California
The cost of medical-legal exams on Permanent Partial Disability (PPD) claims has decreased sharply from its peak during the 1991 accident year, according to a report by the California Commission on Health and Safety and Workers' Compensation. For the insured community, total costs of medical-legal exams performed on PPD claims (measured at 40 months after the beginning of the accident year) declined 84 percent from a high of $394.5 million for the 1991 accident year to an estimated $64.5 million for 1994.
This savings of $330 million comes from drops in both the number of exams and cost per exam. The average cost per exam declined 38.6 percent from $987 for 1990 accident year claims to an estimated $606 for 1994 accident year claims.
The report presents results from a study of the effect of the 1993 reform package on California's workers' compensation program. (For a summary of the main elements of the legislation, see Labor Management Decisions, Fall 1993, Vol. 3, No. 2.) The study, based upon data provided by the Workers' Compensation Insurance Rating Bureau (WCIRB), was conducted by the UC DATA Survey Research Center at the University of California at Berkeley under contract with the Commission on Health and Safety and Workers' Compensation.
Reforms in 1989 and 1993 attempted to reduce the number of medical-legal reports by forensic doctors. Survey data indicate that these efforts to deal with the "dueling docs" syndrome have succeeded. The average number of exams per claim has declined by half, from 2.2 exams for the 1991 accident year to an estimated 1.1 exams for the 1994 accident year. This decline is reflected in a drop in the number of represented cases. Exams in unrepresented cases remain consistently lower and have changed little.
The study also found significant reductions in the number and cost of psychiatric medical-legal examinations. Costs dropped from $93.8 million in the 1991 accident year to an estimated $5.9 million in the 1994 accident year, a savings of about 93 percent. This represents 28 percent of the overall reduction in all medical-legal costs during those years.
Reform measures also included provisions for arbitration and mandatory settlement conferences, introduced to reduce the need for hearings and decisions, and to speed the resolution of cases. Data from the WCIRB survey suggest that the new resolution mechanisms have not accomplished these goals.
The Commission on Health and Safety and Workers' Compensation, created by the workers' compensation reform legislation of 1993, is charged with overseeing the health and safety and workers' compensation systems in California and recommending administrative or legislative modifications to improve their operation. A copy of the report may be obtained from Christine Baker, Executive Officer, Commission on Health and Safety and Workers' Compensation, 30 Van Ness Avenue, Suite 2122, San Francisco, CA 94102. Phone: 415/557-1304. Fax: 415/557-1385. The report is also available through the Department of Industrial Relations' website at http://www.dir.ca.gov/.
United States
Considerable reductions in workers' compensation costs nationally during the last five years have resulted from employers' focus on reducing claims, according to the Reuters news agency, reporting on a study conducted by Conning & Co., a research and investment firm specializing in the insurance industry. The amount of workers' claims fell from $28 billion to $20 during 1991 - 95 in the segment of the workers' compensation market covered by traditional property and casualty insurers. Total premiums paid by employers to insurers also dropped, from about $32 billion to $26 billion.
Companies initiated safety programs, emphasized managed care, and focused on reducing adversarial relationships with injured employees in their efforts to control soaring costs. The study was based on historical results of the top 100 companies in the workers' compensation business, representing over 90 percent of the U.S. written premiums.
The bill, which had been strongly opposed by the AFL-CIO, would have modified the section of the National Labor Relations Act that prohibits employers from dominating or interfering with the formation of any labor organization or contributing financial or other support to it. In his veto message, the President said the TEAM Act would "...abolish protections that ensure independent and democratic representation in the workplace" and that it would "undermine the system of collective bargaining" by permitting employers to establish company unions.
In recent years, rulings by the National Labor Relations Board (NLRB) have resulted in confusion about the status of employer-employee safety committees, which, in California, are recommended or, in some cases required, by law. Such uncertainties were discussed in the Fall 1993 issue of Labor Management Decisions in "Might Your Farm Safety Committee Be a `Labor Organization'?" (Volume 3, Number 2).
Although the total number of violent workplace incidents was up, only 1 percent of the survey respondents reported shootings, rapes, sexual assaults, or stabbings. More common events were threats, with nearly 40 percent of respondents reporting at least one occurrence. In addition; 22 percent reported incidents involving pushing or shoving; 13 percent reported fistfights.
According to the survey data, men committed 77 percent of the violent acts. Men also were more often the victims (53 percent) than were women. Personality conflicts (62 percent), work-related stress (27 percent), family or marital problems (27 percent), emotional problems or mental illnesses (25 percent), firings (16 percent), and drug or alcohol abuse (16 percent) were the most frequently cited motivations for violence.
