Activ granted support to transition

Seven of Activ Foundation’s worksites which were due to close in July will stay open for another 18 months after the federal government offered a $7.8 million lifeline.

In May, Activ announced it would close seven of its supported worksites in a matter of weeks due to financial difficulties and ‘changing community expectations’, leaving 756 employees without work.

In a letter given to staff, Activ said it was losing about $20,000 a day, or $500,000 a month, running these worksites and could not afford to stay in operation any later than July without government support.

Social Services Minister Amanda Rishworth said the timeframes originally announced by Activ did not provide enough time for people to find alternative employment.

“Many of the supported employees have been with Activ for decades and this announcement came as a significant shock to them,” Ms Rishworth said.

“We need to put these employees first and make sure they receive the support they need to manage this significant transition in their lives.”

She said the federal government had agreed to support Activ stay open to give its employees more time to find other work.

"During this time, all of the 756 employees may continue working with Activ in their roles, if they wish to do so, meaning they have a guarantee of continuing employment in the immediate future," Ms Rishworth said.

Activ chief executive Michael Heath said he was relieved the organisation had received the funding after weeks of negotiation.

“Prime Minister Albanese and Minister Shorten both understand the dire situation that Activ is facing because of the shortfall in NDIS funding for large scale employment sites and they acted quickly in response to our request for help," Mr Heath said. 

“The funding announced today will go some way to fill the gap in NDIS funding, allowing us to continue to run Activ’s large-scale employment sites, increase our alternative employment opportunities and establish our new Activ Academy."

The state government will also provide $4 million to support Western Australian-based disability enterprises through the transition period by providing grants to build contemporary service models and associated workforce capacity.

National Disability Services WA State Manager Coralie Flatters said the funding announcement would provide relief for the affected employees and their families.

“It will provide more time to explore alternative opportunities matched to their skills and interests and to transition in a planned approach,” Ms Flatters said. 

“NDS has already commenced work with nine supported employment providers in WA to ensure those people affected have a range of options to choose from going forward. 

“These providers have knowledge and experience in the provision of high-quality employment options for people with disability in WA.” 

NDS called on the state and federal government to provide more support for Australian disability enterprises to transition to the NDIS.

It said Activ’s decision to close its worksites was due, in part, to financial pressures and was a clear example of the fate many providers would face if the federal government did not support the sector transition.

For-Purpose Media creative director Dev Singh, who is involved in consulting in the disability services sector, agreed and questioned whether the government bail out would set a precedent.

Mr Singh told Business News there were organisations in similar situations and more needed to be done to change the broader operating environment.

Advocacy

A group of employees and their carers created a support group, Activ Advocacy Action Team, which is calling for the sites to remain open beyond 2023.

The group released a report, Hear Us, See Us, over the weekend which included the views of more than 250 employees.

It found more than 90 per cent of employees wanted to continue working at large-scale sites like Activ.

When announcing the closures, Activ said it would offer two alternatives to its worksites: Activ Academy, where people can learn different life and work skills; and jobs at its community-based supported employment enterprises.

The report said only 6 per cent of primary carers felt Activ Academy would be appropriate for their loved one and less than a third thought its community-based alternatives would be suitable.

Activ Advocacy Action Team spokesperson Janette Gee said Activ and the government should remember the decisions they make affect a group who have difficulties speaking out for themselves. 

“People like my son need to be seen and cared for and given a voice,” Ms Gee said.

“As a society we can and must do better than further marginalise an already marginalised and vulnerable community.

“It is important to acknowledge that the true meaning of inclusion is not to dump everyone together – it is for each individual to be in the place that provides the best environment for them to thrive.”

Read more about Activ’s decision to close its worksites and the state of the Australian disability enterprises in WA here.