The workers’ compensation bill signed into law by Gov. Arnold
Schwarzenegger on Monday, could mean more jobs and more money for
San Benito County, local politicians and business owners say.
The workers’ compensation bill signed into law by Gov. Arnold Schwarzenegger on Monday, could mean more jobs and more money for San Benito County, local politicians and business owners say.
It can tighten up the loop holes within the system, curb abuses, give better oversight, save money and bring business back to the state, said Brad van Dam, CEO of Marich Confectionery in Hollister.
“There’s a lot of ifs,” he said. “I remain skeptical – I have to see it first, but it has all the makings.”
Marich has seen a 433 percent jump in workers’ compensation costs over three years, so van Dam protested the best way he knew how … in chocolate. Before the bill passed, he sent the State a 10-pound chocolate bar with a huge bite taken out of it to represent the money he loses each year in workers’ compensations costs.
State Sen. Jeff Denham, R-Merced, voted in favor of the measure he believes will save millions of dollars for California’s businesses and create a positive climate for new jobs.
“This legislation is not perfect, however it is a good first step,” Denham said. “It is important for San Benito County and the entire state.”
If it does what it is intended to do, the reform should result in lower costs to farmers, both small and large businesses, and help provide job growth, he said.
The reform aims to lower the exorbitant insurance premiums employers are required to pay, along with setting a higher standard of proof for workers claiming to be injured on the job.
The bill will have to be monitored closely, especially concerning California’s farm workers, Assembly member Simon Salinas, D-Salinas, said.
Back pain related to stooping and picking up heavy objects is not easily diagnosed by medical tools.
“Back (injuries) are an area we will have to monitor and make sure they get the appropriate care,” Salinas said. “I hope we’ll deal with some of the issues like these.”
Salinas agreed that the state could greatly benefit from the package as long as it is used correctly, he said.
Van Dam watched his workers’ compensation skyrocket up 433 percent from 2000 to 2003; from 3 percent of his total wages to 16 percent. That prompted his sweet protest.
Van Dam’s 10-pound bar of chocolate signified his total wages. He cut out a small piece to signify the 3 percent, and then a large chunk to show the significance of the 16 percent.
“I designed it to show the governor and anyone else who cared a tool to show people what this really means,” van Dam said. “It’s not some partisan garbage – this is what it’s really doing to our business.”
Workers’ compensation is the single most expensive cost other than raw materials van Dam has. He now pays per month what he paid per year four years ago, he said. The bill has the potential to turn California’s business environment around 180-degrees, van Dam said, if it does what it is intended to do.
