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From Industrial Citizen to Therapeutic Client: The 1987 Workers' Compensation 'reforms' in NSW

Kate O'Loughlin
School of Behavioural and Community Health Sciences, The University of Sydney, Cumberland Campus, NSW

Abstract

This paper examines parliamentary political debates associated with the introduction of the 1987 workers' compensation 'reforms' in New South Wales (NSW). It shows that the 'reforms' were introduced by a Labor government to control and reduce the 'burden of cost' associated with employers' insurance premiums; and that this was to be achieved by greater regulation of the work injury experience of individuals.

This mainly involved restricting injured workers' rights to common law action and lump-sum settlements, and obliging them to return to work. Such an outcome required the transformation of workers' status from industrial citizens to clients of intensified therapeutic management, authorised and overseen by the state.

This development was underpinned by a significant change in the political culture associated with the formulation of workers' compensation policy. Central to it was the virtual disappearance of class-based parliamentary discourse and its replacement by a neoliberal discursive consensus in identifying the needs of injured workers and in developing strategies to address them.

Keywords

workers' compensation, policy discourse, injury management, citizenship and the state, the politics of workers' health, managerialism

Article Text

During the 1980s, Australian governments developed new approaches to managing employment injury (see Purse, this edition). These resulted in a burst of intensive policy development in the areas of occupational health and safety (OHS), workers' compensation and rehabilitation across all states and territories. This paper analyses the policy reforms undertaken in the NSW workers' compensation scheme that led to the introduction of the Workers' Compensation Act 1987. It is based on a study of NSW parliamentary debates and Commonwealth and State Commissions of Inquiry that informed the policy reform process.

The analysis shows how the reforms were shaped by key political interests that were played out through the parliamentary debates and in the Inquiries. Many of the so-called 'reforms' had been introduced in a piecemeal fashion or had been canvassed by both Labor and non-Labor members of the NSW parliament and commissions of inquiry over the previous forty years. They focussed almost exclusively on effective claims management, and on occupational rehabilitation and return-to-work. In the process, injured workers came to be seen as clients of the state, rather than as industrial citizens with legal rights to make claims on employers for support. At the same time, the 'burden of cost' on employers became the overriding consideration in shaping the reform process in NSW during the 1980s.

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