As a result of the increased violence, businesses are adding to their security measures. About two-thirds of the survey respondents said their organizations have security systems designed to control access to their employees, compared with 61 percent in the 1993 survey. Of the survey respondents, 59 percent said their companies have written policies addressing violent acts in the workplace, and 73 percent have written rules and regulations on weapons at work.
Fifty-four percent of the survey respondents said they refer potentially violent employees to Employee Assistance Programs (EAPs) as a preventive measure. Also, 29 percent train human resource managers to identify the warning signs of violent behavior, 28 percent said their organizations train managers and supervisors, and 11 percent train employees. In addition, 25 percent provide employee training on conflict resolution, and 10 percent said they help employees to obtain restraining orders to protect them from potential aggressors.
In an attempt to avoid hiring potentially violent employees, 66 percent of the organizations represented in the survey thoroughly investigate the backgrounds of potential employees. Only 6 percent of respondents said their organizations routinely require psychological testing of all potential employees.
For a discussion of the legal implications of workplace violence and practical suggestions for preventive actions employers might take, also see "Preventing and Coping with Workplace Violence," in Labor Management Decisions, Summer 1994 (Vol. 4, No. 2).
The test-positive rate among employees has shown a general decline, from 4.2 percent in 1990, to 2.5 percent in 1991 through 1993, to 1.9 percent in both 1994 and 1995. Among job seekers, respondents said the test-positive rate rose slightly to 4 percent last year.
While the cost naturally varied by number of people tested, the average per test was $35. The average per company was $50,161, but 62 percent of respondent firms spent less than $10,000.
If a job applicant tests positive, 94 percent of the surveyed companies withdraw their job offer, although 4 percent allow for other options, including a retest at a later date. When employees test positive for illegal drug use, 22 percent of the companies immediately fire them; 14 percent fire them only after they repeatedly fail a drug test. About 21 percent of companies enforce a suspension or probation on employees who have tested positive, and 2 percent may reassign them to other duties. Counseling and treatment referrals are made by 63 percent.
Companies that mix testing with anti-drug initiatives have consistently lower test-positive rates than those that test employees but offer no other anti-drug programs, according to the association. Of surveyed firms, 44 percent offer drug education and awareness programs, up from 21 percent in 1987. And 52 percent train supervisors to spot possible drug problems, double the 1987 figure.
Source: Crain Communications.
The federal minimum wage legislation also established a sub-minimum, or "opportunity," wage of $4.25 per hour, applicable only to employees under 20 years of age during their first 90 consecutive days of employment with each employer.
The federal law enacted in August also declares that time spent in home-to-work travel by an employee in an employer-provided vehicle, or in activities performed by an employee that are incidental to the use of the vehicle for commuting, is not "hours worked" and so does not have to be compensated. This provision applies only if the travel is within the normal commuting area for the employer's business and the vehicle use is subject to an agreement between the employer and the employee or representative.
To relieve any confusion about the minimum wage increase in California, the state Department of Industrial Relations has opened a toll-free hotline offering detailed information to both employers and employees. The number is 1-888-ASK-WAGE (1-888-275-9243), and it provides the information to callers in English, Spanish, and Chinese. Callers will hear a recorded message that summarizes the changes in the minimum wage and related issues, including applicability of the state's opportunity wage, meal and lodging credits, and how the new minimum wage affects tipped employees.
Californians are scheduled to vote November 5 on two additional increases in the minimum wage. If the measure passes, the hourly minimum wage rate would increase to $5 on March 1, 1997, and to $5.75 one year later, on March 1, 1998 -- resulting in four increases in the California minimum wage over two years. The hotline will be updated by the Division of Labor Standards Enforcement to reflect new information if the ballot measure passes.
Sources: Steve Sutter and California Department of Industrial Relations.
America's Job Bank (AJB), a computerized network linking the 1,800 state Employment Service offices and maintained on the Internet by the U.S. Department of Labor, contains information on about 250,000 jobs, featuring listings from all state employment services as well as linking directly to corporate home pages and private placement services. According to DOL, the job bank offers employers rapid, national exposure for job openings and job seekers "the largest pool of active job opportunities available anywhere." More than 1,000 new jobs are added each day, the department said.
Employers may choose to have the Employment Service provide screening/referral control of candidates or to receive referrals directly from job seekers. They may also request a link to job openings running on their own servers or to privately operated employment placement services. The AJB, funded through Unemployment Insurance taxes paid by employers, is free to both employers and job seekers.
