03-28-2008

Rep. Ernie Shand
802-674-5021

Recently, my committee, House Commerce, received Bill S-345 from the Senate. This bill relates to lowering the cost of workers’ compensation insurance. We took testimony on this topic earlier in the session in anticipation of receiving S-345. In the upcoming weeks, we will explore ways to keep Vermont workers safer. We also will explore the nexus of how safer workers will save Vermont employers premium costs.

The Workers’ Compensation Program was established by the Vermont General Assembly in 1915 to compensate and protect employees who suffer personal injury by accident arising out of and in the course of employment. It also protects employers by limiting their exposure to lawsuits from an employee who receives workers’ compensation for on the job injuries. Although many Vermont employers recently have received an average reduction in premium rates of 4.2%, many premiums are quite high. Vermont still experiences a higher number of workplace injuries than many other states. This experience is a major factor in creating an upward pressure on premiums. The deployment of safety training and measures by Vermont employers and industry and trade associations has helped to reduce the frequency of workplace injuries. Work place safety is the most effective way to reduce workers’ compensation costs. No one will have to pay a hospital bill for an accident that didn’t happen. 
An example of a high premium industry is Vermont’s dairy farms. As we look at specific agriculture practices, we are finding that farm employees who deal with “hoofed animals” seem to have more workplace accidents that are more serious when compared to vegetable farmers and others in the agricultural sector. Premium costs for employers of dairy farms are increasing on average because of the frequency of claims and the extent of claims (serious injuries and deaths). Premiums are higher because the risk is being shared by a decreasing universe of farmers as the number of dairy farms that have employees has decreased. In 2007, there were two dairy farm worker deaths. These deaths will probably adversely affect workers’ compensation premiums for the next few years.
About five years ago, the Vermont Ski Association successfully lobbied its members to institute safety programs for the ski industry. They are currently enjoying modest decreases and stability in workers’ compensation premiums. This is an example of how safety programs can save particular industries money. The Committee feels the need to enhance and encourage implementation of safety training programs in other industries and occupations in Vermont.

I am always glad to hear from constituents. My Legislative e-mail is eshand@leg.state.vt.us  the snail mail address is 115 State Street, Montpelier, VT 05633-5201. You can call the Statehouse and leave a message with the Sergeant at Arms 1-800-322-5616 or 802-828-2228. My home phone is 1-802-674-5021. My home mailing address is 46 Old Bridge Rd., Weathersfield, VT 05089-0965.