real training, real prospects and real responsibility … People would have to take this responsibility or lose benefits.

This was echoed by Ed Balls, who said

A One Nation approach to welfare reform means government has a responsibility to help people into work and support for those who cannot. But those who can work must be required to take up jobs or lose benefits as such – no ifs or buts.

Standing traces the antecedents of workfare back to the English poor law of 1536 and the French Ordonnance de Moulins of twenty years later, which obliged unemployed vagabonds to accept any job that was offered them. He states that the direct ancestor is the 1834 Poor Law Amendment Act, the infamous legislation that, under the notion of ‘less eligibility’, stipulated that those receiving support were to be incarcerated in the workhouse, where conditions were deliberately made much harsher in order to deter people from seeking state support, rather than paid work. This attitude is also reflected in contemporary attitudes that, in order to ‘make work pay’, have demanded that welfare support should be much less than that received for paid work. This has meant that welfare payments have become progressively less as the various measure to make the labour market more flexible – like zero hours contracts – drove down wages. The workhouse system was supplemented in 1905 by the Unemployed Workmen Act, supported, amongst others, by Winston Churchill. This directed unemployed young men into labour, so that they should not be ‘idle’ and be ‘under control’. Nor were leading members of the early Labour party averse to the use of force. Sidney and Beatrice Webb, two of the founders of the Fabian Society, were also in favour of sending the unemployed to ‘labour colonies’, chillingly close to the forced labour camps which became such as feature of the Nazi and Communist regimes. Liam Byrne also harked back to the Webbs to support his argument for workfare as Labour party policy. He stated

If you go back to the Webb report, they were proposing detention colonies for people refusing to take work … All the way through our history there has been an insistence on the responsibility to work if you can. Labour shouldn’t be any different now. We have always been the party of the responsibility to work as well.

The result of this is that many unemployed people have been placed on the Mandatory Work Activity – MWA – scheme, which requires them to perform four weeks of unpaid work for a particular company, organisation or charity. The scheme also includes the disabled. Those now judged capable of performing some work are placed in the Work-Related Activity group, and required perform some unpaid labour in order to gain ‘experience’. If they do not do so, they may lose up to 70 per cent of their benefits.

This has created immense fear among the unemployed and disabled. Standing quotes one man with cerebral palsy, who was so afraid of being sanctioned for not performing the mandatory work, that he felt physically sick.

The system also affects those in low-paid part-time jobs or on zero hours contracts. These must prove that they are looking for more working hours or a better paid job. If they do not do so, they may lose benefits or tax credits. In 2013 the Tory-Lib Dem government made it even harder for people to claim tax credits by raising the number of working hours a week, for which tax credits could not be claimed, from 16 to 24.

Guy Standing’s Arguments against Workfare: Part 3

August 8, 2016

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.

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.

Personal Stories from Boycott Workfare

April 20, 2016

The anti-workfare organisation, Boycott Workfare, has posted some of the stories of people, who’ve been exploited by it over at their website. These include workers for the supermarkets, who were kept slaving away then asked it they would stay on and work for them a while longer. All on workfare, of course. One of the other stories is from ‘Karina’, a British citizen of Bangladeshi origin, who was forced to give up her English course in order take up her ‘work placement’. If she refused, she would lose her benefit. So much for Dave Cameron’s concern to make sure immigrants learn English as part of his programme to prevent social isolation and the growth of Islamist radicalism. It obviously doesn’t apply when there’s yet another high street store demanding more cheap drudge labour. And it goes on to include non-existent health and safety supervision on site, highly qualified and motivated individuals being given menial tasks as general dog’s bodies, and single parents being given absolutely no proper working hours to suit their commitments to their family. The article begins:

Tescos: “Why would we pay you when we can pick up the phone and get more unemployed people who have to work for free?”

The following account was posted in the comments section of the Guardian website:
I personally know a fifty-six year old man who worked at Tesco for 40 hrs a week for 6 weeks for no pay. He said he was given the worst job, constantly filling freezers in the hope he would be taken on. After the 6 weeks were up the manager asked him if he would like to stay on for some extra weeks, my friend asked “with pay”? The manager said why would he pay him when he can pick the phone up and get more unemployed people who have to work for nothing of face sanctions meaning loss of ALL benefits for up to three years!

My friend wasn’t alone, he was part of twelve extra staff taken on to cover the xmas rush, no one was given a job at the end of the xmas period.

He told me they had all worked really hard and were gutted they were abused in such a way. The worst was one day he had to throw out lots of food one day over the use by date. He asked the manager if he could take some home as he was having to eat more due to being active all day. The manager refused saying if he gave him free food he wouldn’t come through the front door and buy it!

I swear I will never shop at Tesco ever again.

Asda sending paid staff home

Read one young person’s account of workfare at Asda over Christmas 2011 here.

Poundland exploitation

“Poundland takes on disabled people in a deal with Dwp via mickey mouse scheme. The claimant only works for 4 weeks including anti-social hours, stacking . The claimant is told at the beginning me the placement that there will be no job. My friend finished his placement and was immediately replaced at another disabled person. This is exploitation. ”

Primark and British Heart Foundation

“Karina” is 24 years old and lives in East London. She is a British citizen, originally from Bangladesh. She is currently looking for work and studying to improve her English. She worked without pay in a Primark store for nearly six months on a work placement in 2009, organised by the Jobcentre and the “provider” company administering the previous government’s Flexible New Deal programme.
How long were you claiming [unemployment benefit] before you had to volunteer at Primark?

Not long. March 2009 was my first claim. The placement was seven months after. [Before that] I was going to college [to learn English]. I paid £50 for it. Then when I went to the job centre they told me: “Now it’s the New Deal. You’re going to a placement”. I told them my English was not good but they said: “It doesn’t matter, you have to go. If you’re not going, we’ll stop your money.” They told me they would stop my JSA [Job Seekers Allowance] so I stopped my English course.

The first [placement] was with the British Heart Foundation. I worked from 9 or 9.30am to 4.30pm with a half hour break. I did everything. I went for one week and the manager was so rude. One day she ate something and left so much mess in the kitchen. Then she says to me: “Karina, you wash up.” The first time I didn’t say anything. I was scared they would stop my money.

When I went to [the New Deal provider company] I told the woman but she didn’t believe it. The clothes were dusty and I have an allergic problem so I went to the doctor and he wrote a letter. I gave the letters to [the New Deal provider] woman and she told me she found another placement for me at Primark.

The Jobcentre paid travel money but no lunch. I worked three days a week, 10am to 4.30pm or 5pm with one half hour break. [Primark] don’t pay any money. It was nearly six months, from January to June. When I finished the placement I took my CV and I asked the managers if they had any vacancies. They said: “Not yet – we’ll call you when we do.” I haven’t had a call.

This is the reality of workfare, not the rosy-painted picture given by New Labour and the Tories, who claim that it’s all about getting people back into work, while the reality is that it’s about supplying cheap labour to their corporate paymasters. At the same time, they also hope to get votes from the embittered, rage-filled types, who read the Daily Mail, Scum and Express, and who rant about how there are jobs out there, but the unemployed are too lazy and well-paid on benefits to look for work.

The article can be read at: http://www.boycottworkfare.org/claimants-stories/.