The Internet address of the job bank is: http://www.ajb.dni.us/. >From there, employers can link to "Employer Services" to submit information for listings in the job bank. Job seekers may search by means of a self-directed occupational menu, look for job titles by keywords, or find listings by job codes or numbers. At this writing in mid-October, there were 1,569 job listings in the "agriculture/forestry" category nationwide; further refinements could be made by state, city, title, salary, and "new jobs."
According to the DOL, America's Job Bank is also available on computer systems in public libraries, colleges and universities, high schools, shopping malls, and other places of public access.
Its purpose was to "cut costs and enable the Industrial Welfare Commission to inform California workers, in plain language, of the basic laws governing wages, hours and working conditions," according to Lloyd W. Aubry, Jr., DIR Director. IWC orders in technical language would still be available upon request by anyone who desires a copy.
Under current law, employers are required to post, conspicuously in their place of employment, multi-page IWC orders containing the exact language of regulations adopted by the IWC and a "statement as to the basis" explaining why these regulations were adopted. The language is complex and difficult to understand, Aubry said. In contrast, the federal government currently requires employers to post a summary of employers' obligations and employees' rights under the Fair Labor Standards Act.
The IWC had estimated that the proposed bill would reduce the cost of producing these documents by approximately one-half, as well as eliminating other costly and unnecessary bureaucratic expenses. Since A.B. 1961 has now expired, poster simplification would depend on introduction of a new bill in the next legislative session.
Agricultural Personnel Management Program 1991-94 Report describes the program's mission, history, philosophy, and use of resources. An overview of activities in the APMP from 1991 through 1994 includes annotated lists of extension meetings, education and research projects supported by program grants, and publications. Yearly budgets and expenditures through fiscal year 1994-95 are summarized. Visit the APMP website to read the report . Or, for a free printed copy , contact Betsey Tabraham at tabraham@are.berkeley.edu.
Labor Management Laws in California Agriculture, Second Edition. Publication 21404 (ISBN 1-879906-29-5). The 190-page October 1995 edition, by Howard R. Rosenberg, Valerie J. Horwitz, and Daniel L. Egan, is an extensive update of the 1990 publication. The book summarizes state and federal laws on terms of employment (such as wages, rest periods, safety standards) and interactions between employers and workers (such as pre-hire screening, collective bargaining, and dismissal). Specific statutes, administrative rules, and case precedents are discussed within the context of the types of management decisions they affect. The book is available for $15 plus $4 postage and handling (please make check payable to UC Regents) from Communication Services - Publications, Division of Agriculture and Natural Resources, University of California, 6701 San Pablo Avenue, Second Floor, Oakland, CA 94608-1239 (phone: 510/642-2431 or, in California, 800/994-8849; fax: 510/643-5470; e-mail: anrpubs@ucdavis.edu).
Project reports. The following three publications are available for $1.75 (to cover postage and handling; please make check payable to UC Regents) from Communication Services - Publications (see above listing):
An Analysis of Contract Relationships between Farm Labor Contractors and Farmers in California Agriculture. Publication APMP004, by Dawn Thilmany, former graduate student in the Department of Agricultural Economics, UC Davis (now Assistant Professor, Department of Economics, Utah State University, Logan), and edited by Carole Frank Nuckton, presents eleven case studies based on joint interviews with farmers and the FLCs with whom they have contracted. Published March 1995; 40 pages.
Coping with Structural Job Displacement of Timber Industry Workers. Publication APMP002, by Donald R. Nelson, Peter C. Passof, and Elizabeth Bury describes previous efforts to deal with impending dislocations; presents results of surveys to assess timber employment opportunities, worker abilities, interests, and needs, and availability of resources to meet employer and worker needs; and offers recommendations for adjustments to displacement. August 1994; (44 pages).
Directly Hiring Workers Versus Using Farm Labor Contractors. Publication APMP003, by Sabrina Isé, Jeffrey M. Perloff, Stephen R. Sutter, and Suzanne Vaupel. The authors use information from two surveys to compare growers who hire workers directly with growers who use farm labor contractors (FLCs) to supply workers, examining their experience with FLCs, views of employee quality and liability, differences in costs, and reasons for hiring directly or indirectly. Labor-management relations of direct-hire growers are compared with those of FLCs. The 44-page report was published in December 1994.
