Sheltered workshops are often called Australian Disability Enterprises or ADEs. In Australia, employees with intellectual disabilities make up 75% of the ADE workforce. The Australian Disability Enterprise (ADE) sector in Australia generally has its roots in the early 1950s when families of people with disabilities established sheltered workshops to provide vocational activity for people with disability. At this time employment opportunities for people with disability were extremely limited.
In 1986, following the passage of the Commonwealth Disability Services Act (1986), Australia transitioned from the sheltered workshop system to the new model prioritizing employment for people with disabilities. In 1996, additional reforms were introduced for the purpose of improving service quality, matching service funding to the support needs of people with disability receiving assistance, and to link funding to employment outcomes. This led to a reform agenda in the ADE sector, with the introduction of legislated Quality Assurance standards that required ADEs to obtain independent verification of their compliance to these prior to receiving ongoing funding from the Australian Government. Additionally, a funding model that links payments to individual support needs was introduced.
In some ADEs individuals are paid as little as $1.79 an hour, based on the BSWAT (Business Services Wage Assessment Tool), which was found to be discriminatory in 2013, to be phased out by April 2015. Wages are based on a percentage of award rates, according to the workplace competencies and productivity of the person with a disability in comparison to a worker without a disability.
Following on from the court challenge on the discriminatory nature of the BSWAT, a large percentage of parents and employees of ADEs (along with the relevant Peak Body, National Disability Services) began a campaign to ensure their jobs were protected. Many raised the point that ADEs are not typical workplaces and provide significantly more support and opportunities than open employment workplaces. These parents, carers and Employees were concerned that if ADEs were forced to pay full livable award wages for employees with a disability, many would be financially unsustainable. An episode of the ABC's Background Briefing in September 2014 stated that ADE's either barely make a profit or operate at a loss, and have to compete with low wage labor in other countries, which makes some people concerned that requiring them to pay higher wages will make those they employ unemployed, and unable to enjoy the many non-wage benefits of work like friendships and a sense of societal contribution.
Sheltered workshops are a common form of employment provision for people with disabilities across Europe where their disabilities create barriers to accessing the open labour market. Traditional sheltered workshops offer long-term or permanent employment for people with disabilities whereas transitional sheltered workshops aim to develop workers' skills so that they can access non-sheltered employment in other workplaces. Government procurement law in the European Union makes special provision for contracting with sheltered workshops for the supply of goods and services to public authorities. Germany's federal decree on contracts for workshops for the disabled (10 May 2005) requires German federal contracting authorities to set aside part of their budgets for contracts which can be awarded to workshops for workers with disabilities.
In the U.K., the Disabled Persons (Employment) Act of 1944 founded a company primarily to help returning veterans return to work called Remploy. Remploy founded factories across the United Kingdom. In 1986, 55,000 disabled people had been employed in the factories at some point. However, the UK moved towards mainstream employment, rather than sheltered workshops. By 2013, all Remploy factories were closed.
On a national level, Congressional legislation that would phase out subminimum wages has been proposed multiple times unsuccessfully. Most recently, the Transformation to Competitive Integrated Employment Act (TCIEA) was introduced in 2021.
