EMPLOYER'S VIEWPOINT

New Zealand Herald, Volume LXVII, Issue 20595, 20 June 1930, Page 13

EMPLOYER'S VIEWPOINT

THE FITNESS OF WORKERS.

BURDEN ON INDUSTRY*

MORE EXPENDITURE INVOLVED.

*' The commission proposes not only to increase the benefits payablo under the Workers' Compensation Act, but also to enlarge its scope," said Mr. Albert Spencer, president of the Auckland Employers' Association. " This would inevitably increase the insurance premiums payable by the employer. The present cost of the insurance is quite high enough. This or any other additional burden upon the cost of production in either primary or secondary industries will undoubtedly have a very serious effect upon employment. If the commission's advice is taken thero will certainly be Borne addition to the cost of living. " Thero is an increasing tendency to make workers' compensation benefits so liberal and expensive that, if further concessions are given, employers, in order to protect themselves, will be obliged to demand a medical certificate before engaging a worker. This will bo a serious matter for many people having physical defects which, although not apparent, would be revealed by a medical examination. A latent defect is always liable to bo brought out by, for example, extra strain. It may make a worker more prone to suffer accidents and may aggravate their effects.

" Considering how the cost of living has fallen in the past three years, the preseilt compensation rates aro very liberal. The money which workers receive under tho Act is worth more than it was in purchasing power and for investment purposes.

" If a new court is sot np and more Government officials are engaged to administer an amended Act, the Government will simply bo putting fresh burdens on its overloaded revenue. This is a time for national economy, not for incurring new expenditure. Before it adopts any scheme of this kind, the Government would be well advised to cut down its present reckless extravagance." BARRISTERS' OPINIONS. EFFECT OF DELAYS. "COMPENSATION NEURASTHENIA" Two barristers with considerable experience in compensation cases gave opposing views on the proposal to set up a separate Workers' Compensation Court. Mr. H. P. Richmond agreed with the commissioners that excessive delays sometimes occurred in the Arbitration Court. These delays, he said, were especially undesirable in compensation cases, because many claimants suffered from the wellknown condition described as "compensation neurasthenia." This was genuine and perfectly honest worry over the litigation. It retarded the patient's recovery and even caused his condition to become worse. It seemed very desirable that some arrangement should be made for hearing compensation cases at moro frequent intervals, but Mr. Richmond saw no reason why the special court, if one were set up, should include assessors. A Judge sitting alone in the Supremo Court was required to decide medical, engineering and other technical questions far moro complicated than those which arose in workers' compensation cases. Assessors were very rarely employed, and the Judge was able to get all the assistance ho needed from the expert %vitnesses called by both sides. An experienced Judge alone should be a perfectly satisfactory tribunal for dealing with the medical and other problems in compensation claims. "There has been some delay in the past few months owing to the absence of Mr. Justice Frazer in Australia, but that need not -occur again," said Mr. G. P. Finlay. "My experience has been that most cases are dealt with within quite a reasonable time." Mr. Finlay considered that it would be very regrettable if anything were done to upset the present arrangement whereby Mr. Justice Frazer conducts the hearing of both industrial disputes and compensation cases. "I know of nobody who has anything like his qualifications for dealing with industrial matters," ho said. INSURANCE OF WORKERS. NEW ZEALAND SYSTEM. EFFECTIVE CONTROL OF RATES. [BY TELEGRAPH- —OWN CORRESPONDENT.] WELLINGTON, Thursday. The opinion that the establishment of a monopoly of workers' compensation insurance in New Zealand would at present be a doubtful experiment and - one not warranted by the possible saving in cost is expressed in the report of the Royal Commission which inquired into the operation of the Workers' Compensation Act. The commission is of opinion that the control of workers' insurance rates in New Zealand is effective. Tho report states that the commission carefully inquired into the Ontario system, but although that system appeared to bo giving satisfaction in the country of its origin, apart from its limited scope, it did not follow that it would be equally successful in New Zealand. " We arc not certain," says the report, " that the Dominion would take kindly to an autocratic system, however well administered, which combines the present functions of an insurance office with the judicial authority of the Arbitration Court. In Ontario the collective liability system was established coincidentallv with the workers' compensation law and on its introduction there was practically no business lost to the insurance companies. " In New Zealand, however, its establishment would displace a system of insurance which lias operated not unsatisfactorily to employers and workers f or 29 years, and would more or less adversely affect the livelihood of many thousands of persons. In Ontario the establishment of the system had the support both of labour organisations and the j. largest associations of employers in Canada. In New Zealand evidence was given to the commission that the majority of employers would oppose a monopoly and that the workers would oppose the loss of the right of action at common law.

"It is clear that any saving which might be effected by tho establishment of a collective liability system in New Zealand would bo counterbalanced by the loss of much of that service which the present system now supplies to the employer and to a lesser extent to the worker. Tho change would be felt particularly in the country districts. The evidence has satisfied ns that there is effective control of rates in New Zealand, through the State Accident Office, and that the margin in premiums allowed for working expenses, profit and reserves is lower probably than under any competitive system elsewhere.-'