WorkSafe has released their financial and safety results for the 2009/2010 fiscal year with some interesting outcomes.

VECCI congratulates WorkSafe on the results achieved in difficult times. The number of claims per 1,000 workers has dropped to an all time low of 10.54 claims per thousand.

WorkCover Minister Tim Holding pointed out that the drop to 28,000 claims is a big contrast to the 59,000 a year experienced 25 years ago, despite considerable growth in the work force.

WorkSafe has a target of 8.35 claims per thousand by 2012. The reduction trend to achieve that target has continued, but has slowed over the past year.

The Profit from Insurance Operations (PFIO) for the year was an impressive $654 million. Adjustments, which were one-off due to the Hanks implementation, left the scheme with a net after-tax profit of $176 million.

The funding ratio for the year was 100 per cent, down from the 109 per cent reported in December but still very good for a compensation scheme.

Actuarial releases totaling $189 million were achieved though for the fourth consecutive year, although the WorkSafe Board expressed their concern about the continued growth of plaintiff lawyer costs associated with common law.

WorkSafe will be assisted by the introduction of fixed costs contained in a current amendment bill to address this issue. Common law costs have sent many a compensation scheme into the red and it is essential that employers are protected from premium increases due to the costs going to third party representatives rather than injured workers.

While customer service improved for WorkSafe itself, employers’ satisfaction with agents dropped from 86 per cent last year to 81 per cent for 2009/2010. This may be due to WorkSafe insisting agents take a role in enforcement by providing details of late forwarding of claims and return-to-work activity.

It will be interesting to see if the new upcoming agent contracts achieve a better balance between the agents’ role as an employer adviser and their role of identifying and reporting alleged non-compliance to WorkSafe compliance branch.

For more information contact John Smith at jsmith@vecci.org.au.

Avoid non-compliance and fines. Ensure your business is up-to-date with the latest safety issues. Visit www.vecci.org.au or phone 03 8662 5333 to access VECCI’s suite of OHS services including site visits, training courses, helpline advice and consulting.