Labor accused of selling out workers with compensation law surprise

Cameron Springbett has “bugger all” use of his arm left but after a four year battle, at least his future was covered. Until Labor’s surprise legislation landed.

As the new Labor state government faces an internal revolt and union fury over its unexpected workers compensation legislation, Cameron Springbett is the man in the middle.

Mr Springbett, 48, of Morphett Vale, is in limbo as an “interim seriously injured worker” with a final determination on compensation for his injuries pending.

Under existing arrangements he stands to win a $500,000 lump sum payout, income support until retirement age and full medical cover.

Under Labor’s legislation to rein in a $1.1bn and growing liability deficit, the former Olympic Dam mine worker estimates he would likely receive a $230,000 lump sum, then face going on a disability pension and relying on the public health system.

“I thought Labor was for the workers. They have massively sold us out,” he said.

“We had just signed on to build a new home on the Yorke Peninsula and thanks to Labor I have had to put it all on hold.”

In May 2018, Mr Springbett was seriously injured at the mine site when an industrial hose accidentally retracted.

“I’d been complaining about the lack of locking mechanism for five months and when it went it took my arm and damaged my neck,” he said.

“I’ve had five operations including a shoulder replacement. I’ve got neck, arm and hand problems and bugger all use of my arm.

“I’ve had a four-year fight and in January all the injuries were accepted and I am considered an interim seriously injured worker until the final determination of the percentage of impairment, which was in the process of being done.”

Cameron Springbett, 48, faces losing compensation if Labor's legislation goes through. Picture: Roy VanDerVegt

Mr Springbett says under current arrangements, which combine injuries for assessment, that could be around 50 per cent impairment. But under Labor’s legislation only his shoulder would be considered, downgrading it to around 28 per cent – under the 30 per cent threshold for lifetime support and so drastically cutting his likely compensation.

“There are massive ramifications. I’m 48 so will probably need another shoulder reconstruction when I’m around 65, but instead of full medical cover I’ll be stuck in the public system,” he said.

Labor’s surprise move to overhaul the return to work legislation – which was not flagged during the election campaign – has infuriated the union movement which says it was not consulted.

It has also seen the Labor state executive call on the government to withdraw the legislation.

The government’s move follows a 2019 court decision in favour of truck driver Shane Summerfield, who was left permanently injured after he broke his leg in a 2016 workplace accident.

He had a left hip replacement as a result of the injury and also suffered serious lower back issues.

In May 2019, the SA Employment Tribunal ruled Mr Summerfield was able to apply for compensation for the lower back problem as well as the leg and hip injuries, as they all had the same original cause.

ReturnToWorkSA appealed the decision in the Supreme Court last year and lost, then tried to take it to the High Court which refused to hear it.

Then-treasurer Rob Lucas warned it could see employers’ workers compensation payroll levies soar by tens or even hundreds of thousands of dollars and cost around 20,000 jobs.

Premiums are set to rise from 1.7 to 1.8 per cent next financial year but the ReturnToWorkSA board proposes a 2.2 per cent levy for 2023/24 unless parliament passes changes.

In its 2020-21 annual report, ReturnToWorkSA said the Summerfield decision increased the workers compensation scheme’s liabilities by $584m, or doubling it.

Attorney-General Kyam Maher. Picture: Kelly Barnes

Opposition legal spokesman Josh Teague. Picture: Brenton Edwards

Attorney-General Kyam Maher has defended the move to change the legislation saying the compensation deficit is now around $1.1bn and rising by $100m a year.

“A scheme that is unfunded and not financially viable is not good for anyone,” he said, noting the changes would halve the deficit.

Mr Maher says under the proposed changes, workers with multiple injuries can still be compensated for all of them if pursued individually.

But they cannot combine them in the same legal action.

The effect of that, opponents say, is workers will be far less likely to reach the 30 per cent impairment threshold for lifetime support, as that would have to arise from a single injury.

Premier Peter Malinauskas said he has “no desire to put an unfair or unreasonable impost on injured workers”.

“But I believe it is equally important that we don’t impose an impost of increasing the cost of employing people that will ultimately be at the expense of either jobs or wages,” he said.

SA Unions secretary Dale Beasley blasted the government’s handling of the issue, including lack of consultation.

“The government response has been wholly disastrous,” he said.

“This directly hits the most severely injured workers who face no prospect of returning to work.

“There’s a disgraceful fear campaign being run, seeking to convince South Australians that if we take decent care of injured workers, it’ll send businesses broke. There is simply no legitimate evidence to support those claims.

“The government admits that the changes they want to make to the Return to Work Act will leave some workers worse off. There are no workers who will be left better off.”

Mr Beasley said there was ample room to reform the system so it is affordable for employers without penalising seriously injured workers.

He noted: “The best way to reduce the cost of the return to work system is to make workplaces safer to begin with.”

Business SA called on the Liberal Party to support the legislation, warning businesses face the choice of passing on the costs of premium rises – running to hundreds of thousands of dollars for big employers – to customers, reducing staff numbers, or shutting their doors for good.

The Liberals will come to a decision on their stance at a party room meeting on Tuesday, before parliamentary debate on the proposed changes resumes, but are revelling in the Labor turmoil.

Opposition legal spokesman Josh Teague said it was no surprise unions were up in arms over the legislation.

“We’re seeing Labor tearing itself apart,” he said.

“This is really quite extraordinary. The Labor state executive is completely at odds with the Labor government.”

It is clear where SA-BEST MLC Connie Bonaros stands.

“This is the single biggest act of bastardry and betrayal of injured workers this state has ever seen,” she said.

Meanwhile, Mr Springbett can only watch as his financial and medical future is decided in parliament.