Brouhaha over Canberra Workers’ Comp has People in the North Carolina Workers’ Compensation Community Talking

December 28, 2010, by Michael A. DeMayo

Most blogs and journal articles about North Carolina workers’ compensation focus on local, state, regional, and (occasionally) interstate issues. But a feisty debate over worker’s rights and entitlements half a world away in Canberra, Australia has many local analysts, insurers, and employers talking.

According to an ABC News report, the Australian ACT Government’s proposals to amend workers’ comp legislation in Canberra sent hundreds of Aussie workers to the streets. Unions for tradespeople, bus drivers, and nurses, in particular, have vociferously opposed the proposed changes. A local union secretary, Kim Sattler, articulated the workers’ case plaintively: “people work hard, and they are bargaining to actually maintain proper wages and conditions and entitlements. And yet each time we come back to the table, we are asked to reduce those requests… workers are the ones who are paying the price of economic prosperity for everybody else.”

The ABC News article points out that the ACT Government opposes the union challenges and says that the unions “want to protect the rights of a small minority.” Katy Gallagher, a minister of Industrial Relations for the Government, noted “[the Unions] have always taken this position, but we’ve been working for years on trying to improve workers’ compensation… we are very worried that only about 17% of the scheme’s funds actually go to rehabilitation costs.”

The reason why this Australian story may be germane to North Carolina workers’ compensation issues is that it touches on a very thorny issue: namely, what percentage of workers’ comp entitlements actually go towards healing workers and getting them back to work? And what percentage gets wasted or serves merely to “indulge” lazy or non-motivated injured workers?

It’s almost impossible to quantify, in a meaningful way, when entitlements cross the line from serving as a needed help to becoming a crutch for workers and a drain on the system. Only the most die-hard libertarians would argue that the state should do away with its compensation system. Likewise, even the most die-hard workers’ comp advocates would not argue that the state’s entitlement systems shouldn’t have regulations and cost controls.

The $64,000 question is: where can we find the delicate balance between these extreme positions?

Moreover, what can be done to maximize the leverage that workers’ comp dollars yield for both workers and for the economy? For instance, this blog has talked a lot about preventative care. In other words, if we could collectively focus more on preventing workplace accidents, injuries, and illnesses, we could far better leverage the monies that flow through the system. For instance, eliminating sugary snacks and soda beverages at offices probably wouldn’t cost much… but it would likely yield serious savings in terms of better employee health over the long term.

Pulling back from this abstract discussion… let’s focus on your concerns as an injured or sick worker. You may not be getting fair due from the system because an employer is not cooperating with you or an insurance company is acting in bad faith somehow. To drive the system to be more responsive, get in touch with a qualified North Carolina workers’ compensation law firm now.

More Web Resources:

ABC News report on Canberra workers’ comp crisis

ACT Government