In November 2023, the Minns Government began reviewing icare to curb waste and salary costs. The insurer is now consulting unions on changes that could cut jobs and save $23 million annually.
When announcing the icare review, Work Health and Safety Minister Sophie Cotsis said:
“Sadly, it will take years to correct the workers compensation mess that we inherited and I don’t want to give anyone false hope.
“We will remain unrelenting in our pursuit of best practice and best governance at icare, this review continues the long but necessary road of reform that began within weeks of Labor coming to government.
“We will remain unrelenting in our pursuit of best practice and best governance at icare, this review continues the long but necessary road of reform that began within weeks of Labor coming to government.
“Businesses need access to a scheme with affordable premiums and workers need to be supported when things go wrong at work”.
According to icare, the revised organisational structure aims to enhance efficiency and ensure long-term sustainability.
The plan proposes cutting 25% of executive roles, 20% of senior leaders, and 7% of overall staff.
According to insuranceNEWS.com.au approximately 130 jobs could be impacted. icare currently employs about 1,800 people.
“icare noted the figures are part of a draft plan and may change during ongoing union talks. The proposal aligns with the NSW government’s goal to cut senior executive roles by at least 15%.”
Last November, the NSW Government announced a Treasury-led review of icare’s operations, focusing on the number of senior executives and their compensation, in an effort to “cut excessive spending, waste, and salary costs.”
icare emphasised that its priority is to maintain service continuity and improve outcomes for the communities it serves. “There will be no negative impact on the services we provide to injured people, employers, and government agencies.”
The insurer says the proposed structural changes are part of a broader operational review conducted over the past three months to boost efficiency and effectiveness.
“This work builds on the major transformation program, including responses to various reviews, that it has implemented over the past three years to strengthen its foundations, improve governance, introduce new claims service providers, and foster a constructive culture,” icare added.