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Workers with terminal work-related cancers receive low lump-sum compensation in Victoria

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‘It’s All About Money, Not Justice’: Terminal Cancer Patient Says Workers’ Comp System Fails the Fatally Ill

Ric Perna, 64, worked for over a decade as a maintenance manager for a company manufacturing cancer diagnostic machines. During that time, he was exposed to xylene, a toxic chemical, without adequate personal protective equipment.

In December 2019, he was diagnosed with multiple myeloma, a rare and terminal blood cancer, which he attributes to that exposure.

“A friend received almost $1 million for a neck injury. I got $78,000 for a terminal cancer diagnosis.”

Despite his terminal diagnosis, Perna received a one-off impairment payout of just $78,000 from a WorkSafe authorized insurer. He noted that a friend who suffered a neck injury received nearly $1 million in compensation.

The Flawed Framework

Associate Ross Sottile of Maurice Blackburn Lawyers represents Perna and other workers with occupational cancers. He argues the current compensation framework provides inadequately low lump sums for terminally ill workers.

The disparity is stark across cases. A carpenter with stage four metastatic melanoma was assessed at just 15% impairment, receiving only $35,000. Sottile noted that similar compensation is awarded for routine conditions such as back fusion or partial hearing loss.

How the System Works

Under Victoria's no-fault system, workers with accepted claims can apply for lump-sum permanent injury payments without proving employer negligence. However, the severity of injury is assessed using the American Medical Association's AMA4 guidelines.

Sottile states that these guidelines lack dedicated guidance for cancer, leading to inconsistent and often shockingly low payouts for those with fatal diseases.

Perna’s Case: A Question of Interpretation

An independent medical assessor rated Perna's impairment at 80%, which would have resulted in a payment of over $700,000. However, the WorkSafe insurer applied a lower figure, reducing the payout by hundreds of thousands of dollars.

Facing a terminal diagnosis and a reduced financial settlement, Perna was forced to relocate to be near the specialized treatment he now requires.