Three years after the government announced it would scrap minimum wage exemptions and replace them with a wage subsidy, some disabled workers are still earning an average of just $5.30 an hour.
Information obtained by Checkpoint from the Ministry of Business Innovation and Employment (MBIE) showed there are 169 disabled workers with the exemption.
For 63 years Abilities Incorporated has been operating as a not for profit business on Auckland's North Shore.
They recycle everything from cardboard to tonnes of e-waste and also package products.
Of the 149 people who work there, 119 are disabled and have a minimum wage exemption. If MBIE's figures are correct, that represents two-thirds of the entire nations' exempt workforce.
Under the Minimum Wage Act businesses can apply for an exemption to pay an employee with a disability less than the minimum wage, on the basis they are less productive.
Abilities Incorporated on the North Shore in Auckland recycles everything from cardboard to tonnes of e-waste and package products. Photo: RNZ / Nick Monro
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Managing director Peter Fraher has been running the business for 18 years.
"Every day I go home and I feel like I have contributed to the lives of 119 people who otherwise would have nowhere to work," he said.
Three years ago the government announced they would scrap the exemption and replace it with a wage subsidy.
But Fraher said that left them with huge uncertainty for the future.
"The devil's in the detail, exactly how is this going to be implemented, one of our problems we've got at the moment, [is] just a total lack of communication or involvement. How is that money going to be guaranteed? ... How can I fund it? There's just too many questions."
Fraher said if the subsidy was to take place they would need guaranteed financial support to retain their workers.
"The good thing about these reforms against the previous ones is there is a recognition that work is essential, the statement that we've heard is no one should be worse off, but that's easy to say, it's difficult to actually put that into practice."
Abilities Incorporated managing director Peter Fraher has been running the business for 18 years. Photo: RNZ / Nick Monro
Lee Watts has been working at Abilities group for 26 years, his Mum Jane is worried a wage subsidy will threaten his job.
"This is his life, I know when I drop him off here and I go off to work he's safe, it is the best, the best place ever."
Lee Watts is paid just $1.55 an hour, along with his disability benefit, he takes home $442 a week.
If he was paid minimum wage he would lose his benefit, but could be paid twice as much.
When asked if he knows what he gets paid Jane Watts said, "he just knows he gets his payslip every week and he knows that he can go to JB Hifi".
There was no doubt others also liked working there. "Lucky to have a job, I like helping yes, I started when I'm [I was] 25, I am 65 years old," said one worker Irene.
Some team members were aware of plans to scrap their exemptions. One worker was worried it would effect his benefit, but when he was asked if he would like to be paid the minimum wage he said, "Yes, yes I wouldn't mind, I wouldn't mind."
For other businesses an exemption was not an option.
Four years ago Jennifer Del Bel started a candle making businesses Downlights to employ young adults with Down syndrome and intellectual disabilities.
They have four part-time staff and pay the living wage.
Del Bel said other businesses were choosing profitability over quality of life for their employees.
"If you have a business in place that can't operate without employing people and paying them the minimum wage exemption, maybe you should not be operating at all."
The assumption disabled workers were less productive was simply not the case, she said. Downlights produces 1000 candles a week which go to 150 businesses.
"Our team are the most amazing workers they're on time, when they're here at work, they don't have their mobile phones turned on, they're not checking their text messages or Instagram feed every two seconds, they're loyal, they're a really valuable employee."
Grace Stratton from All is for All said that something needed to change. Photo: RNZ / Nick Monro
Grace Stratton, from All is for All has been disabled her whole life and echoed this concern.
"I think we really need to challenge this idea that it's somehow acceptable to pay someone considerably less because they are perceived to be below a certain level of productivity, I don't think a minimum wage is tied to productivity, it's about human rights."
She acknowledged a solution was complicated but said something needed to change.
"We will do more harm if we just take the waiver away, that being said, I do believe in and subscribe to having a really robust conversation about alternatives to the waiver because I don't think we can leave it in place."
For Peter Fraher, it will be a nervous wait to find out what that means for them.
"Until something is promoted that is better than this and that gives people with an intellectual disability more opportunities for employment, I can't see a positive change taking place, so in a lot of ways, if it ain't broke, don't fix it," he said.
In a statement, a spokesperson for the Minister of Social Development and Employment Carmel Sepuloni said "they've engaged with the disability sector and businesses, work is underway to develop proposals for a wage subsidy to replace the exemption".