National-led government raises ACC levies, cuts coverage

26 February, 2010

Changes to ACC to hike levies and reduce coverage were passed into law this week with serious consequences for workers.

The government has justified the changes with claims ACC is insolvent, despite the fact the organisation made a billion dollar surplus last year and holds $11 billion in investments.

EPMU national secretary Andrew Little says the bill is an attack on working Kiwis.

"The argument that ACC needs to be fully funded is spurious and using this rationale to charge workers more and look after them less is an act of deceit."

"This bill is an attack on working Kiwis who will now pay more and get less from ACC."

 The government's changes to ACC include:

  • forcing workers to use up their holiday pay entitlements before receiving weekly compensation payments
  • a reduction in the ready for work status from 35 to 30 hours making it easier to force claimants off weekly compensation
  • undermining the vocational independence process
  • excluding those with less than 6% work related hearing loss from cover
  • increasing levies for the majority of New Zealanders