Major improvements to workers' compensation system

2/9/93

Major improvements to the workers' compensation system providing $46 million in no-fault benefits for injured workers in Western Australia were announced today by Labour Relations Minister Graham Kierath.

The announcement follows action taken by the State Government at the end of June to control the growth of common law damages cases which were seriously destabilising the workers' compensation system.

Mr Kierath said both workers and employers would gain substantially from the improvements to the workers' compensation system.

"Workers will gain through increased benefits should they be injured at work and employers will gain through reduced premiums in the future, because of the control of legal costs associated with the growth of common law actions," he said.

The Commission has received actuarial advice that the proposed control on access to common law negligence actions will provide savings of $54-59 million and has recommended that $46 million of this be available as no-fault benefits to workers.

Recommendations from the Commission for improvements to benefits to injured workers which have been accepted by Mr Kierath include:

·         the maximum compensation for loss of earnings under legislation will be increased from $88,232 to $100,000 and be fully indexed for the first time in the past 10 years.  In the instance of total and permanent incapacity, an additional $50,000 compensation can be awarded, making a maximum of $150,000 available;

·         a new provision will provide for a lump sum compensation entitlement for persons with injuries to the back, neck and pelvis.  Persons with severe back injuries could receive up to $60,000 in a lump sum payment;

·         an increase in weekly payments to injured workers during the first four weeks off work to either their pre-injury earnings, capped to a $632.50 maximum per week or their present entitlement under the legislation, whichever is the greater.  After four weeks, injured workers will receive the entitlements presently provided in legislation;

·         the award of compensation to the dependent spouse of fatally injured workers will be increased to 100 per cent of the maximum compensation for weekly payments available within the system ($100,000), where previously such dependants only received 85 per cent of the maximum compensation available; and -

·         workers suffering from diseases of gradual onset, such as the asbestos-related disease mesothelioma, who cannot identify the linkage between their employer and insurer from many years ago, will be able to seek an award of compensation from the general fund administered by the Workers' Compensation and Rehabilitation Commission.

"The majority of common law damages actions are associated with manual handling injuries to the back," Mr Kierath said.

"With the new benefits, injured workers will now have the opportunity to turn to a lump sum payment of up to $60,000.  Previously they had to take their chances and try to prove employer negligence at common law.

"Most of these actions took at least two years to get to court.  These new benefits do not rely upon proving the fault of the employer and if the injury is genuinely work-related, the payment will be made."

Mr Kierath said many injured workers presently experienced reductions in weekly payments when on compensation, because present entitlements did not cover regular overtime and allowances.  Because of this, they faced immediate problems meeting home and car repayments.

"Nearly 90 per cent of injuries result in less than four weeks off work," he said.

"Thus most workers will be better off under the new weekly payments and none will receive less than they receive now."

Mr Kierath said amendments to the Workers' Compensation and Rehabilitation Act would be introduced to State Parliament soon, so these improved benefits for injured workers could be delivered before the end of the year.

Media contact: Brian Coulter 222 9595