ACC Partnership Programme Update

June 2011 update

Consultation on Introducing Competition into the ACC Work Account

The CTU says that recent changes announced by Nick Smith aren’t about increasing choice, they’re about selling off the work account. ACC is proven to have cheaper administration costs, lower levies? and fewer disputes than the Australian system, and better rehabilitation outcomes for clients.

Peter Conway, CTU Secretary said "Claims will be contested much more strongly and workers will be left fighting both their employer and their employer’s insurer to avoid coverage of an accident."

"We’ve heard the Minister promising that workers will be unaffected, but we’ve already seen cuts to coverage on hearing loss and also requirements to return to work in an unfamiliar job or lose compensation. Full rehabilitation will suffer – we’ll see workers being dismissed and removed from cover rather than being supported to return to work." said Peter Conway. 

The Department of Labour is consulting on proposals. Download the discussion document below.

Increasing choice in workplace accident compensation [pdf, 44 pages, 1.7 MB]

or http://www.dol.govt.nz/consultation/increasing-choice/summary.asp

Read the CTU's submission response here

Regional Partnership Programme Meetings

In August 2011 ACC facilitated  Regional Meetings attended by accredited employers, third party administrators, and CTU affiliated Unions.

ACC, the CTU, and employers are given equal speaking time to discuss issues, ideas relating to the programme.

Try and ensure your union is represented, this is a good opportunity for unions, employers and ACC to meet and discuss issues that affect workers employed by companies in the programme.

The NZCTU presentation "Privatising ACC-  “A solution looking for a problem?” is here

ACC Partnership Programme Resources

For union officials, health & safety reps, delegates and members

• Workplace Injury & Disclosure of Medical Information
  Find the factsheet on the health information privacy code here
• Claimant Handbook
  The AEP claimant handbook is available to unions electronically in pdf format. The book provides support to AE employees when they make a claim. Please contact Tina at the CTU for your electronic copy.
• 2010 Accredited Employer Programme Handbook
  If you’ve been injured at work, this guide provides you with useful information to help you recover from your injury. Getting help - and what to know if you’ve been injured at work.

Recent ChaNGes to ACC

1. Privatisation of ACC
2. ACC Stocktake review
3. ACC law changes 

1. Privatisation of ACC

The NZCTU is a member of the ACC Futures Coalition which is a group of organisations committed to retaining ACC as a publicly owned single provider of social insurance.   For details of government plans to privatise ACC see: http://issues.co.nz/accfutures/

2.ACC Stocktake Review

Review all of the Stocktake of ACC Work Accounts reports here.

3.  ACC law changes 2010

The main changes include:
• a hearing loss threshold is imposed that excludes people from cover with less than 6% hearing loss
• a three part test for cover for work related gradual process injuries is reinstated – this places the onus on the worker to show the injury occurred at work
• people who intentionally cause injury to themselves or commit suicide are disentitled to compensation – unless their injury was a result of mental injury
• ACC is no longer required to apply to the District Court for a determination as to whether an imprisoned offender is disentitled to compensation – instead ACC is forced to disentitle them
• the Bill enables regulations to introduce experience rating and risk sharing to the work account
• weekly compensation for non-permanent employees will be calculated by dividing the last year’s earnings over 52 weeks, regardless of the actual number of weeks worked
• the amount of weekly compensation for potential earners is decreased
• holiday pay will be counted as earnings and will abate weekly compensation
• the definition of vocational independence is to include a person who has the capacity to work for 30 hours per week (this has been decreased from 35 hours per week)
• when assessing vocational independence a occupational assessor is no longer required to take into account the claimant’s level of pre-injury earnings


In 2010 the government introduced an Injury Prevention, Rehabilitation and Compensation Amendment Bill. The Bill reduces some ACC entitlements, extends the date for fully funding the ACC accounts, and paves the way for experience rating and risk sharing.

All changes are aimed at the most vulnerable workers including seasonal and non-permanent workers. The hearing loss changes will affect aging workers who helped to build New Zealand’s infrastructure.  It will lead to significant deterioration in a world-leading scheme, at the expense of workers and affecting some of the most vulnerable workers disproportionately.