Workers compensation rights and payouts will be slashed to rein in a $4 billion WorkCover deficit and take the handbrake off bosses hiring staff. Are you on worker’s compensation? Will these changes affect you? Voice your opinion here and/or email news@dailytelegraph.com.au
Workers compensation rights and payouts will be SLASHED
WORKERS compensation rights and payouts will be slashed to rein in a $4 billion WorkCover deficit and take the handbrake off bosses hiring staff.
Premier Barry O’Farrell will today signal his biggest fight with unions yet – a massive overhaul of workers compensation laws.
With the Premier facing accusations he has been too slow in reforming our financially ailing state, the announcement comes on the one-year anniversary of the government’s election.
Workers compensation premiums in NSW are double those in Victoria – and the government says employers will end up facing premiums four to five times higher if the scheme is not reformed.
A NSW cleaning company paying $150,000 in annual wages currently forks out $10,681 as a base premium. Similar firms in Melbourne and Brisbane would pay $3709 and $4901 respectively.
If the system is not reformed, the government says that employer’s premium will increase to $13,672.
“Getting WorkCover right – and competitive – represents one of the most significant drivers of economic improvement within our control in NSW,” Mr O’Farrell will say in today’s speech.
“We are committed to starting this second year of change in NSW with a process to repair this broken system.”
It is understood the changes could include restricting weekly compensation payments to injured workers. About 36,000 workers receive weekly compensation payments, which last for eight years on average – although one person has been getting payments for 24 years. In other states, weekly payments end after two to four years.
The reforms are also likely to target generous provisions for the payment of injured workers’ medical benefits, with time limits on those with less serious injuries. In Victoria, medical bills are not paid after 12 months except for the most serious injuries.
Mr O’Farrell will say in a speech today that premiums will rise even higher and employers will stop hiring staff unless he steps in.
The Independent Actuary has told the government that by the end of the year the WorkCover deficit will be $4.1 billion – a $1.7 billion slide in six months. The debt is equivalent to $15,146 per employer and $1326 for every worker.
The growth in the scheme deficit from June to December last year cost NSW more than $9 million per day.
A senior government source said WorkCover was “one of the biggest challenges facing small business in NSW and tackling it is one of the Premier’s key reforms in his second year”.
“This will be tough, but the Premier is determined to take it on,” the insider added.
The last time a government tried to reform the WorkCover system in 2001, unions led by current Opposition Leader John Robertson blockaded parliament and ministers had to enter the building via secret tunnels.
Shortlink:http://aworkcovervictimsdiary.com/?p=6081
One has to ask themselves why are premiums so high for individual employers? Could it be because of unsafe work practices and a number of claims ? What happens with car insurance ? “Market forces” if you claim a number of times or get traffic tickets etc your premium goes up. What about those employers who are doing the right thing and providing safe working conditions for workers, what are their premiums ? The answer should be to provide safe work conditions, and make no claims. In fact there would be no need for workers comp insurance I know utopia. But what is Govt doing trying to regulate what should be Market Forces at play ? Why not just repeal all regulation relative to WorkCover and let the entire system work under proper market conditions. If Insurance premiums too high dangerous occupation clean up or get out?
What is govt doing trying to make more profits for dangerous occupations, unsafe employers, or insurance companies ? and neglecting the injured ?
Rather than reducing workcover benefits, why not better educate employers about how to keep their employees safe so they don’t get hurt working and claim workers compensation, indeed?
I wonder how the NSW injury rates compare to other states and if there is a correlation with the premiums.
and PROSECUTE (and fine) those employers who are careless and endanger the lives of workers!
There should be a review of Workers Comp premiums, not payouts. There also needs to be a review on how the money is invested – in fact a review of the poor investment markets and interest rate cuts is probably better warranted here!
Insurance companies are the ones doing wrong here, not the injured workcover victims.
Just as an example I attended conciliation recently and a fellow injured worker and his representative told me this extraordinary (yet familiar) story: a conciliation was lodged for a dispute over a $50 worth of thongs! The insurance company (Xchanging) paid around $750 just for the conciliation reports (doctor reports) + God knows how much just on the time (2 hours) that the Xchanging rep sits in at the conciliation. The dispute was NOT resolved, Xchanging refused to pay for the reasonable cost of the $50 thongs and the matter was referred to a Medical Panel for answer. Xchanging pays on average $5000 for a Medical Panel. Now that’s $750+$ ? time + $5000 medical panel = about $6000 to dispute a $50 item! Xchanging KNEW they would lose, and so they spent at least $6050 for a pair of thongs. In another true case, Allianz refused to settle a matter re weekly payments (the injured worker agreed at ACCS to accept payments till the date of conciliation). The case went all the way to court. In the end Allianz had to pay not only for the cost of conciliation, panel, reports and court but also had to pay the weekly payments, by then due to the date of the trial outcome (2 years later).
