Q: EarPods Volume Controls Won't Work

The EarPods headphones are compatible with 4th gen shuffle, but not 3rd gen (as indicated by the product description for Compatibility).

http://www.apple.com/shop/product/MD827LL/A/apple-earpods-with-remote-and-mic

The previous Apple headphones for iPhone should work properly with 3rd gen shuffle; you may find a vendor with old stock.  There are also adapter products like this

https://www.amazon.com/Scosche-IRM35-tapLINE-Control-Adapter/dp/B002CVTU56

that provide the control buttons, so you can use any standard headphones (including EarPods).  There were several similar products (including from Belkin and Griffin), but this is the only one I could find "in stock" currently.

I'm not Apple, but historically, Apple has not updated iPod software after the model is retired (except for iPod touch which is an iOS computing device).