September 6, 2006

Officials Hail Collectively Bargained WC Agreement: Regulatory 

Republished with permission from WorkCompCentral.com

The International Brotherhood of Electrical Workers (IBEW) and the Electrical Contractors Association of Hawaii (ECAH) signed a collectively bargained workers' compensation agreement designed to improve Hawaii's workers' compensation system for both employers and employees.

Under Hawaii's workers' compensation laws, unions may negotiate a collective bargaining agreement with contractors to cover issues such as treatment plans, vocational rehabilitation programs, return-to-work programs and how claims should be resolved. The Hawaii Department of Labor and Industrial Relations (DLIR) director must approve the agreement to ensure it meets state law requirements.

Earlier this year the workers' union, contractors association and Seabright Insurance Co. approached the state about creating and approving the collective bargaining agreement The state worked with these parties to ensure that the agreement provided benefits equal to those provided by state law.

"The attraction of this agreement to ECAH contractors is not only the ability to provide prompt, quality medical care for employees so they can return to work in a more timely manner, but also the possibility of reduced premiums and other savings," the department said in a press release.

"Insurance carriers base workers' compensation premiums on an employer's payroll, DLIR said. "ECAH's unionized contractors are likely to pay higher wages than their non-union counterparts and are therefore charged higher premiums which can place them at a competitive disadvantage."

DLIR also said the agreement benefits employees by expediting the claims process and also "eases the adversarial relationship between employees and employers that is inherent in the state's workers' compensation and leads to delays in receiving care or benefits."

The state labor department explained the collective bargaining agreement includes four fundamental concepts:

* Alternative dispute resolution (ADR).

* Evidence-based treatment guidelines - specifically Official Disability Guidelines.

* Creating a physician network of "credible health care providers."

* An overall concept of involving both employer and employees in decision making.

Use of ADR will allow parties to solve problems "quickly and without the involvement of attorneys through a three-tiered program of an ombudsman, mediation and arbitration."

"When parties resolve their disputes outside the DLIR's hearings process claims are likely to be settled in a more timely and efficient manner," the department commented.

Use of treatment regimens based on medical evidence, specifically ODG "ensures injured workers are provided with quality care so they can promptly return to work and not suffer unnecessary financial burdens resulting from prolonged absences."

The agreement required that injured workers be treated by medical providers who are part of a physician network agreed upon by the IBEW and ECAH.

It established a physician network on all islands and all IBEW members who are employed by a participating signatory contractor will be treated by these providers for their workers' compensation injuries.

"This helps ensure that only the most qualified medical providers are treating IBEW members while precluding those who have not provided quality care or have unnecessarily prolonged treatment of injured workers," the labor department reported.

"This process will likely reduce disputes over treatment plans and the need for employers to hire independent medical examiners."

One key to the agreement was providing both employers and employees a say on vocational rehabilitation, return-to-work programs, how workers should be treated for their injuries and how claims and disputes should be resolved, DLIR said.

Gov. Linda Lingle, DLIR Director Nelson Befitel, IBEW local 1186 business manager and financial secretary Gerald Yuh, ECAH President Steve Watanabe and six electrical contractors participated in a signing ceremony at the state Capitol promoting use of these agreements as an alternative workers' compensation system.

"We believe CBWCA (collectively bargained workers' compensation agreement) can be a successful model for many organizations and the state in improving Hawaii's workers' compensation system by promoting cooperation and trust among employees, employers and those who serve as an integral part of the workers' compensation process," Befitel said.