Employee Incentive Pay in Dairies, Third Edition (1995, 46 pages) has been published in Stanislaus County. Compiled by Gregory Billikopf, who also wrote an introductory chapter on incentive pay principles, the publication contains chapters by dairy scientists on motivating employees to work toward decreasing days open, reducing calf mortality, enhancing milk production, increasing milk quality, maintaining milking equipment, and improving feeding management. To receive a copy, send a check for $4 (includes tax and shipping), payable to Stanislaus Farm Advisors' Trust to: University of California, Attention G. Billikopf, 733 County Center 3, Modesto, CA 95355, or call (209) 525-6654.
English/Spanish safety handbooks. Richard Bruce, Specialty Safety Training, has written two bilingual training manuals -- Farm Safety and Orchard Safety. The farm handbook covers safety in the shop, use of general equipment, lockout/blockout, tractors, backhoes, forklifts, as well as procedures related to pesticide application and the Worker Protection Standard. The orchard handbook covers such subjects as safety in pruning and brush disposal, harvest operations, and use of processing equipment. Each book is $29.95, plus $2.50 handling (U.S. orders), and sales tax (California residents), and is available from Thomson Publications, P.O. Box 9335, Fresno, CA 93791. Phone: 209/435-2163. Fax: 209/435-8319.
Managing Human Resources in Small and Mid-Sized Companies, Second Edition. Written by Diane Arthur, the book is a reference for dealing with human resource issues as they arise and clarifying complex procedures, or as a planning tool for developing policies and practices. The Second Edition has been updated and expanded to reflect changing workforce demographics, current legal requirements, compensation trends, and advances in information management. Guidelines are presented on how to: set up or expand a human resource department; recruit, interview, select, and orient new employees; administer preemployment and employment tests as well as assess their value; establish compensation, benefits, and performance appraisal programs; manage career development, counseling, discipline, and other employee relations functions; organize in-house publications, dependent-care resources, food services, and other productivity boosters; maintain viable records and information management systems. An appendix includes employee application forms, sample interview questions, sample job descriptions, guidelines for performance appraisals, and sample disciplinary warnings. The book is available from College and University Personnel Association (CUPA) for $50, members, $55, nonmembers. For more information, contact Steve A. Siegel, CUPA, 1233 20th Street, NW, Suite 301 Washington, DC 20036 (Phone: 202/429-0311, ext. 371. Fax: 202-429-0149. E-mail: ssiegel@cupa.org).
Getting Started in Human Resource Management was written to help smaller employers adopt human resource strategies to improve company performance and comply with workplace laws and regulations. The author, Joseph P. Bacarro, of Action Management Inc. and 1996 chair of the Society for Human Resource Management (SHRM) Employee & Labor Relations Committee, says "Many companies with fewer than 100 employees do not have a human resource manager, but all businesses need good human resource management practices if they are going to survive." The book suggests ways to improve productivity through the use of performance improvement programs; presents strategies for compensation and benefits, training and development, recruitment and selection, and effective use of human resource consultants; and covers governmental regulations. Copies (catalog number 35.65002) may be purchased by calling the SHRM Distribution Center at 800/444-5006. The cost is $25 for SHRM members, $30 for non-members.
The Mixed Economic Progress of Immigrants. This 134-page report by Robert F. Schoeni, Kevin F. McCarthy, and Georges Vernez examines the differences in the rate of economic progress of immigrants from different countries of origin and identifies reasons for the differences. It also discusses whether the economic progress of recent immigrants is slower than that of previous generations of immigrants and assesses the economic progress of immigrants in California separately from that of those in the rest of the nation. The book, publication MR-763-IF/FF, costs $15, plus $3 handling for the first copy (for domestic orders) and 8.25 percent sales tax (for California residents). It may be ordered from Rand on the Internet (http://www.rand.org/) or by telephone (310/451-7002), fax (310/451-6915), e-mail (order@rand.org), or regular mail (Distribution Services, RAND, P.O. Box 2138, Santa Monica, CA 90407-2138).
Videotapes
Protecting Crops, Protecting People -- Can IPM Work for You? In a 23-minute video from the California Department of Health Services and the California Public Health Foundation, five California growers discuss their use of integrated pest management, and its effects on their business, their workers, and themselves. Copies of the video may be obtained free of charge by writing to California Department of Health Services, Occupational Health Branch, 2151 Berkeley Way, Annex 11, Berkeley, CA 94704.
