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Collectively Bargained Workers' Comp.
The following resolution was passed at
the fifty-fifth annual convention of the Building & Construction
Trades Department of the AFL-CIO.
RESOLUTION NO. 46
Referred To: Organizational Committee
Submitted By: Governing Board of Presidents, Building &
Construction Trades Dept. - AFL-CIO
RE: Workers' Compensation in Collective Bargaining
Today the workers' compensation premium is the second largest
labor cost in construction. The rate of increase in workers'
compensation costs has by far outstripped the rate of growth
in wage or health and welfare contributions. The average workers'
compensation premium for three types of construction - structural
ironwork, carpentry and masonry - is currently 28% of payroll.
Until about 1980, workers' compensation costs were modest and
of no great concern to employers. They were considered a minor
cost of doing business. As these costs increased, however, employers
began to think of them as labor costs and thus began to incorporate
them into their collective bargaining strategies even though
these costs rarely were put on the table directly.
However, some building trades unions, local and state councils
and state governments anticipated the trend and moved the issue
directly to the bargaining table. States workers' compensation
laws have been amended in Massachusetts, California, Florida,
Maine, Hawaii, Kentucky, Missouri and New York.
In cooperation with the Department and its affiliates, Union
Labor Life Insurance Company established a workers' compensation
product to provide such insurance under conditions defined in
collective bargaining agreements. Because of its unique approach,
the Florida Workers' Compensation Board awarded a 15% reduction
in premium rates to a collectively bargained program; a major
water project in southern California incorporates workers' compensation
in the project agreement and many other construction projects
are moving in this direction.
Early results from collective bargaining agreements on workers'
compensation in Massachusetts, Florida and California demonstrate
the viability of this approach. the Pioneer Valley Congregation
Project, which was the first to adopt this approach, resulted
in an 82% decline in serious injuries, an elimination of legal
disputes, better benefits that provided for workers who were
injured and a 57% reduction in costs. Union leaders have expressed
great satisfaction with the results.
The Department should promote this concept in every way possible
while always preserving the maximum protection for our members.
The Department and its affiliated unions should continue to
seek changes in the laws of all states to accomodate collective
bargaining for the Building Trades.
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