MYTH: If you have unions, you will never lower your workers compensation costs.
REALITY: While implementing a workers compensation program in a unionized company can be more challenging, it’s usually not. Begin with a positive, cooperative, win-win attitude. Sit down and discuss the situation with the bargaining committee; educate them about workers’ comp and the need for transitional duty and they will usually facilitate the program. They need to be aware that staying out of work for extended periods of time normally does not help an injured employee heal; in fact, the employee’s health often deteriorates because mental health can be compromised by depression once the employee loses his daily routine and social network.
Focus on the economic consequences and interests of the membership. For instance, if the majority of members are young, emphasize how the extra money will help them pay college tuition for their children. If members are older, emphasize how the savings will help their retirement accounts. Sometimes they will have very creative ideas about how a new transitional duty program can work well, and they will make you aware of collateral source benefits which need to be removed. In one instance recently, the union was angry with management because management had not tried to do more to stop several fraudulent claims.
For more cost-saving tips go to WC Cost Reduction Tips.
Show the REAL cost of workers’ comp with the Real Cost Calculator.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
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