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Workmen's Compensation Act in line for complete overhaul

The Workmen's Compensation Act is in line for a complete revamp to increase payment levels, Labour Minister Paula Cox said yesterday.

And the 1965 legislation which has not been amended to bring it in line with inflation for more than ten years is on a "priority list'' of things-to-do for the PLP Government.

Under the act all employers are liable to pay the compensation figure for workers injured on the job.

Ms Cox's vow that the Act would be updated before the year is over followed last week's call for the revamp by Bermuda International Business Association chairman and local insurer BF&M president Glenn Titterton.

While announcing BF&M's 1998 net earnings of $11.1 million -- an increase of 12 percent on the previous year -- he took the unusual step of calling on the Government to review the relevant act to "make benefits more equitable''.

"The benefits under the Workmen's Compensation Act 1965, as amended, were last reviewed in 1988,'' he said. "The value of these benefits, never high to start with, have been eroded by inflation.

"Customarily these benefits would be reviewed every ten years and we urge Government to treat this review as a matter of some urgency.'' And Ms Cox said the PLP would not make the same mistake the former Government did in letting the issue slide with no improvement.

In the 1997 throne speech the UBP promised to examine the act and ensure levels of compensation for injuries suffered at work were high enough, and met international norms.

But despite that promise the Act has not been amended since 1988. On Friday Ms Cox said the Government was well aware the current payments were "out of whack'' and needed revamping.

"This is under review at the moment. We are aware it is past its due date to be updated,'' she said.

But she admitted there were more urgent priorities for legislative reform right now including the Sex Offenders Act and fair employment legislation.

"However, the Workmen's Compensation Act is certainly an item in line for change and I am quite sure it will be done this year as it shouldn't require too much amendment,'' she said.

"I think the changes will only really relate to inflation and increasing the payments.'' The move follows previous calls by Bermuda Industrial Union president and PLP MP Derrick Burgess for payment levels of people injured at work to be brought "into the modern world''.

Late last year he said the current compensation level of $170 a week -- or $34 a day -- was well overdue for a boost.

And there were obvious inequities in the system which meant if someone's work injury forced a cut of work hours so he earned just $100 a week, then compensation received would only be $70.

"It boils down to $34 a day, which is much less after deductions. It is time Government did something to bring compensation for our workers into the modern world,'' he said.

Information on an employer's responsibilities is available from the Labour Relations Office on the first floor of the Government Administration Building.

Telephone inquiries can be made on 297-7821.

Paula Cox BUSINESS BUC