Workfare – The Facts & The Figures: Another Voice Of Anti-Capitalism in Guildford Investigation.
See bottom of the post for a list of events and demonstrations in London.
It must be the ultimate dream of capitalists. You get free workers. After all, as Tesco is fond of saying ‘every little helps’. But people have finally begun to rebel over the stigmatisation and demonisation of people on the dole. The new Tory Work Program has a core underlying philosophy. The unemployed are to blame for their own predicament.
Was it the unemployed who dealt in derivatives and financial instruments based on fraudulent risk assessments? Did the unemployed gamble with billions of pounds of other peoples’ money? Have unemployed people caused the recession?
Working for your £67.00 a week dole in a climate of no jobs simply means exploitation. And if someone gets a job at the end, then it means someone else doesn’t. All it teaches people to do is to compete more effectively against each other.
The government claims that “Work Experience”, “Community Action Programmes”, and other slave labour schemes are helping people “back to work”. But the truth is, companies availing themselves of these slave labour schemes are replacing paid staff with unemployed forced labour, creating more unemployment. Why would companies pay for staff when they are being provided free at the taxpayers’ expense?
Furthermore, there is a large body of research that indicates that shelf-stacking work only leads to more low paid shelf stacking work. Even highly qualified graduates, once they embark on low paid, low skilled jobs, find it much harder to gain skilled employment.
We need to get the message across that unemployment is endemic to capitalism. That demonisation and finding scapegoats is essential to a system that is desperate to blame any and everyone, except those who are most responsible.
Tesco, Burger King, Poundland and many other businesses are pulling out of the “Workfare” programme, as well as the other slave labour schemes. These schemes are in crisis. Now is the time to pile on the pressure.
March 3rd will see the next day of action against Workfare, and it promises to be the biggest yet. Workfare and the other slave labour schemes affect us all. They increase unemployment and reduce wages for the rest of us. Companies such as Poundland are paying their workers less and less whilst making huge profits because they know there is an ever-increasing pool of unemployed labour threatened with doing the same work for nothing.
Before pulling out of the scheme, Tesco reported that over the past four months some 1,400 people have worked for them without pay. Meanwhile, its profits for the first half of 2011 were £1.9 billion. And Tesco CEO Philip Clarke is on target for £6.9 million this year.
Steve Short, from the Boycott Workfare Campaign http://www.boycottworkfare.org told The VOAG; “It is staggering that while unemployment continues to rise, the government is replacing paid work by pushing out workfare on a massive scale. The organisations profiting from free labour can afford to pay a wage but are choosing not to. Actions this weekend will show that they risk their reputation if they do not withdraw from workfare.”
It is our duty – as trades unionists, activists, workers and youth to join in the day of action on March 3rd. These schemes are teetering on the edge. One more push and we can close them down for good. Below is a list of demonstrations in London on Saturday March 3rd. Please consider joining one near you or come to the main demonstration in Oxford Street. Details below.
There are several government forced labour schemes – and no matter what the government says there is an element of compulsion to all of them.
The Work Experience Scheme –
This scheme is designed for 16 to 24 year olds. The government admits that young people who refuse to go on the eight-week placements will loose benefits. It intends to create 250,000 Work Experience placements. Once the placement is completed, benefit claimants can be forced to go strait on to another scheme. The placements can be never ending.
The Mandatory Work Activity Scheme –
This scheme is for claimants aged 18 or over. The scheme mandates four weeks’ work unpaid for 30 hours a week. Although the government claims it is “community work”, its definition of this includes private companies. 24,010 people were mandated to take part in MWA between May and November last year.
Community Action Programme –
Jobseekers are referred for up to 30 hours unpaid work per week for six months. They can be stacking shelves or tossing your burgers. The government says the Community Action Programme is designed for the benefit of the community. It is a clear sign that the government intends to use forced labour to replace the gaps left in public service delivery in the wake of service cuts. Provider guidelines suggest that a community placement would be appropriate at Local Authorities and Councils, Government Departments and Agencies, Charities and third sector organisations, Social Enterprises, and Environmental Agencies.
The Work Programme –
370,000 people were referred to the Work Programme between June and November 2011. 850,000 people are expected to be forced on to the programme by the end of the year. Ingeus, which administers Mandatory Work Assignments in the East Midlands and the North-East (owned by city financiers Deloitte) force people to do six month workfare placements. The Work Programme, is expected to cost the taxpayer £5 billion pounds. Claimants loose all benefits if they refuse to go on the scheme or drop out before its completion. Once the six month programme is concluded, job seekers can be required to immediately start another work placement. For more information on these schemes and for tips on how to avoid them visit: http://www.boycottworkfare.org
Workfare Doesn’t Work
On the 1st of April 2011, the Social Security Advisory Committee advised the government not to introduce Mandatory Work Activity. Its report said there was “no evidence that workfare increases the likelihood of finding work”. It continued: “there is evidence to suggest that by limiting the time available for job search activities, Mandatory Work Activity can in fact reduce the participants’ chances of finding employment.
