My resignation from The Australian Labor Party - June 2008
My Official resignation letter sent to The Australian Labor Party - June 2008
29 June 2008
My address removed for privacy
To all Members of the South Australian Parliamentary Labor Party
Parliament House
North Terrace
ADELAIDE 5000
It is with deep regret that I write to inform you of my resignation from the Australian Labor Party. This action was taken after a great deal of thought and with reluctance after enjoying active involvement in the ALP for the past 40 years.
The decision to resign is based on my outrage at the amendments introduced by the Rann government in relation to the South Australian workers’ compensation legislation.
The amendments demonstrate that the leaders of the Rann government are prepared to sell out the interests of injured workers to boost its relationship with the South Australian business sector. The primary interest of the Rann government is to look after the financial interests of the business sector to the detriment of working people who traditionally have supported the ALP.
The Rann government’s obsession with maintaining a triple A financial rating is influencing the introduction of policies that betray workers who are forced to depend on the government to protect them. This is a violation and abuse of the trust that was put in that government when it was elected to office and is a flagrant example of the arrogance that has been adopted by members of the Rann government towards workers and their families.
It has been apparent for some time that the South Australian workers’ compensation scheme, its administration and the WorkCover Corporation have been in desperate need of review and radical change. There has been more than enough opportunity since the election of the Rann government for this to have occurred in a reasonable and informed manner and with due regard for the welfare of workers who depend on the government for workplace protection. Instead, the government’s negligence has allowed the problems to escalate unchecked to the extent where the system is out of control. The Rann government’s intention however to resolve these problems by cutting the protection of workers in order to benefit the business sector is unacceptable.
I consider that the Rann Government was devious and showed a lack of gumption in the manner that they introduced the Clayton–Walsh report and the WorkCover Amendment Bill 2008 into Parliament without the courtesy of allowing opportunity for full discussion with what I considered to be their natural constituents – affiliated Unions.
It is now blatantly obvious that the Rann government is in the pocket of the business sector. This is demonstrated by the recent Business SA full page advertisements in the local press stating “Our members asked for Workers Compensation reform. Business SA delivered. When the voice of business speaks, decision makers listen. Our advocating for a better Workers Compensation system with reduced employer levies has resulted in the passing of legislation that will benefit business in SA.” Clearly, in return, your party expects to be able to call on Business SA to assist in filling your campaign funds coffer before the next election.
For the record, I provide the following information from my experience as a Workers Compensation Advocate employed for the past 14 years by the Construction Forestry Mining and Energy Union (Forestry and Furnishing Trades Division). I have been actively involved in workers’ compensation since 1979 and from April 1987 to June 1994 was a WorkCover Board member.
When Michael Wright was the Opposition spokesperson for Industrial Relations and Workers Compensation prior to the election of the ALP to government in 2002 he was provided with an enormous amount of information from people inside the Trade Union movement and within the WorkCover Corporation that clearly showed that the scheme was on a downward slide as a consequence of political decisions that had been taken by the Liberal State Government and the leadership of the Corporation.
In 2000/01 the WorkCover Board and the CEO of the WorkCover Corporation decided to not only reduce the levy rate but also to provide a rebate to employers throughout South Australia.
In 2000-01 Michael Wright attended at least three meetings at the United Trades and Labor Council's office on South Terrace. On one occasion the Opposition Leader, Mike Rann, accompanied Michael Wright. On each occasion Michael Wright gave an absolute assurance that, on election of the ALP to government, the Workers’ Rehabilitation and Compensation Act would be improved to benefit injured workers.
On one occasion Michael Wright stated that should the ALP be elected in 2002 he would have a review conducted of the workers’ compensation scheme within six weeks after being elected and the findings would be introduced through legislative change. The Trade Union representatives involved in workers’ compensation at the time felt that the timeframe was ambitious but the commitment was welcomed.
On being elected, Minister Wright established the Stanley review and the findings were handed down in mid 2002. However, it was not until 20 December 2002 that Minister Wright officially released the findings. They have gathered dust ever since.
Minister Wright is to be condemned for his failure to honour his commitment to the Trade Union movement and his lack of responsibility in addressing the leadership and management problems within the WorkCover Corporation.
Approximately 18 months ago the Treasurer, Kevin Foley, supported by representatives of the business sector stated that there was a problem with WorkCover and that it would be fixed. Treasurer Foley and the chairperson of the WorkCover Board, Bruce Carter, decided that the Board would put up recommendations to the government to change the WorkCover legislation.
The recommendations that were put forward were extremely draconian. However, Bruce Carter and the majority of the WorkCover Board were so confident that the recommendations they had put to the government would be introduced that the WorkCover management established a unit within the WorkCover Corporation specifically to assist the government in drafting the necessary legislative changes.
In mid 2007 I and another Union official were invited to Minister Wright’s office to discuss our concerns that the Corporation was outsourcing their responsibilities under section 58B and 58C of the Act to Employers Mutual which, in my view, was like putting Dracula in charge of the blood bank. The Minister stated that he shared our concerns but was powerless to do anything about it as it was a Board decision.
During our discussion I raised with Minister Wright the Trade Union movement's concerns that the Corporation was working on amendments to the legislation that were draconian. He gave his undertaking that while he was the Minister responsible for workers’ compensation in South Australia he would not introduce legislation that was detrimental to injured workers.
History has now shown that Minister Wright has reneged on that undertaking, just as he reneged on his promise in relation to the Stanley review in 2002.
I believe however that Minister Wright is not the primary architect behind the new legislation that will have dramatic adverse affects on injured workers in this State and undermines the conditions and protection for workers that Unions have fought for. Treasurer, Kevin Foley, played the leading role in promoting the changes to the legislation and worked hand in hand with the business community to ensure its passage through parliament.
Foley’s cohort, Pat Conlon – purported to be the leader of the left wing of the Labor Party - is another that deserves to be condemned for his involvement in this sorry saga. This fellow espoused working-class socialist left principles for years before he got into parliament. Once elected, however, his ideology appears to have changed. If he had voiced his opposition to the proposed legislative changes and used his influence with Rann & Foley injured workers would not be confronted with the harsh and unjust legislation that went before parliament.
Rann, Foley, and Conlon claim that, even with the recent legislative changes, the South Australian workers’ compensation scheme will still be the best in Australia. The reality is that the new legislation will be extremely detrimental to injured workers and their families and the business sector will benefit. The Rann Government has attacked vulnerable injured workers and not the root cause of the problem i.e. the WorkCover Board and senior management and, to add insult to injury, the Minister reappointed those that are responsible for the mess.
I have had the opportunity to make my views known to several Members of Parliament in person over the past months and have received a fair hearing. Nevertheless, the fact that these measures that are designed to disadvantage workers and benefit employers have been introduced by a government elected under the guise of a Labor Party is outrageous and I find totally unacceptable.
I feel betrayed by the party that I have loyally supported for most of my working life in the belief that, when elected to government, it would only implement policies that would benefit and protect workers and, where possible, would effect social change in the true spirit of the Australian Labor Party. This is clearly not the case and I have therefore been forced to, regretfully, resign.
Les Birch