Worst employers face levy penalties as ACC cracks down

By KEVIN TAYLOR

A special ACC levy penalty system targeting the most unsafe employers in the country should be in place by April 1.

The regulations putting the system in place are before the Cabinet for approval and ACC general manager of injury prevention and client services Darrin Goulding said they should be passed shortly.

The system would see ACC try to work with the worst employers to improve their accident records and to put better systems in place.

But if the company did nothing after six months the ACC could impose a 50 per cent increase in their levies.

The Business Herald revealed the proposal in August.

Labour Department ministerial briefing papers say the system is being worked on by the department and ACC to "motivate" employers to improve workplace health and safety.

The penalty system, called the "workplace safety evaluation initiative", is now open to public consultation.

Goulding said no opposition to the system had come from businesses or business lobby groups.

Last year's ACC Act allowed regulations to be set to put the levy in place.

ACC would focus on about 150 of the most unsafe employers in the country - those that injure between 25 per cent and 50 per cent or more of their staff in a year and fail to recognise they have a problem.

"We have been working on it with employers for about two years," Goulding said.

The employers to be targeted were in high-risk sectors such as construction, fishing, agriculture, forestry, labour hire and supermarkets.

He said ACC would be looking at companies with a claims history "significantly outside the norm" for their industry.

Business NZ executive director Anne Knowles said the organisation supported the penalty system if the focus was first on educating the employers.

The system was for employers with accident rates significantly outside the normal range.

"ACC will work with the industry to put in place good safety management systems," she said.

Business NZ would monitor the system to ensure it was not simply used to increase ACC's income.