Janet Giles, secretary of SA Unions, South Australia's peak trade union body, resigned on February 18 from the board of the state government's WorkCover Corporation, stating that she could not defend the rights of injured workers while remaining on the board.
Her resignation followed Labor Premier Mike Rann's acceptance of board recommendations to cut injured workers' payments to 80% of their weekly average earnings after 13 weeks off work and throw workers off WorkCover altogether after 130 weeks. The legislation for these changes will be debated in parliament in April.
The Rann government claims the cuts are necessary because of a large shortfall in funding. However, another part of the legislation cuts the levy business has to pay into the scheme. The direct beneficiary of the cuts to workers' entitlements will be the very people responsible for unsafe working conditions.
Giles told ABC News on March 5 that, "There's been very good access to the premier from business in relation to workers' compensation and very little from the people that represent working people. So if they want to move ahead and push this stuff through rapidly, which is what they're attempting to do, then they'll be facing a well-coordinated and funded [union] campaign...
"The state government has been, in our view, confrontational with the public, with injured workers and with unions over this matter. They haven't done what they would normally do which is sit down and consult and discuss about matters."
A union campaign against the proposed WorkCover changes began on March 5 with the launching of radio advertisements that target Rann, stating that "big business has got to you so you're selling out the little guy by cutting WorkCover entitlements".
Pledging Greens support for the union campaign, SA Greens MP Mark Parnell said in a February 26 media release: "Labor has well and truly lost touch with working people. If they were in opposition right now they would be howling down these changes. Now it seems they are quite happy to take money away from workers and give the dividend to employers.
"There are clearly major problems in the way that WorkCover deals with workers trying to return to work. Also, various reviews have highlighted concerns in the rehabilitation 'industry' that hovers around WorkCover. Clearly, changes are required. But you can fix the WorkCover system without the need to strip workers' entitlements.
"Reducing workers entitlements at the same time as reducing the WorkCover levy is a direct transfer of wealth from working people to employers."
The March 6 Australian reported that the employers' Business SA organisation will conduct a $1 million print, radio and TV advertising campaign in support of Labor's planned WorkCover changes. "Government sources said Premier Mike Rann would take a tough stance on WorkCover, winning him points with the business community despite alienating the unions", the Murdoch national daily added.
In her resignation statement, Giles said the WorkCover scheme was on track to be fully funded by 2013. She argued that the "rush by the board to recommend significant changes to injured workers' income and entitlements, in an attempt to 'starve them back to work', came out of the blue and was strongly opposed by the union representatives who produced a minority report" to the government last year.
She added: "I believe the push for cuts to worker entitlements is largely driven by the business lobby in order to reduce their WorkCover levy payments at the expense of injured workers. The recommendations of the board shift the blame and pain directly onto the injured worker and at the same time give employers a financial windfall."
In a February 27 post on his website, former Labor, now independent, MP Kris Hanna wrote: "Here we have a Labor government authorising claim managers to dump injured workers onto the dole after two-and-half years on WorkCover. This is the kind of anti-worker legislation that Labor MPs and the unions fought so hard to defeat when John Howard introduced his Work Choices legislation."
The Adelaide May Day committee will be highlighting the Labor attacks on injured workers at this year's May Day rally.
In addition to commercial radio ads, the SA Unions campaign against the legislation will include suburban doorknocking, letterbox drops and holding public rallies, targeting Labor-held electorates. The next campaign meeting will be at 7.30pm on March 12 at the Onkaparinga Rugby Club, Wilfred Taylor Reserve, States Road, Morphett Vale. To get involved email <saunions@saunions.org.au> or phone SA Union at (08) 8279 2222.