Funding changes to the National Disability Insurance Scheme (NDIS) have forced Western Australia's largest disability services provider to close its industrial worksites, according to the organisation's chief executive.
Many people in the disability community were "devastated" by Activ's announcement yesterday that it would close seven sites, which employ more than 700 people with disabilities across metropolitan and regional areas, including Bentley, Osborne Park, Bunbury and Geraldton.
Activ CEO Michael Heath said the closures were due to funding cuts to the federally funded NDIS.
Mr Heath told the ABC he had spoken to both the state and federal governments, but had not been able to secure any more funding to keep the sites going.
"That's really made it impossible for us to continue in our large-scale employment sites," Mr Heath said.
"Clearly, this is a time of great change, and it's a very difficult time … it's unfortunate but the speed we've had to move has really been because of the NDIS funding."
Activ's focus shifting to 'community-based' work
Activ will instead expand its community-based work to provide more personal attention from support workers in smaller settings, such as cleaning, maintenance and gardening.
It also plans to establish a new academy to help people with disabilities develop social skills, live independently and access therapy.
Mr Heath said while not everyone would choose to be re-employed in another role, support would be in place for those wanting to transition.
"We won't be leaving anybody behind, so if someone chooses to go another route, then there will be a redundancy payment in most cases," he said.
"We're meeting with every one of our people, one on one and their family, in an effort to talk to them about what they want to achieve and help them to do that."
In a statement, WA Minister for Disability Services Don Punch said the state government had raised concerns with the Commonwealth and agreed any disability employment support model should focus on individual needs.
Mr Punch said he would have liked to have seen the Commonwealth give providers like Activ more time to implement new funding models as part of the transition from the Commonwealth Department of Social Services to the NDIS.
Families 'devastated' by closures
Karen Sparling, who spoke on ABC Radio Perth, said her daughter Stephanie had been working at Activ's Osborne Park facility for the past 28 years.
Ms Sparling said workers and staff were "devastated" and "angry" when they were told the news at a special meeting.
She believes her daughter will be out of work for a while, and without a consistent routine.
"My daughter has an intellectual disability," she said.
"She doesn't write properly so she won't be able to apply for jobs. I'm going to have to do it.
"I'll have to take her to wherever she gets her job and pick her up afterwards, whereas now she goes to work on a bus and her bus delivers her home.
"What would she do at home on her own all day with nobody to mix with? [It'll be] very lonely."
Perth woman Gina told ABC Radio her daughter had been working at several Activ work sites for the past 10 years, since she was in year 12.
"The NDIS funding model, whatever is going on, I think it's somehow not translating [to] helping people where they need the help," she said.
"I don't know what it's going to mean for her. That's her community.
"She goes there three days a week. I understand they don't get the minimum wage, but that's not what work is always about.
"That (work) is her connection with other people. She feels useful. They do all these contracts that would otherwise probably not get filled because they're repetitive and not the most exciting, but for my daughter, she loves it.
"If she doesn't go there three days a week, what will she do?"
Federal Opposition Leader Anthony Albanese told ABC Radio Perth the federal government had failed to support people with a disability.
"There's been a massive disruption just before the election and I know that the consequences of that are significant when it comes to the provision of employment services across the country, but particularly in regional areas," he said.
NDS working to provide other opportunities
National Disability Services chief executive Laurie Leigh said her organisation was working with a number of WA disability service providers to identify a range of alternatives, including employment opportunities, for those affected.
"The decision made by Activ was partly due to financial pressures and, as one of the largest supported employment providers in Australia, is a clear example of the fate many more providers will face if the federal government does not support the disability employment sector through the transition period," Ms Leigh said.
"Without the option of supported employment for people with disability, many will go without employment altogether as we saw in the UK in 2012 after its government closed a number of supported employment services, leaving 1,700 people with disability without a job.
"Supported employment provides social, caring communities for those who would otherwise miss out, and ensuring this support is financially viable into the future is critical."
