Compensation cave-in

Even before police horses trampled picketers in front of the State 
Parliament last week, it was clear that a determined fight for workers' 
compensation rights in NSW was the only way workers and their unions were 
going to win. It was also clear that without a strong stand by unions, the 
compliant Labor Council leadership would cave-in to the Carr Labor 
Government over the draconian legislation. This is what has now 
happened.

The legislation, set to pass through Parliament this week, is basically the 
same as that rejected by the trade union movement earlier this year. It 
denies most injured workers fundamental rights including the right to sue 
negligent employers under common law and will leave injured workers far 
worse off than under the present legislation. The legislation slashes the 
amounts to be paid for specific injuries.

In a meeting between the Carr Government and the Labor Council last Monday 
the Government made minor concessions and more empty promises. This is the 
third occasion on which the Government has made promises to the union 
movement. On the previous two occasions the Government breached its 
promises.

The fact is that the legislation remains practically unaltered. Given its 
previous record, there is no basis to accept the new verbal commitments of 
Government leaders that are to be implemented after the legislation has 
become law. Furthermore, the Bill gives the Government the power to change 
the guidelines at any time by regulation without going back to Parliament.

From the very beginning the campaign of the Labor Council was half-hearted. 
It pulled back from taking industrial action on the basis of each round of 
government promises.

On the most recent occasion, despite the evident anger in the community and 
support for something to be done, the Labor Council leadership rapidly 
pulled back. Very little explanatory information was distributed by the 
Council.

The opportunity to make use of the public transport workers who won much 
support for the decision not to collect fares was passed up. At this stage 
there was massive public support for the stand of the unions.

Labor Council Secretary-elect John Robinson announced in his surrender 
statement: "We are confronted with the reality that the Government is going 
to pass with the Bill and we are not going to proceed with the [proposed 
union industrial] campaign."

Following the Labor Council cave-in a combined meeting of the ETU, CFMEU, 
AMWU and CEPU officials and delegates endorsed a 24-hour shut-down in the 
building and construction, metal manufacturing, printing, food, vehicle and 
power supply and generation industries: too little, too late and by too few 
unions.

The Labor Government has implemented its plan through connivance, worthless 
guarantees to unions of consultation, and through Labor MPs of the "left" 
whose votes assured the legislation's passage.

The extent of this connivance was exposed by Greens MLC Lee Rhiannon, who 
revealed that the Labor Council had formerly reached agreement on changes 
on June 15 for a version of the Bill dated June 4.

"For 11 days unions thought they were in negotiations with the Government, 
but [Workplace Relations Minister] Della Bosca did not in truth change a 
single clause for that whole time", said Ms Rhiannon.

The pretext for stripping injured workers of their rights is an alleged $2 
billion WorkCover debt. But the major cause of any shortfall is the failure 
of employers to pay required premiums.

In the building industry alone, 30 per cent of employers are under-insuring 
their workers. Seventeen business groups have backed the Carr Government's 
gutting of compensation: the new legislation will be a bonanza for them, 
giving them virtually iron-clad protection when they fail to ensure safe 
working conditions.

In reality, the $2 billion debt is a paper deficit that may never actually 
have to be paid. Last year, WorkCover made a profit of $365 million.

The Government's claim that savings will come from reduced legal costs is a 
red herring. Most savings (for employers and insurance companies) will come 
from cuts in compensation payments to injured workers. Furthermore, the Law 
Society of NSW points out that while injured workers will be the losers, 
legal bills only make up a fraction of the workers' compensation payout.

In 1999-2000 for every $10 spent on workers' compensation, $6.08 went to 
injured workers, $1.22 to medical and health practitioners and $1.02 to 
lawyers. "Injured workers received the majority of the money, which is how 
it should be", says the Law Society, which proposes the replacement of the 
current conciliation system with arbitration, which would actually reduce 
costs and delays.

The aim of Carr's legislation is to reduce workers' compensation insurance 
premiums paid by employers. The legislation does this by reducing the 
entitlements of sick and injured workers.

There are problems with the present system but they will not be solved by 
the current legislation.

The priorities are to make workplaces safer and healthier, and see that 
existing occupational health and safety regulations are enforced, 
workplaces policed, WorkCover adequately staffed, negligent employers 
punished and all employers pay their full premiums.

In the long run this will not only be of benefit to the health and safety 
of workers, but will also save money.