F E A T U R E ------------------ from T H E J O B S L E T T E R 0 6 8 a subscriber-based letter published in New Zealand 3 November 1997 ------------------------------------- F E E D B A C K ---------------------- COALITION GOVERNMENT EMPLOYMENT STRATEGIES The Employment Implementation Steering Group has reported back on the recent public submissions about the coalition government's new employment strategies. The Group (chaired by Alf Kirk) canvassed specific responses to the proposed government policies, and how they will be implemented at a local level. They received over 200 submissions from individuals and organisations around the country. In this special feature, The Jobs Letter gives an essential summary of the Employment Implementation Group's analysis of the submissions, and also feature some of the comments made in the consultation process. SUMMARY ----------------- * The consultation process was based around a series of specific questions relating to regional delivery of employment and training services, proposals for community work and training, and also the concept of a community wage replacing the dole. * The Group's report states that a number of submissions, mainly from voluntary groups, unemployed workers' groups and unions, set their comments about the government's strategy in a wider context of how the government is addressing unemployment itself. They argued that unemployment is structural and should be recognised in macro-economic policy. Most of these respondents favoured implementing policies designed to create more jobs alongside, or in place of, the 'workfare' policies. * Regional delivery. Agreement on the objectives of regional delivery was high. Respondents generally agreed with the objectives set out in the Local Government NZ submission (see box, below). Most groups supported the view that regional delivery should focus on appropriateness and responsiveness to regional differences while ensuring consistency in delivery and regulations across the country. * Size and number of regions. Opinion was divided on how this should be determined and the report found no clear pattern from different sector groups. A third of the submissions favoured regions based on population numbers, particularly the number of unemployed in the region, and natural geographic boundaries. A quarter of the submissions put most emphasis on 'community of interest' as the basis for regions. Other common proposals were to base the regions on current local body boundaries, or adopting current government agency boundaries such as those used by NZES or ETSA. * Allocation of funding. Almost all submissions agreed that funds should be allocated to regions on the basis of need. And a number of respondents also argued that the region's capacity to generate "real jobs" should be taken into account. Almost two-thirds of the submissions were in favour of distributing funds on a population basis, weighted by the number of unemployed in the region. Several submissions argued for a distinction between the way in which funds were allocated for training and for community work. * National functions. The great majority of submissions thought that national functions should be delivered by all regions in the same way, particularly in setting standards, accountability and ensuring the consistency of outcomes. * Regional Employment Committees. Suggestions on the role of these committees were varied and often non-specific. A third of the submissions suggested the committees have a liaison, co- ordination and advisory role. A fifth saw them in a strategic planning role with varying degrees of hands-on responsibility. Most submissions favoured a wide representation on the Committees, including representatives of business and industry, community and voluntary organisations, Maori and Pacific Islanders, schools, Private Training Providers, local authorities, government departments, and unions. * Community work and training. A majority of submissions favoured an inclusive approach to community work, rather than narrowly defining the group of unemployed being able to take up this option. The same applied to questions on who should be available for training. Many education and training providers and voluntary groups favoured the opening up of current eligibility criteria for training. * Making it mandatory. The submissions were evenly divided over whether or not community work and training should be mandatory. Generally in favour of the mandatory policy were most local authorities, Local Employment Co-ordination Committees, employer and industry groups. Unemployed worker's groups, voluntary organisations and groups representing people with disabilities were generally in favour of voluntary options. * The submissions overwhelmingly agreed that community work should be just that -- work that benefits the community. * Displacement of existing paid work. About a third of the submissions did not or could not answer this question, and simply agreed that displacement should not happen. Those who did make suggestions favoured monitoring projects and/or employers, having the Regional Committees set criteria, manage selection and approve projects, and also keeping the work in the non-profit sector. * Community Wage. The submissions expressed overwhelming support for setting the community wage at a level higher than a