Disabled people work for a penny an hour

Brändi Dog Games, Karo wooden toys or Werky candles have one thing in common: they are made by people with disabilities – just like hand soap, toilet paper or cleaning products. In supported workshops, people with disabilities can pursue paid work that corresponds to their abilities.

These workshops often do jobs that normal companies in Switzerland can hardly do for the same price. This has to do with special support, but also with the low wages. According to a 2019 report, the lowest hourly wage in such workshops is one cent! Half of all companies pay less than ten francs an hour – that’s about three times less than the average hourly wage.

Germany discusses minimum wage

There is no minimum wage for employees in assisted workshops. And it’s not an issue in this country – not yet.

It is different in Germany: since the minimum wage in our northern neighbor was raised to 12 euros at the beginning of October, there has been a discussion about whether this should not also be introduced in workplaces for people with disabilities. The employees there still receive an average of 1.46 euros per hour. There is resistance to this.

UN sees room for improvement

In Switzerland, too, it is questionable whether it is permissible to pay people with disabilities only a symbolic wage. Labor lawyer Thomas Geiser (70) says: “Especially in the cantons that have minimum wages, the question arises whether they should also be introduced in workplaces.”

In addition, Switzerland signed the UN Convention on the Rights of Persons with Disabilities in 2014. However, so far this has not been implemented consistently, as Inclusion Handicap laments. The umbrella organization of Swiss disability organizations believes that this is no longer allowed. A UN committee also came to the conclusion this year that there is still room for improvement when it comes to the rights of people with disabilities, and recommended an action plan for Switzerland.

Unfair segregation of labor markets

Both the UN and Inclusion Handicap criticize that the segregation of people with disabilities in the sheltered labor market leads to “very low wages”. “Work is work,” says Matthias Kuert Killer (46) of Inclusion Handicap.

If it is up to the umbrella organization for the disabled, the regular and the protected labor market should gradually be merged. People with disabilities should also be paid a minimum wage for their work rather than relying on IV pensions and supplementary benefits (EL) due to very low workplace wages. Especially since even workplace wages, IV pensions and EL together in collective labor agreements lead to below the minimum wage.

Minimum wage increase

“With a minimum wage, employees would also experience more appreciation for their work,” says Kuert Killer. Employers should receive a wage subsidy for this. He gives an example: “If an employee earns only 400 francs a month at full attendance, he should receive a wage of 4,000 francs – the company receives a 3,600 franc subsidy.”

Geiser, emeritus professor of employment law at the University of St. Gallen, thinks it is at least partly sensible to merge the first (regular) and second (protected) labor market. “Certainly if products are manufactured in workshops for bottom wages that are also produced on the regular labor market.” Then a fair wage is guaranteed.

For Annina Studer of Insos, the trade association of service providers for people with disabilities, the division into a first and a second labor market makes no sense. The workshops and integration companies were also part of the labor market – only their jobs were aimed at people on disability pensions. She sees no problem with the low wages – these are an extra income for IV and EL. However, a problem arises when able-bodied people with disabilities who cannot find a job on the regular labor market end up in workshops.

The Federal Council will decide soon

In addition, EV and IV can be reduced if the wages of workshop employees are too high. State lawyer and Council of States Andrea Caroni (42, FDP) is “fundamentally against the introduction of minimum wages”. However, it cannot be the case that the EL and IV pensions are excessively reduced if the wages of employees with disabilities exceed a certain level. “That creates the wrong incentives. It cannot be the case that people who work more end up getting less.”

The federal government is now working on disability policy measures for the coming years, which should also include the recommendations of the UN Committee on the Rights of Persons with Disabilities. The Bundesrat is expected to decide at the end of this year what the measures should look like. Then it will also become clear whether an hourly wage of one cent remains legal.