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On these figures, it appears that receipt of $50,000 per year to collect and administer funds for 26 workers should be a profitable consulting business. Payment of premiums by the company since its inception has far exceeded the cost of claims. A subsequent claim for wages by the worker while he was undergoing treatment consulting was settled. The outcome meant that about $30,000 costs for 2004/5 consulting would be added to next year’s wages as a means of calculating the ‘experience factor’. The company’s insurer advised that the costs would continue for six months and then drop back to about $250 per week. "This means that before starting to make any profit the year the company has to find $187,000 for two years' WC insurance premiums. " By June 2005 the estimated cost had increased to over $130,000. At no time was the company invited to re-employ the worker. He is now the highest cost worker supported by the company. If the worker finds a job in 2005/6 and his benefits cease, the company will receive no refund from the $65,000 experience premium for last year.
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