Taskforce plans reform

By Shaun Inguanzo
AN ALLIANCE of manufacturers will tackle WorkCover premiums with an initiative that would see each business handle claims under “one logical account”.
The initiative was discussed at a business breakfast between WorkCover representatives and the South East Melbourne Manufacturers’ Alliance (SEMMA) in Noble Park this week.
Changes to premium calculations are in the process of being phased in until 2008, slowly overriding former premium scales, which have been heavily criticised by employers as being unfair.
Victorian WorkCover Authority (VWA) representative, Brian Cook, said the new formula for calculating premiums would be the employer’s safety performance calculated against the average premium for that particular industry.
Mr Cook said the previous system was not as methodical and was inaccurate, leading to unfair premiums for employers.
He added that under the new system, employers would receive a fixed premium, not the variable one that had upset employers during the course of a premium contract.
The other important aspect of WorkCover premiums, according to SEMMA executive officer Paul Dowling, is the agents who work through claims with employers on behalf of VWA.
When Mr Dowling asked the manufacturers if they were happy with their WorkCover agent, few were positive.
He then led into SEMMA’s announcement that it was working with WorkCover and its agents to bring members under one account for claims.
Mr Dowling said this process would give a better level of service due to the “power of numbers” by which it could negotiate better WorkCover packages.
The initiative is undergoing an expression of interest phase to see how many of SEMMA’s members are interested in the deal.
“We will come back in February and deliver a proposed agreement,” Mr Dowling said.
“It will be well outlined, but the bottom line is that businesses in the south east will prosper and gain from it.”