SHARE THE PAIN - INCREASE EMPLOYERS' LEVIES TO FUND WORKCOVER

30 March 2009

Today's WorkCover Board figures of a $1.3 billion unfunded liability and a decrease in the percentage of the scheme funding position to 51.7% demonstrates that the attack on injured workers' pay and entitlements was unfair and unnecessary.  This only two days before the new laws come into full effect with workers losing 100% of their payments if they are still injured after 130 weeks.

SA Unions calls on Premier Rann to address the unfunded liability, not by continuing to attack injured workers but by sharing the pain and demanding an immediate increase in employer levies.

Secretary of SA Unions, Janet Giles says "This is only fair, considering injured workers have lost considerable pay over the last year and now many are in fear of losing their whole income and possibly their homes."

On Wednesday, 1st April, at least 2,950 injured workers will be faced with a total loss of income.  Many have already received letters informing them of this.  In addition, workers who have lost limbs or body functions will receive significantly less compensation.

"The Rann Government's rush to attack workers and not even consider alternate remedies has left workers worse off, left employers off the hook, left WorkCover off the hook, and the unfunded liability continues to blow out", Ms Giles said.

Board figures show the scheme was improving without implementing major reductions in workers' rights.  The scheme is in crisis now, not because of injured workers but because of the global financial crisis, yet workers will continue to be the ones who suffer."

"Unions have been saying all along, that improvement will only occur if there is a significant change in the culture and operation of the Workers Compensation Scheme.  Instead, Mike Rann chose the short sighted approach of slashing workers entitlements and then put his mate Philip Bentley in charge."

"Now it's time to share the pain - increase employers' levies to reduce the unfunded liability," Ms Giles said.

Events for this week

• 30 March - Board meets to receive unfunded liability result and to set employer levies for 2009/10

• 1 April - Law becomes fully operational and workers lose all income if have any work capacity and are on payments after 130 weeks (currently 2,950)