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Collectively Bargained Workers' Comp.
What is Collectively Bargained Workers'
Compensation?
Collectively bargained workers' compensation allows union
contractors and building trade unions to bargain with one
another to design and implement their own workers' compensation
system which is customized to meet their needs. The collective
bargaining agreement covering workers' compensation need not
be the collective bargaining agreement governing all terms
and conditions of employment. It could be a separate, stand-alone
bargained agreement between labor and management solely covering
workers' compensation.
CISCO would recommend a statute in Illinois that would apply
only to the construction industry, because typically the most
serious and costly workers' compensation claims arise in this
industry. Additionally, construction also has the highest
number of claims.
Currently, California, Maine, Massachusetts, Florida, Kentucky,
Minnesota, New York and Hawaii have some type of legislation
regarding collectively bargained workers' compensation. Each
state is different in how the law is administered. Furthermore,
not all of the above mentioned states are using the method
even though it is available to them.
What Makes Collectively Bargained Workers' Comp.
Different?
Collectively bargained workers' compensation allows labor
and management to meet their workers' compensation needs by
shaping a policy that is fair and equitable. It is administered
by an agreement rather than by a state agency. Currently,
Illinois workers' compensation claims are handled by the Illinois
Industrial Commission and can take years to process.
Under collectively bargained workers' compensation, employers
and union leaders are allowed greater decision making authority
and the state agency becomes a "watch dog" to ensure that
the statute is being followed rather than the governing body.
Why Choose Collectively Bargained
Workers' Comp.?
Currently in Illinois, the cost of workers' compensation is
very high, the time frame for sealing a claim is very long
and the care given is questionable. With collectively bargained
workers' compensation the following will happen:
- There will be better care for the injured worker.
Providing the best care possible should be the goal of every
workers' compensation plan and with collectively bargained
workers' compensation, it can become a reality. Emphasis
in this type of plan is placed on getting the injured worker
well as quickly as possible and with as few health limitations
as possible. Care to the injured worker would be monitored
to ensure that he/she is receiving treatment in a timely
manner.
- There will be a cost savings for the employer.
Getting the worker back on the job quickly saves the employer
money because there is less chance of an expensive permanent
disability. Also, employers are spared the expense of retraining
another worker to do the job of the injured worker. Additionally,
union contractors are at a disadvantage when it comes to
paying the tab on workers' compensation costs. Since workers'
compensation premiums are based on payroll, union contractors
employing highly skilled and highly paid workers are subsidizing
the workers' compensation costs of not only the open shop
sector, but the rest of the state as well. Collectively
bargained workers' compensation can be based on a cents-per-hour
contribution which results in premiums for employers based
on a more equitable hours worked basis.
- Alternative Dispute Resolution (ADR). The use of
Alternative Dispute Resolution allows parties to negotiate
alternatives to costly litigation. While ADR can't limit
an employee's right to legal remedy, it has an effective
and economical tool for resolving conflicts arising from
claims.
Five Methods of Implementing Collectively
Bargained Workers' Comp.
There are a variety of ways to implement workers' compensation
programs through the collective bargaining process.
- Fully insured program through a licensed insurance carrier;
- Self-insured program through group self-insurance;
- Self-insured program through employer associations;
- Fully-insured program using a Taft-Hartley trust fund;
and
- Self-insured program using a Taft-Hartley trust fund.
Suggested Sample Language
There are two ways we can go about getting the legislation
introduced. We can be specific or general in the choice of
language for the proposed statute.
"Providing that, as part of a collective bargaining agreement,
an employer and a recognized or certified exclusive bargaining
representative of certain employees may agree to certain terms
with respect to workers' compensation under certain circumstances;
providing that an agreement is not valid until it has been
filed with the Illinois Industrial Commission; providing that
once an agreement is approved by the Commission it is binding
to the employer and the members of the bargaining unit; imposing
certain limitations; etc.
Specific:
(1) Subject to the limitations stated in subsection (2), the
Department and the courts shall recognize as valid and binding
a provision in a collective bargaining agreement between employer
and a recognized or certified exclusive bargaining reprsentative
establishing any or all of the following:
(a) an alternative dispute resolution system which supplements
or replaces all or part of the dispute resolution contained
in the Law which may include but is not limited to mediation
and binding arbitration;
(b) the use of an agreed list of providers of medical treatment,
which may be the exclusive source of all medical treatment
provided under this law;
(c) the use of a limited list of impartial physicians which
may be the exclusive source of all medical evaluations performed
under this law;
(d) a light duty, modified job or return to work program;
(e) a 24 hour health care coverage plan;
(f) a vocational rehabilitation or retraining program;
(2) Nothing in this section shall allow any agreement that
diminishes an employee's entitlement to benefits as otherwise
set forth in this chapter. Any such agreement in violation
of this provision shall be null and void.
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