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General


Injured workers to get less compensation

A new Federal Government move to encourage big businesses to self-insure for workers' compensation could mean substantially reduced payouts for injured workers and significantly lower the national standard of workplace health and safety says the ACTU.




The Federal Government is supporting an application by large businesses, including the National Australia Bank and construction company John Holland for a licence to withdraw from State and Territory workers' compensation schemes (ie WorkCover) and self-insure under its Comcare scheme.

The Federal Government's 'Safety, Rehabilitation and Compensation Council' is due to rule on the license applications today, Wednesday 13 December.

ACTU President Sharan Burrow said:

"Unions are very concerned that health and safety protections for workers are typically much lower in the federal system and that payouts for permanently injured workers are also much less.

For example, the amount payable to a paraplegic is around 30-40% less under Comcare than under Victoria's workers' compensation system.

And for a worker who loses a thumb and forefinger in a workplace accident, the payment under Comcare is $66,000 - around $50,000 less than the NSW State compensation payout of $114,000 and also much less than Victoria's $107,000.

The Commonwealth's workers' compensation scheme and OHS system is simply not set up to deal with building industry employers like John Holland.

Australia's construction industry is very dangerous and many workers continue to lose their lives in unnecessary workplace accidents.

It is appalling that the Federal Government would allow companies like John Holland to shop around for a cheaper workers' compensation system.

People don't go to the Bahamas to pay more tax.

These companies are moving out of the State and Territory compensation systems so that they can cut costs and evade stronger health and safety regulations.

But the people who will suffer from this new move by the Howard Government are going to be workers who are injured," said Ms Burrow.


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