The WorkCover Authority claims that psychological/psychiatric injuries are a
major problem. It’s right, these injuries inflict massive suffering on the 3000
people who receive stress injuries at work each year.
The Review being conducted by Mr Hanks QC wants to solve the problem by
taking most stress claims out of the system as a "work-place injury".
Mr Hanks also said that a psychological/psychiatric injury that arises from
any “reasonable management action” shouldn’t count as a work-place injury.
Of course from WorkCover’s point of view this would solve this problem, and
if these changes are passed then an injured worker would be left on the scrap
heap without medical care or financial support.
The Review also wants to force these workers to take part in mediation
and/or workplace counselling before liability for their claim is considered.
The VTHC says including “any reasonable management action” as a reason to
not accept claims discriminates against injured workers with psychological and
psychiatric injuries, and will result in the vast majority of stress claims not being
accepted.
Worksafe Victoria holds the record for rejecting new claims by injured
workers. It rejects 14.1% per year when in Queensland, only 3.8 % are rejected.
Worksafe Victoria is the most profitable system of workers compensation
in Australia. It makes a profit of more that $1 billion a year and pays more
than $700 million a year into state government coffers.
Since 2004 it’s cut employers premiums by 45% saving them $2 billion.
Despite WorkCover’s profits and its gifts to employers and it's support of country
football it still fails to provide quality care for injured workers.
Under the Hanks recommendations premiums will be cut by another 6%
reducing even further, the funds available to care for injured workers.
Whats wrong with this picture?
We want every Victorian to let the government know that it's time WorkCover
was for workers, not for employers and to include the following inclusions into its
changes and provide some form of protection for injured workers in Victoria.
1. Increase Weekly Payments
Currently, injured workers' weekly benefits are cut after 130 weeks, unless they are able to demonstrate that they have "no work capacity" for any employment and that this incapacity is likely to continue indefinitely.The VTHC says the period of entitlement to weekly benefits should be increased to 260 weeks, or five years.How much should injured workers get?The Victorian system of weekly payments is one of the worst in Australia. The Hanks Review refused to examine the payments regime and made only one slight improvement.Currently workers get 95% of pre-injury average weekly earnings (PIAWE) including overtime for 13 weeks, then 75% up to 26 weeks, then 75% (less overtime) until 130 weeks. The only change that Hanks has recommended is that after 13 weeks the percentage increases to 80%.The VTHC says that there should be an increase in the level of weekly payments to 100% of PIAWE for the first 12 months, then 80% for the duration of the entitlement period.How should the payments be calculated?The current manner, in which PIAWE is calculated whilst including piece work, does not include allowances, commissions, bonuses, salary packaging etc. This means that effective rates of weekly payments often fall well below the current 95% and 75% rates in the Act.The VTHC says the calculation should be based upon "normal weekly earnings" that incorporates pay structures, including overtime, shift penalties and all other benefits and not based solely on ordinary rates of pay for normal hours worked.
2. Make Automatic Payments
The delays that exist between a worker being injured and getting their first weekly payment causes major financial hardship and means that vital medical and rehabilitative services are delayed.The VTHC says full provisional liability should be introduced to provide weekly benefits and medical and like expenses within 7 days of a claim being made.
3. Cover All Stress Injuries
The WorkCover Authority claims that psychological/psychiatric injuries are a major problem. It's right, these injuries inflict massive suffering on the workers who have them. Mr Hanks wants to solve the problem by taking most stress claims out of the system as a work-place injury that workers receive compensation for from WorkCover. He says a psychological/psychiatric injury that arises from any "reasonable management action" shouldn't count as a work-place injury.From WorkCover's point of view this would solve the problem, but a worker would left on the scrap-heap without medical care or financial support. Every year about 3000 people receive stress injuries at work. The Review also wants to force these workers to take part in mediation and/or workplace counselling before liability for their claim is considered. The VTHC says including "any reasonable management action" as a reason to not accept claims discriminates against injured workers with psychological/psychiatric injuries, and will result in the vast majority of stress claims not being accepted.
4. Improve Dispute Resolution Process
If your right to be compensated for a work-place injury is challenged, your first port of call is the Accident Compensation Conciliation Service (ACCS). But now, the toothless tiger may be stripped of its few remaining powers and reduced to a mere talking shop.Although it's been a toothless tiger for years, it is still a place where injured workers can make some progress in claiming their rights.Mr Hanks wants the have the ACCS's powers reduced so that it's a mere talking shop and have WorkCover dictate most of what it does. This would see at least an extra 6000 claims being forced into the courts for resolution. The VTHC estimates it will cost workers and employers at least an extra $60 million a year. This means $30 million each more than the current system.It would be a lawyers' picnic. It would blow-out the delays in court resolutions of WorkCover claims by at least two years. And extend the suffering and delay medical treatment for injured workers. It would stop the treatment of injuries that should be treated and fixed quickly. It would turn basic ordinary injuries into a battle ground that would prevent workers from pursuing their claims and create a financial gift to lawyers. For Injuries that could be fixed fast and the worker back to work quickly, it would extend the process into a complex legal battle that would mean that the injuries would become long-term and chronic.This is an ill-considered and, in practice, a mad plan.The VTHC says workers' claims must be resolved quickly. Unions want a one-stop shop that has the power to conciliate issues - and - if that fails, arbitrate. The unions' solution is speedy, simple, fair and economically efficient.It would deliver the best results for workers and employers.
5. Improve Return to Work Rights for Workers
Mr Hanks proposes to remove from the law most, if not all, of the employer obligations in the return to work process and move them to guidance material, regulations and codes of compliance. He also proposes that OH&S reps be the ONLY people - apart from the injured worker - who can represent an injured worker in the return to work process. This is a fundamental attack on an injured worker's right to make their own decision about who represents them at a critical period in their life.The VTHC says the obligations must remain in the Act, an injured worker should be able to choose anyone to represent them and the whole process must be reformed to improve the rights of injured workers, increase the obligations on employers to return injured workers to meaningful work.
6. Stop Discrimination
Injured workers are amongst the most discriminated against groups in the community. But it doesn't just start after they lodge their WorkCover, it can happen if their employer thinks they are going to lodge a claim. And it isn't just the injured worker who faces discrimination, it can include anyone who encourages or helps an injured to lodge a claim.Mr Hanks merely wants to bring the WorkCover Act's anti-discrimination provisions into line with the OHS Act. This doesn't go far enough.The VTHC says the Act must be changed to prevent all forms of discrimination against the injured worker or work-mates who may be assisting them in their claim.
7. Bring Outworkers In
Outworkers are the most vulnerable workers in Victoria. Their hours are long and they are regularly the victims of unscrupulous employers. Mr Hanks says the Act merely needs to be clarified to properly cover outworkers. But this does not go far enough. Even if it is clarified, the law won't address the sham working arrangements forced on outworkers by their employers.The VTHC says existing provisions need not only to be clarified but also changed to ensure coverage for outworkers. Protection should not be limited to natural persons and sole employee companies but should also extend to all sham arrangements.
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