icare Gave $111,000 to ETU While Facing Money Problems

The state insurer icare gave $111,000 to the ETU union, even though icare only has 85 cents for every dollar it owes injured workers. This is a large amount of money for a union.
By Newsroom | Politics, New South Wales |

Sophie Cotsis, the Minister in charge of work safety, cannot explain why icare—the state’s primary workers compensation body—handed $111,000 to the Electrical Trades Union (ETU). The payment surfaced during a budget estimates hearing on Tuesday, appearing as a disclosure to the Australian Electoral Commission. While icare struggles to keep its head above water, only holding 85 cents for every dollar it owes to hurt workers, it found six figures to send to one of the state's loudest labor groups.

The Paper Trail

"Refusing donations from the ETU entirely was unreasonable." — Chris Minns, NSW Premier

The money move has left the government fumbling for a script. Cotsis first guessed the cash might be for "training," but the lack of a firm answer suggests a lack of grip on where the insurer’s dwindling funds go. Potter, a figure within the ETU, is reportedly taking leave effective immediately following the noise around this payment.

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  • The donation comes while icare faces a financial hole.

  • Internal documents show the insurer expects 80,000 more claims for mental hurt over the next five years.

  • The government admits the current system is unsustainable without stripping back how it handles psychological injury.

  • Critics note the oddity of a state agency funding a union that is currently fighting the government over industrial action.

Rail Deals and Broken Budgets

This financial knot ties into a messy end to the NSW rail dispute. While the government managed to buy a three-year peace with a 12 per cent pay rise, the ETU remains the holdout, showing anger that the hike wasn't the 32 per cent they demanded. It is a strange theatre: the union takes a $111,000 "donation" from a state body while calling the government’s pay offer a failure.

PartyActionFinancial Reality
icareGave $111,000 to ETUOnly 85% funded for current claims
NSW GovernmentSigned 12% pay dealDealing with an "unsustainable" comp system
ETUAccepted donationDemanded 32% pay rise; remains angry

The Reform Shadow

Treasurer Daniel Mookhey is trying to move the goalposts on how workers get paid for being stressed or bullied. He wants the Industrial Relations Commission to handle bullying cases before they ever touch the compensation pool. This shift is a desperate play to save a workers compensation scheme that is bleeding money.

  • 85 cents on the dollar: What icare actually has vs. what it needs.

  • Consultation: The government is now asking Business NSW and Unions NSW how to fix the mess they helped build.

  • Bullying Jurisdiction: A new legal hurdle designed to keep people out of the payout line.

Background: The NSW rail network was crippled for months by industrial action until the Fair Work Commission forced a "cooling-off" period in early 2025. icare has been under fire for years over mismanagement and rising costs, particularly regarding "psychological safety" claims which are harder to quantify and more expensive to manage than physical breaks.

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Frequently Asked Questions

Q: Why did icare give $111,000 to the Electrical Trades Union (ETU)?
The reason for the $111,000 payment from icare to the ETU is unclear. The Minister for Work Safety could not explain it, and it was disclosed to the Australian Electoral Commission. This happened while icare is struggling with its finances.
Q: Is icare in financial trouble?
Yes, icare is facing money problems. It only has 85 cents for every dollar it needs to pay injured workers. The insurer also expects 80,000 more mental health claims in the next five years, and the current system is seen as not working without changes.
Q: How does this donation relate to the NSW rail dispute?
The donation happened as the NSW government tried to end the rail dispute. While the government agreed to a 12% pay rise for many, the ETU is still unhappy, demanding a 32% rise. The ETU is a key union in the rail system.
Q: What is the government doing about the workers compensation system?
The NSW Treasurer, Daniel Mookhey, wants to change how stress and bullying claims are handled. He wants the Industrial Relations Commission to deal with bullying cases first. This is to try and save the workers compensation scheme, which is losing money.
Q: Who is Chris Minns and what did he say about the donation?
Chris Minns is the NSW Premier. He stated that refusing donations from the ETU entirely was unreasonable. This suggests the government might have accepted or considered donations from the union.