WorkCover NSW gets back to business

In the wake of the global financial crisis, the importance of productive, healthy and safe workplaces to the competitiveness of the NSW economy has never been greater.

Recent figures from the Australian Bureau of Statistics estimate that there are more than 3.2 million people employed across NSW, or nearly a third of the entire Australian workforce. WorkCover NSW is responsible for administering work health and safety, injury management, return to work and workers compensation laws as well as managing the workers compensation system for all these NSW workers.

In a recent article on Business Spectator, Ken Phillips, the Executive Director of Independent Contractors Australia, called into question the professionalism and authority of WorkCover NSW (O'Farrell's awaiting public service work-out, February 17).

As the NSW workplace safety regulator it is important that we set the benchmark in terms of providing a workplace of respect and inclusion. In our workplace bullying is not tolerated and all reports are taken seriously and investigated on the evidence – including, if required, an independent investigation. We acknowledge that every organisation has room for improvement and we continue to work hard to build a sustainable culture of respect.

The NSW WorkCover Workers Compensation Scheme provides protection to workers and their employers in the event of a work-related injury or disease. The Scheme operates on the basis that all employers pay their fair share. The timely and efficient collection of premiums is a significant factor in the successful and effective operation of the Workers Compensation Scheme. Employers who don't pay their fair share disadvantage those who pay the correct amount, meaning other employers ultimately pay more.

With assets of around $11 billion, the Worker's Compensation Insurance Fund is one of the largest institutional investors in Australia. The Fund outperformed similar funds both during the Global Financial Crisis and more recently during the global economic recovery. This strong performance enabled WorkCover NSW to reduce premium rates in 2010 by up to 2.5 per cent while still collecting sufficient funds to meet future NSW Workers Compensation Scheme costs. This was the sixth premium rate cut since November 2005 and enabled more than 240 industry classes representing 161,000 employers, or 55 per cent of all NSW employers covered by the Workers Compensation Scheme, to have their premiums reduced.

WorkCover understands that businesses can go through short term cash-flow problems and meeting workers compensation insurance premiums can be a challenge. Where payments are consistently ignored, WorkCover Scheme Agents have the option of initiating proceedings to recover funds, however the liquidation or bankruptcy of an employer is the last option after all other avenues have been exhausted. To demonstrate the flexibility of the workers compensation premium collection process in NSW, WorkCover, through its WorkCover Scheme Agents, is currently offering payment options such as waiving late payment fees, reinstating statutory instalments or offering extended payment arrangements to employers that have been significantly impacted by the January 2011 floods.

As the workplace safety regulator, WorkCover is also responsible for enforcing compliance with the Occupational Health and Safety legislation and has the power to prosecute for serious breaches of the Act and related regulations. The 2010 judgment of the High Court in 'Kirk Group Holdings Pty Ltd & Graeme Kirk v WorkCover Authority of NSW' reaffirmed the obligation of employers under NSW workplace safety laws to ensure the health, safety and welfare of employees at work. The Court recognised the high standards imposed on employers to identify and take steps to prevent workplace safety risks. These proceedings were successfully prosecuted before the Industrial Court and the Court of Appeal before proceeding to the High Court. The Court took a different approach to established law and practice in the jurisdiction and highlighted the need to consider the way breaches of the Act are prepared for prosecution.

WorkCover is committed to working in partnership with the NSW community to achieve safer workplaces. We have established and convene 11 industry reference groups and have 11 partnership agreements with industry associations and peak unions that aim to develop strategies for improving workplace health and safety, injury management and workers compensation performance.

With work-related injuries at their lowest levels in NSW since the Workers Compensation Scheme was introduced in 1987, WorkCover NSW is delivering on its goal of providing safer workplaces and greater support for NSW workers. In the future we plan to increase our use of evidence to target prevention activities, strengthen our focus on sustainable return to work outcomes and continue to provide effective fund and workers compensation system management to ensure its ongoing financial viability. NSW businesses can be confident that WorkCover NSW will continue to administer work health and safety, injury management, return to work and the workers compensation system according to its five corporate values of integrity, respect, ethical behaviour, accountability and excellence.

Lisa Hunt is Chief Executive Officer of WorkCover NSW.