The announcement of a $4.8 billion loss for the year drew a statement from ACC Minister Nick Smith the 'Scheme is unsustainable'. He was referring to the $2.4 billion loss the year before and now the $4.8 billion loss this year.
There's a bill before Parliament and the following will be of interest to business owners and managers:
- The plan is to force those who receive compensation for more than 12 months back to work if they are assessed as being able to work for 30 hours a week. (The current level is 35 hours). Employers of injured employees in Forestry, Construction, Dairying and others where 'safety sensitive' tasks have to be performed will need to implement systems and procedures to ensure they do not exacerbate existing conditions. This, or face the possibility of an allegation of failing to take 'every reasonably practicable step' to ensure employees are safe.
- Job Assessors will not be required to take into account previous earnings when alternative work is offered. The effect will be that highly paid professionals will be required as a night time security patrol or other menial tasks.
- Compensation calculated weekly will change to the average of the previous 12 months rather than what the employee was earning at the time of the injury. This is a 100% turnaround to that introduced under the Labour regime.
- People suffering incapacity will have a longer wait - from 3 weeks currently to 6 weeks if they are below the minimum wage. Then they will be able to have it raised to the minimum wage.
- It is planned to introduce a 6% threshold for those with a hearing loss injury.
Watch this space...