Scottish Trades Union Congress
Response to Executive Proposals to Recover National Health Service Costs in Cases Involving Personal Injury Compensation
Introduction
The STUC is Scotland's Trade Union Centre. Its purpose is to co-ordinate, develop and articulate the views and policies of the Trade Union movement in Scotland and, through the creation of real social partnership, to promote trade unionism, equality and social justice; the creation and maintenance of high quality jobs and the public sector delivery of services.
The STUC represents around 630,000 working people and their families throughout Scotland. It speaks for trade union members in and out of work, in the community and in the workplace. Our affiliated organisations have interests in all sectors of the economy and commit resources in order to secure compensation for union members injured or made ill by their work. In most cases these services are provided free to members at substantial cost to trade unions.
Recovery of National Health Service Costs
The STUC believes that there is justification in ensuring that those who are found to be liable for personal injury to another party are fully accountable for their actions. However, we believe that the proposals put forward should not be implemented until such time as current inequalities encountered by trade unions in Scotland, in the pursuit of personal injury cases, can be addressed.
Although the proposal to recover National Health Service costs would appear reasonable, and in all likelihood be supported in England and Wales, the STUC believes these proposals should not be considered in isolation. Recovery of costs, increases fees and proposed changes in Sheriff Court jurisdiction will have a significant impact on the legal services our affiliates provide for their members in Scotland. The STUC are concerned that our affiliates are becoming increasingly involved in providing income streams for the Government, initially through the recovery of benefits, increased fees, and now if these proposals are implemented, through the Executive taking advantage of union legal assistance schemes to recover National Health Service costs. There is no evidence to suggest that any of the funding generated in this way would be used to develop and improve National Health Service occupational health provision and, indeed, we have concerns it may be used to reduce existing National Health Service budgets.
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The STUC further believes that, as major users of the Court service in Scotland, the moves to recover costs will underpin the aforementioned inequalities faced by unions seeking compensation for members in Scotland in comparison to arrangements in England and Wales. Currently, trade unions in England and Wales can pay a notional premium reflecting the degree of risk in any particular case. Any notional premium paid in this connection is recoverable at the conclusion of the case. Our affiliates in Scotland do not enjoy the opportunity to insure against the risk involved in pursuing personal injury cases.
We believe this risk currently faced by trade unions will be increased due to these proposals and if unions are going to generate income for the National Health Service, then we should be allowed to insure that risk by way of notional premiums and/or success fees in line with existing practice in England and Wales. Income generated in this way would allow affiliates to pursue cases more effectively and take the additional risks arising from this proposal. Additionally, income generated would allow affiliates to commit resources, encouraging a preventative strategy to incidences of personal within the workplace. The Executive therefore should consider the risks faced by unions in pursuing cases, allowing affiliates in Scotland to recover sums in connection with that risk.
Furthermore, we feel that if these proposals are implemented then parties in an action will be less likely to settle claims out of court as sums involved in settlements could be substantially increased as a result of the additional burden of National Health Service costs. It is also felt cases may be abandoned or lost because the likelihood of parties in an action to reach such settlements through compromise will be reduced.
We feel Trade Unions and their legal representatives will incur additional costs in administering the scheme and should be compensated accordingly. The introduction of recoverable notional premiums and success fees could be used to off set any additional costs. The full impact of the changes for court users does not appear to have been fully considered.
In summary, the STUC is concerned that a further burden is being placed on our affiliates' commitment to provide comprehensive legal representation for their members. Trade Unions are facing increased court fees; potential restrictions on cases allowed to proceed in the Court of Session and are now being asked to accept greater financial risks without the benefit of insuring that risk. This inequality should be addressed and, in the absence of our affiliates being in a position to insure the increased risk involved in recovering National Health Service costs, the STUC feel that they could not support these proposals.
We would, therefore, urge the Executive to address the concerns contained within our response prior to the implementation of proposals to recover National Health Service costs.