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Research paper on workers compensation 1

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Research paper on Workers Compensation

Your Name

Pa University

Professor
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July 31, 2009
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Abstract

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Workers compensation is an insurance system that issues cash payments and providing

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medical care for the people who get injured or died during their work time. This is given

them to for the purpose of the compensation to avoid them to file a case against the company.

This is a system which boosts the confidence of the workers regarding work processes and

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vanish their threat of getting injured or some other incidence. Similarly it also tells us that the

drawback of this system is the false claims and boosting costs of the firms. There are many

strategies are being used like case management and the precautionary treatments to reduce
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the cost of worker compensations. In this research paper we focus on the California steals

industry that provide a major share of steel production to the world, this is the company
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which provides heavy workers compensations to get high morale of the employees.
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Workers Compensation:

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It is an insurance system that issues cash payments and providing medical care. These

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payments are regardless of fault, to employees who are injured, disabled or died during the

course of their employment for their compensation and to reduce the threats of the sue against

company. State law requires the benefits be paid.

History of Workers Compensation: Pa
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Workers' compensation laws were first developed during the early 1900s when industrial age

was grooming and there were a developing industries and it resulted in growing numbers of

industrial injuries. Before these laws were developed, workers injured on the job often were
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not treated well and compensation was not granted when an employee got injured due to the

industry operations or due to the machinery used in the factory from their employers or from
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the peer workers. In 1910, representatives of various state commissions met at a conference

in Chicago and they drafted the Uniform Workmen's Compensation Law. Although this law

was not adopted properly, this uniform law became the basis for state workers' compensation
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laws and regulations. Till 1963 almost in all the states of USA these laws were adopted.

Strengths and weaknesses of the Workers Compensation:

The workers compensation system is basically a system and law that was developed for the

benefits of the employees. Indirectly it has potential benefits for the industry too. It is obvious



when you have happy and satisfied employee without any type of external threat like

medical, causalities and incidents within a workplace, then the company has more chances

for the maximum output within the limited resources, time and budget. As the happy

employees always has a higher motivation level and affection towards their work and towards

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their company. They feel for their company and work efficiently and effectively. If we see it

on other side of the coin, we will find this system as an extra cost to the company except pays

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and expenses. The employers are obliged to pay for it. That increases the overall cost of the

manufacturing and decreases the company’s profits. Similarly in the worker’s compensation

system all you have to prove is that you were at the work place. The workers compensation

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does not testify that you may have been on fault or not; if a worker gets injury at the work

place then he is entitled to be given worker compensation. That is also a point which is
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widely misused by the employees at the work place. That is to be considered as the major

weakness of this system which does not only increase cost but also an unethical behaviour

among the employees.
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Relevancy and the current trends of the Workers Compensation:
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Many of the workers compensation claims are legitimate. But they are lacking witness and

other required things. Due to above mentioned weaknesses of this system; new trends were

developed in the market. These new practices are basically to reduce the false claims and
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investigating truly deserving employees for the claim approvals. In some of companies such

practices are launched that reduces the accident causalities and the health problems related to

the work place. For this purpose the manufacturing plant, environment and other factors are

closely observed and use the possible precautionary measurements to reduce the impact on

the health. For example use of gloves, special dresses at the places where germs attack rate is

higher. Similarly boosting cost is also be controlled by the use of the case management. It is



an increasing popular cost-control option. It is the treatment of the injured employees on a

case-by-case basis by an assigned manager, usually a registered nurse, who coordinates with

the physicians and health plan to determine which care settings are the most effective for

quality care and cost. In all these processes the relevancy of the current actions with the

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worker compensation laws should be regulated.

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The Martin Marietta Corporation & analysis on the outcomes:

California Steel industry is the only West Coast steel supplier manufacturing five different

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product lines: hot rolled, pickled and oiled, galvanized and cold rolled sheet, and electric

resistance welded pipe. In most of its product groups, they have the broadest production

capabilities on the West Coast. They compete with other western U.S. steel manufacturers,
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domestic suppliers from east of the Rocky Mountains, and with imported steel from around

the world. In the previous years, steel industry is such a field in which the chances of the
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accidents and the other causalities are very familiar. The CSI is one the industry that provides

heavy compensation to its employees and workers if they get any type of causality during
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work hours. It is because if they do not do so, then an example would be set that CSI does not

give compensation to the employee for the injury or to his/her family for the death then

employee moral would go down. And most of the workers would not like to work for CSI.
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Similarly they would avoid going near fire, hot iron and etc. This way the efficiency and the

productivity can be affected. For this reason the CSI provides heavy workers compensations.

California steels industry says that they are committed to quality, productivity, teamwork,

and the betterment of our company. They offer a competitive compensation and benefit

package. Employees share in the success of our company, through their profit sharing

program and workers compensation. By using such statements and benefits, CSI actually



encourages the workers to work for them. As there are huge benefits, some employees were

misusing these benefits. That was increasing cost for the CSI. So the CSI has launched case

management system for the claims of the causalities to reduce false claims. It is helping them

to reduce major cost. Similarly the company has also provided the workers with the special

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dresses to be save from the fire and heat. That is also increasing workers confidence for the

work atmosphere and by these means the CSI is progressing a lot and having a large number

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of satisfied workers relative to other competitors and industries.

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References

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Books:

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P. S. Barth and H. Hunt, (1980) Workers' Compensation and Work Related
Illnesses and Diseases

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A. Millus et al., (1980) Workers' Compensation: Law and Insurance.

Websites:
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http://www.californiasteel.com/index.php
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http://www.californiasteel.com/index.php?c=employees&p=index

http://www.californiasteel.com/GetPublicFile.aspx?id=64
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