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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-02-20 Daily Xml
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Parliamentary Committees

PARLIAMENTARY COMMITTEE ON OCCUPATIONAL SAFETY, REHABILITATION AND COMPENSATION: VOCATIONAL REHABILITATION AND RETURN TO WORK PRACTICES

The Hon. G.A. KANDELAARS (16:15): I move:

That the 13th report of the committee, on its inquiry into Vocational Rehabilitation and Return to Work Practices for Injured Workers in South Australia, be noted.

One of the functions of the Parliamentary Committee on Occupational Safety, Rehabilitation and Compensation is to keep the administration and operation of legislation affecting occupational rehabilitation and compensation under constant review. On 16 July 2010, on its own motion, the committee resolved to conduct an inquiry into vocational rehabilitation and return-to-work practices for injured workers under the Workers Rehabilitation and Compensation Act 1986.

The committee established the terms of reference, which are outlined in the report. While I will not detail them all here today, the committee was interested in understanding the impact of the 2008 amendments to the Workers Rehabilitation and Compensation Act 1986, which were intended to increase return-to-work rates, reduce levy rates and reduce WorkCover's unfunded liability.

The committee also used the inquiry as an opportunity to explore concerns expressed by a number of stakeholders that South Australia's Workers Rehabilitation and Compensation Scheme is not operating as effectively as it should be. The committee received 23 written submissions from stakeholders involved in the Workers Rehabilitation and Compensation Scheme and return to work. All but two gave oral evidence, and some also provided supplementary submissions in response to questions from the committee.

Stakeholders were generally positive about the refocus on rehabilitation through the appointment of workplace-based return-to-work coordinators. One of the stakeholders expressed the view that this approach had the potential to bring about a positive workplace culture and assist in achieving a sustainable return to work.

A number of issues were raised by stakeholders and considered by the committee including: the manner of referral of injured workers to appropriate rehabilitation providers; whether or not claims were managed in a timely or appropriate manner; and the operation of particular incentives to assist in rehabilitation of injured workers. The committee also considered the current statistics, which measure return-to-work rates on the appropriateness of methods and definitions used.

It may be of interest to members to learn that there is no accepted or agreed definition for 'return to work' in Australia. However, two main surveys provide the most comprehensive return-to-work analysis, and these are the Australian and New Zealand Return to Work Monitor, prepared by Campbell Research and Consulting (known as the Campbell Report), and McGregor Tan research. The Campbell Report is commissioned annually by the heads of the workers compensation authorities, while the McGregor Tan report is commissioned by WorkCover South Australia.

Because there is no agreed definition of 'return to work', there are differences in which these research organisations monitor and measure return-to-work data, which made the committee's job of assessing the return-to-work rate and comparison with national targets difficult. The committee preferred the Campbell Report as it allowed the best available comparative analysis across Australian jurisdictions.

According to the Campbell Report, South Australia's return-to-work rate is below the national average on two return-to-work measures. The first measure is the proportion of workers who return to work some time between their claim and the time of review. The second is the 'durable return to work', which is those workers who remained at work seven to nine months post injury. It is important to return injured workers to meaningful employment as quickly as possible following a work injury in order to reduce the human and financial cost of injury and to reduce WorkCover's unfunded liability. The longer a worker is off, the greater the impact on the individual and his or her family and the greater the cost to business and the impact on WorkCover's unfunded liability, which is currently the highest in the nation.

WorkCover SA has reported that the unfunded liability was $1.389 billion as of June 2012, which was an increase of $437 million from the previous year. Several stakeholders expressed the view that the most difficult return-to-work environment is small employers, many of which have fewer than 30 employees. The Workers Rehabilitation and Compensation Act requires all employers to appoint a rehabilitation and return-to-work coordinator, who has legislated functions. The coordinator must be resident in South Australia, and must be registered with WorkCover and comply with WorkCover's training requirements.

There is a need to assist small business to engage the services of return-to-work coordinators and reduce the burden from compliance with training requirements despite the low incidence of work injuries with these employers. The committee has recommended there should be an option for small businesses to use a grouping exemption under the regulations. This approach has been used by the Master Builders Association, which has been able to exempt its members from appointing a return-to-work coordinator. Master Builders supports its membership with return to work through the appointment of a return-to-work coordinator who is responsible for 28 companies within their membership.

The committee heard evidence that there is a need for more equitable administration of the legislation to ensure that rehabilitation and return to work of injured workers continues past the 130-week stage, which some stakeholders report is seen by claims agents as the end of the line for injured workers who have not yet been able to return to work. There is also a need for WorkCover SA to have in place a policy on rehabilitation and return to work and to promote and enforce the policy.

The 2008 amendments to the Workers Rehabilitation and Compensation Act provided for the introduction of a code of claimants' rights, which the committee understands has been drafted and referred to the minister for finalisation. The committee recommends that the code be finalised as soon as possible. The committee also heard evidence about the nature and structure of the rehabilitation industry.

The committee has been advised that there are currently 41 operating rehabilitation providers contracted under the workers compensation scheme, but stakeholders reported that the process of allocating referrals is not transparent. They also reported that the fee schedules are process focused rather than outcome focused, which contributes to the high cost of rehabilitation and poor performance. While the committee supports the review of fee structures and a move to greater accountability, any changes should be closely monitored.

Finally, the committee has considered and assessed the impact of the 2008 amendments three years on to determine whether the purpose has been fulfilled or is likely to be fulfilled in the near future. The committee identified a number of obstacles to improve rehabilitation and return to work, and a number of recommendations have been made which seek to address these obstacles. The committee also noted that a number of amendments had not been put into effect long enough to make satisfactory and conclusive analysis of their impact and further review will be necessary once data is available. The committee is particularly concerned that there is no agreed method of measuring return to work in South Australia and recommends that the minister direct WorkCover SA to address this as a priority.

I would like to take this opportunity to thank all those who have contributed to this inquiry. I thank all those people who took the time and made the effort to prepare submissions for the committee and to provide evidence to it. I extend my sincere thanks to the Hon. Steph Key, the chair of the committee, and the members for their contributions and deliberations. These include the Hon. Rob Lucas, the Hon. John Gazzola (a former member, of course), Mrs Leesa Vlahos (a former member of the committee), Mr Alan Sibbons, Mr Ivan Venning and the Hon. John Darley.

I also extend my thanks to the staff, Mr Rick Crump, Ms Carren Walker, Ms Mia Ciccarello, Ms Leah Skrzypiec and Sue Sedivy.

The Hon. R.I. Lucas: How many staff have you got?

The Hon. G.A. KANDELAARS: I think some of these are not current staff and may have moved to other jobs.

Debate adjourned on motion of Hon. R.I. Lucas.

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