Issue: Workers' Compensation Reform

April 19, 2004

The California Space Authority is elated that Governor Arnold Schwarzenegger has chosen The Boeing Company's Long Beach facilities as the backdrop for his signing of SB 899, the Workers' Compensation reform bill that was just passed by the legislature last Friday.

Considering that space enterprise alone, not including its greater aeronautics component, is a $24.2 billion industry in Califonia, CSA is proud of the fact that the Governor has chosen one of our members as the site for his signing ceremony. His recognition of our industry and of the important need for major workers' compensation reform sends an important message not only to decision makers in the aerospace business, but also to the many workers we employ. We applaud this action as an important step to help keep jobs in California by reducing the costs of doing business, while improving benefits to truly injured workers.

April 16, 2004

SB 899, the workers' compensation reform bill, passed both houses of the Legislature today and is on its way to the governor's desk. The Assembly vote was 77-3 with Democrats Jackie Goldberg (West Hollywood), Loni Hancock (Berkeley) and Hannah-Beth Jackson (Santa Barbara) voting no. The Senate vote was 33-3. Democrats Richard Alarcon (Van Nuys), Joseph Dunn (Santa Ana) and Marta Escutia (South Gate) cast no votes. The Governor is expected to sign the bill in the next couple of days.

April 15, 2004

The Conference Committee on Workers' Compensation passed its report this morning at 3:30 am by a 6-to-0 vote. The contents of the package have been amended into SB 899 (Poochigian). The measure should be in print sometime later today or early tomorrow. However, a preliminary analysis of the compromise proposal [MS Word, 41kb] is available for your review. The Legislature is expected to take up the measure tomorrow morning, Friday, April 16.

April 2, 2004

Hopes that Legislative leaders would come to a meaningful compromise concerning workers' compensation is losing steam. The Governor had issued a new deadline for negotiators to advance a plan, but nothing was reached when that day, April 1, came and went. And now, Legislators have recessed for their Spring vacations, yet key staff members for the party leaders in each house as well as from within the Administration continue to negotiate.

While these talks continue, it is imperative that California's space enterprise community assist in putting political pressure on the Legislature to get something done. Help CSA gather the necessary signatures to put the Governor's workers' compensation initiative on the November ballot.

March 8, 2004

To view a comparison of the three major proposals concerning workers' compensation reform, follow the link just below. The linked document contains the reform objectives and the proposals being offered by employers (read this as the Initiative being circulated for signatures), the labor unions, and the Insurance Commissioner. Comparisons to the Governor's proposal found in ABx4-1 and SBx4-3 are also included in the text.

WC-Reform-Comparison-040220.doc [Word, 89kb]

March 5, 2004

The Committee for Workers' Compensation Reform and Accountability (CWCRA) today announced that they have received, from the Attorney General's office, the official "title and summary" necessary to launch its effort to gather the nearly 1 million signatures of registered voters needed to qualify the Workers' Compensation Reform and Accountability Act for the November 2004 election ballot. The deadline for submitting the required signatures is April 16.

To review the text, title and summary of the initiative, please log on to the Committee's web site at http://www.reformworkerscomp.com/.

March 1, 2004

Today, March 1st, is the date that Governor Schwarzenegger set for the Legislature to enact meaningful reforms to the workers' compensation system. Nothing has been placed on the Governor's desk for signature.

It is rumored, however, that significant progress on a reform package has actually been made in closed door negotiations between the Governor's offices and the Legislative leadership. Consequently, efforts for an initiative-forced workers' compensation reform package loom (signatures will soon begin to be collected).

February 11, 2004

Today the Assembly Committee on Insurance met for a hearing of ABx4-1 (Maldonado). This measure contains the reforms to the Workers' Compensation System requested by Governor Arnold Schwarzenegger. CSA testified to the increasing premium costs that continue to be experienced by the space enterprise community inspite of reforms that were implemented as a result of AB 227 and SB 228 from last year.

In spite passioned testimony from small and medium sized business owners, Mr. Maldonado's measure failed to pass from the commmittee. An identical measure, authored by Senator Charles Poochigian (SBx4-3) and also supported by the Governor, is scheduled to be heard in the Senate Committee on Industrial Relations later this month.

Analysis of Mr. Maldonado's ABx4-1 [Word, 48kb]

February 10, 2004

In a recent meeting with Governor Arnold Schwarzenegger's key staff, CSA discussed the necessity for real workers' compensation reform. As a result of this conversation, the Governor's office has asked that CSA's members join him in this effort. The Governor has urged the Legislature to present him with a major overhaul of the program by March 1, 2004. The Governor has pledged that if the Legislature fails to truly reform workers' compensation by the March 1st deadline, he will take the matter to the voters in the form of an initiative.

California's space enterprise community has made it clear to CSA that the workers' compensation program in California is badly broken. Employers now pay premiums that are among the highest in the US and workers receive benefits among the lowest in the country. This is unfair to both, and it has had the effect of discouraging new businesses, making it difficult to retain existing enterprises and creating barriers to attracting companies to California. All this means that the current workers' compensation program is discouraging job creation.

What can we as individuals do? The most effective approach is to encourage our legislators and the Governor to follow though on meaningful reform. All of our members should write letters of support to the Governor and to the Legislature expressing their support for reform of the workers' compensation program. These letters should indicate support for the Governor's efforts should an initiative become necessary.

Here is a suggested letter for your convenience.

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