6/03/2008

News Item

Business, unions launch fierce compo battle

BUSINESS SA is launching a $1 million campaign demanding urgent reform of the WorkCover scheme, pitting the powerful group in a battle against the state's unions.

Declaring the system had "reached breaking point", Business SA president and Harris Scarfe chief executive officer Robert Atkins yesterday warned, "each day's delay is costing South Australian businesses and the community".

In a move aimed at heading off pressure within Government ranks to alter the Bill, Business SA today launches a print, radio and television advertising campaign strongly backing the proposed WorkCover amendments, which will result in cuts to workers' benefits.

But unions are firing back with radio advertisements attacking Premier Mike Rann, stating that: ". . . big business has got to you so you're selling out the little guy by cutting WorkCover entitlements".

Unions also are vowing to target individual employers with poor workplace safety records in their own advertising blitz.

They want the Government to scrap plans to reduce injured workers' weekly payments as part of its moves to slash WorkCover's unfunded liabilities of more than $840 million.

Government sources said yesterday they knew business had "a huge war chest" to campaign for the changes, which The Advertiser has learned will total $1 million.

Mr Atkins said businesses were no longer able to afford paying the highest levies in the country.

"South Australia has the worst performing and most expensive workers' compensation scheme in Australia," he said.

"The system has reached breaking point and must be changed now. The proposed changes will mean SA will have a workers' compensation scheme that provides fair support for injured workers, is delivered efficiently and enables the earliest possible return to work.

"SA businesses now pay an average annual levy of 3 per cent of their payroll compared to other states, which have levies below 2 per cent."

Under the proposed changes, the levy could be reduced to as low as 2 per cent.

Mr Atkins said the changes must be supported in parliament and delays to introducing changes would severely damage the community.

"What we need now is for the changes to be implemented without delay and that means getting the House of Assembly and the Legislative Council to pass them as a matter of urgency," he said.

Tough stance after backflips

Government sources said Premier Mike Rann would take a tough stance on WorkCover, winning him points with the business community despite alienating the unions.

Mr Rann is gambling that unions ultimately will support him at the 2010 state election, ahead of the Liberals.

A tough stance on WorkCover also paints Mr Rann as a strong leader, in the wake of the Government's failed bid to build a grandstand at Victoria Park and backflips on education levies last year.

SA Unions secretary Janet Giles yesterday vowed to counter Business SA's campaign by threatening to target individual employers.

"I would hope the public would be suspicious of business campaigning on this issue because they are the problem," she said.

"We find employers' behaviour to be one of the major reasons why people don't go back to work. In many cases it is the employers that won't take people back to work. If they want to open this can of worms then we have a lot of stories about bad employer behaviour that we can use."

Ms Giles said the business community's campaign demonstrated the Government had "lost touch".

Industrial Relations Minister Michael Wright yesterday said the Government was delivering workers "the fairest conditions to injured workers" but would continue discussions with the unions.

Opposition Leader Martin Hamilton-Smith said Business SA's campaign would not pressure the Liberals to support the Government's Bill.

He said by consulting, the Liberals were "doing what the government had failed to do" and therefore would "rule nothing in" and "nothing out".

source: http://www.news.com.au/heraldsun/story/0,21985,23327785-662,00.html