comparable benefit. They mentioned the need for an incentive or inducement to participate as a reason for setting the higher level, and also the additional costs associated with the work or training involved. * Opinion was strongly in favour of treating the community wage as a wage, ie. payment for work and training undertaken, rather than as a 'benefit'. (sidebar) "If the economic environment is hostile to employment growth, then the justification of workfare to keep unemployed 'work-ready' is compromised. Current policies contribute to an environment where employment is an implicit instrument of economic management and the quality of employment deteriorates." -- NZ Council of Trade Unions "We believe that macro-economic policy is primarily responsible for unemployment. Unemployment, along with casual, insecure and poor quality employment, is inevitable in a free market where state assets continue to be privatised; government's focus is primarily on reducing debt and taxes; industry training and skills development is voluntary and uncoordinated and employment rights and protections have been eroded through deregulation of the labour market. Unless these issues are addressed, attempts to reduce unemployment will fail ..." -- Federation of Voluntary Welfare Organisations (Inc) "Blanket, low-cost per participant, compulsory schemes have little value to the government or the participant. They have negative impacts on a variety of stakeholders including community groups, the clients and staff of community groups, the government and the unemployed ..." -- Downtown Community Ministry "We are concerned that workfare will undermine genuine volunteer work and create barriers for volunteering." -- Dunedin Volunteer Centre Trust OBJECTIVES OF REGIONAL DELIVERY OF EMPLOYMENT SERVICES (box) -- as proposed by the Local Government New Zealand submission * develop and resource regionally-appropriate initiatives for dealing with long-term unemployment and its effects * provide an interface between local community organisations and agencies, including local authorities and central government * co-ordinate planning between agencies, trusts, organisations, business and local authorities * recognise and complement employment objectives in Local Authority Annual and Strategic Plans where they exist * tailor-make interventions that provide solutions specific to each region that are also measurable quality programmes * enable higher levels of resource leveraging through participation in local communities and Territorial Local Authorities in programme design and implementation * ensure that resources are appropriately allocated to regional needs * ensure that the proposed work is meaningful to the individual concerned * add value to community-based employers and businesses * ensure that proposals are economically neutral in their implementation (ie. avoid distortion of local economies)and allow for the participation of community organisations, businesses and local government * ensure that the proposals do not displace or crowd out existing or permanent jobs * ensure that the training programmes develop the job-ready skills of the long-term unemployed, while recognising and utilising existing skills and may include on-job training * target priority groups over-represented within unemployment statistics * ensure that proposals contribute to local economic development. V O I C E S ------------------ Here are some of the comments made in the submissions to the "questions for consultation": * REGIONAL DELIVERY 1. What should be the objectives of regional delivery? "Equal opportunities for all community sectors, to be impartial, offer equity, ensure privacy and confidentiality, recognise the unique employment factors of the region, be receptive to Kaupapa Maori, recognise the individuality of each client, provide an environment which allows a holistic cultural approach to solutions for Maori long- term unemployed through positive discrimination ..." -- submission from seven Maori groups "Provide assistance to individuals on a case-by-case basis as relevant to the needs of the individual and to minimise the level of time spent out of the workforce. Assistance provided must be cost-effective in terms of overall outcomes and minimise displacement effects and dead-weight costs." -- NZ Employers Federation 2. What do you believe should be the basis for determining the size, and consequently, the number of regions? "The basis for determining the size and number of regions should be geographical distances. It is not considered workable to set up regions as Health have done because each province is uniquely different and what is good for Christchurch is not good for the West Coast of the South Island or Invercargill." -- Southland Enterprises Inc. "Regional Commissioners should not just be appointed to cover geographical areas, they should also be appointed to cover specific communities for whom long-term unemployment is an issue ..." -- NZ Manufacturers Federation 3. On what basis should funds be allocated in the region? "Enough funds should be allocated to cater for the region's needs and be granted for triennial periods." -- REAP Marlborough "Maori and Pacific Islands people should be weighted by an extra factor of 40% since much structural adult unemployment is among these groups..." --NZ Catholic Education