Allan government faces union backlash over WorkCover deal
Business has welcomed the government’s decision to freeze premiums, but one union boss says the bill “undoes some of the great reforms done by every Labor government from Cain to Bracks.”
Union leaders say they are “furious” after the Allan government struck a deal with the Victorian opposition to pass a bill aimed at reforming its ailing workers’ compensation scheme, in exchange for freezing premiums for a year.
The proposed WorkCover bill had originally angered both unions and business, as the government sought ways to bring down costs, having been forced to pour $1.3bn of taxpayers’ money into WorkSafe over the past two years to keep up with soaring claims, which increased by 14 per cent to 32,780 in 2022-23 alone.
Yet while business groups are welcoming the decision to freeze premiums at the current average of 1.8 per cent of remuneration for 2024-25, Victorian Trades Hall secretary Luke Hilakari said the deal “represents the worst of Victorian politics.”
“It puts profit before people, and the people it targets are some of our most vulnerable Victorians, being injured workers,” he said.
The bill will prevent workers from claiming weekly WorkCover benefits for stress and burnout, instead offering them 13 weeks of provisional payments to cover medical treatment, along with access to enhanced psychosocial support services.
Workers receiving payments for more than 2½ years will also have to undergo impairment and capacity tests to determine their ongoing eligibility.
Mr Hilakari said the reformed scheme “discriminates” against workers with mental health issues.
“Many workers will be kicked off the scheme at 130 weeks. It is shameful that the Labor government can’t tell us how many, and for those workers who will not be entitled to any other benefits, many of them will end up in poverty and lose their house,” Mr Hilakari said.
“This undoes some of the great reforms done by every Labor government from Cain to Bracks.”
Mr Hilakari briefed state caucus on Tuesday alongside fellow union bosses Jo Briskey and Tony Mavromatis, but The Australian has been told their anger “fell on deaf ears” because no MP was game to move a motion to challenge the government’s plans to pass the bill.
An apology from WorkSafe Minister Danny Pearson and offer for those with concerns to approach him ahead of the next caucus meeting in a fortnight was seen as “disingenuous”, given the bill will have passed by then.
Mr Pearson dismissed the concerns of unions, which are shared by some Labor MPs, declaring the reforms a victory “for all Victorian workers”.
“We’re making sure that Victorian workers have the dignity of a viable, sustainable workers compensation scheme,” he said.
“It will ensure that we can give people the support they need when and where they need it.”
Victorian Chamber of Commerce and Industry chief Paul Guerra said the deal represented the “best outcome that our business community could have expected”.
“We applaud all sides of politics for showing leadership to work together on a solution that our state’s business and workforce so desperately needs to ensure our economic sustainability,” Mr Guerra said.
“This is a significant win for employers who manage their businesses in the highest taxing state in the country.”
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