This is what these insurance companies do EVERYDAY. They believe by doing this on 10 injured victims, 7 will be worn out and will abandon their fight and for those 3 Warriors, they will dig as deep as possible (fork out happily thousands of dollars for NOTHING)…. So, guess what this means…. that “spending” money has to come FROM somewhere, eh… So it goes to premiums and to further denials of lawful “benefits” to the 7 other injured workers. It is NOTHING BUT A GAME!
Also as soon as an injured workers makes a workers comp claim the employer’s premiums go up much much more than any payout the average injured victim receives. It basically means that if and when a worker (employee) makes a workers comp claim, you (the employer) must pay for that both retrospectively and the future (= if a worker’s claim has been approved, the employer’s next 3 years premiums are affected!).
What a holy mess !
So true, also workcover insurance companies purposefully draw out the legal process which can go on for many years. Does anyone know why this is allowed?Especially considering that companies are forced to pay them hefty workers comp premiums after a claim has been lodged?
I know of many injured workers who are forced to borrow money at incredibly high interest rates as a last resort, of seriously injured workers saying their life is not worth living as they can’t afford to feed their kids, and of severely injured people in debilitated pain living in cars with their families when they were evicted.
How on earth can anyone possibly consider cutting payments to people who have had a life changing accidents? Those that live in terrible pain, those who are disabled for live and those who can never ever work again?
I want to see a breakdown of money spent by workcover on frivolous litigation, advertising, STALKING victims of work injury for “FRAUD” when the studies CLEARLY show that only 1 or so % of claims are fraudulent, bad/corrupt/conflict of interest??? investments and BEAURACRATIC RED TAPE! Can you imagine the savings if theiy got rid of all of these things?
I read something recently where a business suggested “Banking premiums” – whereby responsible employers who do the right thing and provide a safe workplace have their premiums ‘banked’ for any future work injuries – this could work on some level perhaps – because otherwise it seems that employers are NOT incentivised to do the right thing and provide safe working conditions because regardless of whether or not they have claims, their premiums rise with inflation!
The whole system is a freaking joke!!!!!!!
@workcovervictim – allianz et al can write off legal costs against profits – lowering their tax obligations. But it seems like they must be getting some other sort of financial incentive for pursuing a $50 case that costs $10,000 to follow through. Surely the numbers dont work out – even if only 2 or 3 out of 7 go forth – do the government line their pockets for ‘settling out of court’ maybe???
@Workcovervictim, the reason they pursue those frivilous types of litigation (for want of a better word because it’s not actually litigation) the $50 thong issue, is there way of playing psych ops with the injured persons mind. Draw out drag out put pressure on victims to give up fighting stop asking for their rights and settle for a low as possible. Most Case workers etc don’t care and neither do Insurance companies because they are not spending their own money for concilation or litigation. They just do it to stress the injured worker into an early settlement. Don’t lose your resolve keep fighting and keep all your communications with Insurance companies documented in writing. Better still get them to communicate only with your legal reps not you.
They wouldnt play psy ops unless it was profitable to do so, though…
True profit in the long term instead of settling for hypothetically speaking $100 people get so sick and tired of the bullshit they settle for say $20.00
@4Q2X, what you describe here is 100% correct – those tactics are only used to sicken and tire injured workers so they either give up and abandon the dispute or settle for peanuts in order to keep their sanity. The Conciliator and a a very good injured worker rep I spoke with -at length-confirmed this!
The basic message to ALL of you, injured workers is that you need to be WARRIORS and continue the fight for everything, no matter how “minor”. Take your psychologists to conciliation and a good rep and kick butt – do NOT give in – never. Those insurance companies, when they attend conciliation – come with the instructions with “room to accommodate”. Argue the case, in a very logical and calm and especially EVIDENCE-based manner – and you win. Don’t be intimidated. When the insurance reps provide said “evidence” of a denial/rejection, make sure they read IN FULL what the medics have reported – you will see them BLUSH and stumble over their words.
As 4Q2X states ensure you always document everything, record the facts every day as they occur and have the insurer communicate via your legal rep if possible.
