WORKERS’ COMPENSATION Highest Maximum Rate Suggested

Press, Volume CVI, Issue 31235, 6 December 1966, Page 1

WORKERS’ COMPENSATION Highest Maximum Rate Suggested

(N Z Press Association) WELLINGTON, Dec. 5. The Royal Commission inquiring into compensation for industrial injuries heard a suggestion today that the rate of maximum weekly compensation payments be raised. Mr D. L. Tompkins, appearing for the Sawmillers’ Mutual Accident Insurance Company, said the rate was inadequate. He said it should be set at «bout 80 per cent of average weekly earnings, with a ceiling only on large earnings. The company also thought the restriction to a six-year period for compensation payments was unjustified and shoull be abolished. Mr Tompkins suggested a sliding scale of payments so that, when a workman was off for only a few days, the rate of compensation payable would be less than the ultimate maximum rate for a more serious disability. company was con-

cerned at the delay in having common law actions heard. It did not oppose periodic payments, but could see little need for them. FIRST WEEK

The secretary of the Workers' Compensation Board, Mr L B. Campbell, rejected a suggestion that employers, rather than insurance companies, should pay the first week’s compensation to injured workers. It had been suggested such a scheme would make employers more accident and safety-conscious. Mr Campbell said the idea’s simplicity had much to commend it, and would result in initial savings of approximately £360,000, about 5 per cent, in total premiums. The major disadvantage would be the transfer from the insurer of control of the settlement of a large proportion of claims. Of the losttime accidents last year, 42.5 per cent resulted in a disability of one to seven days. At least a similar proportion resulted in less than one day's incapacity. “Frankly, 1 feel to place such a large number of claims in the hands of the employer

would be a retrograde step,” said Mr Campbell. A common complaint from workers and unions was late payment of compensation, particularly first payments, he said. An alternative to the employer paying the first week’s compensation was to let the insurer meet the claim as at present, but to recover from the employer later, presumably when the annual premium was paid. “This is a better approach, as the number and cost of claims may be brought home more sharply in that manner,” said Mr Campbell.

He said he did not favour introduction of merit-rating methods because workers who did not belong to powerful unions and were without legal aid were at a decided disadvantage. MEDICAL EXPENSES

“It cannot be emphasised too often that the cost of compensation and medical expenses are but part of the cost of industrial accidents,” said Mr Campbell. “The indirect or uninsured costs are considerable, and any employer who substantially reduces his accident toll makes considerable savings,

even if these cannot be ascertained, or even estimated with any degree of accuracy.” It was incredible how long the severe six-year limit on workers’ compensation had gone virtually unchallenged by the trade union movement, said Mr Campbell. It was obvious the limit had to go. According to New Zealand law, no matter how gross and permanent the disability, workers’ compensation stopped after six years. Mr Campbell discussed the six-year limit as a complete anachronism, which even the original 1897 Workers’ Compensation Laws in England did not have.

It was logical to say that some of the cost of changing to a pension scheme was inevitable.

Mr Campbell also criticised the rate of weekly compensation. It had tended to fall more and more behind the take-home pay of the average worker. The recent rise in the maximum weekly compensation and dependants’ rates was evidence of official recognition of that “The upper limits of 80 per cent and 90 per cent are quite unrealistic and somewhat mis-

leading, as the average worker gets an amount well short of 80 per cent or 90 per cent of his average weekly earnings,” said Mr Campbell. Any form of pension must allow for inflation and there should be sufficient money in the pool to meet that need. The effect of inflation could be countered by placing a percentage surcharge on the value originally invested, said Mr Campbell. Another source of funds would be credits accruing from the shortened expectation of life of the permanently totally disabled. The average expectation of life of permanently disabled workers was 34 years.

SURGEON’S SUBMISSIONS Mr J. W. E. Raine, a member of the council of the Royal Australasian College of Surgeons, said rehabilitation of injured workers was hampered by the employers’ reluctance, in some instances, to accept a man not 100 per cent fit, and the workers’ fear that resumption of work would prejudice compensation settlement. Mr Raine said the place to restore fitness for industry was within industry. He said medical examinaV ■

tions before workers began employment deserved consideration. The assessment of a disability, particularly in surgical conditions, was best caried out by surgeons in active practice rather than by a board whose members might be out of touch with current treatment. Mr Raine said that of the 58,998 industrial accidents last year, 20,194 caused absences from work for only up to one week, most of them due to strains, lacerations, and bruises. By contrast, 292 injured workers were absent six to 12 months and 184 were away for more than a year. Of the 58,998 cases in which some time was lost from work, a “very small proportion,” 476, was absent for more than six months. The chairman (Mr Justice Woodhouse) suggested the medical profession give an opinion on the merits or otherwise of central clinics to treat industrial accidents as soon as they happen. Immediate treatment could prevent deterioration of the injury and slightly injured persons may be away from work for a few hours only, he said.