Media Release
March 19 2008
WorkCover cuts will hurt injured workers
Changes
to WorkCover set for debate in
Parliament in April will have harsh consequences for injured workers in
South Australia.
Research Fellow at UniSA’s Hawke Research Institute, Dr Kevin Purse, says the proposed changes under the Workers Rehabilitation and Compensation (Scheme Review) Amendment Bill 2008 are a huge step backwards and would shift the cost burden for injuries at work from industry to injured workers, their families and the taxpayer.
Dr Purse says the most disturbing aspects of the Bill for injured workers are a proposed step-down that will cut workers compensation payments from 100 per cent of their salaries to just 80 per cent after only 13 weeks and a proposal to throw all but the catastrophically injured off the system after two and a half years.
“It’s pretty clear that the management of WorkCover has not been up to scratch,” Dr Purse says.
“Despite recommendations for improvement from the 2002 Stanley Review, WorkCover seems to have a chronic inability to manage critical return-to-work processes effectively.
“If carried, this new Bill will see vulnerable workers and their families bear the burden of WorkCover’s ineffectual management by reducing their income support at a time when they are most in need.”
He says the changes would not only slash entitlements to injured workers but also dramatically undermine their right to challenge WorkCover claims decisions.
“The Bill contains a proposal that would allow for all weekly payments to be discontinued in the event of a claims dispute,” he says.
“This really does leave workers in a very disadvantaged position with no income at all where a dispute with WorkCover arises.”
Dr Purse says a whole range of factors included in the Bill will undermine the integrity of the WorkCover system including proposals in relation to medical panels, payments for non-economic loss and the dispute resolution system.
“If we’re not careful we could end up with a Clayton’s scheme.”
“When you look at why WorkCover’s not working well for injured workers, it’s clear that the whole culture of the organisation needs to change, starting from the top,” Dr Purse says.
“There are many ways to improve the system. A serious reconsideration of the outsourcing of the claims management system is long overdue, and there is a pressing need for action on the retraining front.”
“There is no doubt that reform is needed but the government’s Bill does nothing to address the real problems within WorkCover – it will only add to the pain and disenchantment with Labor.”
“Injured workers overwhelmingly want to return to work but in the case of serious injury they do need support to find their way back into the workforce. More than ever WorkCover needs innovative policies to assist injured workers and their employers to achieve the best outcomes.
“An improved bottom line for WorkCover should not come at the expense of
workers, nor does it require wholesale legislative change. The starting
point should be better administration of the scheme and this is where
the government should be focusing its attention.”
Contacts for interview
- Dr Kevin Purse (08) 8443 9946 email kevin.purse@unisa.edu.au
Media contact
-
Michčle Nardelli office (08) 8302 0966 mobile 0418 823 673
email michele.nardelli@unisa.edu.au