DON’T GIVE IN, don’t give up – HANG ON – it’s NOT about the money, it’s about JUSTICE!!!
Just as an example I know we have been told about the $50 thongs issue here is another example of how they try to put extra stress on the Injured Worker.
I think (I may be mistaken) I read somehwere in the Tips section about Insurance companies sending out official looking forms for their own agenda. After a court matter was determined for an injured worker in their favour the Insurance company refused to pay, or comply with orders made because they REQUIRED another Tax File Number Declaration Form. Now not only would the Insurance Company be in contempt of that Court’s Orders but there are other alternatives of legal action available as well. Read the below letter details removed to protect the innocent but you will get the gist.
__________________________________________________
27 March 2012
The Authorised Officer
EMPLOYER COMPANY
Dear Madam:
Re: Outstanding debt owed to XXXXXXXXXX Statutory letter of Demand under Section 459E Corporations Act 2001
I write to you in relation to the above-mentioned matter. Please find
attached copies of the following;-
1. Recent Court Orders made in relation to the above-mentioned matter.
2. A copy of a letter from your Insurers addressed to Mrs XXXXXX.
As you may or may not be aware the court orders were made on the 2nd of March 2010.
The letter from your Insurers states,
Please attend to the following where you feel it is appropriate:
1. Complete a “Tax File Number Declaration” form and forward it to this office to be received within 14 days of this letter. Unfortunately, failure to do so will cause you to be taxed at the highest rate applicable. A “Tax File Number Declaration” form can be obtained from any major New Agency.
I contacted your Insurers this morning and spoke with Ms XXXX, who informed me that your Insurers were not prepared to make payment until the “Tax File Number Declaration” was submitted.
As you are the Group People and Development Manager for XXXXXXXX, you would no doubt be aware that XXXXXX Corporation obtained a Tax File Number Declaration form from my wife at the outset of her employment.
Now this request for a further Tax File Number Declaration form has NO BASIS in law and much further is purely mischievous in intent.
Therefore my wife has no other alternative now than to issue XXXXXX Corporation with this Statutory Letter of Demand under the Corporations Act 2001 (Cth) Section 459E
XXXXXX Corporation is indebted to my wife of approximately XXXXXXX, (The exact amount owed will be calculated and produced in Federal Court)
If the appropriate calculated amount is not paid to my wife within 21 days of this letter, she will have no other alternative but to commence winding up action against XXXXX Corporation in the Federal Court of Australia.
I would have considered that you would have been amply warned that this matter is not about financial gain but Justice in the true sense of the word. I reiterate this matter is not about “MONEY.” You would be well advised to inform your new Insurers of this fact. My wife will not be submitting a new Tax File Number Declaration.
I also take this opportunity to raise the issue of “Directors Duties and Obligations” under the Corporations Act 2001 as well as the “Trading Whilst Insolvent” provisions. You may wish to refresh your memory in relation to those obligations.
Yours faithfully
Cc Insurers.
4Q, thank’s for the above. I have taken a copy & saved for future use, if needed! Are you saying the above letter was used successfully?
Well I’ll tell you in 21 days
that date is wrong it was sent today. What the main intention of that letter is to highlight that the Law is one big PIE and it overlaps. Corporations dealing with Workers Comp injuries forget this.
Yes there is a framework for Workers Comp Laws within each jurisdiction and yes injured workers rights have been cut down to the bone.
However, there is always more than one way to skin a cat. What Corps forget when dealing with these things is that they are still obliged to comply with the Corporations law.
If you have a judgement and or other liqudated debt that your former employer owes you and they are making it had for you, like above.
You can commence to wind them up. It doesn’t matter how big they are or how much their assets are worth. They will need to exlpain to the Federal Court why when this Debt was incurred and fell due they didn’t pay.
They will need to prove their solvency as a company. Usually once an action to wind up a company has been commenced it scares all other creditors and they jump on the band wagon calling in their loans etc.
This is very simplistic but I think you get my gist. If they don’t want to pay then they can explain to the Federal Court why they should be allowed to trade.
Now I would not recommend people do this off their own bat without proper legal advice and guidance.
This is just to highlight how other areas of the law can be used. Winding up a company in Federal Court is not a simple process and there are certain requirements which need to be met,
Otherwise you could find yourself with a costs order against you. But then again if you have nothing, you have nothing to lose in bankruptcy if costs are awarded against you.
Hope that helps in clarification.