National Organization of Injured Workers

City Aims To Curb Worker Injury Claims With Bonus Offer!

By BRUCE RUSHTON
STATE JOURNAL-REGISTER
August 09, 2008

Hoping to cut Workers' Compensation claims, the city of Springfield has approved a collective bargaining agreement that will pay employees for not getting hurt.

The amount spelled out in the city's deal with a union representing about 60 City Water, Light and Power employees is modest compared with more than $1.3 million the city has paid in Workers' Comp claims so far this year.

Workers covered by the contract approved this week - among other things, they maintain boilers, help operating engineers run power plants and maintain grounds - will get $250 per year for the first four years of injury-free employment, then $750 in the fifth year.

The amount steadily increases, so that an employee who worked for 30 years without getting hurt would get a lump-sum payment of $3,900 upon retirement, in addition to $21,750 the city would pay out in annual installments over three decades.

It's a first for the city, said Jim Gates, manager of labor relations for the city. And there's the possibility of similar arrangements with other unions.

"We quite possibly will, yes, in an effort to keep the employees mindful of work safety," Gates said Friday.

Ward 2 Ald. Gail Simpson said she's in favor of anything that reduces the Workers' Comp tab. In addition to paying out more than $1.3 million in claims this year, the city is paying $150,000 to two law firms to defend claims, plus $165,000 to a third-party administrator to handle claims.

"It seems like every time I go to a finance committee meeting, there's a Workers's Compensation claim on the agenda," Simpson said. "I just sit there and say, 'This doesn't make any sense.' It's ludicrous."

Claims paid out this year include:

More than $22,000 to a fire department captain who suffered a herniated disc while straightening a rug in a fire house. Like most city employees who receive Workers' Compensation, the captain, who was 8 percent permanently disabled, is back at work.

More than $27,000 to a police officer who aggravated a work injury he suffered eight years ago. The officer, who lost 28 percent of the use of his right foot, hurt himself while kicking in a door to serve a warrant, according to city records. He has returned to full duty.

A public works employee who got nearly $26,500 after slipping while climbing out of a truck and catching himself with his right arm. He suffered a pectoral injury that cost him 25 percent of the use of his right arm and is back at work.

A public utilities employee who suffered a shoulder injury when a truck he was riding in stopped suddenly. The worker, who underwent rotator-cuff surgery and had previously received money from the city for hurting the same arm, received $23,500.

Of the 26 city employees who have received awards this year, 11 work in the utilities department, seven are employed by public works, five are police officers, two work for the fire department, and one is a former human resources employee.

The biggest award, $180,000, went to a former utilities foreman who stood up on a ladder and struck his head on equipment, injuring his spinal cord.

Simpson said she believes some city workers are taking advantage of a system that pays them while they're off work, covers their medical expenses, then compensates them for injuries that aren't serious enough to keep them from returning to their jobs at full pay.

"I know there are many employees who take advantage of the system, who are working the system," Simpson said. "I certainly cannot prove it. I've been told by (department) directors, 'Yeah, they're working the system.' I've been told by employees, 'Yeah, they're working the system.'"

Under state law, the city must pay injured workers two-thirds of their salaries while they're off the job, and that money is not taxable.

"It's kind of intended to be a little less than if they were at work," said Jim Ackerman, a lawyer who often represents injured workers. "The permanent partial disability award, all that goes to the employee. The employer is supposed to pay medical expenses on top of that."

In addition, the city or its insurer must pay all medical expenses. Attorneys representing injured workers typically get 20 percent of any award or settlement.

Noting the Workers' Compensation system is set up by the state, not the city, Simpson said she has trouble understanding why injured workers must be returned to the same jobs on which they suffer expensive injuries. In several cases this year, the city has paid money to workers who returned to duty after being hurt at least once before, according to city records.

"If you've got somebody who's shoveling and they get a back injury from shoveling, why would you send them back to shoveling?" Simpson asked.

By the time settlements and awards come before the city council, aldermen have no choice but to approve them, Simpson said.

Charles "Chip" Delano, a lawyer who specializes in Workers' Compensation cases, said aldermen have better things to do than vote on Workers' Comp cases worth at least $15,000. The city, he suggested, should buy insurance so it won't have to hire lawyers to defend claims and an administrator to process them.

"You won't find many cities the size of Springfield that are self-insured," Delano said. "It seems to me it would be a lot cheaper and easier to get it out of house and get it done."