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Section 2 - Ontario
Works as Workfare
The term "workfare" is used to describe
any program that requires people to participate in mandatory activities in exchange for
receiving social assistance. These requirements can take the form of job search, training,
basic education, skills upgrading and unpaid community service. Job search has always been
a requirement for General Welfare Assistance, however, under Ontario Works recipients are
mandated to participate in additional programs. The one or more of 3 activities that
recipients must now participate in to receive social assistance are:
This program is intended to assist recipients to become job ready. Each
municipality or region develops employment supports as it sees fit. These supports may
include sessions on job search techniques, workshops on resume writing skills and basic
education and training.
- Community Participation
The community participation program requires that recipients participate in
community service (work without pay) in public or not-for-profit organizations. The
program is intended to provide recipients with skills to enable them to become "job
ready". Recipients perform community participation for a maximum of 70 hours per
month. Community participation activities the Province of Ontario has identified as
acceptable include removing logs from rivers, collecting garbage, planting trees and
helping at senior homes.
- Employment Placement
People who are deemed as "job-ready" by their case worker are referred
to an employment agency or broker to help them find paid work. Recipients are excepted to
accept any job offer they receive. The agency or broker is contracted by
municipal/regional government and paid proportionate to the savings to the welfare system
by the recipient having found a job.
In order to receive financial assistance, recipients in Ontario
Works will be required to sign an Ontario Works "participation agreement" which
will bind the individual to participate in one or more of the above Ontario Works
programs. Recipients during the first 4 months of receiving social assistance are expected
to perform job search activities and are provided with employment supports. After the
first 4 months if the recipient has been unable to find a job (any job offer must be
excepted) they can be required to participate in the Community Participation or Employment
Placement programs whilst still performing a job search. Failure to comply with the
Ontario Works participation agreement can result in sanctions.
History of Workfare
Workfare is not a new idea. Workfare or
work-for-welfare programs have existed in various forms at different times in history.
Under the Elizabethan Poor Laws of 16th century England, workhouses were established for
destitute people considered able to work. The English Poor Law Report of 1834 argued that
generous relief schemes removed the incentive for poor people to work. As a result,
families were separated and forced to perform make-work projects in return for food,
shelter and sometimes daily allowances. Welfare rates fluctuate according to economic
conditions. When unemployment and welfare rates are high workfare programs appear. During
the great depression in Ontario of the 1930's, when one in three workers was without work,
workfare emerged on a large scale. Federally funded camps appeared paying single men 20
cents a day to do manual labour such as clearing trees.
More recently in the 1980's the idea has become popular government
policy again, particularly in the United States and now again in Ontario. Workfare has
roots in the belief that the poor are at fault or are responsible for their situation,
thus criminalizing poverty. Workfare promotes the belief that the unemployed are lazy and
do not want to work, taking the focus off the lack of jobs in the economy.
Recent Workfare Experiences
Canadian provinces such as Quebec and Alberta have
experimented with workfare programs, claiming that they help social assistance recipients
find permanent jobs. However, studies have shown that Workfare has failed in helping
people find permanent jobs that pay more than minimum wage, thus failing to raise them out
of poverty. Statistics Canada data reveals that the number of single parents in Alberta
living below the poverty line increased from 5% in 1993 to 17% in 1995 after the
implementation of their workfare program.
The W-2 reform in Wisconsin, USA is a workfare
program based on a private sector model. The program in Wisconsin has been praised for its
dramatic impact on lowering the number of people on welfare. However, during the period
that Wisconsin slashed its welfare rolls, the state enjoyed extremely low unemployment
rates - in the range of 3-4%. Even with low unemployment many of the jobs W-2 participants
were getting were low-wage jobs leaving them below the poverty line.
In Montreal, a single person received around $650 on welfare before
the implementation of their "EXTRA" workfare program in 1989. In the
EXTRA-workfare program the same person received a reduced amount of $500 a month, but
could earn an extra $150 in exchange for 80 hours a month of community work. One could say
if the $650 in assistance is divided by the 80 hours of work this equals a wage of $1.87
an hour.
Common Beliefs/Myths about Workfare
Workfare focuses on the issues of high welfare
rates, blaming the recipient for being poor, rather than focusing on the causes of
unemployment and poverty.
- Myth:
People on social assistance are lazy and do not want to
work.
- Truth:
The 1990's have not suddenly created a generation of
lazy people. Our economy is not generating enough jobs for all who want and need to work.
Many people on social assistance used to work, but they can not find new jobs to
support themselves or their families. A 1995 study of Ontario social assistance recipients
by York University found that the most commonly cited reason for leaving their "best
job" was because of a layoff or because the employer went out of business, closed or
relocated a plant or office. That people continue to need social assistance says more
about the labour market and changing economy than about the character of people.
- Myth:
Workfare helps social assistance recipients find
permanent, well paying jobs.
- Truth
: Workfare does not reduce unemployment or create jobs.
Workfare creates a pool of free labour. If workfare participants work for free, employers
might not hire staff. There is no incentive or focus in Ontario Works for employers to
hire people or create jobs.
Workfare does not displace paid workers.
Truth: There is evidence that suggests workfare workers
replace paid workers. It has been estimated that New York City’s workfare program has
displaced 20,000 paid workers and reduced wages for the bottom 30% of the entire New York
City workforce. If the impact were split between wage reduction and job displacement, it
was estimated that each additional 1,000 placements would displace 330 workers and lower
wages by 0.15%. It seems simple, if an organization or business can find someone who will
work at no cost to them then why would they hire and pay someone to work.
- Myth:
Workfare eliminates welfare fraud and abuse.
- Truth: The argument appears to be that because Ontario
Works requires people to perform mandatory activities in exchange for welfare it will
deter those who are defrauding the system and not in real need of social assistance.
Penalties for welfare fraud have always existed and could be prosecuted as an offence
under criminal law. There is no evidence to suggest that workfare programs deter
fraud or abuse. Furthermore, it is estimated that welfare fraud is about 2 to 3% of the
caseload.
Arguments For and Against Workfare
Moral Implications
For
- Workfare helps recipients develop a strong work ethic and restore
their pride.
- In the past, the welfare system perpetuated a "cycle of
poverty" that discouraged people from working.
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Against
- Workfare is mandatory, not voluntary in nature; it raises human
rights issues and appears to violate the United Nations International Covenant on
Economic, Social and Cultural Rights regarding the right to chose work.
- Studies have shown workfare does not remove people from poverty. It
does not address the causes of poverty -low wages, unemployment and skills for good jobs.
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Economic Implications
For
- Workfare provides employment experience and skills training.
- Workfare helps to reduce the deficit.
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Against
- Workfare offers employers low cost labour and it drives wages down
for everyone.
- Workfare does not produce workers with skills for the changing needs
of the labour market.
- Workfare does not produce long term financial savings.
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Political Implications
For
- The public does not want to support "lazy" welfare
recipients with tax money.
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Against
- Government uses workfare as "vote winner" for those who are
tax weary and ignores the real issues of poverty and unemployment.
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