NSW Premier Barry O'Farrell said on Monday that changes must be made to the WorkCover scheme because of massive cost blowouts.
It will be another month before he unveils reforms.
Mr Lennon said he would only be prepared to discuss the future of WorkCover if workers' benefits were not at stake.
"We will always strongly support injured workers, and if it gets to the stage where we have to take action then we'll take the necessary action," he told reporters in Sydney.
"But at this stage, we say we're prepared to sit down and work through some sensible reforms."
Mr Lennon said claims that workers' compensation premiums in NSW were double those in Victoria were not true.
"There is no evidence to show that our premiums are double those in Victoria and other states," he said.
"I can assure you that the premium in Victoria is about 1.3 (per cent of wages) and in NSW about 1.8."
He also denied claims by the NSW Chamber of Business that high premiums were a major obstacle to growth in NSW.
"Everyone is conscious of the cost of the system and how we need to ensure that people can employ people," he said.
"But I don't think it's the major drag on employment in this state."
Mr O'Farrell was using this opportunity to attack workers as an excuse for failing to deliver on his election promises one year ago, he said.
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