Article Abstract:
The rapid increase in the use of and costs associated with the workers' compensation system is described, with particular emphasis on how the problem exists and is being addressed in California. Workers' compensation is a no-fault system designed to cover costs of medical treatment, drugs, physical therapy, and orthopedic appliances for workers injured on the job. The growing costs of the workers' compensation system are attributed to inflation, legal system efforts to promote a legal definition of work-associated industries, the use of the system to subsidize other benefit programs such as health maintenance organizations, and abuse of the system tied to labor relations problems. It is suggested that large, private-sector employers should self-insure their losses, that workers' compensation be integrated with other programs, and that employee communications be improved.
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Article Abstract:
Photo frame and album manufacturer Burnes of Boston (North Smithfield, RI) was able to reduce workers' compensation costs by 70%, and the number of lost time work days by 93% between 1989 and 1990. The firm attributes its previous problems to the lack of an active injury management program, a support program, and a first-day injury evaluation program. Burnes began to control workers' compensation costs by developing an understanding of the frequency rate of injuries per 100 employees, and the severity rate, or the number of lost work days per 100 days. The steps that Burnes took to reduce workers' compensation costs included selecting one department to manage the program, obtaining the commitment of management, and establishing follow-up programs.
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Article Abstract:
Better-Bilt Aluminum Products Inc (Prescott, AZ) established a new alcohol and drug policy in January 1989 that was directly responsible for reducing their recordable accidents 51% from 1987. The important elements of Better-Bilt's successful substance-abuse policy include: clearly defining in an easy-to-read statement the behaviors unacceptable to the company; training supervisors and safety personnel on how to recognize people under the influence of drugs and alcohol; and implementing a continuing education program for employees on drug abuse.
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