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The second report - 15 December 2009
Re-assessing the impact of changes to Workers' Compensation Law

This report was conducted on behalf of SA Unions and written by Sarah Blunden and Kevin Purse of the University of South Australia on 15th December 2009.

On 1st April 2009, a report was compiled for SA Unions to present information gathered through face to face interviews with several union officials and lawyers ('Advocates') who represent South Australian workers with WorkCover claims.  This report is the second in this series.  The aim of this report is to ascertain how the changes to WorkCover laws have affected workers in South Australia over the last six months, since the last report.

After discussion with Advocates it is suggested that the new laws are:

• Imposing financial hardship on injured workers through the application of step-downs in weekly compensation payments of 10% after 13 weeks of incapacity and 20% after 26 weeks.  The adverse impact of the new step-down arrangements have hit low paid workers the hardest and in some cases has resulted in injured workers receiving less than the minimum wage.

• Enabling the termination of weekly payments whenever WorkCover, or its agent, dispute aspects of a worker's claim.  This is equivalent to a 100% step-down.  These new provisions have an enormous potential to impose financial hardship and emotional distress on injured workers, since claims disputes often drag on for many months.  As such, they also undermine workers' financial capacity to challenge WorkCover decisions and in the process increase the sense of powerlessness experienced by many injured workers.

• Disenfranchising many workers whose injuries result in permanent impairment from eligibility for Non-Economic Loss (NEL) payments.

• Placing increased pressure on workers to take redemption payments to finalise their claims.

• Undermining the fairness of the scheme through the introduction of Medical Panels that deny injured workers the right to representation and the ability to appeal decisions concerning their claims.

There were also criticisms raised concerning what Advocates regard as the dysfunctional operation of WorkCover's rehabilitation system, and reform of the rehabilitation system is essential to the effective operation of the scheme.

Two of the principal aims of the WorkCover legislation are to provide "fair compensation for employment-related disabilities" and to facilitate "the effective rehabilitation of disabled workers and their early return to work".  With this in mind Advocates suggest there are major flaws in the 2008 changes to the legislation.  These flaws include but are not restricted to:

• the operation of the medical panels viewed as unlawful

• step-downs

• Non-Economic Loss (NEL) payments

• loss of income during disputes

• inadequate rehabilitation services.

Overwhelmingly, Advocates reported that the current WorkCover scheme is inequitable, has imposed unnecessary financial burdens on injured workers and does not sufficiently support their rehabilitation, either physically or psychologically.  There is graven concern for the wellbeing of the injured workers in many of the cases presented in this report.

 Click here >>... for full report

The first report - 30 March 2009
Assessing the impact of changes to Worker's Compensation Law

A report commissioned from the University of South Australia which is the first collection of issues and impacts of the laws on injured workers on the day (1 April) that almost 3,000 workers are facing 100% loss of income through the changes to the workers compensation laws. >>.. full report

Key findings of the report show:

• workers choices are reduced when faced with a WorkCover claim

• extreme anxiety about the new medical panels which do not allow workers to be represented or to question the decision of the panel

• considerable financial hardship for injured workers

• an increase in the number of pre-emptive payouts often to the financial and emotional detriment of workers

• less time and less adequate rehabilitation and training

• significant amount of severe emotional stress and possible suicides