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Victoria’s WorkCover system: better or worse?

As Victorians prepare for a media onslaught leading up to the November 30 state election announced yesterday, the debate on the health of the state’s WorkCover system has warmed up again. While the government of Premier Steve Bracks says it has recovered and is now performing well, the opposition Liberal Party says it’s still a basket case and has announced a “fairer plan” for Victorian employers and workers.

Alleging the system still carries unfunded liabilities of $781 million, the Liberals favour a five-point plan that includes allowing employers to take greater responsibility for claims-handling.

“A wide range of employers will be permitted to manage claims in a similar way to self-insuring employers now. WorkCover will remain ultimately responsible for ensuring workers receive all the benefits to which they are entitled, but employers who elect this option will take on much more of the financial upsides and downsides of the safety performance in their workplaces, and thus have a direct incentive to improve safety.”

Accepting that the banning of common law provisions from the system by former Liberal Premier Jeff Kennett wasn’t popular, the Libs say they accept the “outcome of the democratic process” and would allow sufficient time to see whether or not the present system can be made to work. 

But not a mention of returning the system to the private sector.