Office "Funding should contain a strong element of outcome-based criteria reflecting the needs and opportunities in the region. That is, successful schemes should be expanded in preference to unsuccessful ones..." -- Federated Farmers of NZ 4. How should funds be distributed? "A set allocation needs to be available for each region to cover management costs with discretionary funding allocated on population and unemployment levels. A bid for funds on the basis of outcomes could be punitive in rural areas where there are few employment opportunities..." -- Abel Tasman Educational Trust "As a baseline, say 70% of available funds, distributed on the basis of general population, weighted by unemployment levels. The balance, say 30% contestable for innovative projects involving identified target groups and reinforcing and building on successful projects. -- DPA (New Zealand) Inc 5. Should there continue to be a set of national functions which are delivered by all regions in the same way? If so, what would these be? "Whether or not the same national functions remain in place, there needs to be some continuation of their focus, for example, the priority risk groups of Maori, Pacific Islanders, women and rural/urban disadvantaged. The administrative/operational procedures of handling job seekers should be nationally consistent. That is, they enrol, interview, report and advance in the same way from one end of the country to the other..." --CBT Systems Applied Learning 6. What should be the role of the proposed Regional Employment Committees? "Research and analysis of submitted schemes, establish systems to assess schemes as they progress, assess completed schemes, prepare local guidelines. Must have control of funding. Should have autonomy to select schemes. Ensure existing workers and jobs are not displaced..." -- National Council of Women in NZ "To be the focus for community interest and action on employment and work-related issues. To facilitate the co-operation of agencies of local, regional and central government. To be the sounding board for local ideas, strategies and plans. To set the local agenda for action. To provide the accountability mechanism for the Regional Employment Commissioner." -- Manawatu Employment Action Group "We do not agree with the Regional Employment Committees. This is a concept that has been tried and proven to be ineffective under the different schemes such as REAC, STEPS and TAPS." -- Pacific Island Training Providers of NZ Inc 7. Who should be represented on the regional committees? "Those who are aware of the community's and the unemployed's needs. Must include those who have experienced unemployment and those who in their daily work are faced with the repercussions of unemployment eg. social agencies. Also representatives of different groups involved in the area of unemployment and employment. Nominees determined by the local community." -- Maureen Ries of Eltham "More discussion is needed about the process by which people get appointed to the committee. REAC members were appointed by the government and usually had close connections to the party in government. This is unavoidable to some extent but different sectors should nominate their own representatives..." -- YMCA * COMMUNITY WORK AND TRAINING 1. Who should be available to engage in Community Work? Who should be available to engage in training? "The sheer size of the unemployment register means that some arbitrary criteria must be used to try and screen those for whom community work would be the most appropriate. It would probably be appropriate to concentrate on long-term unemployment first. The sheer size of the unemployment register would suggest that within this group it would probably be useful to start with volunteers. People who want to go on such programmes are likely to contribute the most, and gain some benefits from participating..." -- The Employers Federation " Community work and training should be mutually interchangeable alternatives, depending upon the identified needs of the person seeking or requiring assistance. Community training should therefore be available to all those who seek this assistance..." -- The Salvation Army Training and Employment programme 2. Should Community Work be mandatory? Should training be mandatory? If so, for whom? "Yes, especially for those registered 26 weeks or longer provided appropriate training is available and the work is accessible (eg. travel is available)." -- Hawkes Bay Community Work Trust "Our information is that historically, compulsory attendance at either work or training schemes has not achieved a successful outcome for the participant. Further, unwilling participants can often be a disruptive influence or even sabotage the entire programme for other participants." -- Youth Works "It depends on the quality and 'good fit' of the training. The best option would be to have a client-centred scheme in which local provision offers a wide range of options ..." -- Department of Social Work, University of Canterbury 3. What types of activity should qualify as Community Work? "Any activity that will be of benefit or improve the life of people within the community, while at the same time community work should advance the position of those involved. Include school-based, marae-based, sports club-based, church-based work programmes. Should