Connecticut businesses are urging lawmakers to oppose new workers' compensation measures because they would significantly increase business costs, repeal key reforms of the workers' compensation system and make Connecticut a much less attractive place in which to do business.
"Workers' compensation costs in Connecticut are among the highest in the nation and legislators should be taking actions that would reduce costs and help employers compete and grow so they can create good jobs,” said Bonnie Stewart, CBIA vice president of government affairs.
Businesspeople from across the state are urging lawmakers to vote against five proposed workers' compensation bills.
More than a hundred businesspeople from across the state submitted testimony to members of the legislature's Labor Committee asking them to reject all of the proposed workers' comp measures and to work with the business community to control labor and workplace costs in Connecticut. Here is a sampling of some of the comments.
The workers' compensation reforms implemented in the mid-1990s made sense and we have been pleased with the relative stability of the comp rates. The move now to roll back some of the changes that were made would have a significant impact on our plan to grow our business. Adding additional burdens or costs will make us even less competitive in the marketplace.
Jason Howey, vice president, Okay Industries, New Britain
We are deeply committed to our employees, not only in fostering their health and welfare through reasonable and relevant benefits, but also by making a long-term commitment to the health and welfare of the Connecticut economy. The latter can only be achieved through a healthy business climate that encourages and promotes job creation in our fair state. The above proposals will accomplish the opposite and only serve as sharp nails in the coffin of the Connecticut economy.
Richard Whalen, senior vice president of human resources, Bigelow Tea, Fairfield
It is already extremely difficult for Connecticut companies to remain competitive in today's global marketplace. Results of passing such bills force businesses to close, relocate to another state that supports job growth, or move work out of the U.S. altogether. All of which means the loss of jobs for Connecticut.
Laurie Roy, human resources manager, Alcoa Howmet, Winsted
Our safety committee has worked very hard this year to continuously improve the safety of the workplace with the ultimate goal being to reduce lost time injuries to effect a resultant reduction in our mod rate and thus our workers' compensation costs in order to help with the ever increasingly difficult challenge of remaining competitive in this global economy. Passing any of the above measures would have a disastrous effect and undo all of our hard work.
Jack Traver Jr., president, Traver IDC, Waterbury
The proposals as written will likely result in increases in workers' compensation premiums which will force employers to pass other expenses on to employees, such as larger contributions for health insurance plans which are already very expensive. It is the people that live and work in Connecticut that will be adversely impacted; the people that can least afford it in this economy.
Robin Sharp, executive director, YWCA, New Britain
Gemco Manufacturing Co., like many other small-to-midsize manufacturers in this state and across the country, is struggling to compete in a global market. I don't have to tell you that we are dealing with increases in wages, health insurance, raw materials and energy. Connecticut remains one of the most expensive states to do business in and the last thing we need from Hartford are costly mandates and additional benefits that will result in higher premiums and open the door to potential abuse of the system.
Mark DiVenere, president, Gemco Manufacturing Co. Inc., Southington
Business conditions are very poor and it is a struggle to keep the current employment level. I believe the existing workers' compensation package, although costly, is fair and no changes should be considered that will increase the cost.
David Wingfield, owner/principal, C&S Distributors, South Windsor
Over the past few years Connecticut has lost over 9,500 well-paying manufacturing jobs at a time when energy and health care costs are skyrocketing. The people of Connecticut can not afford any legislation which drives up the cost of doing business in Connecticut . I wish to take this opportunity to implore you to cease work on any proposed legislation which will increase costs in Connecticut .
Bertram Geuser, president, Analytical Consulting Technology Inc., Waterbury
Connecticut is already one of the most generous states when it comes to providing injured employees workers' compensation benefits. To allow additional benefits at the discretion of the Workers' Compensation commissioner will increase the claims costs for all employers. West Hartford is a self-insured municipality and our taxpayers are concerned with the rising tax burden .
Susan Donatelli, Town of West Hartford
Isn't there enough regulation on employers now? We certainly can't compete with imports from Asia and you are making it impossible to compete with companies in other states. We already have among the highest energy costs, highest wages, highest taxes and now more regulation and costs that we certainly don't need. Please reject these measures and give struggling businesses a break.
Curt Rutsky, president/owner Syntac Coated Products, New Hartford
Connecticut is a difficult state to do business in and the above proposals makes it even harder for a small company like U.S. Button.
Rita Savoie, human resources manager, U.S. Button Corp., Putnam
We struggle every day, not only to keep jobs in Connecticut , but to keep jobs in the U.S.A. as a result of low cost Asian influence. To increase our workers' compensation costs only serves to exacerbate this situation.
Richard Wheeler, president, ABA -PGT Inc., Manchester
The consequence of adopting the above measures would make already expensive workers' comp insurance prohibitive, and put some of us out of business.
Candace Benyei, Ph.D., president, Whimsy Brook Farm Ltd., and hospital administrator, Schulhof Animal Hospital LLC., Redding and Westport
Costs are rising in all areas: energy, health care, raw materials and even food. This additional burden hampers our ability to hire and to run our business as efficiently as the business environment in Connecticut demands.
Chris Jones, president, Connecticut Valve & Fitting Co., Shelton
As it stands now, Connecticut has one of the richest Worker's Compensation programs in the nation, and making them even richer will cause more companies to be forced out of state. We make all of the OSHA related upgrades as they come out, and that is a costly proposition. We do it because we care about our people, and want to keep them safe. Safety is our top priority. If you increase the benefits, it will help to create an environment that will promote employees to stay home needlessly, and not come back to work for longer periods of time because they will have the funding to do so.
Lois Krause, human resources manager, Capewell Components, South Windsor and Cromwell
These proposals will substantially increase our costs and administrative burdens in handling workers' compensation claims for our employees, especially in an economy that is already in a slow down and/or recession and we are being forced to reduce operating cost and overhead to meet our financial obligations. If some or any of these measures are adopted, our company may be forced to reduce its workforce which would be detrimental to our company, and our local and state economies
Tony Soegaard, president, Penmar Industries Inc., Norwalk
Manufacturing in our state has become a particular challenge in recent years due to high taxes, regulatory and energy costs, a high cost of living (and therefore high wages) and shortage of an appropriate workforce. Some of these factors have led many companies to leave our state for others that are more business friendly, or outsource their manufacturing. Based on how vital our industry is to the state's economy, it would seem to make sense that our legislators would do everything in their power to reduce these barriers rather than take actions that will drive more companies to leave. A strong manufacturing sector will improve the standard of living for our residents. Our costs are already among the highest in the country and increasing them would provide more of an incentive for manufacturers to leave and others that we might add to choose other locations.
Bruce Dworak, owner, Hobson and Motzer Inc., Durham
"Businesspeople are speaking loud and clear — these workers' compensation proposals will have a negative affect on companies, Connecticut 's employees and their families, as well as the state's economy,” said Stewart. “We urge legislators to listen to these concerns and vote against these anti-business proposals and take actions to encourage and reduce barriers to economic growth in Connecticut —because we're all in this together.”
CBIA is the state's largest business organization, with 10,000 members.
