News Release

WORKCOVER CURE LIES IN PREVENTION

10 January 2007

SA Unions has rejected suggestions by the Motor Trade Association for its cuts to benefits paid to injured workers.

SA Unions President Nick Thredgold says such a move would not address concerns about the organisation's financial liabilities.

"Reducing the rights of the injured is simply problem shifting, not problem solving.  If injured workers aren't properly supported through WorkCover, they are going to require help from elsewhere, such as the health system or the social security system."

"The real key to improving WorkCover's performance is to reduce injury rates.  Fewer injuries means fewer liabilities and fewer payouts."

"What we need to see is a commitment from industry, including the Motor Trades, to improve workplace safety standards.  Better occupational health and safety standards mean fewer workplace deaths and injuries, and less pressure on WorkCover."

"If business was more prepared to invest in safety, there would be a drop in injury rates, less demand for compensation and an easing of the premiums business is required to pay."

"The challenge is to industry to stop looking for others to shoulder its responsibilities.  It needs to stop putting profit before safety and invest in creating safer workplaces - not just in terms of valuing its employees, but also in terms of saving itself the expense associated with growing injury rates", Mr Thredgold says.

"Suggesting that workers should be denied fair compensation for the employer's failure to provide a safe working environment shows that some industries have a dark ages mentality, where workers are seen as disposable."

"SA Unions believes South Australia has the fairest worker's compensation system in the nation, with a fair balance between the needs of workers and the needs of employers.  It is important to remember that the unfunded liability carried by WorkCover is the worst case scenario if all workers required payout all at once.  It is not the present reality.  If industry will work with employees to reduce injury rates it ultimately will benefit from reduced injury rates and a reduction unfunded liability", Mr Thregold says.

"I understand the WorkCover Board is actively looking at ways to improve its performance.  Instead of hindering that, industry could actually help by adopting the adage that a modest investment in prevention is smarter than the cost of a cure", he says.