Liberals say new Labor government is tearing itself apart over injured workes

Updated: Labor is tearing itself apart because of a failure to consult about changes to laws affecting injured workers, the Liberals have claimed.

The newly minted Labor government is being torn apart because of its failure to consult about law changes affecting injured workers, says Liberal shadow Attorney-General Josh Teague.

Seizing on Labor’s state executive demanding the withdrawal of controversial workers’ compensation legislation, Mr Teague attacked Labor for introducing the proposed laws without consulting groups ranging from unions to the Law Society.

“We’re seeing Labor tearing itself apart over a serious matter that affects workers, and it’s important for all of South Australia. But it’s core to government, that there is a way of going about these things that is robust,” Mr Teague said.

“That includes, number one: consult. Consult with those of goodwill. Consult with those who have a stake in the matter, and bring parliament into the process – they’ve done none of these things.

“So we shouldn’t be surprised that the unions are belling the cat on the Malinauskas government and the labour movement is tearing itself apart before our eyes.”

Liberal shadow Attorney-General Josh Teague: NCA NewsWire / Brenton Edwards

Unions have accused Labor of “hurting working people” with proposed workers’ compensation changes introduced on June 2 that “attack our most severely injured”.

Labor’s state executive on Wednesday put the party’s management at odds with the parliamentary wing by passing a union-backed motion urging the legislation’s withdrawal.

“The ALP SA state executive expresses concern about the significant impact the proposed Return to Work (Permanent Impairment Assessment) Amendment Bill 2022 would have on injured workers in South Australia,” the motion says.

“The ALP SA state executive calls upon the state Labor Party to withdraw the Return to Work (Permanent Impairment Assessment) Amendment Bill 2022 and commit to genuine consultation with unions and workers to ensure that injured workers entitlements are fully funded.”

Premier Peter Malinauskas on Wednesday sent a blunt message to unions accusing him of attacking injured workers, declaring he would not risk jobs and wages growth by imposing unfair premium costs on business.

In an interview with The Advertiser over controversial workers’ compensation legislation, Mr Malinauskas demanded employer charges not rise beyond 2 per cent, insisting this would achieve balance between unions and employers.

In a bid to intensify pressure on the Liberals to back their small business base, Mr Malinauskas demanded the impasse over ReturnToWorkSA compensation coverage and levies be sorted out by July 7 – ahead of parliament’s midwinter break.

Employers warn the changes are needed to prevent businesses being exposed to a $1.1bn liability and 20,000 jobs being imperilled by a High Court decision that allows some injured workers to combine impairments from separate injuries and move them to higher payout categories.

But Mr Malinauskas said he wanted a balance to the funded ReturnToWorkSA scheme that provided security and protection for injured workers without adding to cost pressure on small business, risking wages and jobs growth.

Premier Peter Malinauskas has issued a blunt message to unions. Picture: NCA NewsWire / Naomi Jellicoe

“I’m very keen to sit down with unions and try to negotiate an outcome here. I want to work with business. It’s always the way I’ve operated. My view of industrial relations – it’s always about achieving the balance,” said Mr Malinauskas, a former shop assistants’ union state secretary.

“But I don’t think a levy going above 2 per cent would be achieving a balance.

“My message to unions is clear. I have 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.”

A 2.2 per cent payroll levy is proposed for 2023/24 by the ReturnToWorkSA board unless parliament passes changes. It is now 1.7 per cent, rising to 1.8 per cent next financial year.

The Opposition party room meets on Tuesday morning to decide a position.