CTU media release
14 October 2009

ACC: incentives for employers could mean more risks for workers

Introducing safety incentives for employers’ ACC levies could be bad news for workers, said CTU President Helen Kelly in response to today’s announcement of proposed changes to New Zealand’s accident compensation scheme.

“The CTU will be seeking more detail on what is meant by enabling safety incentives as such a move could effectively shift risk onto workers by offering inducements to employers,” said Kelly. “We have repeatedly pointed out that rewarding employers for lower claim rates only leads to accidents being covered up or disguised as non-work incidents.”

While welcoming the extension of full funding to 2019, the CTU expressed its dismay at the rolling back of the ‘vocational independence’ threshold from 35 hours to 30 hours a week. “This is simply seeking to push claimants off ACC before their rehabilitation is complete,” said Kelly. “This will deny many workers the opportunity to resume their former professions, forcing them into low-paid work or onto other benefits footed by the taxpayer.”

“Reversal of the 2008 income compensations covering casual and part-time workers is also regrettable. It seems as though the Government is simply concerned to hack off entitlements to save money rather than look in more detail at how the system can operate in a fair and balanced way in accordance with its fundamental principles.”

“The CTU recognises that levies need to rise but these increases will hit low income workers hard and there should be consideration given to a more progressive scale for levies.”

ENDS

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