sheltered workshops: a viable alternative for post-high school employment? the history, the...

Sheltered Workshops: A Sheltered Workshops: A Viable Alternative for Post-Viable Alternative for Post-High School Employment?High School Employment?

The history, the research, the The history, the research, the futurefuture

Historical PerspectiveHistorical Perspective Sheltered Workshops in the U. S. can be Sheltered Workshops in the U. S. can be

traced to the Perkins Institution for the traced to the Perkins Institution for the Blind in 1840. Blind in 1840.

The critical component in the early years The critical component in the early years was the meaning attached to the word was the meaning attached to the word “sheltered.” The workshop was not “sheltered.” The workshop was not created to provide normalization, but to created to provide normalization, but to shelter the individual from frustrations, shelter the individual from frustrations, problems, and risks associated with problems, and risks associated with competitive employment. (Rosen, competitive employment. (Rosen, Bussone, Dakunchak, & Cramp, 1993)Bussone, Dakunchak, & Cramp, 1993)

Historical PerspectiveHistorical Perspective Acrimonious disagreements exist Acrimonious disagreements exist

concerning the proper role and concerning the proper role and function of sheltered workshops function of sheltered workshops within our systems. within our systems. ““Do they distinguish among or do they Do they distinguish among or do they

merely confuse and commingle the merely confuse and commingle the separate functions of (1) a vocational separate functions of (1) a vocational evaluation, adjustment, and training evaluation, adjustment, and training center; (2) a therapeutic facility; and (3) center; (2) a therapeutic facility; and (3) a place of remunerative employment?” a place of remunerative employment?” Jacobus tenBroek

Historical PerspectiveHistorical Perspective

Today, approximately 1.6 million Today, approximately 1.6 million individuals receive services in over 5500 individuals receive services in over 5500 sheltered workshops and 2000 work sheltered workshops and 2000 work activity centers. activity centers.

Approximately 250,000 students Approximately 250,000 students graduate from special education graduate from special education programs annually, and many of those programs annually, and many of those end up in workshops (or on waiting end up in workshops (or on waiting lists). lists).

Criticisms from the researchCriticisms from the research

Low PayLow Pay: : A 1998 report indicated that, overall, sheltered A 1998 report indicated that, overall, sheltered

workshop clients earn an average of $65 per workshop clients earn an average of $65 per week, while rehabilitation clients who are week, while rehabilitation clients who are competitively employed earn an average of competitively employed earn an average of $272. $272.

Clients who have severe disabilities earn an Clients who have severe disabilities earn an average of $37 per week in a workshop setting average of $37 per week in a workshop setting compared to $110 in competitive employment. compared to $110 in competitive employment. (Taylor, 2002)(Taylor, 2002)


Dead-end placementDead-end placement: : Studies have consistently shown that Studies have consistently shown that

sheltered environments do not prepare sheltered environments do not prepare people to live, work, or participate in people to live, work, or participate in integrated environments. integrated environments.

Only 3.5% of sheltered workshop clients Only 3.5% of sheltered workshop clients ever move into competitive ever move into competitive employment. (Lutfiyya, Rogan, Shoultz, employment. (Lutfiyya, Rogan, Shoultz, 1988)1988)


Disincentives to Placement:Disincentives to Placement: Sheltered workshops must produce an Sheltered workshops must produce an

acceptable amount of output, which is of acceptable amount of output, which is of acceptable quality, if they are to survive acceptable quality, if they are to survive and continue to receive contracts. and continue to receive contracts.

This results in a built-in incentive to This results in a built-in incentive to retain the most productive clients,“…retain the most productive clients,“…those most likely to succeed in the those most likely to succeed in the competitive labor market with the competitive labor market with the fewest supports.” (Taylor, 2002) fewest supports.” (Taylor, 2002)


Failure to serve those most in Failure to serve those most in needneed Ironically, according to Taylor, sheltered Ironically, according to Taylor, sheltered

workshops seldom serve the most workshops seldom serve the most severely disabled individuals because severely disabled individuals because they are deemed unproductive and not they are deemed unproductive and not able to work. able to work.