include an element of training/education/upskilling..." -- Whakaatu Whanaunga Trust "We stress our view that if funding is made available it would be far more beneficial to offer the work on the open market creating genuine employment and offering considerable efficiencies over a government-administered work scheme." -- Just Dollars "Current government funding has made all possible sectors of community work subject to contestable funding. There is a real danger that the introduction of community work agencies will give significant competitive advantage to those employing workers under the proposed scheme. There is no field of social or community work that can be funded without this becoming a problem..." -- YMCA 4. What types of training activity should qualify? "Anything that leads to full-time employment." --Raukawa Development Trust "Training should only be introduced that is linked to the NZ Qualification Framework. This is very important if unemployed people are going to gain value for their effort..." -- North Otago Council of Social Services "Training under the employment schemes should be linked to and utilise industry training standards set by industry training organisations..." --NZ Contractors' Federation 5. What is the best way of ensuring that Community Work does not displace existing or prospective paid work? "You're dreaming! It is dishonest to suggest this programme will not displace paid work given the lack of funding of the community sector..." -- Enhancing Potential ITO "I believe 10-20% of community work will replace existing low skills workers no matter how careful we are. However, extra employment will be created at this level in supervising and administering community work..." -- Vocational Skills International "Ensure there are effective monitoring systems in place -- put the emphasis on projects in the community that targets areas that cannot afford them.." -- Auckland Central Group LEC * COMMUNITY WAGE 1. Should Community Wage levels be set higher, lower or about the same as comparable benefit levels? "So long as the scheme is not compulsory, the community wage must be at least the minimum wage otherwise it isn't a wage. The net amount paid weekly to the worker must exceed the benefit at a level which will provide a realistic incentive. The unemployment benefit must remain for people who are out of work." -- Canterbury Volunteer Centre "Should be set higher to encourage the job seeker to participate in positive and financially rewarding work experience. Care should be taken not to overly penalise those who are seriously job-seeking and would prefer to spend time doing so rather than community work or training..." -- Ian Black and Terina Paul 2. Should the Community Wage be more like a wage or a benefit? "For attitudinal reasons -- self esteem and dignity -- the community wage should be seen as a wage paid for valued assistance to people or improvements to the environment where they live. Community wage projects should be conceived and presented as opportunities for enhancing the quality of life of the people in the community and region and those who visit it." -- Hamilton Workshops and Training Centre "We do not see the same need to have a higher benefit for participants in training. They are gaining the benefits of qualifications which will help them in the future. The current situation, where students receive an additional travel allowance, works well. Other students have to pay to do training." -- YMCA "You pay the person a wage for doing a job. Housing allowances, rent allowance etc should be separate issues but based on the new wage structure." -- Company Rebuilders Trust "When unemployed people are required to take up work positions on pain of loss or reduction of benefit (in any sector) such jobs must be full-time and waged. Of course at this point the person is in no longer in receipt of a benefit..." -- Auckland Unemployed Workers Rights Centre "The scheme will need to be in the nature of an employment relationship with the government, with the core benefit being characterised as a community wage. Add-ons for dependants, accommodation costs etc will need to remain as part of the welfare system..." -- NZ Manufacturers Federation Source -- "Analysis of Public Submissions on Government Employment Strategy" for the Employment Implementation Steering Group (June 1997) available from EISG at P.O.Box 1115, Wellington C R E D I T S ------------------- edited by Vivian Hutchinson for the Jobs Research Trust P.O.Box 428, New Plymouth, New Zealand phone 06-753-4434 fax 06-759-4648 Internet address -- [EMAIL PROTECTED] The Jobs Letter -- an essential information and media watch on jobs, employment, unemployment, the future of work, and related economic and education issues. The Jobs Research Trust -- a not-for-profit Charitable Trust constituted in 1994 to develop and distribute information that will help our communities create more jobs and reduce unemployment and poverty in New Zealand. Our internet website at http://www.jobsletter.org.nz/ contains our back issues and key papers, and hotlinks to other internet resources. ends ------ The Jobs Letter essential information on an essential issue [EMAIL PROTECTED] phone 06-753-4434 fax 06-759-4648 P.O.Box 428 New Plymouth, Taranaki, New Zealand visit The Jobs Research Website at http://www.jobsletter.org.nz/