In November 2023, the Minns Government launched an operational review into icare to cut excessive spending, waste and salary costs. NSW State Workers Compensation nominal insurer icare has initiated discussions with union representatives and staff regarding proposed structural changes that could lead to a workforce reduction and savings of approximately $23 million annually.
At the time the NSW Government announced the icare Operational Review, Minister for Work Health and Safety, Honorable 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 proposed plan includes a 25% reduction in group executive roles and a 20% cut in senior leadership positions, along with a 7% decrease in roles across the entire organisation.
According to insuranceNEWS.com.au approximately 130 jobs could be impacted. icare currently employs about 1,800 people.
“It is important to note that these numbers are based on the current proposal and may change as consultation with icare’s people and union representatives continues over the next few weeks,” the insurer stated. “The current proposal for the new structure aligns with the NSW government’s target of reducing 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.