May-Simera, Charlotte (2018). "Reconsidering Sheltered Workshops in Light of the United Nations Convention on the Rights of Persons with Disabilities (2006)". Laws. 7: 6. doi:10.3390/laws7010006. https://www.researchgate.net/publication/322943659
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"Wage Justice Campaign - People with Disability Australia". pwd.org.au. 13 November 2018. https://pwd.org.au/wage-justice-campaign/
"Australian Disability Enterprises | Australian Government Department of Social Services". Archived from the original on 2015-03-27. Retrieved 2015-03-23. https://web.archive.org/web/20150327022439/https://www.dss.gov.au/our-responsibilities/disability-and-carers/program-services/for-service-providers/australian-disability-enterprises
"Australian Disability Enterprises | Australian Government Department of Social Services". Archived from the original on 2015-03-27. Retrieved 2015-03-23. https://web.archive.org/web/20150327022439/https://www.dss.gov.au/our-responsibilities/disability-and-carers/program-services/for-service-providers/australian-disability-enterprises
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"BuyAbility Social Enterprises - Social Procurement Specialists". BuyAbility. https://buyability.org.au/
"What's fair pay for people with intellectual disabilities?". Australian Broadcasting Corporation. 11 December 2013. There are 194 Australian Disability Enterprises or ADEs. The work they do—everything from packing boxes and mowing lawns, to washing sheets and preparing frozen meals—generates more than $730 million each year. More than half of the ADEs make a loss each year, however. Many of the rest barely break even. ... Disability enterprises are competing in very tough markets. They're not-for-profit organisations established specifically to employ people with severe disability, usually intellectual disability, and they're competing with low wage economies overseas. They're barely breaking even, often they're making a loss so you know they're struggling to have the capacity to pay higher wages.' ... Some of them, their productivity really is very low. Their disability is very severe, but they want to work. My view is if they want to work and they gain the benefits of work which are not just wages: which are friendships, social networks, a sense of dignity, a sense of contributing to society; these are very important benefits and people should be entitled to those benefits.' http://www.abc.net.au/radionational/programs/backgroundbriefing/the-fair-wage-campaign-that-backfired/5765182
"Achieving social and economic inclusion: from segregation to 'employment first'" (PDF). June 2011. Archived from the original (PDF) on 2021-07-13. https://web.archive.org/web/20210713103009/http://www.readywillingable.ca/wp-content/uploads/2013/03/Achieving-social-and-economic-inclusion1.pdf
"Reasonable Accommodation and Sheltered Workshops for People with Disabilities: Costs and Returns of Investments—Study for the EMPL Committee" (PDF). Directorate General for Internal Policies of the European Parliament, Policy Department A. Economic and Scientific Policy, Employment and Social Affairs. January 2015. Retrieved 21 May 2023. https://www.europarl.europa.eu/RegData/etudes/STUD/2015/536295/IPOL_STU(2015)536295_EN.pdf
EUR-Lex, Directive 2014/24/EU of the European Parliament and the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC, article 20, accessed 21 May 2023 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0024
European Commission, Directorate-General for Employment, Social Affairs and Inclusion and Directorate-General for the Internal Market and Services, Buying Social: a Guide to Taking Account of Social Considerations in Public Procurement, Publications Office, 2011, p. 27, accessed 16 May 2023 /wiki/Directorate-General_for_Internal_Market,_Industry,_Entrepreneurship_and_SMEs
"About Remploy". Remploy. https://www.remploy.co.uk/about-remploy/
Saycre, Liz. "Getting in, Staying in and Getting on: Disability Employment Support Fit for the Future" (PDF). Department for Work and Pensions. Retrieved 20 January 2023. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/49779/sayce-report.pdf
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/
"Subminimum Wage". U.S. Department of Labor. Retrieved 20 January 2023. https://www.dol.gov/agencies/whd/special-employment
"U.S. Department of Labor, Wage and Hour Division, Field Operations Handbook, Chapter 64, 'Employment of Workers with Disabilities at Special Minimum Wages under Section 14(c),' Section 64k, 'Addendum,' Section 64k00, 'Glossary,' 'Sheltered Workshop or Work Center.'". Retrieved 2011-08-29. http://www.dol.gov/whd/FOH/ch64/64k00.htm
"U.S. Department of Labor, Wage and Hour Division, Field Operations Handbook, Chapter 64, 'Employment of Workers with Disabilities at Special Minimum Wages under Section 14(c),' Section 64b, 'Coverage,' Section 64b01, 'Enterprise Coverage,' 'Competitive employment.'". Retrieved 2011-08-29. http://www.dol.gov/whd/FOH/ch64/64b01.htm
Selyukh, Alina (2020-09-17). "Workers With Disabilities Can Earn Just $3.34 An Hour. Agency Says Law Needs Change". NPR. The fate of these work programs has been contentious. Disability-rights advocates say the programs limit the workers' potential while using them as cheap labor. But some workers' families and the organizations themselves argue that eliminating them would threaten the well-being of people who are happy to be there and take away their choices. https://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/
