Thursday, 29 March 2012

WorkCover shake-up to 'hurt sick'


27 Mar, 2012 04:00 AM

NSW Government efforts to slash workers compensation bills are akin to "blood money", according to the South Coast Labour Council.

The union body yesterday claimed that Premier Barry O'Farrell was robbing from the sick and injured to give to businesses.

Mr O'Farrell used the one-year anniversary of the Liberal Party's landslide electionwin to announce reforms to NSW's workers compensation scheme aimed at bringing it in to line with other states.

In a speech to business groups yesterday, Mr O'Farrell said the Government needed to rein in the scheme's $4 billion deficit, equating to more than $15,100 for every business and more than $1300 for every worker.

Unions believe the reforms will lead to cuts in payouts to injured workers.

The Government has yet to reveal the details of its plans which, according to a spokeswoman for Mr O'Farrell, would be made public "in due course".

In his speech yesterday, the Premier said schemes in other states "strike a better balance between looking after injured people, promoting incentives for safe workplaces and setting competitive premium rates".

"Under present projections, the scheme would not return to surplus within 10 years, and to return it to full funding within five years would require premiums to rise by around 28 per cent."

Between June and December 2011, the scheme cost the state economy about $9 million a day.

South Coast Labour Council secretary Arthur Rorris accused the State Government of preying on the sick and injured.

"If we can't look after those injured at work whether they be labourers, whether they be public servants, whether they be police, if we can't look after those injured at work then who can we look after?" he said.

The Illawarra Business Chamber backed the Government, claiming it would stimulate economic activity and ease the pressure on businesses.

"WorkCover premiums are a significant cost for business and any steps the Government can take to reduce the burden can only help the business community in this continuing period of economic uncertainty," chamber chief executive Mike Leask said.




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