Victoria makes $38m annually from prison labour

More than 1400 people in prison are paid as little as $6.50 per day to complete work for private companies.

The Victorian government raked in $38 million last year from prison labour, which sees those in prison paid as little as 80 cents per hour to work for private companies.

Victoria’s prison industries “employs” more than 1400 prisoners across 13 of the state’s public prisons. Through contracts signed with private companies utilising this prison labour, the Victorian government landed $38 million in annual turnover in 2020-21.

And the Andrews government is not shy about this. These figures were presented proudly in a recent press release from the Corrections Ministers.

The press release did not mention that those working in prison are not actually defined as “workers”, have none of the protections on offer to those in the general public, and are paid as little as 80 cents per hour.

People aged under 65 years old in Victorian prisons are “expected” to perform work, which can be for the internal operations of the prison such as in the kitchen, or for contracted private companies across a range of industries, including metal fabrication, the manufacturing of timber products, agriculture and horticulture programs.

There are three levels of set pay for those working in prison, ranging from as little as 80 cents per hour to a maximum of $1.10 per hour. These levels are based on the degree of responsibility with the work, the complexity of it and the skills required.

The highest paid level equates to $8.95 per day, with level two providing $7.75 per hour and level three just $6.50.

The state also sets aside 20 percent of this pay to be made available upon release, making the minimum rate received by prisoners less than 60 cents per hour.

While performing this work, prisoners are also denied basic workplace protections and compensation options which are available to all other workers.

The Victorian government is also extremely secretive regarding the companies it has entered into contracts with to use prison labour, repeatedly blocking requests for information on this.

Corrective services industries are big money-makers for state governments across this country. In New South Wales, Corrective Services Industries made $128.9 million in 2016-17, with a trading profit of $50.4 million.

Victorian prisoners repair products for airlines and furniture companies, among others, and also make number plates for the entire state.