Selyukh, Alina (2020-09-17). "Workers With Disabilities Can Earn Just $3.34 An Hour. Agency Says Law Needs Change". NPR. The fate of these work programs has been contentious. Disability-rights advocates say the programs limit the workers' potential while using them as cheap labor. But some workers' families and the organizations themselves argue that eliminating them would threaten the well-being of people who are happy to be there and take away their choices. https://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/
Selyukh, Alina (2020-09-17). "Workers With Disabilities Can Earn Just $3.34 An Hour. Agency Says Law Needs Change". NPR. The fate of these work programs has been contentious. Disability-rights advocates say the programs limit the workers' potential while using them as cheap labor. But some workers' families and the organizations themselves argue that eliminating them would threaten the well-being of people who are happy to be there and take away their choices. https://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities
Sommerstein, David (2015-04-14). "Advocates Fight To Keep Sheltered Workshops For Workers With Disabilities". NPR. Under pressure from the federal government, states are starting to phase sheltered workshops out entirely. But there's disagreement within the disabilities community about whether that's a good idea. More than 15 years ago, the Supreme Court ruled that keeping people with disabilities in separate work settings constitutes discrimination. ... Daphne Pickert, who runs St. Lawrence NYSARC, another disability services provider, says ending them removes an option for people who may never be ready for an outside job. "For some people, because of their actual diagnosis and disability, they need the support of the workshop," she says, "And they literally cannot perform in a competitive setting." https://www.npr.org/2015/04/14/395287097/advocates-fight-to-keep-sheltered-workshops-for-disabled-workers
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/
Selyukh, Alina (2020-09-17). "Workers With Disabilities Can Earn Just $3.34 An Hour. Agency Says Law Needs Change". NPR. The fate of these work programs has been contentious. Disability-rights advocates say the programs limit the workers' potential while using them as cheap labor. But some workers' families and the organizations themselves argue that eliminating them would threaten the well-being of people who are happy to be there and take away their choices. https://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities
Corley, Cheryl (2014-04-23). "Subminimum Wages For The Disabled: Godsend Or Exploitation?". NPR. But the concept has increasingly come under fire by disability advocacy groups. They say the workshops reinforce a life of poverty, leaving thousands isolated and exploited by their employers. ... He says it would be nearly impossible for some people with severe intellectual disabilities to get a job at all. It's sheltered workshops, he says, that give them a chance to work and earn a paycheck. "Some of the individuals may not even completely understand what the value of that paycheck is," van den Brink says. "But they know they are receiving a paycheck, so they are getting a lot of self-esteem. They are very proud of it." https://www.npr.org/2014/04/23/305854409/subminimum-wages-for-the-disabled-godsend-or-exploitation
Sommerstein, David (2015-04-14). "Advocates Fight To Keep Sheltered Workshops For Workers With Disabilities". NPR. Under pressure from the federal government, states are starting to phase sheltered workshops out entirely. But there's disagreement within the disabilities community about whether that's a good idea. More than 15 years ago, the Supreme Court ruled that keeping people with disabilities in separate work settings constitutes discrimination. ... Daphne Pickert, who runs St. Lawrence NYSARC, another disability services provider, says ending them removes an option for people who may never be ready for an outside job. "For some people, because of their actual diagnosis and disability, they need the support of the workshop," she says, "And they literally cannot perform in a competitive setting." https://www.npr.org/2015/04/14/395287097/advocates-fight-to-keep-sheltered-workshops-for-disabled-workers
Garcia, Eric (2021). We're Not Broken: Changing the Autism Conversation. Houghton Mifflin Harcourt. ISBN 978-1-328-58784-8. 978-1-328-58784-8
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/
Selyukh, Alina (2020-09-17). "Workers With Disabilities Can Earn Just $3.34 An Hour. Agency Says Law Needs Change". NPR. The fate of these work programs has been contentious. Disability-rights advocates say the programs limit the workers' potential while using them as cheap labor. But some workers' families and the organizations themselves argue that eliminating them would threaten the well-being of people who are happy to be there and take away their choices. https://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities
