Trevor Mauger, 52, was asked to participate in the department's Work2Benefit scheme, in which claimants who are able to work have to do a certain amount of work or training organised by the States.
However, after refusing to work 35 hours a week at the Fontaine Vinery waste sorting site, Mr Mauger's benefit was cut by £25
a week.
'I think it's slave labour,' he said. 'They are expecting me to work for less than £4 an hour at most. I've spoken to other people who've told me that they wouldn't work for that either.'
Mr Mauger said he normally had an income of between £130 and £140 per week, £68 of which went on rent that he never saw as it was paid directly to the Housing Department.
He was allowed to keep £30 from a spare-time job he has with the Indian Cottage Restaurant doing deliveries in the evenings, for which he pays his own petrol.
Before the £25 reduction was made, Social Security was giving him a further £32 to £42 most weeks via benefits. The figure depended on how much he earned from the spare-time job.
