A review of WA’s workers’ compensation system is underway. Premium Rates Committee chairman Des Pearson has been appointed to chair the review.
Labour Relations Minister Cheryl Edwardes has called for submissions for the review. Mrs Edwardes said the continuing escalation of workers’ compensation costs were crippling many WA businesses.
“It is frustrating and extremely disappointing that businesses will again be forced to absorb further significant increases in premiums later this year,” she said.
WA Chamber of Commerce and Industry chief executive Lyndon Rowe said the news of the review was welcome to both employers and employees alike.
“It recognises the system has dire problems and is in danger of collapsing if let go into another insurance year without the problems being addressed,” Mr Rowe said.
“A collapse would be to the detriment of all, particularly the broader workforce which has the most to lose.
“The crisis workers’ compensation is facing in WA is the result of a shift to common law claims which has overbalanced the system and cannot be sustained financially.
“The cost of this trend continuing will, without question, come in the form of business closures and loss of jobs.
“It is vital the review runs to schedule and the issues raised are not dismissed so lightly again by members of the Opposition and minor parties.”
The terms of the review are to:
l Assess the extent to which current arrangements reflect the historical balance between statutory entitlements and common law remedy for workplace injury and disease since 1982
l Assess the impact of statutory and common law benefits on costs to business and the relativity of those costs to the state’s wages and salary bill
l Provide options to government to stabilise workers’ compensation costs and to make these costs comparable to other states in a manner equitable to both employers and employees.
Submissions addressing the terms of reference must be received by May 5.