Unions demand NSW Labor rethink its changes to workers’ compensation

May 20, 2025

Issue

Unions NSW are campaigning against the cuts to workers' compensation. Image: Unions NSW/Facebook

New South Wales Labor is planning to scrap workers’ right to access compensation for psychological injuries caused at work. It has sparked outrage from unions and mental health experts.

�ճ��removes workplace compensation for psychological injuries caused by stress or sexual harassment at work unless it can be proven in a court or tribunal. It would impact more than 3.6 million people.

, told the ABC on May 16 that it the law was passed in its current form, it would “drastically strip away” the rights of individual workers, particularly those who suffered psychological injuries.

Butcher said there had been “little to no consultation” in the bill from “how to lodge a claim to how psychological injuries are defined, to the threshold you need to meet to claim compensation and when you can get compensation”. He added that compensation is made “virtually impossible”.

Unions NSW��more than 10,000 workers and found that an overwhelming majority rejected the proposed changes. “Many indicated they would be put at extreme risk of further harm or would face severe financial hardship if [the laws] are passed,” its report said.

A firefighter from south west Sydney said: “The workers’ compensation system is the only reason I am still alive. I had suicide attempts as a result of my workplace culture and psychological injury.

“Without being able to access essential mental health services and receive diagnosis, treatment, education and support to begin my recovery, I would have certainly taken my own life.”

Unions NSW secretary Mark Morey��he is “very disappointed” they have to fight Labor, arguing that the government and Treasurer are “more interested in fixing a black hole” in the budget than “ensuring people have appropriate mental health services”.

NSW Nurses and Midwives Association assistant general secretary Michael Whaites said “NSW health is understaffed … nurses and midwives face psychological injury every day because of a paucity of resources.”

��President Amber Flohm said teachers’ heavy workload had a “significant impact on their mental health”. She said the��draft bill’s measures are “unfair and harmful”.

She said teachers were already experiencing high levels of burnout and that they deserve support. “Are we seriously suggesting that a teacher who was catatonic trying to deal with the trauma of losing a student should bear the brunt of that cost deficit?”

The Federation said the changes will do nothing to prevention workplace injuries. “This is a cost-cutting exercise,” it said. “There are better ways to fix the system than cutting support for injured workers. Mental health injuries are real. Cutting off support for our teachers who suffer them is a betrayal.”

An inquiry into the bill’s changes will begin on May 23.

Unions NSW has planned��on May 21 and May 22, and they will culminate outside NSW Parliament in Gadigal Country/Sydney May 26 at 8am.

Unions NSW said before the state election “Labor pledged to stand with injured workers. Now they’re backing cost-cutting reforms that break that promise.”