Now is the time to break down the barriers between labor and industry and seek to reduce workers’ compensation program costs. The result can be a “win-win” for all interested stakeholders and a better return-to-work result for the employee.
Identifying Barriers with Labor Unions
There are several barriers to workers’ compensation when dealing with labor unions. It is crucial to identify this barrier and create a culture of trust and understanding.
- Level of Trust: Members of the claim management team need to understand the state of affairs. Issues that need to be understood include the nature of the relationship between the union and management. It is also vital to review the collective bargaining agreement (CBA) and how each side views it.
- Status of the Collective Bargaining Agreement: The CBA is the agreement that defines the workplace relationship between labor and management. An agreement in place might not fit the current workplace structure or culture. This is especially the case given the current COVID-19 pandemic and the need for employees to work remotely when they are able, take time off to care for sick family members, or resolve issues caused by the “great resignation.” The CBA may need modification to promote effective return-to-work.
- Senior Management Engagement: Workplace issues impact all levels of management, but problems often lie with those at the top. Those in leadership positions need to understand the importance of return-to-work and what it means to injured employees. This could also have been overlooked during the most recent CBA negotiation. Success might mean a change in mindset by all interested stakeholders.
- Removing Disincentives to Return-to-Work: An existing workers’ compensation program might also be filled with perverse disincentives to reduce costs for workers’ compensation program. This can include re-examining existing salary and wage continuation programs, supplemental income protection programs, “guaranteed” job return programs, and other private disability benefits programs.
Now is the time for all interested stakeholders to review their labor union-oriented workplaces and determine what steps need to be taken to promote a better outcome.
Bridging the Gap to Better Outcomes
One can do several things to improve their workers’ compensation programs after conducting a thoughtful review of barriers. All levels of management need to be involved and willing to make a change.
- Understand the position of the other side: Industry interests need to examine their programs from the perspective of labor-oriented employees. This needs to include an analysis of workplace safety and training, advancement within an organization, opportunities to promote, and getting injured employees back to work promptly.
- Look for easy wins: This can vary for each company and composition of union membership. Identifying “wins” can be accomplished by engaging membership and understanding what they are looking for. Reasonable faith efforts to deliver are required.
- Emphasize safety: A comprehensive and robust safety program is a win for every workplace, especially for a union shop. Part of the process includes soliciting feedback from the rank and file members and giving them a seat at the team. This can include membership on a companywide safety committee.
- Strive for an inclusive workplace: Every workplace should make all employees feel welcome. This needs to go beyond race, sex, gender, and religion. It should also include employees covered under the Americans with Disabilities Act (ADA). Issues that need to be considered in a CBA should include “no temporary work,” as this violates the Act.
When employers take the time to bridge the gap, they will overcome barriers. The result is a better workplace and relations between labor and industry.
Conclusions
It is never too late to build a better relationship with labor unions in your workplace and improve the workers’ compensation program. This is accomplished by identifying the interests of the union membership and taking steps to overcome structural workplace barriers. You can get all employees back to work and reduce workers’ compensation program costs by making reasonable faith efforts.
Author Michael Stack, CEO Amaxx LLC. He is an expert in workers’ compensation cost containment systems and helps employers reduce their workers’ comp costs by 20% to 50%. He works as a consultant to large and mid-market clients, is a co-author of Your Ultimate Guide To Mastering Workers Comp Costs, a comprehensive step-by-step manual of cost containment strategies based on hands-on field experience, and is the founder & lead trainer of Amaxx Workers’ Comp Training Center, which offers the Certified Master of Workers’ Compensation national designation.
Contact: [email protected].
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