Sommerstein, David (2015-04-14). "Advocates Fight To Keep Sheltered Workshops For Workers With Disabilities". NPR. Under pressure from the federal government, states are starting to phase sheltered workshops out entirely. But there's disagreement within the disabilities community about whether that's a good idea. More than 15 years ago, the Supreme Court ruled that keeping people with disabilities in separate work settings constitutes discrimination. ... Daphne Pickert, who runs St. Lawrence NYSARC, another disability services provider, says ending them removes an option for people who may never be ready for an outside job. "For some people, because of their actual diagnosis and disability, they need the support of the workshop," she says, "And they literally cannot perform in a competitive setting." https://www.npr.org/2015/04/14/395287097/advocates-fight-to-keep-sheltered-workshops-for-disabled-workers
Corley, Cheryl (2014-04-23). "Subminimum Wages For The Disabled: Godsend Or Exploitation?". NPR. But the concept has increasingly come under fire by disability advocacy groups. They say the workshops reinforce a life of poverty, leaving thousands isolated and exploited by their employers. ... He says it would be nearly impossible for some people with severe intellectual disabilities to get a job at all. It's sheltered workshops, he says, that give them a chance to work and earn a paycheck. "Some of the individuals may not even completely understand what the value of that paycheck is," van den Brink says. "But they know they are receiving a paycheck, so they are getting a lot of self-esteem. They are very proud of it." https://www.npr.org/2014/04/23/305854409/subminimum-wages-for-the-disabled-godsend-or-exploitation
Garcia, Eric (2021). We're Not Broken: Changing the Autism Conversation. Houghton Mifflin Harcourt. ISBN 978-1-328-58784-8. 978-1-328-58784-8
Garcia, Eric (2021). We're Not Broken: Changing the Autism Conversation. Houghton Mifflin Harcourt. ISBN 978-1-328-58784-8. 978-1-328-58784-8
Garcia, Eric (2021). We're Not Broken: Changing the Autism Conversation. Houghton Mifflin Harcourt. ISBN 978-1-328-58784-8. 978-1-328-58784-8
Selyukh, Alina (2020-09-17). "Workers With Disabilities Can Earn Just $3.34 An Hour. Agency Says Law Needs Change". NPR. The fate of these work programs has been contentious. Disability-rights advocates say the programs limit the workers' potential while using them as cheap labor. But some workers' families and the organizations themselves argue that eliminating them would threaten the well-being of people who are happy to be there and take away their choices. https://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities
"Casey, Daines Introduce Bipartisan Bill to Phase Out Subminimum Wage, Increase Competitive Integrated Employment for People with Disabilities | U.S. Senator for Pennsylvania". www.casey.senate.gov. 18 November 2021. Retrieved 20 January 2023. https://www.casey.senate.gov/news/releases/casey-daines-introduce-bipartisan-bill-to-phase-out-subminimum-wage-increase-competitive-integrated-employment-for-people-with-disabilities
Selyukh, Alina (2020-09-17). "Workers With Disabilities Can Earn Just $3.34 An Hour. Agency Says Law Needs Change". NPR. The fate of these work programs has been contentious. Disability-rights advocates say the programs limit the workers' potential while using them as cheap labor. But some workers' families and the organizations themselves argue that eliminating them would threaten the well-being of people who are happy to be there and take away their choices. https://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities
Selyukh, Alina (2020-09-17). "Workers With Disabilities Can Earn Just $3.34 An Hour. Agency Says Law Needs Change". NPR. The fate of these work programs has been contentious. Disability-rights advocates say the programs limit the workers' potential while using them as cheap labor. But some workers' families and the organizations themselves argue that eliminating them would threaten the well-being of people who are happy to be there and take away their choices. https://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/
Kuang, Jeanne (2023-05-14). "Can California find better paying jobs for people with disabilities?". CalMatters. Opponents of subminimum wage programs like Vistability's say they segregate people who have disabilities, keeping them from obtaining better paying work and greater independence — which they could achieve with the right services to assist them. On the other side, program operators and some workers' families defend the current arrangements, saying these workers would not otherwise have job opportunities. About 20% of people who have developmental disabilities in California are employed, the state's Department of Developmental Services says. ... After they graduated, Goodwill of Orange County placed him, with two or three others, at a clothing company's warehouse and later at a local retailer. They hung clothes on racks, splitting one minimum-wage job. Corey took home $2.50 an hour, his father said. He loved his job and came home feeling accomplished and eager to spend his paycheck, taking his parents out to dinner, Chris Bowers said. https://www.capradio.org/articles/2023/05/14/can-california-find-better-paying-jobs-for-people-with-disabilities/