Chapter 6: The Values and workplace relations

Safe workplaces

While the Commonwealth’s workers compensation scheme is arguably one of the best performing in Australia¹¹, for 2003–04, APS agencies will pay around $101m to Comcare in premium fees. The overall premium rate for all agencies increased from 1.0% of payroll in 2001–02 to 1.13% of payroll for 2002–03 and to 1.43% for 2003–04, representing a 43% growth in premium rates in two years. This was due primarily to deterioration in claim performance and, in particular:

higher numbers of workers compensation claims
higher numbers of accepted high-cost claims, such as claims for psychological injury and occupational overuse syndrome
an increase in the costs associated with injured employees staying off work.

Figures 6.7, 6.8, and 6.9 show the average performance of all APS agencies in 2000–01, 2001–02 and 2002–03 against a number of performance indicators. They also show the average performance of the 15 agencies with the highest premium rates. The performance indicators used are:

the incidence rate (number of injuries per 1000 full-time equivalent employees) for compensated workplace injuries resulting in five or more days off work
the incidence of injuries that go on to accumulate 30 days and 60 or more days of time off work (which indicates the duration of incapacity following injury).¹²

As Figure 6.6 shows, the average performance for all APS agencies against the first indicator (five or more days off work) has deteriorated over recent years. In contrast, the average performance of the 15 agencies paying the highest premium rates showed some improvement in 2002–03, but has not yet returned to the level of performance achieved in 2001–02.

As Figures 6.8 and 6.9 show, the average performance of all APS agencies deteriorated against the 30-day (or ‘duration of incapacity’) indicator for 2002–03, and remained stable in relation to the 60-day indicator. The performance of the 15 agencies paying the highest premium rates deteriorated slightly against the 30- day indicator, and showed no change against the 60-day indicator.

Figure 6.7: Incidence of injuries resulting in 5 days of incapacity

Chart: Figure 6.7: Incidence of injuries resulting in 5 days of incapacity

Source: Comcare

Figure 6.8: Incidence of injuries resulting in a duration of 30 days of incapacity

Chart: Figure 6.8: Incidence of injuries resulting in a duration of 30 days of incapacity

Source: Comcare

Figure 6.9: Incidence of injuries resulting in a duration of 60 days of incapacity

Chart: Figure 6.9: Incidence of injuries resulting in a duration of 60 days of incapacity

Source: Comcare

In 2002, the Workplace Relations Ministers’ Council endorsed the release of the National Occupational Health and Safety (OH&S) Strategy 2002–2012. As part of that strategy, Ministers stated their commitment to achieving national targets to sustain a significant continual reduction in the incidence of work-related fatalities with a reduction of at least 20% by 30 June 2012, and reduce the incidence of workplace injury by at least 40% by 30 June 2012.

Following the Workplace Relations Ministers’ Council’s endorsement of the National OH&S Strategy, the Safety, Rehabilitation and Compensation (SRC) Commission adopted for the Commonwealth jurisdiction the national target of a reduction of at least 40% in the incidence of workplace injury by 30 June 2012, with a reduction of 20% being achieved by 30 June 2007. The SRC Commission has gone further than the national target for fatalities by setting a target for the Commonwealth jurisdiction of zero fatalities from injury. This excludes death from disease and commuting claims, and takes into account declarations by the Minister for Defence of warlike and non-warlike operations for military personnel.

In addition to these targets, Commonwealth premium-paying employers are being asked to adopt a further two targets to improve return to work and injury management by reducing:

the average weeks of lost time due to injury by 40% by 2012
the average time taken for return to work activity to commence by 90% by 2012.

In late June 2003, large premium paying agencies with 1000 or more employees were invited to sign a Statement of Commitment to achieving these performance improvement targets. Performance against the targets will be reported annually to Ministers on a jurisdictional basis, and agencies are being encouraged to regularly monitor their progress and report their own performance in their annual reports.

11 It has one of the lowest rates of compensated workplace injury, the lowest average premium rate and provides amongst the highest benefits of all schemes across Australia. The Comparative Performance Monitoring report provides details of the scheme and allows for comparison between other schemes in Australia and New Zealand. The findings cited here are from the most recent published report (4th edition, August 2002 at p. 134). When standardised to reflect industry mix, the Commonwealth’s premium is the second lowest.

12 The performance figures for 2000–01 and 2001–02 as published in the previous State of the Service report have been revised for this report.