Proposed Changes To Workers Compensation In Nsw example essay topic

The CAS is modeled on the State's Motor Accidents Compensation Act introduced in October 1999. That legislation included a total body impairment threshold of just 10 percent before common law action could be taken. According to the NSW Law Society, of the 43 cases lodged under the Act in the past 18 months, only two have received a settlement. Law Society president Meagher estimated that the higher 25 percent injury threshold in the proposed workers compensation changes would mean 95 to 97 percent of injured workers would be denied access to common law remedies. Condemning the changes as being among the most draconian anti-worker changes ever contemplated by a Labor government, Meagher said he knew of workers currently entitled to $350,000 compensation that would receive nothing if the new legislation went through. The NSW government claims that the sweeping changes are necessary because of a $2.18 billion blowout in the Work Cover scheme due to mounting unfunded liabilities.

This figure, however, is only the projected liability that would come about if all current claims were settled at the same time. According to the trade unions, the real blowout is a deficit of $250 million caused by increased charges under the Goods and Services Tax introduced last year and lower returns from Work Cover investments due to the fall in the value of the Australian dollar. Work Cover also faces revenue losses due to the failure of employers to pay premiums a factor never mentioned by the government. According to union figures, 25 percent of employers in the construction industry do not pay their premiums or have premiums that do not cover the total number of workers on their books. The real reason for the latest attack on compensation rights and the government attack to control the union activity is to cut the cost of insurance premiums for big business in order to make NSW more attractive for investors.

Competition between the states, especially the two largest NSW and Victoria, intensified following the release of the Hilmer report under the federal Labor government in 1995. Hilmer recommended the deregulation of state-run services and infrastructure to place them on a competitive basis to benefit big business. The proposed changes to workers' compensation in NSW are based on, but go beyond, similar ones introduced by the former Liberal government in Victoria in late 1996. These reduced workers' rights to take common law action by tightening the qualification level of injury and eliminated the table of maims, which laid out payments for certain types of injuries. As a result, thousands of injured workers, who were previously eligible, were disqualified.

The NSW government carried through a series of cuts to workers' compensation over the three years from 1995 to 1997. These included a 25 percent reduction in benefits, stricter eligibility testing for access to benefits and stress claims, a cutback in rehabilitation benefit entitlements from 12 months to 6 months and the ending of weekly benefit payments after two years. Changes included tough sanctions on injured workers who refused to return to work on what was termed suitable duties or who refuse to take a suitable job offer. According to many workers, the offer of so-called suitable duties is often simply a means of either forcing them off compensation altogether, or putting them back to work despite a continuing injury. All of these measures went ahead with the compliance of the NSW Labor Council and its affiliated unions. In 1996, the unions maintained a deafening silence when legislation curtailing workers' compensation rights made its final passage through parliament with the support of the Liberal Party opposition, the Greens and various independents.

While the NSW Labor Council kept a lid on the opposition of workers in factories and on construction sites, the mining union, which had initially threatened statewide strike action over the legislation, made a backroom deal with the government that exempted its members from the new provisions. The changes not only reduced the lump sum payment for permanent disability by 25 percent but forced workers to prove that their job was the significant contributing factor to their injury. The legislation introduced an automatic review of weekly payments after two years providing a mechanism to cut workers off compensation. A little light was thrown on this shabby record at a recent Labor Council meeting called to discuss the latest compensation changes. In the course of the debate, Public Services Association general secretary Marie O'Sullivan blurted out that unions had remained silent over the previous six years when the government had done things against the movement's interest. He went on to claim that things would be different this time.

But the latest union campaign is not aimed at defending the rights of injured workers. Union officials were concerned that Della Bosca's sudden decision to ram through the sweeping legislative changes could have triggered protests, particularly in industries such as construction and mining where the undermining of safety standards has led to increased accidents. According to a union spokesman, the minister reneged on a previous commitment to delay his actions for a week to allow a compromise to be worked out. The Labor Council's show of opposition may also be connected to the present bureaucratic wrangle inside the right wing faction of the NSW Labor Party. Labor Council secretary Michael Costa is soon to resign to pursue a career in parliament, clearing the way for his assistant and protg John Robertson to take over his post. However, the succession is being challenged by the state secretary of the Transport Workers Union Tony Sheldon, who is backed by Della Bosca.

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