Compensation for Industrial Injury and Disease

Abstract

ABSTRACTThe article contains the authors' evidence to the Royal Commission on Civil Liability. It discusses the main sources of compensation for industrial injury: the State's industrial injuries scheme, occupational sick pay and common law damages. Under each head the role of trade unions is assessed.State benefits provide compensation for injury, disablement and death, but impose a narrow definition of accident and disease. The adequacy of the level of benefits is also questioned. The common law system, moreover, is criticized on several fundamental grounds including cost, uncertainty, delay, legalism and the adverse effect on industrial safety.The authors propose the abolition of common law damages, provided the resources involved are used within a reformed State scheme. State benefit payable during absence from work is envisaged at 90 per cent of average post-tax earnings, with the employer legally obliged to pay no less than the equivalent amount for the initial period of absence. There would also be payments for loss of earnings after a man returns to employment, for non-pecuniary losses and to compensate the widows of those killed in industrial accidents.