Insurance Workers Ask For Higher Workers’ Compensation

Grey River Argus, 11 September 1948, Page 8

Insurance Workers Ask For Higher Workers’ Compensation

WELLINGTON, Sept 10.

A statement that workers’ compensation is paid on a “slump basis” is contained in an official pamphlet issued by the New Zealand General Insurance Workers’ Industrial Union, calling on the Government to limit the profits of private insurance companies and the State Fire Office and give the injured worker a higher compensation rate. Copies of the pamphlet have been sent to all memebrs of both Houses of Parliament and all trade union secretaries in New Zealand.

“In passing the Amendment Act November, 1947, the Government set out to nationalise the workers’ compensition business and make our members State employees,” says the pamphlet. “To this end they ignored the rights of the injured workers and took no notice of the proposals of our unionists, many of whom have put a life-time of study into workers’ compensation matters. “The debates on the Bill last year show that the Government is more interested in building up a case against the insurance companies than giving adequate compensation to the injured worker.”

MO CORRESPONDING INCREASE Stating that compensation was on a “slump basis,” the union said the Government had failed to increase the maximum compensation as wages increased. In respect of increases in the basic wage, the pamphlet says, no corresponding increase was granted in compensation till last April, when it was fixed at 75 per cent, of the workers’ salary with a limit of £5 10s. “Thousands of injured workers every ye® lose their just compensation because of the law’s weekly limit,” continued the statement. The union suggests that one method of control would be to adopt the system operating in New South Wales, where the premiums have to be adjusted in such a way that 70 per cent of the premiums received must be paid out in claims yearly. Similar legislation in New Zealand, it says, would give the Government full control of premiums, besides ensuring that compensation was kept relative to the wages received.