Workers’ Compensation and Unions

Life Before Workers’Compensation Laws

Advances in negotiations have come a long way since 1900when turn-of-the-century union leaders were the primary resistance to federalmandates for employee protections, such as Workers’ Compensation.Unions were concerned that if the federal government required states to implementprotections for employees they would take control of the issues. They fearedthat this would diminish employee loyalty to, and the need for unionmemberships. To prevent their much-feared loss in union membership they workedhard to prevent workers compensation legislation

When the Laws WerePassed

The Unions succeeded for a time in preventing workerscompensation laws to be passed. But, by 1911 many states were implementing lawsthat set the requirements for workers compensation protections. The much-fearedloss of membership or member loyalty never came to pass. As workerscompensation protections developed, unions maintained their ability to protecttheir member-workers benefits.

Non-union workers were the ones most impacted by the newlaws. They began receiving lower wages as their benefits increased. Yet, despitepaying for their own workers compensation benefits indirectly, these workersbenefitted in other ways. Many had previously found it difficult to getaccident insurance, a problem solved by workers compensation. Most found thatthe benefits they gained were well worth the cut in pay.

The ConnectionBetween Workers’ Comp and Unions

One definition of collectively bargained Workers’ Compensationis, “A collectively bargained negotiated arrangement to provide state mandatedworkers compensation in a much more user friendly environment that gets theemployee back to work earlier and reduces claim costs, a win-win for both theemployer and the employee.”

Florida is one of several states whose laws were amended toallow workers compensation insurance to be negotiated through collectivebargaining agreements. The Florida Workers Compensation Board awarded a 15% reductionin premiums to one such program for initiating this unique approach.

The Governing Board of Presidents, Building &Construction Trades Department of the AFL-CIO recommended that they should,“…promote this concept in every way possible while always preserving themaximum protections for our members.” They are encouraging all states to changetheir laws to accommodate collective bargaining for the Building Trades.

While these results are for only one industry, the firstproject to implement the new approach was in the construction industry. Its impressiveresults have reduced serious injuries by 82%, eliminated legal disputes,improved worker benefits and reduced costs by 57%.

It appears from these initial efforts and results that theremay be significant benefits in safety and cost savings when unions are allowedto negotiate workers compensation benefits for employees. Yet, with all theseimprovements, employees often find that their injuries and losses are notadequately covered by these benefits.