Administering Accident Compensation in the 1980s
Author(s) -
Don Rennie
Publication year - 2003
Publication title -
victoria university of wellington law review
Language(s) - English
Resource type - Journals
eISSN - 1179-3082
pISSN - 1171-042X
DOI - 10.26686/vuwlr.v34i2.5797
Subject(s) - payment , compensation (psychology) , lump sum , executive compensation , politics , economics , public economics , project commissioning , state (computer science) , face (sociological concept) , political science , economic policy , law and economics , political economy , publishing , finance , corporate governance , sociology , law , social science , psychology , social psychology , algorithm , computer science
Having met its initial administrative challenges, ACC encountered serious political pressures in the turbulent economy of the 1980s. Pressure from employers to reduce costs, as well as controversies over lump-sum payments and other benefit levels, led to changes in entitlements, in conjunction with corporate reorganisation. This paper describes the shifts in organisational culture within ACC in the early 1980s and explains the fiscal consequences of the new "pay-as-you-go" funding formula. Even though formal reviews of the scheme paid homage to the original Woodhouse principles, the assumptions underlying these principles were losing ground in the face of economic tensions and eroding confidence in state-run programmes.
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