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Health

Lifeline emerges for those affected by closure of Activ, WA's largest disability services provider

Following news that state's largest disability services provider, Activ Foundation, is planning to close, the West Australian government has begun issuing grants to help organisations adapt and expand their operations in order to employ more people with a moderate-to-severe disability.

The move comes as the state government and the disability sector work to find employment for more than 750 supported employees who have found work with the Activ Foundation.

In May, the foundation announced it planned to close its large-scale industrial work sites in Perth, Bunbury, and Geraldton due to cuts to the National Disability Insurance Scheme. 

Activ is one what is known as an Australian Disability Enterprise (ADE), generally not-for-profit organisations that provide supported employment to people with a disability.

Jobs with ADEs can include packaging, assembly, production, recycling, gardening, landscaping, cleaning, laundry and food services.

Activ's announcement left participants and their families devastated and worried about what would replace the work that had provided many with money, purpose and a social life.

Governments offer lifeline

In June, the federal government stepped in with $7.8 million to help Activ keep its workshops open for 18 months, to help supported employees transition into supported work elsewhere.

The state government committed $4 million to support other ADEs in finding opportunities for Activ's affected workers.

Activ has been one of eight independently owned and operated ADEs in Western Australia, and was by far the largest, employing some of the highest-needs workers.

The other ADEs were not in a position to accommodate all of the 750 workers and some of their complex needs straight away, however, the government hopes the 18-month extension will help.

This week Disability Services Minister Don Punch announced the $4 million from state government was being put to work in $100,000 initial grants issued to ADEs that take on Activ employees.

These initial grants will allow ADEs to put together information about their workplace and the opportunities there, and create a dedicated point of contact for affected Activ employees.

The funds will also be used to help organisations make plans for how they could expand the employment opportunities they currently offer.

Organisations to create new, different opportunities

Workpower chief executive Lee Broomhall said the grants would be a huge assistance for ADEs and others like them to try to take on more former Activ employees.

"The initial funding will enable a dedicated resource in all of our organisations to really take the time to work with individuals and their families, to look at what best suits that person, what are they interested in," she said.

"To be able to have a dedicated resource that gives the time to make that transition, one that works for an individual, is really important."

Ms Broomhall said it would also allow Workpower to investigate what new opportunities it might be able to use to accommodate a broader range of supported workers moving from Activ.

"We're hoping that, with existing vacancies, there will be a large number of people [who] will be able to pick up immediate positions," she said.

"And then, with some ideas and some projects that we have, we might be able to create more vacancies for the remainder of the people.

"So, we are hopeful that all those people will somehow pick up some employment."

Families hoping for 'miracle'

Amy Clark — whose brother David works at Activ — said many families and participants were still living in hope another organisation might swoop in and takeover Activ allowing them to keep their jobs.

She said that was because for many participants, Activ provided more than just a job and was also where they spent time with their friends.

Ms Clark — who is part of the Activ Action Team representing families — said it could also be complicated for those with moderate-to-severe disabilities to change jobs.

"For these individuals, often they need a special transport to take them to work, they need time to get used to a new environment," she said.

"Strange and unfamiliar surroundings are a cause of stress, and loss of friendships and connections are also a big concern.

"What this taskforce does is it gives that 18 months to smooth that anxiety that comes from sudden change and gives people time to get used to it, which is a blessing."

Workers losing money

The families of some of those who are already embracing transitioning into work with another ADE have raised concerns about pay lost through the process.

It is understood that, in some cases, participants will begin a new ADE job on a three-month trial, during which they will be paid a lower "probation rate".

In some cases, that has been 50 per cent of what they were being paid at Activ.

"It's quite disheartening for us to see that these workers are losing money through no fault of their own and, when you consider that they're not particularly on a significant wage to begin with, that can be quite a cut to their income," Ms Clark said.

"We would very much like to see some of that transition funding used to top-up these lost wages … so that they aren't disadvantaged by needing to move from Activ when they haven't chosen to do that."

Ms Clark said that, while the transition process had been otherwise widely welcomed, many families remained worried about other organisations facing the same funding issues as those that hit Activ.

"The Australian Disability Enterprise sector seems to be having some really broad financial sustainability concerns," she said.

"If these financial sustainability risks aren't addressed in the ADE sector, then we could find ourselves in this position — one year, two years, or five years down the line — because, at the moment, there are so many ADEs struggling to operate under the new NDIS pricing framework."

Ms Clark said the concern was that Activ could be just the first to fall.

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