Alternative dispute resolution for unionized employers expanded to other industries

Minnesota legislation passed in May gives more employers and employees the ability to alter workers' compensation statutory obligations through union collective bargaining agreements. Now, all groups of unionized employers that meet premium or self-insurance requirements may participate in the program.

Previously, such arrangements were limited to employers engaged in construction, construction maintenance and related activities.

Officials at Wilson-McShane Corporation, third-party administrator of the negotiated program for the construction industry, said they are not aware of any other industries that have taken advantage of the change in state law.

"I've discussed with both public and private employers and their unions the advantages of using negotiated workers' compensation programs for their industries or workforces, but at this time I am not aware of any other industries that are close to having a program in operation," said Kevin Gregerson, director of workers' compensation programs at Wilson-McShane.

"Since the concept of negotiated workers' compensation programs is relatively new and can be difficult to understand initially, it usually requires the employer or the union to explore it in depth before they see the benefits and are willing to invest in the time and expense of developing a program," Gregerson said.

The program includes an alternative dispute resolution process that encourages faster claim settlements, thereby reducing the amount of indemnity benefits paid while waiting for a hearing in the statutory system. It also offers a network of medical providers who understand occupational medicine and are focused on returning injured employees to work as soon as medically possible.