More than 300 injured workers from the Illawarra and surrounds will be cut off the state's workers' compensation scheme by the end of the year, shadow minister for the Illawarra Ryan Park said.
The NSW iCare compensation insurer is at the centre of a storm over alleged mismanagement after large-scale underpayment of workers - up to $80 million in underpayments - was discovered. The insurer says the figure is less.
Now Mr Park said figures obtained by Labor showed 323 workers from the Illawarra, Shoalhaven and Southern Highlands would drop off - 211 from the Illawarra.
"We're living through a recession. Slashing the income of 323 local workers will make a tough time even worse," Mr Park said.
"Sick and injured workers spend their money locally. If they lose income support, small businesses lose customers.
"First the busy summer trade was lost because of bushfires, then COVID-19 restrictions kept tourists away at Easter. Many businesses can't afford another financial hit."
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