Farm labor management videos. Four videotapes from Canada use a "light-hearted approach" to provide basic instruction on supervising workers. Sold for $30 per set of two in English or in French, the videos -- Hiring the Right Person for Your Farm and Managing People on Your Farm; and How to Supervise Employees Better and How to Discipline Employees Better -- were produced jointly by the British Columbia Ministry of Agriculture, Fisheries and Food; Agricultural Employment Services; University of Guelph; Ridgetown College; and Ontario Agriculture Training Institute. Order by check or money order payable to Agricultural Employment Services (price includes postage) from Agricultural Employment Services, 307-34252 Marshall Road, Abbotsford, B.C., Canada V2S 1L9.
Worker Protection Standard Train-the-Trainer Programs. The UC Statewide IPM Project's Fall schedule includes workshops for trainers of fieldworkers and for trainers of both fieldworkers and pesticide handlers. Participants completing either course receive certificates qualifying them to issue the blue EPA cards to fieldworkers they have trained. For details, phone (916) 752-5273, send an email message to diane.clarke@email.ipm.ucdavis.edu, or visit the IPM website -- http://www.ipm.ucdavis.edu/.
Separate, but identical, 4-hour courses for trainers of fieldworkers are offered in English and in Spanish at each location at a cost of $40:
October 30, Salinas.
November 8, Visalia.
November 19, Indio.
November 20, Holtville.
December 3, Ontario.
December 6, Oxnard.
The 8-hour course ($100) for trainers of fieldworkers and pesticide handlers also covers the California-specific training requirements for pesticide handlers. Sessions are in English or Spanish, as indicated below:
October 29, Salinas. English.
November 6, Visalia. English.
November 7, Visalia. Spanish.
December 4, Ontario. English.
December 5, Oxnard. Spanish.
AgFresno Ag Employers' Seminar. Wednesday, November 20, 9:00 a.m. to noon. Fresno Fairgrounds: Hospitality Building. The seventh annual seminar for growers, packers, farm labor contractors, and others will include an update on farm worker transportation issues and will also feature a short course on rights and responsibilities under California's Agricultural Labor Relations Act, with presentations by representatives of the Agricultural Labor Relations Board. For information, phone Steve Sutter at 209/456-7560.
Pesticide Worker Safety Training Program. December 3 -5, 1996. Training sessions in English and Spanish in the safe handling and application of pesticides as required by state regulations. Call Cooperative Extension Tulare County at 209/733-6363 for location. Manuel Jimenez, Farm Advisor.
Agricultural
Supervision and Management
Lively case discussion by
Spanish-speaking supervisors, foremen, farm labor contractors, and others
marked the 3-day Supervisory Skills Training seminar, presented in December
1995 by APMP Farm Advisor Gregory Billikopf in Merced. The popular workshop
will be held again this December (1996) in Modesto.
Two seminars offered by Gregory Billikopf (the fifth annual seminar in Spanish, to be held in December, and the second annual seminar in English, in February) will be presented in Modesto at 733 County Center 3, Corner of Scenic Drive and Oakdale Road.
Spanish. Wednesday - Friday, December 4 - 6, 1996, 9:30 a.m. - 5:00 p.m. Wednesday; 8:00 a.m. - 5:00 p.m. Thursday; and 8:00 a.m. - 3:00 p.m. Friday. The workshop will cover supervisory communication, counseling employees, power and abuse of authority (including sexual harassment and favoritism), discipline and termination, conflict management, and farm safety. Cost for the three days, including lunch, is $45 ($35 for preregistration by November 28).
English. February 25-27, 1997. The program is for first-line supervisors, managers, and others interested in improving supervision in agricultural operations. Participation of supervisors and one or more managers from the same business is encouraged. Various presenters will discuss selecting and orienting employees, motivating through pay systems, discipline and termination, counseling and listening skills, farm manager perspectives, power and abuse of authority, managing conflict, labor management information through e-mail and web sites, and labor law. Cost, including lunch each day, is $45 ($35 for registration postmarked no later than January 31, 1997).
For more information on either meeting, contact Melynda Ange by phone (209/525-6654), or e-mail (maange@ucdavis.edu).
Labor Management Decisions is published by the Agricultural Personnel Management Program, Division of Agriculture and Natural Resources, University of California. Articles may be reprinted with credit.
We welcome readers' opinions, news items, and other information. Letters will be published as space permits.
If you do not receive Labor Management Decisions through the mail and want to have a free subscription, please send the information requested below to: Agricultural Personnel Management Program, Attn: Betsey Tabraham, 319 Giannini Hall, University of California, Berkeley, CA 94720 (phone: 510/642-2296; fax: 510/642-6108; e-mail: tabraham@are.berkeley.edu.edu).
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