
Issue No 100		29 June 2001

LaborNET	Ask Neale	Tool of the Week

History

History Sometimes Repeat

This is not the first Labor government to attack workers compensation entitlements. Some believe the Unsworth Government's 1987 reforms were the beginning of the end for that administration.

The interesting thing about researching the 1987 reforms through the Labor council archives is the absence of any criticism. Back then a deal was done to secure support from the Council. Times are different these days.

What we did stumble upon was this report to NSW teachers by none other than Cathy Block, then an industrial officer with the Federation.

It may not capture the passion of the times, but it does lay out the key areas of concern from trade unions of the time.

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At a heated meeting on April 16, 1987, the NSW Labor Council decided to accept the State Government's proposals to change the workers' compensation scheme.

The Labor Council decision was opposed by a significant number of unions including the Federation, on the grounds that the Government's latest proposals do not meet Labor Council's policy of no reduction in benefits for injured employees.

Since the Labor Council meeting, the Federation Ironworkers Association has changed its position, and now also opposes the new scheme.

The main alteration by the Government to its original package was to lift the ceiling of weekly total incapacity benefits from $480 to $500.

Total Incapacity

Currently a totally incapacitated teacher receives full pay for the first 26 weeks on compensation.

The Government's latest proposal is for a ceiling of $500 per week on weekly payments in the first 26 weeks.

Effect:

All teachers earning more than $26,070 per annum (3y9, GA5 Technical Teacher, Step 9 - or above) will have their current entitlement cut.

Federation continues to oppose the $500 ceiling as most of our members will suffer cuts in benefits.

Partial Incapacity

Currently, Section 11(2) of the Act provides that where a teacher is unable to do his/her own job, but is fit to do some other job, and the Department does not provide suitable alternative work, ("light duties"), the partially incapacitated teacher is considered to be totally incapacitated and is paid the total incapacity benefit.

All partially incapacitated teachers currently receive the total incapacity benefit because there is not such thing as "light duties" for teachers.

The Government will abolish Section 11(2) of the Act and will provide:

ďż˝ Full compensation levels, up to $500 per week for one month, while the teacher is seeking suitable employment, rehabilitation and/or vocational retraining.

ďż˝ If the teacher undergoes approved rehabilitation and/or vocational retraining, full compensation (up to $500 per week) will be paid for a further 6 months. At the end of the rehabilitation period, full compensation will be paid for another month or until the teacher gains employment.

This new scheme will provide up to eight months on full benefits once the teacher has been deemed to be partially incapacitated.

In theory, someone could be on full benefits (up to $500 per week) for a maximum of 14 months - six months total incapacity, followed by one month while seeking rehabilitation, six months while on rehabilitation, then one month while seeking employment. In practice, this period is likely to be shorter.

Rehabilitation Unavailable

If a partially incapacitated teacher does not comply with one of the above situations, that teacher will receive payments set at the difference between weekly earnings prior to the injury or illness (up to $500) and the level of earnings he/she would be able to earn under an award if employed in suitable alternative work. Payment will be at this level, whether or not the teacher is able to actually obtain such "suitable alternative work".

Condemned to Poverty

It is this aspect of the Government's proposals which have received greatest criticism from the union movement - proposals which will condemn injured employees to live in poverty.

If for example a stress injured teacher is considered to be fit for reasonably complex clerical duties attracting award earnings of $450 per week, that teacher will be paid the difference between previous weekly income (or $500) and $450 - a probable $50 per week.

Partially incapacitated teachers with long term illness/injury will be most severely affected, and could be forced to live on social security or in poverty.

Federation's Policy

Despite the majority decision of the NSW Labor Council to accept the Government's proposals, the Federation remains opposed to the changes.

We support the NSW Labor Council's original position that there should be no reduction in benefits. Teachers will be disadvantaged because:

1. Most of them will not receive full pay for the first 26 weeks as they do at present because of the $500 ceiling.

2. They will not have a reasonable living income for long term partial incapacity due to the abolition of Section 11(2).

3. They will no longer have access to common law when their employer is found to be negligent.

Federation will continue to work with other unions in an effort to have both the NSW Labor Council and the State Government review their positions in relation to these changes to worker's compensation. The situation will become clearer once the draft legislation is made available to unions late in April.

View entire issue - print all of the articles!

Issue 100 contents

Interview: Baptism of Fire
Itďż˝s been a rugged few weeks for Labor Councilďż˝s new honcho. But John Robertson accepts it comes with the territory.

Politics: Seven Days that Shook Our World
Chris Christolodulou surveys the wreckage from a week when the political and industrial wings of the labour movement collided.

History: History Sometimes Repeat
This is not the first Labor government to attack workers compensation entitlements. Some believe the Unsworth Governmentďż˝s 1987 reforms were the beginning of the end for that administration.

Technology: Unions Online: Where To Now?
Social Change Online's Mark McGrath goes looking for what's on the virtual horizon for the union movement.

Media: The Printed Word Revisited
Rowan Cahill looks at the resurgence of the workers press and the lessons for unions in better communicating with their members.

Unions: Time For Second Gear
The trends are in the right direction but unions are still drinking small beer in the IT world and need to allocate more resources to communications generally, argues Noel Hester.

Satire: Texan Governor Faces Execution
The governor of Texas has been sentenced to death row after a jury found him guilty of killing hundreds of people.

Review: The Insider
Neale Towart looks at a literary anti-hero who brings the factional machinations and double-deals of the ALP machine out of the back rooms and into the light.

» Picket MPs Face More WorkCover Heat

» Della Tries a Henry VIII

» Privatisation Opens New WorkCover Front

» The Crucifixion and Resurrection of Virtual Democracy

» Bank Staff Forced to Flog Insurance

» Email Surveillance Report Gathers Dust

» Fifty Years On, Women Still Short-Changed

» Firefighters Withdraw Strike Threat

» Telstraďż˝s Sells Off Skills Base

» BHP - Billiton Faces $1.8 Billion OHS Claim

» Activist Notebook

» STOP PRESS: Quite Frankly, Reith Goes!