Employers critical of court awards for work accidents

Employers have voiced alarm at the rapid increase in financial awards being made by the courts to victims of workplace accidents.

An award of $195,000 last month after a fatal accident on a commercial fishing boat more than doubled the previous maximum. But increasing payouts would not make workplaces safer, the Employers and Manufacturers Association (EMA) claimed today.

"By increasing the level of payout orders, the courts are usurping the role of the ACC," said Paul Jarvie, EMA manager of occupational health and safety.

"Making reparation orders like this, on top of the lump sums and other payments by ACC, amounts to double dipping and a lottery for accident victims."

People injured at work, or elsewhere, are often entitled to lump sums from ACC.

"Then, a lottery may swing into effect if Occupational Safety and Health (OSH) investigates and decides to prosecute," Mr Jarvie said.

If OSH did not prosecute, no reparation could be paid. But if OSH did prosecute and won the case, the courts had the option of awarding reparation.

"New Zealanders gave up the right to sue for injuring or accidentally killing each other with the introduction of ACC in 1974," he said.

"The social contract struck was that the State would guarantee compensation and entitlements instead of endless litigation in the courts."

If New Zealanders believed ACC payments were insufficient they should be increased thought the ACC system, Mr Jarvie said.

"The situation is not helped by the Council of Trade Unions' constant bleating from the sidelines for harsher penalties," he added.

And he claimed that if reparations kept rising, employers would move to insure against the risk of them.

- NZPA