Thursday 29 March 2012

WorkCover system flawed: engineer

GYMPIE businessman Jason McPherson has hit out at a flawed WorkCover system that has more than doubled his workplace premium in the past 12 months and is regulated by three separate state bodies that do not appear to communicate with each other.
Mr McPherson employs 60 people at CPM Engineering, off Waddell Rd on the northern outskirts of Gympie, and said his expanding business faced a huge challenge in meeting its WorkCover commitments which skyrocketed from $104,000 last year to $229,000 this year.
The increase was triggered by a single claim made by a former employee who spent two days working for the steel fabrication business in 2008; the claim has not yet been settled but Mr McPherson and his solicitor are confident it will be dismissed.
Until that happens, though, Mr McPherson must find $25,000 a month to meet his new WorkCover obligation.
"It's crippling," he said. "I could employ five apprentices for that amount of money."
Mr McPherson's attempts to have the matter resolved have met a brick wall. This is despite OHS giving CPM the highest possible safety rating in a recent audit of the business, and despite Mr McPherson spending $225,000 in the past 12 months on safety training, equipment and safety initiatives.
"Q-Comp is the governing body of WorkCover and Occupational Health and Safety, but nothing either one does, or how you are rated by either, affects premiums or claims," he said.
"WorkCover is the dictatorship insurer that can make or break your business. The biggest problem we see is that people making decisions on premiums are office workers on a guaranteed wage no matter how much or how little they achieve, or how much or little business experience they have with operating such a thing.
"As a business owner I know and appreciate that my biggest asset is my staff and I need to know that their income is protected to support their families and commitments in the case of injury while working. But if in a year you don't have a claim, that premium should be banked in some way to go towards a claim if it were to happen, not be used for government investment (as it is now)."
Mr McPherson contacted Member for Gympie David Gibson and Labor candidate Ben Parker.
"Thirty minutes after I sent the email to Mr Parker I had a phone call from Industrial Relations," he said.
"I got more accomplished in five days with him than in the previous nine months."
Mr Gibson promised Mr McPherson that if the LNP was elected this weekend it would conduct a full investigation into how WorkCover operates, from claims right through to financial statements and how premiums are calculated.
"I told him 'if you don't follow through with that statement it will be the third time you have let me down after a meeting'," Mr McPherson said.

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