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Copyright 2001-2005
Local 728 of the International Alliance of Theatrical Stage Employees

 

STATEMENT
Tom Rankin, President
California Labor Federation, AFL-CIO

April 15, 2004 -- The workers' comp deal that came out of conference committee is far from perfect.

The deck was stacked against injured workers from the beginning. California has a popular Governor who is taking money from the same special interests who want to reduce injured workers' benefits. And the threat of a harmful initiative has always loomed over the negotiations.

But let's be clear. Although the insurance companies are the big winners today, injured workers did fare better in this deal than they would have under Governors Wilson or Deukmejian.

For example, injured workers will be able to receive immediate medical treatment rather than experience delays that perpetuate suffering. Injured workers will also be able to pre-designate their physician within their group health plans so that they can go to their own doctor, not the company doctor. And unions will be able to negotiate for integrated health coverage for health insurance and disability coverage.

We are unhappy with certain provisions. You can count on California's unions to work with Democrats in the legislature to try to get insurance companies and brokers' fees reregulated in the future.

Last year, we worked to contain medical costs. Our reforms produced great savings to the system. But the savings weren't passed on to the employers by the big insurance companies. The legislature and the Governor should have learned their lesson. Without insurance reregulation, savings to employers from this year's bill are just as unlikely to materialize as last year.