Letters Letters (May 14, 2004)

Applauding Workers' Comp reform

Editor,

California, which usually accounts for 10 percent of the U.S. job growth, contributed just 5,200 new jobs or 1.6 percent of the national total in March. Any explanation must include the workers' comp system, as employers up and down the state admitted eliminating jobs or consciously avoided adding new jobs in order to avert huge rate increases.

For more than a year, lawmakers in Sacramento have grappled with a broken down, 91-year-old system plagued with the highest insurance premiums in the nation. At the same time, the benefits paid to injured workers are among our nation's lowest. But one year later, with a new governor and a better-organized business community, the intense lobbying and pleading with lawmakers finally paid off.

In a huge win for California businesses and workers, Gov. Schwarzenegger signed into law sweeping workers' comp reform legislation. Democratic Senate President Pro Tem John Burton described April 16 as a "historic day" when all but six of our state's 120 legislators voted to approve the landmark reforms.

Business leaders are applauding the legislation that will cut an estimated $4 billion to $6 billion out of the system. It is predicted that employers can anticipate relief from sky-high premiums, possibly by as much as 25 to 30 percent.

This is welcome news and a big step toward building a positive business atmosphere in California. Gov. Schwarzenegger has done what few ever expected, fostering cooperation, conciliation and compromise in Sacramento - all in the service of making the state work again. David BouchardPresident & CEO, Pleasanton Chamber of Commerce

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