The Committee stated “it appears to us to signal that being mandated to mandatory work activity is regarded as a punishment rather than an opportunity to learn and develop new behaviors and skills”. The report continued: “there is a risk that the presence of Mandatory Work Activity on a jobseeker’s CV could stigmatise a jobseeker when applying for a job in the future.
The report went on to say that the Committee is “very concerned that this is an exploitation of people who have no choice” and there is no provision to “monitor employers or to end their involvement should they be found exploiting participants or requiring them to undertake inappropriate work.
There is no requirement for “employers” to provide equipment, for example clothing. There is no provision for job seekers to take time off for illness or to attend medical appointments, or to look after a child if it falls sick. There is no requirement for the employer or placement administrator to reimburse expenses for travel or childcare. The lack of childcare costs will make it impossible for one-parent families to participate in the programmes, leaving them vulnerable to benefit sanctions.
This 18 page report by the governments own Social Security Advisory Committee ends in big bold letters in a text box, copied and pasted from the report below:
A4E and Emma Harrison
These schemes don’t come cheap. They are administered by private companies. A4E is one such company. Emma Harrison, the chair of A4E has had to step down from the company she founded, together with her government post as “Back to Work Czar”, after being caught with her hands in the till. Ruling-class scum like Harrison preach about benefit scroungers, whilst they take home millions. Whilst her company is mired in fraud and corruption scandals, Harrison paid herself £8.6m last year.
The only revenue A4E earns comes from our taxes. It is paid by the government according to the numbers of job seekers it manages to force on to government schemes. The Guardian reported on 22nd February that A4E was under police investigation. It had been forcing job seekers to work unpaid in its own offices in order to get the “placement” commissions. Jobseekers were forced to work in their offices in Woolwich, Camden and Holloway or have their benefits stopped. The investigation, reported the Guardian, also revealed that from the 12 months to late June 2011 the company sent people to work unpaid in Asda, Sainsbury’s, Oxfam and a host of other businesses.
A “company official, who did not want to be named” was quoted in the Guardian, as saying; “that in addition to the revenue from the commissions and the free labour, sending jobseekers to work in its offices helped A4e cut down on its overheads as it didn’t have to spend time on organising placements”.
So far four A4E employees have been arrested, and the head of the Commons Public Spending Watchdog has demanded the government stops working with A4E until the police investigation is completed. The Public Spending watchdog has highlighted that A4E has been named preferred bidder for a £15 million contract with the Skills Funding Agency to provide education to prisoners in London.
A4E admitted that the present police investigation was only one out of a total of ten cases of corruption that had been referred to the Dpt of Work and Pensions. As a result, the company has been forced to repay public funds on five separate occasions due to “irregularities”.
The Dept of Work and Pensions has also criticised A4e for paying £11 million in dividends last year, 87% to Ms Harrison, despite all its £180 million UK turnover resulting from Government welfare to work contracts. In addition to these incredible sums of public money, Emma Harrison also received nearly £2 million from leasing properties she owned or controlled back to her business.
The allegations against A4e are unending. Jobseekers report being made to sign blank time sheets, and of government vouchers—intended to help the jobless buy adequate clothing for interviews—being stolen by advisers. Its also been accused of claiming that jobseekers have found full-time work placements, when their jobs lasted less than 24 hours.
According to the Mail On Sunday, A4E receives a fee of £400 for every jobseeker referred to it. When that person finds work for 26 weeks—whether it is continuous or in breaks—it receives £1,200, followed by a monthly “sustainment fee”. It is estimated that A4E earns approximately £13,000 for every successful placement.
A dossier compiled on A4E includes the complaint that the firm was “nothing short of a gravy train”, in which fraud was “systemic” and “common practice”. In response, an unamed Labour MP contacted the Guardian to say Labour MPs were concerned that the MWA programme had not been scrutinised by the Commons and had passed into law with the “tick of a minister’s pen” last year.
Other Workfare providers include REED, SERCO and Atos – and they are being subsidised by the taxpayer to the tune of billions. It is they who depend on state handouts not the unemployed. Seetec made £53 million last year from its involvement in the Work Programme, while Ingenus was awarded contracts worth £727 million.
Social Security Advisory Committee Report, April 2011: Condemming the Workfare programmes. Read Here.
Where to go on the March 3rd Day Of Action Against Workfare
Islington 10am Outside Angel Islington Tube
Brixton 12pm Outside Tesco, 13 Acre Lane, Brixton
Brixton 12pm Outside Brixton Job Centre
Kingston 1pm Outside Starbucks, Kingston
Oxford Street 11.30am Outside BHS
Ealing 1pm The Arcadia Center, 50/52 Broadway
Lewisham 1pm Outside McDonalds, Lewisham High Street
Walthamstow 12pm Outside Nat West bank, Walthamstow Town Square
Hackney 12pm By St Augustines Tower, Mare Street
Stratford 12pm Westfield Center
For a comprehensive list of Workfare demos and actions around the country visit: http://www.boycottworkfare.org
Voice of Anti-Capitalism in Guildford 
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