Decline of mass production/blue Decline of mass production/blue collar industry in U.S. collar industry in U.S. Result: Continuing decline in Result: Continuing decline in

subcontract opportunities that provide subcontract opportunities that provide connection to real work possibilities in connection to real work possibilities in the workforce. (Rosen, Bussone, the workforce. (Rosen, Bussone, Dakunchak, & Cramp, 1993)Dakunchak, & Cramp, 1993)


Economic burden on societyEconomic burden on society Taxes paid by clients are minimal. Taxes paid by clients are minimal. With few exceptions, sheltered workshops With few exceptions, sheltered workshops

do not pay for unemployment do not pay for unemployment compensation, worker compensation, or compensation, worker compensation, or Social Security (National Federation for Social Security (National Federation for the Blind)the Blind)

Cost of placement in sheltered workshop: Cost of placement in sheltered workshop: Average of $7,400 annually. (American Average of $7,400 annually. (American Association of Mental Retardation [AAMR])Association of Mental Retardation [AAMR])

The End of Subminimum The End of Subminimum Wage?Wage? ““Even so, some xxxxxxx employees earn Even so, some xxxxxxx employees earn

pennies on the hour while the company spends pennies on the hour while the company spends millions of dollars per year on executive millions of dollars per year on executive compensation. Those who utilize the compensation. Those who utilize the subminimum wage generally enjoy nonprofit, subminimum wage generally enjoy nonprofit, tax-free status, and have guaranteed access to tax-free status, and have guaranteed access to government contracts. This model may have government contracts. This model may have provided opportunities to disabled workers in provided opportunities to disabled workers in 1938. But in 2014, it is simply not the most 1938. But in 2014, it is simply not the most appropriate strategy for creating real training appropriate strategy for creating real training and employment scenarios.” Editorial, and employment scenarios.” Editorial, thehill.comthehill.com

Future DirectionsFuture Directions Supported EmploymentSupported Employment: :

Over 105,000 individuals with multiple and Over 105,000 individuals with multiple and profound disabilities participating in SE earn profound disabilities participating in SE earn “nearly $600 million” annually and pay over “nearly $600 million” annually and pay over $100 million in federal, state, and local taxes $100 million in federal, state, and local taxes (AAMR, 2000)(AAMR, 2000)

Individuals participating in SE increased their Individuals participating in SE increased their annual earnings by 490%, with average hourly annual earnings by 490%, with average hourly wages increasing from $.84 to $4.13 wages increasing from $.84 to $4.13

For 52% of SE participants, the primary income For 52% of SE participants, the primary income is their paycheck instead of public assistance is their paycheck instead of public assistance or disability benefits (AAMR).or disability benefits (AAMR).

Future DirectionsFuture Directions

Supported EmploymentSupported Employment ““Supported employment is a way to move Supported employment is a way to move

people from dependence on a service delivery people from dependence on a service delivery system to independent competitive system to independent competitive employment” (Department of Labor, 2004). employment” (Department of Labor, 2004).

Cost-benefit analysis: Average cost of a Cost-benefit analysis: Average cost of a placement is estimated at $4,000, with half of placement is estimated at $4,000, with half of all placements costing less than $3,000.all placements costing less than $3,000.

The average annual cost of maintaining an The average annual cost of maintaining an individual in competitive employment with individual in competitive employment with supports is estimated at $4,200, compared to supports is estimated at $4,200, compared to the $7,400 annual cost of placement in a day the $7,400 annual cost of placement in a day program program

Future DirectionsFuture Directions Supported Employment—The Supported Employment—The

down side:down side: In a seven-year study, SE participants’ In a seven-year study, SE participants’

earnings were documented as being 250% earnings were documented as being 250% greater than the sheltered workshop greater than the sheltered workshop clients clients

These earnings, while twice that of These earnings, while twice that of sheltered workshop participants, was still sheltered workshop participants, was still quite low.quite low.

The study also noted a decline in the rate The study also noted a decline in the rate of employment for supported employees of employment for supported employees over the seven year period.over the seven year period.


Supported Employment—The down Supported Employment—The down side:side: A disproportionate inclusion of females with mild A disproportionate inclusion of females with mild

cognitive disabilities in sheltered employment cognitive disabilities in sheltered employment continues continues

Disincentives to increased earnings that exist in Disincentives to increased earnings that exist in the SSI and SSDI programs are cited as reasons the SSI and SSDI programs are cited as reasons for the apparently intentional restriction in for the apparently intentional restriction in earnings (Kregel & Dean (2003). earnings (Kregel & Dean (2003).

States have not historically funded the cost of on-States have not historically funded the cost of on-going supports.going supports.


Other options:Other options: Entrepreneurship/business ownership Entrepreneurship/business ownership

(self-employment)(self-employment) ““Semi-integrated employment” (work Semi-integrated employment” (work

crews)crews) Workshop “Co-ops”Workshop “Co-ops” Development of agency Development of agency

owned/sponsored business venturesowned/sponsored business ventures

ConclusionConclusion

This is not a case of “if it’s not broke, This is not a case of “if it’s not broke, don’t fix it.” The current system don’t fix it.” The current system doesn’t work for a majority of those doesn’t work for a majority of those individuals who are leaving special individuals who are leaving special education programs in our public education programs in our public schools each year. schools each year.

sheltered workshops: a viable alternative for post-high school employment? the history, the...

Documents