UNIONS TO SEEK MAKE UP PAY FOR WORKCOVER SHORTFALL

9 April 2008

Some of South Australia's largest and most powerful unions will flex their industrial muscle to ensure their members aren't short changed by the state government's controversial changes to WorkCover.

The Construction, Forestry, Mining and Energy Union, the National Union of Workers, the Australian Workers Union and the Australian Education Union will seek "make up" pay if there are cuts to WorkCover entitlements.

SA Unions Secretary, Janet Giles says unions are determined that workers injured through no fault of their own are not financially penalised.

"These 4 unions will seek clauses in their Enterprise Agreements compelling employers to cover the gap between wages and WorkCover payments for injured workers".

"This is especially pertinent for the AEU which is presently negotiating its new agreement with the Rann State Government."

"Employers should think very carefully about their support for the Rann government's Bill, because if it proceeds in its current form, we'll be demanding that employers make up for workers' lost entitlements."

"This would cost them considerably more than the reduction in their WorkCover levies."

"So if the state government pushes ahead with plans to slash workers' pay by 90% or 80% business will be charged the difference", Ms Giles says.

"It's a shame it has come to this - we know that it is possible to fix WorkCover's finances without hurting injured workers.  Make up pay is not our preferred option.  But if that's what's required to protect injured workers and their families from being financially bludgeoned by this government, then so be it."

"And don't think we can't do it - the precedent has been set interstate, particularly in Victoria.  Unions there won the right to make up pay as a result of former Premier Jeff Kennett's attack on their workers compensation scheme.  If Mike Rann wants to model himself on Jeff Kennett, then he has to expect a similar response here."

"We have conservatively estimated that if make up pay was to be applied to people currently on WorkCover it would cost business $260 million.... and that's on top of their WorkCover levies.

"These four unions will be amongst the first to seek make up pay clauses in the Agreements if the government proceeds with it retrograde and unfair WorkCover legislation.  But they won't be the last", she says.

"Meanwhile we remind the government that we remain ever prepared to negotiate a new, fair solution that fixes WorkCover's finances without further hurting injured workers.  We know there's a reasonable solution - all that's required is reason on the part of the government."