Accident Compensation and Labour Relations: The Impact of Recent Reforms

Abstract

In the context of industrial relations, New Zealand's accident compensation scheme (ACC) is an internationally unique system. Recent reforms have been criticised by trade unions, however. They perceive ACC as a positive benefit of employment obtained for workers as of right in exchange for the extinguishment of the right to sue. Any threat to this is seen as a threat to workers' conditions of employment. The 1992 reforms have been by business leaders, on the other hand, for not going far enough along the road of privatisation and maintaining one of the bastions of welfare dependency. In the light of these tensions, the present article examines the history of the scheme, the current reforms and some implications for the future of ACC.