Changes needed this year to avert fund failure, address cost drivers

OLYMPIA— Representatives from some of the state’s largest — and smallest — employers will ask legislators to take action this session to reform the state’s workers’ compensation system.

Seven AWB member organizations — including four small, medium, and larger businesses that pay into the state L&I fund (Fife Flowers, Gilliardi Logging, Sakuma Bros. and TrueBlue, Inc.) and three self-insured corporations (Alaska Air, Boeing and Costco) — will speak today to the urgent need for workers’ compensation reform.

All will testify on Senate Bill 5566, Gov. Gregoire’s workers’ comp reform proposal, during the 1:30 p.m. hearing today before the Senate Labor, Commerce & Consumer Protection Committee as part of what Chairwoman Jeanne Kohl-Welles, D-Seattle, has informally dubbed “Workers’ Comp Day” in committee.

A December 2010 report from State Auditor Brian Sontag said the state’s workers’ comp system is unsustainable and needs huge increases to remain solvent. Washington state has the second highest benefit payments in the nation and its failure to address issues like occupational disease has contributed to skyrocketing pension costs. AWB has made workers’ comp reform one of its primary legislative objectives for the 2011 session.

“What the committee will hear today is that while we agree with Gov. Gregoire that Washington’s system needs reform, the employer community would like to see a bolder proposal” said Kris Tefft, AWB’s general counsel and government affairs director for workers’ comp issues.

Employers are proposing reforms to the coverage of costly occupational disease claims and seek to make Washington the 45th state to allow injured workers the choice of settling a workers’ comp claim for a lump sum.

“The governor’s bill has some good first starts, but to reduce costs and encourage jobs, we need to modernize this system,” said Tefft.

Testifying during today’s hearing will be:

State fund insureds:

· Mike Seeger, owner, Fife Flowers

· Paulette Gilliardi, owner, Gilliardi Logging

· Rick Anderson, corporate administrator, Sakuma Bros.

· Darren McCallon, vice president of finance, TrueBlue Inc.

Self-insureds:

· Donna Egeland, Alaska Airlines

· Tina Coakley, The Boeing Company

· Katrina Zitnik, Costco Wholesale

About the Association of Washington Business
Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association, and includes more than 7,100+ members representing 650,000 employees. AWB serves as both the state’s chamber of commerce and the manufacturing and technology association. While its membership includes major employers like Boeing, Microsoft and Weyerhaeuser, 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit http://www.awb.org/.

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